Final question: What is the impact of innovation on the economic growth of cities and what are the key innovation strategies that cities adopt to foster economic growth in a globalised economy?
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Executive Summary
The innovation is considered to be important for a sustained form of economic growth. The Global Innovation Index is for providing an evaluating the innovation through proper performance evaluation and refining the policy as per the optimum growth of economy. The capability to handle the reasoning and learning the innovative forward looking approach helps in ensuring a sustainability or growth of economy. The globalization, economic, political and the electronic forms include the understanding with variations that hold the ability to innovate on different geographical boundaries. The effective use of capital includes the capital that is set through handling the neoclassical economics. The report will include the discussion about the innovation, growth of GDP, industry emergence, export, FDI and better quality of life.
Table of Contents
Introduction
The goal of the research is to focus on the innovation with economic growth of cities of Bucharest and how the innovation strategies are helpful to adapt to the changed growth of economy too. It will also highlight over the growth of GDP, and the emergency in the industry, with export or FDI with improved quality of life standards. The variations are in ability to innovate for different geographical boundaries which is transferred to the ecosystem of business.
Analysis
The understanding is that Bucharest is considered to be industrialised city in Romania where it is producing approximately 21% of the country GDP and it is handling production of industry with 9% of the country population. As per the analysis, there are stronger growth of economy which is revitalized through infrastructure and has led to development to different shopping malls as well. The economy of Bucharest is for the industry and services where the city has been involved with growth over city property or the boom of construction. The communication has been with the larger retail boom and a higher number of supermarkets or hypermarkets (Acemoglu et al., 2014). The Value Added GDP includes the exports with the success that involves the exports, FDI or the institutions.
Innovation: The variations include ability to innovate for different geographical standards with disparity over the geographical boundaries. The innovation comes with performance and it includes economy growth and survival, where firm holds profit and growth or technological patents. The effective use of capital includes the organizational success with the scarce approaches on how the Solow model help in determining the long term growth. The two force of supply and demand, with considering people who are motivated to profit over capital. The complexity is for the modern economy with the innovation process that is set over the autonomous entities and nurturing on creative ideas. The framework includes the analysis with increased sensitization among policymakers with improved efficiency on the innovation system to cater to the different needs and operating on complex global commercial space (Huggins et al., 2014). The innovation includes the organization success with capital that is scarce with the Solow model through the long term growth of business. There have been restructuring through low population before there are deep issues emerging. The private sector development includes incentivising the good employees to come and stay for certain creative solutions or work over the vacant land or the unskilled force of labour.
Globalization: The globalization includes the adoption of creative systems with affecting the innovation processes. It is for the autonomous entities with nurturing over the ideas and then working over the flow of value too. They are for holding the roles in creation of innovative ideas as per the control innovation system. The innovation is important with economy wide and the growth or exports with industry of survival, and the firm profit, along with patent which is technological forms. The managers tend to hire for personnel with certain views and then receive the information for the same (Kaufmann et al., 2009). The framework is for the analysis of the role of government and building a higher learning or development research centre for different forms of geographical regions. It can help in handling the increased sensitization among the policy makers. The environment of innovation requires the globalization with supportive environment that is needed for thriving towards a healthy environment. In context to the globalization, FDI tend to present majorly the international economic exchanges with handling the liberalization too under the legal framework. It involves the negative framework of the economic crisis on FDI inflow for Romania. FDI has been considered to handle the major source of external financing for the countries which is regardless to the development stage. The portfolio investment and then handling the bank loans is for working over the growing importance of FDI too.
Growth of GDP: There has been recovery which is set to continue by 4.5% in 2022 and 2023. The inflation could be seen through strongly handling the monetary policies with tightening it as needed. The credible consolidation plan is to place and ensure over the reduction of the deficit budget too. The innovation plan is about the reforming and accelerating the absorption of funds or improving the public efficiency too. The notable micro-enterprises are for handling the specific sectors which are for construction and handling the lesser distortive taxes of property with raising of revenue or then making the fair tax systems efficient as well. The plan to increase the efficiency and effectiveness is introduced through funding the re-prioritization for the main directions with maximising social and economic impact of investments. There is a need to work over simulating firms with capacity to create, add or retain the value under national chain of production. The consolidation is for the increased competitiveness with providing premises or logistics for SMEs too.
Industry emergence: The productivity comes with understanding Romanian economy which is about using the 2-3rd of the OECD average. The innovation includes the recovery under economic standards to handle the growth. It is about the development strategy in Romania which is considered to handle the infrastructure for R&D and innovation which is developed. The research includes the post-crisis development programs that tend to foster on innovation or diversify over the local economies. The R&D is for achieving a synergy that will be for research institutes and working over the local communities as well. It comes with improvement of environment of business and then setting a stronger law for environment to help in attracting investment too. The strong competition or regulatory framework holds procedures for handling entry of firm and exit that would lead the productive firms to thrive as well, invest or then adapt to the new methodologies or technologies.
Export: Bucharest has been the top exporter for motor vehicles with the parts and accessories, cars or the insulated wire or the electrical control board. It is for handling the exports of sunflower seeds too. When compared, it is seen that in comparison to Bucharest, the other countries have been arguing over the new globalization. We see that trade is fast than output, with FDI that is grown faster than trade. The innovation is for handling the economic growth with handling the imbalances that are underlying to different factors too. The GDP per capita is for the endowment that comes under the human capital with R&D personnel. The spatial competition includes the range with the maximum distance with the Christaller central place theory with the World System Theory that comes over the development of clusters or agglomeration. When compared, there are improvement of network with the firm internal resources (Negescu et al., 2020).
FDI and better quality of life: FDI in Romania has been increased, where it is seen that there was cheap or skilled labour forces with 16% of the flax tax for individuals. But now it is seen that the FDI has grown by 600% with the geographical forms under $13.6 billion or $2450 capital by the end of 2004. Not only this, there are favourable conditions for IT which is for handling the investments on different activities and providing the development of economy. The FDI stock in Romania is 34000 billion which is considered to be 30% of Romania GDP (Gardiner et al., 2004). This comes with the IMF that are defined over the international investments that reflects over the entity and the residents of country too. The concrete forms of FDI are considered important for handling the new investments which are in the form of mergers or acquisitions. The quantifying of the economic standards involve the foreign investors who are set over the time. Not only this, the process includes the transport, communication and labour too. As per the analysis, there is 50% of the global production which is through the use of transitional corporations. There are investments that are found to be under the country economic resources or the social conditions. The analysis is defined through competitive advantages with strength that focus on areas which relates to the concentration of investment funds too. The development of economy is for the country that is not only for the resources but also to work on running the investments, or the technical progress too.
The benefits are for economic resources where the positioning is to handle the geographical point of view with easy access on handling the former SU countries. A clean or the cheap labour comes with the lower costs that is prepared through the use of technological knowledge, IT or engineering. The benefits are determined through working over non-economic factors and the benefits are from the legal component to regulate and work with foreign investors in Romania too. The opportunities are related to handle the investments that are legally forming and then made available as per the legal framework. The equal treatment is fair with the equitable forms of investments.
Innovation Followed In Bucharest
The innovation is for handling new and improved products, services or methods of organization and marketing too. It is important to focus on the economy wide, technological and the cities under GDP, better quality of life and jobs. The innovation is followed in Bucharest through Solow model that involves diminishing the return on capital and the capital improvement is due to the technological process which could lead to offset over the returns effect. The innovation is important for handling progress of technology with Kondratieff waves.
The innovation is for the firm levels with differentiating from rivals and then handling industry level development too. The multi-stage process include innovation activities with output and commercialization to profitability and handling loops of feedback. The innovation is for the important with focusing on investing with GDP, productivity that relates to innovation (Ciobanu, 2021). The approach is on driving competitiveness with productivity that relates to innovation, agglomeration or small firms, employment with trading FDI, import or export. The investing in innovation includes the directing of subsidies with praise of private marginal rate of return, and funding body selecting projects or handling increased potential for better social benefits. The investing in innovation comes with the marginal rate of return and the cost of capital. Bucharest needs to work on handling substitution effects with firms performing on private R&D that is set over the private firms that is lowered (Horobet, 2020).
VRIO works on the network with ability to pursuit the knowledge and application which is to handle the learning by interacting. The industrial decline includes the market concentration, with rigidity that is identified through organizational routine, product or the technology (Russu, 2021). There is a need to understand how place matters, with renewal of industry and the role of government which plays a major role on FDI attracting investment or supporting the smaller firms for growth too. When compared to the same, the risks are for specialization and handling the economic development under Rostow stage of development. It is a barter or subsidence, with specialization or infrastructure. The WST Model of core, periphery is for the understanding of stock of skills with the possessing of labour force. One needs to handle the global patterns of development with driving productivity or competitiveness.
Discussion and Conclusion
With the expansion, there are tariffs and the non-tariff barriers which are seen to handle the import of quotas or the marketing agreements. It is about handling the fiscal and the privatization policies. The export processing zones (FDI) includes policies that are set for the handling of export targets along with voluntary export restraints as well. The considerations are for chances to develop FDI, learning or the employment. It enables the transfer of pricing at a cheap labour costs, or there are considerations over seducing over multinationals and there is chance to develop FDI, learning or employment too (Hagiu et al., 2022).
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