Competitiveness through innovation for the Romanian Economy. IP activity and its effect on competitiveness

• Author: Drumea C.
• Pages: 391-398

Bulletin of the Transilvania University of Braşov

Series V: Economic Sciences • Vol. 8 (57) No. 2 - 2015

Competitiveness through innovation for the Romanian

Economy. IP activity and its effect on competitiveness

Cristina DRUMEA1

Abstract: This paper aims to study the way that the efforts put into increasing one of the

most significant competitiveness pillars (innovation) and results (especially Patent, Marks

and Designs production and application) correlate for the Romanian economy in the last

decade. We will then use as effort indicators the R&D expenses and the Innovation costs, as

reported by the National Institute of Statistics and as result indicators we use the number

and provenience of Intellectual Property (IP) activity registered with World Intellectual

Property Organization, as well as GDP.

Key-words: innovation, competitiveness, patent application

1. Introduction and literature review

It is well known that competitiveness and innovation are linked in a natural as well as

sophisticated way, meaning that unsurprisingly innovation brings competitive

advantage, but also leading potential, in a word superio rity on different aspects. Within

a dynamic and strongly competitive marketing environ ment, the most important

requirement for the success […] is competitiveness (Madar and Neacşu, 2013).

The development of SMEs plays an important role, these companies create a

competitive environment and contributes to the correct distribution of revenues

within the economy (Bărbulescu, Hapenciuc, Moroşan, and Costea, 2015). How

much of the innovative potential of a national economy can be stimulated thru

public policies and how much of it resides naturally within populations abreast it is

difficult to discern. However, we will assert to demonstrate a faded link between

R&D public efforts and a quantifiable increase in competitiveness due to these

“stimulating” policies.

We shall start with a literature review on two aspects, as revealed by the scope

of the paper, namely: on competitiveness and its indicators, as well as on innovation

linked to productivity increase. The understanding of innovation as a key driver to

competitiveness has its roots in the works of Schumpeter, who described market

1 Faculty of Economic Sciences and Business Administration, Transilvania University of Brasov,

cristina.drumea@unitbv.ro