investments in innovation and will be reswponsible for their ma nagement in the future Horizontal Priority 2 †Support for the inovative companies from the Northeast
1) Stimulating business investment in research;( (2) Bridging business and public research;( (3) Low technology transfer rates
investment for reaching critical mass 1 2 3 90 24 billion Euro Smart specialisations identified in the foresight exercise include
investment As a result of the strategy, public funding for R&d grew substantially and consistently for several years.
-an investment model for the RDI ecosystem (including a Plan for the implementation of the Strategy and an Operational program for RDI
the sustainability of investments in RDI 8 Data on all publicly-funded competitive Romanian RDI projects over the last 7-8 years (over 6, 000;
R&d investments. Regarding this second issue, although counterintuitive, there is empirical evidence that the â€oefunded firms are significantly more R&d active than non-funded firms†(Aerts, 2008
R&d investment in China. International Review of Economics and Finance, 19,180-188 Hausmann, R.,Hidalgo, C a.,Bustos, S.,Coscia, M.,Chung, S.,Jimenez, J. et al,(2011.
Thematic objectives and investment priorities...69 V. 3. Optimum policy mix and possible budget requirements...
Annex 2 †Decription of regional investment pilot initiatives...93 Annex 3-Use of Integrated Territorial Investments for sustainable development of the
West Region...101 3 List of Figures Figure 1: Romania's GDP per capita as%of EU average (PPP, current international $)..16
Productivity and investment growth (2000-2009)..19 Figure 4-Population Growth Index (2002-2011)..20
Overview of the investment strategy and main funding sources...80 Table 19-Examples of investment pilot initiatives...
83 Table 20-Actions to be supported under the investment priority...84 Table 21-Overall outline and time frame for the development of smart specialization strategy in the
West region...86 5 Executive Summary I. The aim of the Europe 2020 Strategy, launched in 2010,
Investment priorities can be tailored to the particular needs of the region and can be promoted with regional initiatives.
which illustrate how investment can foster smart specialization in the region. These investment projects have not been appraised nor endorsed by the
World bank. This list should be considered as merely illustrative XII. Overall, the policy instruments presented in this report constitute potential avenues for
and local investments can support the West Region in developing an integrated smart specialization strategy and in concentrating resources in the most
Second, it sets investment priorities that are tailored to the particular needs of the local industries and
Third, it proposes a number of specific investment projects. While presenting directions for increasing the economic development of the region based on
which illustrate how investment can foster smart specialization in the region 8. The report is structured in five chapters following this introduction.
policy provides a framework for financing a wide range of projects and investments with the aim of
Structural Investment (ESI) funds for 2014-2020, which encompasses European Regional Development Fund (ERDF), the European Social Fund (ESF), the Cohesion Fund (CF), the European Agricultural Fund for
to be translated into specific investment priorities12set out according to the ESI Funds specific rules 21. As part of the Cohesion Policy for the 2014-2020 programming period, smart specialization has
achieved mainly through the following investment priorities under TO1: i) promoting business investment in innovation and research;
ii) developing links and synergies between enterprises, R&d centers and higher education, in particular product and service development, technology transfer, social
Promoting investments under TO3 is crucial in order to enhance the results achieved under TO1 22. Against the Cohesion Policy backdrop, the European commission has sent recently position
The horizontal TO11 is essential for underpinning the investments promoted under the remaining TOS 11
Investment priorities set out detailed objectives, which are not mutually exclusive, to which the funds shall contribute.
These investment priorities should form the basis for the definition of specific objectives within programs
support and investments on key national or regional priorities, challenges, and needs for knowledge -based development.
-based innovation and aim to stimulate private sector investment. These policies, which are evidence -based and include sound monitoring
investment. Over the previous decade, the West experienced the highest growth in output per worker
It is worth noting at this stage that productivity growth is assumed not to be determined only by investments in
Productivity and investment growth (2000-2009 Source: Calculations based on data from Eurostat: Gross fixed capital formation by NUTS 2
contributed to significant investment and job creation, but has played an important role in integrating the West Region ever more tightly into the European economy
and apparel company established in Timisoara in 1995 through foreign investment from Italy While they initially produced basic items like cotton t-shirts and bags,
Increasing dominance of foreign direct investment (FDI) with weak links across firms and to local suppliers
European union, the West benefited significantly from the rush of foreign investment into the country Component suppliers linked to Germany†s automotive sector,
in particular, made heavy investments in the West during the early part of the 2000s. This was based primarily on a simple strategy of leveraging
became almost exclusively a story of foreign investment. Today, more than half of automotive firms in
recipient of foreign investment in the country, behind Bucharest, Centre, and South Muntenia. 34 71.
investment and now operate multiple facilities in the region. Yazaki has made the West Region its supply
intensive assembly operations with investments in R&d center Figure 32: Scope of Firms with Foreign Ownership in the West Region (2010
investments in skills formation, or other business development services 77. The World bank â€oesmart Specialization Case studies Report†has examined in detail the
result of the retrenchment in private sector investment, the government has become one of the most
administrative capacity for complex investment tourism-related projects, and the lack of regional integrated tourism products to be sold on local and foreign tourism markets
it will propose investment priorities that best fit the specific development needs of the West Region,
supported under these investment priorities IV. 2. Horizontal policy areas that impact West Region economy
This will require investments to improve the links between universities (as well as vocational training facilities) and employers.
investments in promoting disciplines and skills that are likely to be the cornerstones of the region†s
Lack of investment in lifelong learning makes the region†s labor force unable to adapt to changing skills requirements resulting from
Recent investments by some of the existing large automotive companies to establish second plants in Hunedoara
reimbursements for investments pre-financed by the company may extend past the date specified in the
amount for the necessary investments, or it takes advantage of the EU resources and invests only some
•The Investment Portfolio Review Committee has responsibility for overseeing the management of Enterprise Ireland†s investment portfolio and for maintaining an oversight of
the investment activity of funds supported by Enterprise Ireland under the various seed and venture capital programmes
•The Innovation Fund Ireland Committee considers and recommends to the Board applications for funding under the Innovation Fund Ireland Scheme
Closing the gap on financing for the acquisition of productive investments in new technology and machinery plays a key role for the textile sector.
or better financing terms on productive investments, especially on acquisitions of new technology and machinery
listed in Chapter 5 (and presented in Annex 2) as part of a set of potential investment pilot initiatives
investment projects, etc Lack of adequate road infrastructure and transport connections particularly between business areas
Development of regional investment funds (see chapter 5 and annex 2 Improving the institutional framework supporting innovation
investments, especially on acquisition of new technology and 64 manufacturing The labor force currently employed in the sector is aging
development would require substantial investments in the West region. In the context of the Europe
investment in R&d in the region should be around 160 million Euro in 2020, a substantial increase from
investment priorities tailored to the particular needs of the local industries and proposes actions that
infrastructure investment priorities are eligible for EU co-financing in the 2014-2020 period only if linked
the priority axis and the investment priorities that can be promoted at the regional level and proposes a
number of specific investments V 1. Thematic objectives and investment priorities 140. Out of the eleven TOS defined by the EC, five fit best the specific development needs
of the West Region. Investments priorities to be identified in the next subsections can be financed from different ESI funds, including the ERDF.
Whereas, investments promoted at national level, through other programs, can also be implemented, the current proposal focuses on investments that can be financed
with regional initiatives Thematic Objective 1: Strengthening research, technological development and innovation 141. The need to strengthen research,
technological development and innovation is motivated by the low level of R&d expenditure in the West Region-only 0. 22%of regional GDP in
but such investments are still at early stages. Further investments are needed to support business research and innovation, to develop linkages and synergies between enterprises, and
to improve R&d infrastructure in the region 142. The automotive, textiles, ICT, and agro-food sectors,
This would require complementary investments in spa and wellness tourism, ecotourism and active tourism, which can be financed under the TO6.
investments in research, development and innovation, through the creation and consolidation of specialized institutions, such as regional agencies for economic development or regional agencies for
Such solutions can include the creation of investments funds with joint support from EU funding.
investments in educational infrastructure should be sustained through ERDF measures. These partnerships can be envisaged as self-sustained projects, or as
part of integrated projects for investments in research and innovation Thematic Objective 11: Enhancing institutional capacity and an efficient public administration
investments. One or more administrative bodies are needed which can coordinate investment implementation and can oversee a rigorous process of monitoring and evaluation.
Moreover institutions such as technology transfer offices can support the smart specialization strategy by promoting private sector collaboration with universities and RDIS
investment priorities envisage a mix of interventions aimed at (i) fostering the research and innovation
investments 156. Priority Axis 2: â€oeprotect nature and culture assets of the region, while exploiting the
In this regard, investments priorities are designed to leverage the natural and cultural heritage of the region, including the historical urban centers and sites
Productive and â€oesmart†investments can only be complemented successful if with adequate interventions to ensure an appropriate skills match.
Besides soft measures, investments in educational infrastructure have to be continued in order to ensure equal access to education standards of a high standard
The specific objectives and selected investment priorities identified under these three priority axes are described in the following subsections
The first investment priority under this axis is to enhance the regional research and innovation infrastructure and to promote centers of competence.
investment priority are to:(i) increase the research and innovation capacity of the region aiming to
investments, and need to be exploited better and enhanced to promote the smart specialization of the region.
Under this investment priority projects that promote meetings and encourage connections between enterprises will be prioritized, particularly collaborative
The second investment priority encompasses two goals: to promote business investment in innovation and research,
and to develop links and synergies between enterprises research and innovation centers, and higher education for the development of products and services
The specific objectives of this investment priority are to:(i Promote the transfer of knowledge and innovation in regional economy;
The technology parks already active in the region would benefit from investments in upgrading. This would support the development of the existing research potential and promote
investments in research and innovation that could generate products and services with high added value.
investment priority can include: support for the incorporation of ICT in the tourism, textile and agro
The third investment priority under the current priority axis is to support SME growth and help companies increase innovation capacity.
The specific objectives of this investment priority are to:( (i) contribute to the EU 2020 strategy by increasing the level of employment;(
Measures financed under this priority investment will aim to support SMES to develop their capacity for technology adoption and innovation.
investment is the creation of an agro-food stock-exchange center. By expanding the access of small
The fourth investment priority is to enhance the growth potential of the rural areas by investing in the agro-food sector.
The specific objectives of this investment priority are to:(i) improve the competitiveness of the agricultural sector;
on-farm investments, financing for processing, marketing and development of agricultural products and investments in support infrastructure;
and (ii) facilitating generational renewal through business start -up aid for young farmers50 169. Measures under this investment priority should also promote food chain organization
and risk management in agriculture by:(i) better integrating primary producers into the food chain through support for quality schemes, promotion in local markets, horizontal and vertical cooperation
and (ii) assisting farmers with risk management and financing investments in preventive and restoration actions 170.
The fifth investment priority aims to support the development of innovative finance capacity. The specific objectives of this investment priority are to:(
i) create new financial mechanisms to accelerate economic development; and (ii) create a regional development fund
Fund, a financing mechanisms which focuses on investments in SMES located outside the country's capital
The Fund's 30 million USD portfolio comprises investments in fishing, fruit concentrate production, ecotourism hotels, and furniture
As one of the main problems for investments at SMES level represents the lack of
fund could act as a manager for investments in SMES located in the West Region, and can administrate
combined interventions of reimbursable funds and grants for productive and innovative investments under the umbrella of the Regional Operational Programme.
The sixth investment priority is to develop an institutional framework to support innovation in West Region.
The specific objective of this investment priority is to ensure the management of smart specialization investments
173. Establishing an innovation center at the regional level which can play a key role in the
investments requires an administrative entity that can coordinate, monitor and evaluate investment progress, in order to identify potential bottlenecks
and find appropriate solutions. In this context, the goal of an institutional framework to support innovation in West Region is to ensure the effective and
This investment priority could be financed through ERDF and/or EARDF 76 efficient commissioning and implementation of smart specialization investments,
and to maintain dialog and coordination with regional actors and with national authorities 174. In this context, an innovation center for the West Region could act as an agency on
continuity and expansion of smart specialization investments, as well as their coordination and synchronization with other instruments or policies.
The first selected investment priority under this priority axis is to protect, promote and develop the regional cultural and natural heritage.
The specific objectives of this investment priority are:( (i) the restoration and sustainable use of the cultural heritage and the modernization or
The second investment priority is to protect and restore soil and biodiversity and to promote ecosystem services including NATURA 200051 and green infrastructure.
of this investment priority is to protect and promote the bio diversity of the national parks of the West
The first investment priority under this priority axis is to improve the skills and competences of the labor force in order to best meet market needs.
investment priority are:(i) increasing the share of population with tertiary education; and (ii encouraging the access to professional development,
future investments. In this respect, adapting theoretical education and vocational training to the demands of the labor market, increasing the relevance of the educational and vocational training offer
The second investment priority under this priority axis is to invest in education, skills and lifelong learning by developing education and training infrastructure.
investment priority is the rehabilitation, modernization, development and expansion of pre†university university education and continuous vocational training infrastructure
Investments that have started under the current period should continue in order to build an appropriate educational infrastructure endowment at the level of the region
In addition to the investments priorities under the overall priority axes described above, local road and transport infrastructure has emerged as a key issue for the competitiveness of
investment priorities are eligible for EU co-financing in the 2014-2020 period only if linked to a national
At national level, investment priorities could concentrate on supporting (i) the national institutes for research and development, structures under the
regional level, the investment priorities could concentrate on regional competitiveness enhancement and smart specialization and need to envisage a mix of interventions aimed at (i) fostering the research
sustainable investments. The projects to be financed under these two thematic objectives have to be in
and CF, supports both national and regional investment priorities. At national level, the priorities could
while at regional level, the investment priorities could concentrate on investments financed from ERDF, such as protecting, promoting and
developing cultural and national heritage as well as the preservation of biodiversity through the proper implementation of management plans.
investment priorities. At national level, these investment priorities could concentrate on type of actions which can be supported by the ESF,
and at regional level on ERDF type of interventions, such as upgrading and modernizing education infrastructure.
The detailed program overview, including specific objectives for each investment priority are presented below, along with the potential financing sources which can include national
Overview of the investment strategy and main funding sources Priority axis Thematic objective Investment priorities Specific objectives corresponding to the
investment priorities Financing resources /programme 1. Regional competitivenes s enhancement and smart specialization TO1. Strengthening
research technological development and innovation 1. 1. Enhancing R&i regional infrastructure and capacities to develop R&i and
increasing the investments in research and development Increase the research and innovation capacity of the region aiming to create new
investment in innovation and research and developing links and synergies between enterprises, R&i centers and
increasing the investments in research and development Promote the transfer of knowledge and innovation in regional economy
increasing the investments in research and development Contribute to EU 2020 strategy by increasing the level of employment
Priority axis Thematic objective Investment priorities Specific objectives corresponding to the investment priorities Financing resources
/programme of innovative finance capacity for regional development supporting economic development Create the Regional Development Fund
specialization investments National local and EU funds from West Regional Operational Programme or Technical Assistance
Priority axis Thematic objective Investment priorities Specific objectives corresponding to the investment priorities Financing resources
/programme 3. Education for all at high standards TO 10. Investing in education, skills and
extent, the implementation of investment projects. The table below lists 14 examples of competitiveness and smart specialization investment pilot initiatives that could be developed and
implemented starting with 2014. These investment projects have not been appraised nor endorsed by the World bank. This list should be considered as merely illustrative.
Additional details regarding these potential pilot initiatives are provided in Annex 2 Table 19-Examples of investment pilot initiatives
1. Innovation center for the West Region which could play a key role in the promotion of the innovative potential
proposed actions respond to each investment priority, along with the best modalities to finance projects under each investment priority,
and suggests types a set of general results indicators 53 Established at the national level as part of the EU 2020 Strategy
Table 20-Actions to be supported under the investment priority Investment priorities Proposed pilot initiatives Guidelines for
selection of operations/Financial instruments Results indicator 1. 1. Enhancing R&i regional infrastructure and capacities to develop R&i
investment in innovation and research and developing links and synergies between enterprises, R&i centers and
investments, investments related to the processing marketing and development of agricultural products or investments in infrastructure
for the development and adaptation of agriculture Better integrating primary producers into the food chain through support for quality
Investment priorities Proposed pilot initiatives Guidelines for selection of operations/Financial instruments Results indicator 1. 5. Supporting the
specialization investments Number of institutions created No of institutions supported 2. 1. Protecting, promoting and
Investment priorities Proposed pilot initiatives Guidelines for selection of operations/Financial instruments Results indicator Development of technical
Key actions Investment priorities Time frame I. Improve the institutional framework supporting innovation Create the institutional framework for
1. 2. Promoting business investment in innovation and research and developing links and synergies between enterprises, R&i centers
Design the investment fund project by mid of 2014 using TA funds from the current
programme Setup the investment fund -end of 2014 87 III. Priority Axis 2 2. 1 Protecting, promoting and
Correlate the investment priority with the Human resources Programme financed under European Social Fund and with the
terms on productive investments, especially on acquisition of new technology and machinery as a way
investment priorities were identified. In order to help meet the goals of the EU 2020 strategy, these investment priorities aim to:
increase financing in research, development and innovation process in the West Region (priority Axis 1;
These investment projects have not been appraised nor endorsed by the World bank. This list should be considered as merely illustrative
Annex 2 †Decription of regional investment pilot initiatives The table below lists 14 examples of competitiveness and smart specialization investment pilot
initiatives that could be developed and implemented starting with 2014. These investment projects have not been appraised nor endorsed by the World bank.
This list should be considered as merely illustrative Pilot initiatives Brief overview 1. Innovation center for the West Region which
and evaluate investment progress in the region, in order to identify potential bottlenecks and find appropriate solutions.
specialization investments, and to maintain dialog and coordination with regional actors and with national authorities
innovative investments Innovative software applications would greatly also enhance the competitiveness of the tourism sector Note:
public-private infrastructure investments and guide the available funding towards innovative projects The establishment of a development fund for
Annex 3-Use of Integrated Territorial Investments for sustainable development of the West Region For the 2014-2020, the European commission has proposed new instruments that can be used
One of these instruments Is integrated the Territorial Investment (ITI), which is defined as being a territorial development tool that enables the implementation of a territorial strategy in an integrated
Integrated Territorial Investment for Timisoara †Arad growth pole. Under the current EU financed program-Regional Operational Programme 2007-2013, Timisoara and Arad are considered
Integrated Territorial Investment Jiu Valley. Jiu Valley can become a flourishing area if appropriate measures are taken.
and low level of attractiveness for investments bearing a permanent declining since 1990. Integrated measures are needed to ensure the regeneration of the region, focusing on:
and promoting investments under different operational programs, as part of the regional development plan for the
o An increase of investments in research concerning ICT o Promotion of a comprehensive information society
The announced investments by companies as Infineon, Motorola, Nokia or Ruwel in research-development centers in Romania are relevant for illustrating the potential of
destination for foreign investments Broadband communications as facilitator of ICT development favors the creation of new working places and an increase in GDP/inhabitant, estimating that between
Volume of investment can reach a reduction because of the current economic crisis ï¿The lack of a common approach at government level for implementing
In this way private investments shall be encouraged, competition and reduction of prices shall be promoted as a result of the competitive level
new broadband communication demand, that shall justify investments in infrastructure and the circle starts from the beginning
Also, with a view to assess the dynamics of investments in infrastructure projects of broadband type we shall monitor the number of projects and the related
private investments with internal, but mostly external resources
  Parliament of Romania Chamber of Deputiesâ COMMITTEE FOR INFORMATION TECHNOLOGY AND COMMUNICATIONS Third Parliamentary Forum on Shaping the Information Society
negative impact on growth, trade, investment and employment across the globe and untold social and human consequences.
to stimulate investment in an open and competitive infrastructure for high-speed Internet and related services
the investment in next generation networks, a European action plan for spectrum and technological neutrality of networks
The scale of investment in this field, especially the rapid expansion and ability to induce a multiplying effect on economic growth, particularly
is developed well in major cities due to private investment, it is poor in rural areas and therefore the priority is to stimulate supply
years, a particularly dynamic progress based on structural investments in established technology development and rapid adoption of innovations
developing a friendly environment and competitive market for investment in digital television services, ensuring: the compliance of pluralistic expression of ideas and
•Increased efficiency of investment in electronic public services •Preparation of European and international governance based on electronic
 investments  are  behind  expectations  In- †volved  actors
 investments  will  require  considerable  and  timely  efforts  It
 investments  into  â€oesmart  grids† † whatever  might  specifically
 investments  into  appropri- †ate  capacities  for  balancing
 investments  in  these  technologies  independently  from  public  grid
 investments  are  still  difficult  to  be  identified  and
 investments  which  lead  into  the  direction  of  smarter
 investments  to  define  or  restructure  responsibilities  for  data
 investments  in  smart  grids  and  transmission  Its  positions
 investments  While  Italy  invested  â  2150  million  (mostly
 investments  in  Eastern  Europe  were  mostly  negligible  with
 investment  requires  new  definition  of  roles  All  this
 investments  in  smartening  the  grids  The  Danish  en- â€
investment  is  still  an  open  challenge  The  discussion
 investments  Smart  meters  Italy  has  been  a  pioneer
 investments  in  grid  infrastructure  and  generation  are  necessary
 investment  into  the  grid  system  have  led  to
 investments  vary  widely  but  show  the  dimensions  while
investment  in  smart  distribution  grids Â- † Experience  in
Investments  Toward  Customer- †Side  Solutions  Regulatory  Assistance  Project
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