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Is Romania the Next Big European Technology Hub?
One of the fastest-growing economies in Europe, Romania, is becoming a hotbed for the development of technology firms.
FREMONT, CA: To some, the choice of Romania as a tech hub may seem unfamiliar. But this eastern European country has been able to prepare the ground for growth and development of modern technology companies. At the core of this transformation are several interrelated factors like education, markets, and infrastructure. Together, these factors have created favourable conditions for innovative technology businesses to thrive and expand. Entrepreneurs, as well as established tech firms today, have many opportunities in Romania, which is looking to establish itself as a popular tech hub and is well on the course to achieve the goals. The country has a population of around 20 million and has already become a preferred location for startups since the startup ecosystem is getting a boost from the increase in funding over the last couple of years.
Good network infrastructure is crucial for the successful run of technology firms. Romania has super-fast internet connectivity, helping it satisfy one of the most important criteria that tech companies prioritize. The focus on science and technology in education is another factor that is helping project Romania as Europe’s new tech hub. The country possesses a highly-skilled workforce in the domain of technology. Sources say that historically, Romania had been a force to reckon with, in international Olympiads, as the country won several medals in mathematics and informatics. Such a workforce, which has technical and software development capabilities, is deemed highly valuable for technology companies. Besides, the youth of the country has displayed a flair for tech entrepreneurship, driving innovations. Thus, Romania’s high-speed internet and technologically-skilled talent pools are attracting a lot of attention.
The capital city of Bucharest is one of the leading centres for technology companies today. However, several other cities like Cluj, Brasov, and Timisoara are today hosting many tech companies and startups. The low cost of living in these centres makes them an attractive option for technology firms. Compared to other leading tech hubs in the European region, the prices of facilities and commodities are less in Romania, enabling companies to set shop and hire workers at lesser costs. Apart from homegrown tech companies, many global players have entered Romania owing to the opportunities it offers. At the turn of the century, the Romania government made the tax regime extremely favourable for tech-workers. This has also had a long-term effect on Romania as a tech hub.
Lately, Romania has also seen the emergence of venture capitalists and startup accelerators that have played a role in helping tech startups gain funding. While some companies have had to take the route of crowd-funding, many others found global investors. Big international companies have acquired some of the Romania-based technology companies at good prices, reinstating Romania's position as the new European technology hub.
However, to build on the reputation, Romania has to improve on a few aspects where it is lagging currently. While internet infrastructure is advanced, roads and transportation systems require rapid development. The government should also play an active role in forming policies that reduce bureaucratic bottlenecks and facilitate the smooth establishment of technology companies. Besides, there is also a lack of experienced business professionals to run technology enterprises. This becomes a challenge when companies plan to expand their markets. To ensure that business firms have the know-how, the country needs to introduce entrepreneurship and business courses, which can give the country business leaders and experts.
As Romania grows into a full-fledged tech hub, the number of success stories is bound to rise. With a promising startup scene and all the other essential ingredients that make it an exciting option for technology companies, it is no surprise that Romania is a bustling centre of activity today, drawing attention from across the world.