Authors: Ruxandra Miuți, Innovation Manager, Green eDIH, and George Hacerian, Research Analyst, Green eDIH
In October 2025, the Nobel Prize in Economic Sciences was awarded to Joel Mokyr, Philippe Aghion and Peter Howitt for their research on innovation and “creative destruction”, referring to the way new technologies replace older ones, stimulate economic growth and reshape markets, not through linear progress but through waves of innovation that generate both uncertainty and opportunity.
This perspective is particularly relevant for emerging economies seeking to redefine their economic role in an increasingly volatile global environment. Romania, as part of European innovation networks, has the opportunity to move from aspiration to implementation. However, this process involves more than access to advanced technologies. It also requires the ability to turn ideas into projects and to connect regions, talent and investment at a pace that can keep up with ongoing change.
Economic progress in a constantly reinventing world
International investment maps are being reshaped. In a context where sustainability and adaptability are becoming increasingly important criteria, emerging markets are attracting growing attention. They are no longer viewed solely as sources of lower costs, but as environments where solutions with global potential can be developed and tested, particularly in the digital and green sectors.
Central and Eastern Europe is part of this process. In Romania, the Bucharest Exchange Trading (BET) index, which reflects the performance of companies listed on the regulated market, increased by 20.74% in the first half of the year, according to analysts’ assessments. This evolution signals a sustained level of investor interest in the region. At the same time, these results need to be considered alongside questions related to infrastructure, administrative capacity and the stability of public policies. In this context, European models of interregional cooperation, such as the Vanguard Initiative, offer useful examples of how local capabilities can be connected to broader innovation networks.
The Vanguard Initiative and Romania’s potential for interregional collaboration
The Vanguard Initiative is a European interregional cooperation network focused on smart specialization and industrial innovation. It brings together regions that aim to accelerate the industrial validation of innovative solutions, reduce the gap between research and application, and contribute to the green and digital transitions. It is not a funding programme in itself, but rather a flexible framework in which regional authorities, companies and research organizations can jointly develop demonstrator projects. These are organized around thematic partnerships, known as “pilots”, which involve knowledge exchange, joint project development and, in some cases, the creation of platforms for testing and scaling.
Participation in such partnerships does not require a restructuring of regional policies, but allows experimentation and consortium building from early stages. As a result, the risks associated with the transition from idea to market can be reduced, while the likelihood of attracting investment or European funding in subsequent phases increases. For Romania, this model can bring tangible benefits, particularly as participation in European innovation networks becomes increasingly important.
The North-East Development Region is already an active member of the Vanguard Initiative, engaging in pilot projects in areas such as the bioeconomy, digitalization and advanced manufacturing technologies. The initiative facilitates access to testing infrastructures, the exchange of good practices and the strengthening of European value chains, and this type of collaboration can serve as a reference for other Romanian regions.
Connectivity, skills and trust – key conditions for attracting investment
Regions in Central and Eastern Europe need modern infrastructure, functional connectivity and strong local skills in order to position themselves as relevant partners within European innovation networks. Access to efficient logistics networks, the availability of functional digital platforms and a well-prepared workforce can directly influence the decisions of investors or consortia when selecting locations for pilot projects.
In Romania, such progress exists, but it is unevenly distributed. Some cities have modernized their digital infrastructure and provide online public services, while certain private sectors support training and innovation. However, the lack of functional testing and validation centers limits the involvement of small enterprises in international projects. Connecting these actors to European networks depends on the presence of clear support mechanisms and on the ability of local institutions to coordinate coherent actions.
European interregional collaboration initiatives contribute both to the development of shared solutions and to the strengthening of local capacities. Investors increasingly look for balanced ecosystems, where infrastructure, skills and administrative support work together. Regions that can offer this mix are better positioned in the competition for resources and projects. Romania is part of this landscape at a time when interest in emerging markets has increased. Higher real returns, the transition towards a green economy and development prospects are repositioning Central and Eastern European economies in the focus of international capital. At the same time, Romania’s investment profile continues to be assessed with caution.
Romania’s participation in relevant European initiatives, such as the Vanguard Initiative, highlights a potential that can be further developed. The North-East Development Region is an active member, involved in pilot projects in areas including the bioeconomy, digital transformation and advanced manufacturing. These partnerships facilitate the exchange of good practices and can serve as models for other regions interested in development through collaborative innovation.
At the same time, administrative constraints, limited institutional coordination and slow implementation continue to affect Romania’s ability to fully capitalize on these opportunities. Recent assessments of the investment climate point to a balance between opportunities and risks. The success of certain initiatives, such as renewable energy auctions or urban mobility projects in the Jiu Valley, suggests that Romania can move forward through strategies based on testing, collaboration and tangible results.
However, trust is built through consistency. International investors closely monitor risks related to governance, political stability and administrative capacity. In a volatile context, markets place greater value on demonstrable outcomes than on ambitious commitments. Countries that can present results, even at a limited scale, are more likely to attract the confidence and resources needed to accelerate transition processes.
The link between digital transformation and sustainability
Digital transformation is not an end in itself, but becomes relevant when it supports broader objectives, such as energy efficiency, the circular economy or equitable access to services. In this sense, digitalization and sustainability are not separate paths, but increasingly intersect across European projects.
Digital technologies can contribute to more efficient resource management through real-time monitoring, traceability and automation. For example, intelligent energy management systems or digital solutions for value chains can reduce losses and support better-informed decision-making. At the same time, the use of data to measure environmental impact is becoming increasingly important for companies required to comply with non-financial reporting obligations.
In Romania, such examples are beginning to emerge, even if they remain unevenly distributed. From cities implementing solutions for sustainable urban mobility to companies investing in data infrastructures for traceability, the direction is clear. The challenge remains scaling these initiatives so that they become part of a functional ecosystem. This convergence between digital and green offers a repositioning opportunity for emerging economies, but it requires continuity and collaboration among all involved actors.
A balance in the making
Renewed interest in emerging markets can represent a real opportunity, but attracting capital is not limited to favorable figures or ambitious commitments. Investors look for clear evidence that infrastructure, skills and administrative support are available and functional. Particularly in areas involving innovation and sustainability, trust is built over time through concrete projects and verifiable results.
Romania faces a window of opportunity. Progress in digitalization, green energy and capital markets points to a potential that can be further consolidated. At the same time, challenges related to fund absorption, policy coherence and institutional capacity remain critical issues to address. A balanced path, based on collaboration between the public sector, the private sector and European initiatives, can turn this period into a meaningful turning point.
To support partners in adopting technologies that contribute to material traceability, energy consumption optimization or process improvement through artificial intelligence, Green eDIH works with partners from European networks, offering functional models of applied innovation, particularly in emerging sectors that combine digital and green solutions.
The projects carried out include training activities, involvement in public consultations and contributions to policy models aimed at the coherent integration of digital and climate requirements. In this way, Green eDIH becomes part of an ecosystem that focuses not only on technology adoption, but also on the structural transformation needed to ensure the long-term value of these investments.
