Reforming Romania's national research system

Romania's attempted transition to a market economy is calling into question the role of its national research system, now in a state of near collapse. This paper analyzes changes in the organization and financing of research in Romania since 1989. Several partial reforms of the R & D system have been implemented, but the system is still neither affordable nor particularly effective. Solutions that provide effective linkages between the research system and new economic and social actors are proving elusive. To develop an internationally competitive market economy, the Government must find ways to encourage private R & D capacity and investment in industrial innovation. Systemic reforms are required to rationalize the public research establishment, establish infrastructure to support technology upgrading in small and medium enterprises, foster competition and accountability within branches of the national research system, and develop policy structures to guide R & D investments in the context of a turbulent transitional market economy.