Knowledge Transfer And Competitiveness Through The Cohesion Policy, In Romania

Knowledge transfer and competitiveness through the Cohesion Policy, in Romania

Stepan Oana Maria *, Beldiman Dumitru **,

* PhD candidate, University of Craiova, Doctoral School of Economic Sciences, e-mail: [anonimizat]

** PhD candidate, University of Craiova, Doctoral School of Economic Sciences, e-mail: [anonimizat]

Abstract

Cohesion policy aims to eliminate the economic, social and territorial disparities at the community area. To achieve this goal, the policy uses specific tools, represented mainly by the structural funds and cohesion funds. Through these funds, the policy finances, in Romania, funding programs, which will contribute to both knowledge transfer, as well as at the transfer, consolidation and increasing the competitiveness of the Romanian economy. Strengthening and increasing competitiveness, either at macroeconomic or microeconomic level, is one of the main objectives of cohesion policy in Romania that had been developed in the past programming period 2007-2013 and was pursued in the 2014-2020 programming period, both with knowledge transfer. Regarding the notions on "competitiveness" and "knowledge transfer" can be said that both are very hard to define, since they can be used in many situations it could even have different meanings. What should be noted is that the transfer of knowledge plays a very important role in increasing competitiveness. This is due to the fact that through the transfer of knowledge is acquiring innovative information and knowledge, particularly important for the consolidation and increasing competitiveness.

In Romania, the process of knowledge transfer through the cohesion policy will meet: innovation, cooperation, exchange of information, transfer of knowledge and technology, developing a database of knowledge and innovative information access to updated information, training, strengthening the educational process management and risk prevention of socio-economic development of balanced and sustainable economic and not least strengthening and increasing competitiveness in all its meanings.

Keyword: European funds; cohesion policy; banking institutions; financial sustainability; economic convergence.

Introduction

Both knowledge transfer and competitiveness are essential objectives of cohesion policy of the European Union which seeks in each Member State, including in Romania. Achieving these specific objectives of cohesion policy ultimately contribute to the overall objective of cohesion policy. It must be emphasized that, through the transfer of knowledge contributes to competitiveness. In Romania, through the transfer of knowledge promoted by cohesion policy mainly aims to develop a society based on knowledge and productivity, with a competitive and dynamic economy.

In this article, the authors have proposed primarily to conduct multidimensional analysis from a theoretical standpoint the two notions: knowledge transfer and competitiveness, and secondly, to conduct an analysis of the role of knowledge transfer and competitiveness of the Romanian economy through the development of cohesion policy. The research topic of this article was chosen by the authors, starting from the premise that at the present moment, the cohesion policy is a topical issue and of the utmost importance both in Romania and in the European Union. For the development of this article, authors took inspiration from literature in the field, represented by specialized books, articles personal and scientific, economic theories existing legislation, articles in the press and online websites institution of cohesion policy and regional development (the European Commission, management authorities, intermediate bodies, NGOs, etc.), etc. As a methodology used for the elaboration of this article, the authors used several methods, among which include: analysis, synthesis, statistics, comparison, induction, deduction, etc.

In the last part of the article are presented the final conclusions regarding the role of knowledge transfer and competitiveness promoted through Cohesion Policy on Romania.

1. Competitiveness and knowledge transfer: multidimensional approach

The concept of "competitiveness" is widely used especially in the context of EU cohesion policy. It should be emphasized that not until the current concept of "competitiveness" was not supported a unitary definition. Thus, according to some authors specialized in "competitiveness" means to "achieve and maintain market position, increase market share and profitability" (FILÓ, C. 2007: 5). The World Economic Forum believes that the notion of competitiveness means "the ability of a country to achieve a high, sustainable GDP per capita", instead the Organization for Economic Cooperation and Development defines competitiveness as "the degree to which, in a free market, a nation can produce goods and services that can stand the test of international competition and at the same time can maintain and increase domestic real income" (OECD 1992). Another definition of competitiveness has been given by the Chairman of the Commission on the competitiveness of industry in the United States in 1985, in the work President's Commission report on industrial competitiveness. This definition which was taken over by the European Commission in 1999, which considers competitiveness the „ability to produce goods and services that stand the test of international market and at the same time maintain high and sustainable levels of income, or more generally, the ability of regions to generate, when exposed to foreign competition, relatively high levels of income and employment" (Jordan M. and Pelinescu E. 2014: 9). Regarding the competitiveness in the opinion of Academician Emilian D. M. "… no so far failed to come to a uniform methodology for assessing country risk, as in the case of measuring the level of competitiveness" (Emilian D. M. and Paper C. 2010: 34).

From a macroeconomic perspective, it is believed that competitiveness "broadly" seeks "all economic development and is hard to follow" (Jordan M. and Pelinescu E. 2014: 10), and "narrow" competitiveness "exclusively targeted external trade relations and concerns the correlation between the national currency, foreign prices and domestic inflation” (Jordan M. and Pelinescu E. 2014: 10). Analyzing competitiveness of microeconomic point of view, according to M. Porter, emphasis should be on productivity, not on national competitiveness, aiming to such exploitation so as to obtain an effective quality products contributing to growth the standard of living of citizens. M. Porter believes that the concept of national competitiveness means economic prosperity and does not contribute to ensuring and improving the condition of living of the citizens of a state, while this is being determined only by productivity.

As a definition, through microeconomic competitiveness is understood that "characteristic of a product or a company to face the competition of similar products or companies in a particular market" (Dictionaries of Romanian 2016) or macroeconomic means "appreciation the degree of specialization of a country so as to be assured a sustainable trade surplus or balance through export coverage rate and the rate of specialization " (Dictionaries of Romanian 2016).

Considering the above definition of competitiveness, the question that arises is: What are the minimum conditions that must be met for a country to become competitive both at macroeconomic and microeconomic level? In response, in our opinion, the competitiveness, both at the macroeconomic level (by the state) and at the micro level (the level of an economic agent) can only be achieved if it is achieved the following:

Efficient use of human resources (emphasis on education and labor quality);

Redesigning business (legislative reforms, promoting entrepreneurship and entrepreneurial culture, prioritizing sectors with growth potential, focusing on innovation and more research on technology transfer, etc.);

The creation of integrated computer systems for efficient management of all activities in order to gain competitive advantages;

Making effective competitive strategies;

The transfer of knowledge is that process that fosters the exchange of ideas, information, products and / or innovative technologies that can have great influence in strengthening and increasing the competitiveness of a state or a business. It can be appreciated that knowledge transfer greatly supports the innovation process. Knowledge transfer is next to the competitiveness of the key objectives of the cohesion policy of the European Union, given that the Europe 2020 Strategy, were fired three new priorities, which refers to "smart growth: developing an economy based on knowledge and innovation; sustainable growth: promoting a more efficient economy in terms of resource use, greener and more competitive, inclusive growth: promoting an economy with a high rate of employment, ensuring social and territorial cohesion” (Communication from the Commission Europe 2010: p 3). Thus, in the new 2014-2020 programming period in cohesion policy will be a constant concern for promoting knowledge transfer.

To get a definition of "knowledge transfer", the authors thought it must start from Romanian explanatory dictionary definition of the two words "transfer" and "knowledge". "Transfer" means "action to transfer (to carry, move) a right of possession to one another"(Dictionaries of Romanian 2016). and "knowledge" means "all the information on someone who holds them" (Dictionaries of Romanian 2016). Thus, considering the above definitions, the authors find that the "transfer of knowledge" means basically the process of moving information from one part to another. Referring to cohesion policy through "knowledge transfer" shall mean a process of moving, the translation of innovative information from a third party to another so as to be supported through modernization activities in priority sectors of the economy with growth potential, the development of new economic activities, new products, services and processes, aiming to increase their added value.

In cohesion policy through knowledge transfer are promoted actions for restructuring and modernization of priority economic sectors with growth potential businesses market-oriented, sustainable development, environmental protection, innovation, research, and education, quality of labor force and strengthening and increasing competitiveness. The process of knowledge transfer involves several entities such as universities, companies, research institutes, etc. To achieve the perfect infrastructure for conducting knowledge transfer were set different organizational entities, among which include: industry liaison offices, technology transfer centers, business incubators, innovation centers, research parks, clusters, etc. Regarding cluster, it is noted that according to specialists' geographical concentration of public and private enterprises, research organizations and development and training (research centers and educational institutions) working in partnership under a common development strategy, in order to generate synergies and collaboration in innovative projects in the interest of one or more markets". (Matei R.M. 2013: 42-54).

2. Promoting knowledge transfer and competitiveness through cohesion policy: role in the development of Romanian economy

EU cohesion policy has supported and continues to support the increasing competitiveness of the EU and all Member States. The argument for this is that, through its instruments (generally represented by the structural funds and cohesion funds), Cohesion Policy for 2014-2020 has allocated significant amounts of funding to finance programs aimed at increasing competitiveness and including knowledge transfer in each Member State.

According to the Competitiveness Operational Programme 2014-2020 (COP 2014-2020), competitiveness is one of the "five challenges Romania's development"(COP 2014-2020: 1), which will track the row stowed:

consolidation of the research and innovation, so as to be able to develop products, services, business processes and social patterns,

strengthen the business environment by promoting cooperation both at national and European level.

POC 2014-2020, program funding is acting in Romania through two funding lines: Research, Development and Innovation (RDI) and Information and Communications Technology (ICT) and aims at "achieving the three objectives of other development challenges, namely: People and society, Infrastructure and Administration and governance, thus allowing horizontal interventions in the economy and society" (COP 2014-2020: 1) and achieving the objectives of others assumed by Romania through the Europe 2020 strategy.

We believe that increasing the competitiveness of the Romanian economy will automatically lead to its development. This is argued by the fact that the increase in national competitiveness will primarily involves: strengthening the Romanian business environment, increasing productivity, enhancing the competitive advantages that Romania has, the development of ICT infrastructure, support research and innovation, consolidation education, strengthen the health sector, strengthening culture, promoting social inclusion process, help to reduce poverty etc.

In the process of increasing the competitiveness of the Romanian economy, an important role is occupied by the knowledge transfer process, which will contribute to achieving the objectives assumed for 2014-2020, through the cohesion policy by Romania, according to the Partnership Agreement 2014-2020. Regarding the objectives assumed by Romania, it can be stated that they were determined after discussions with all the specialized Romanian authorities and approved by the European Commission. It is noted that these targets are included in the National Reform Programme of Romania.

Table no. 1 – The objectives set by Romania in Partnership Agreement 2014-2020

Source: developed by the authors according to data processed in the Summary Partnership Agreement with Romania 2014-2020 (2014: p 3-5).

In our view, achieving the objectives assumed by Romania through the Partnership 2014-2020, will certainly contribute to the development of its economy, especially if the proposed actions will be met by credit lines: Research, Development and Innovation (RDI) and Information and Communications Technology (ICT) of the Competitiveness Operational Programme 2014-2020.

Regarding the line of funding by Information and Communications Technology (ICT), it noted that its priority the following areas:

achieve e-government solutions based on interoperability, security software, cloud computing and social networks through which to be realized the knowledge transfer and services, so as to streamline public administration to secure the infrastructure of databases and communications, to enhance the quality of public services to reduce the cost of public services, reduce delivery time of public services, etc.

implementation of ICT solutions in education, that is: to create networks that can be made knowledge transfer, promote digital literacy, to introduce and promote tools type of ICT in education, to adapt ICT teaching models, to create a digital culture, ensuring infrastructure of ICT in educational structures, building a digital library, etc.

implementation of ICT solutions in the culture, which involves digitizing national cultural resources, investment in e-culture to promote tourism and education, development of digital archives, etc.

implementation of ICT solutions in the health implies: developing an integrated system of e-health, telemedicine, promoting, promoting the use of ICT tools in health technology, health record digitization, etc.

implementation of ICT solutions in the process of social inclusion, which involves promoting the acquisition by the people-skills, facilitating access to information especially those from vulnerable groups, network expansion PAPI (points of public access to information), etc.

promoting and strengthening e-commerce and innovation through R & D and innovation using ICT, promoting standards of e-commerce, transaction monitoring,

developing broadband infrastructure so as to develop communication services and connections fast and ultra-fast broadband.

Regarding the financing line Research, Development and Innovation (RDI) it covers the following investments:

promoting innovation in the private sector by stimulating knowledge transfer in order to develop new products and services that provide real competitive advantages,

stimulation of public-private partnership RDI, so as to ensure the human resource in the field (researchers) thus ensuring competitiveness, etc.,

adminsitartiv-institutional capacity development by implementing innovative solutions to public and private operators CDI,

promotion of fundamental research supported by research institutions, universities, Romanian Academy, etc.

supporting and strengthening its fields of smart specialization using CDI or scope: Biochemistry, Information Technology and Communications, Space and Security, Energy, Environment and Climate Change, Eco-Nano-Technologies and Advanced Materials.

implementation of CDI in healthcare,

stimulating economic agents to invest in innovation by implementing RDI projects alone or in partnership with universities,

stimulating knowledge transfer from business to operators,

develop supporting innovative financial instruments,

the promotion of public private partnerships and knowledge transfer.

Analyzing Operational Programme Competitiveness 2014-2020, we consider that the process of increasing Romania's competitiveness will be achieved through financing investment with European funds in the field of Research, Development and Innovation (RDI) and the sphere of Information and Communication Technology (ICT). It should be noted that investments of these areas have a positive effect on the Romanian economy contributing to its development.

Transfer of knowledge will be achieved through collaboration between the public and private sectors, between universities and businesses that will enable the discovery of new fields with innovative potential to increase the effect of spreading knowledge, increasing the degree of collaboration and degree of connecting with the rest of ultimately contributing to the development of a competitive advantage that will foster economic development in Romania.

The opportunity to achieve growth and economic competitiveness while promoting the transfer of knowledge, namely to achieve the objectives of the Competitiveness Operational Programme 2014-2020 comes from the European Union through the EU funds allocated to Romania in order to financially support these objectives. In our opinion, taking into account the situation of Romania, European funds are the most efficient alternative mechanism of financing the economy.

In the 2014-2020 Operational Programme Competitiveness 2014-2020 benefiting from an allocation for the two axes of its worth 1.58277 billion euros (Ministry of European Funds, 2016). Distribution of the two strands of funding by program was made according to the schedule below:

Chart no. 1 – Funds distribution for Competitiveness Operational Programme 2014-2020

Source: Prepared by authors based on data from the Ministry of European Funds (2016)

Conclusion

In conclusion, promoting and strengthening knowledge transfer will automatically generate increased competitiveness of Romanian economy and also its development. We believe that if in Romania the public and private sectors, will benefit from a transfer in real time knowledge (information, products, services), its economy will benefit from a competitive advantage related, that will lead to sustainable development it both economically and in terms of social and territorial.

Considering the context of competitive European and international level, we consider that Romania should take advantage of European funds allocated through the Cohesion Policy investments devoted to strengthening research, technological development, innovation and information and communications technology development. Knowledge transfer from universities, research institutes, and the private sector will contribute guaranteed to an increase in competitiveness by developing products and services that will clear competitive advantages and will contribute to the economy in general. However it must be stressed that investment in promoting the transfer of knowledge in education, health, social inclusion, will help to eliminate or at least reduce those social, economic and territorial disparities so as to reduce poverty, increase comfort levels of population increase living standards, protection of public health, better education of the population, etc. Thus, these elements mentioned above will transform Romania's economy into a competitive condition that will offer its guarantee sustainable development.

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