The Analysis of the Romanian Global Competitiveness International Ranking. The impact of the IEC Program

The economy's growth potential is determined by the country's ability to sustain the level of income and returns to investments. A country's wealth depends on the competitiveness of firms and on the capabilities of its entrepreneurs and managers. Companies achieve competitive advantage through acts of innovation. Although innovation is the engine of growth, it does not create economic benefits until it is incorporated into actual products, services and processes, which are commercialized. National and European investments in R&D are not always strongly correlated with average incomes. According to the Global Competitiveness Report 2015-2016, Romania together with Croatia and Hungary was in the transition from stage 2 (efficiency-driven stage of development) to stage 3 (innovation-driven stage). A year later Romania went back to the stage 2, in spite of Croatia and Hungary which kept their positions. Regarding the competitiveness international ranking, according to the Global Competitiveness Report, Romania ranked 53th in 2015, while in 2016 Romania ranked 62th. In order for Romania to reach 3 stage of development (innovation-driven stage) it has to improve the activity of the innovative firms. Did the EU funds accessed between 2007-2013 had a real impact on the global competitiveness of Romania? Will Romania reach the stage 3 innovation-driven stage, by 2020? This article analysis the impact of the IEC Program (2007-2013) on the Romanian global competitiveness index and 12th pillar innovation and tries to answer those questions mentioned above.