A very interesting pdf presentation from which I learnt that the value of the services offshored to Eastern Europe is $0.4 bn. India stands for $7.7bn and China for $1.1bn. America accounts for 70% of the offshoring and the reason is quite simple: the computer programming costs are $80 in US while in Eastern Europe are $24, in India $22 and in China $15.
Also, here are the ingredients mentioned for the future growth of the hi-tech industry in US (California particularly):
1. Competitive costs & Skilled workforce
2. Low tax burden/ Pro Business climate
3. Entrepreneurial Culture
4. Young Workforce
5. Great Quality of life
6. Available Venture Capital
7. Major R & D University / College Training
8. Incentives
9. Engaged Local & State Government
What is the Romanian state with respect to those ingredients? I think we would score high at #1, #2 - the tax level will probably change soon, the business climate is improving, #3 is also on the upward trend, though in incipient phases. #4 may pose a problem because of the brain drain, #5 still plenty of space for improvement, #6 - there's some, but not enough, #7 - need to improve a lot (the Achile heel IMO), #8 - not too many and #9 - not really.
Doesn't look too great, does it?
I was wondering if you can expand on why you think #7 is the Achile heel? Why is it so bad? Why is it important? Also, what would be a good (ideal) fix for #7 in your opinion?
It's quite simple - the education is an indirect engine of the nation's future growth. The young lads will always be the fresh blood coming from behind, pushing the change and raising the standards. That's why I believe it's one of the most important drivers for wealth/value creation, and this is where Romanians should look upon.
Now, in Romania education represents the Achile heel for two main reasons. Firstly, currently there is a huge gap between what is taught in school (or the curriculum) and the industry needs. Not only in terms of business/technical understanding of what a venture may require, but also in terms of developing skills such as team playing, open mindness or eagerness to learn, etc. Basically the first job of a fresh graduate is similar to business 101 (if he/she is a biz graduate) as most of what they learn in school is useless. The paradox here is that most businesses in Romania ask for prior experience and it is not uncommon for students to have a full time job while they're full time students. (some details)
Secondly, there should be a close connection between the R&D at the academic level and the industry and it is not quite so in Romania. In other countries - the Nordic ones are the best examples I know as I've lived there myself and directly experienced it - the research departments in school are working closely with the companies, actually most of the researched topics are either coming from the business world or are decided together with the companies. In Romania this is far from happening, and, besides this huge gap between the two, there's a lot of money coming from EU or related institutions destinated to R&D and which has to be returned as there are not projects for being funded. (more on this)
Nevertheless there is one very good aspect of the Romanian education and this comes from the high school levels, where individual study is more preponderent and where Romanians have a good tradition to perform (international awards at the high school level in physics, informatics, math, etc). Problem is that afterwards those talents are either waisted or they go abroad to environments which can make a better use of their brain (hence brain drain) and where they're offered a better system for self development. And I believe that any strategy related to the educational system in Romania should start from capitalizing on this.
Those are my two cents of course, if you talk nowdays to the Romanian academic representatives they will probably tell you that it's not true - my take is that this is mainly an ego thing. Should I be wrong the results into the real world (business) would be notable. There are good signs but unfortunatley this change process is very much slowed by the lack of a clear vision and a fuzzy agenda most of the politicians have. (or don't hereof)
I think I agree with most of the things you said. I want to make two comments. 1. There is a large number of v. strong researchers/faculty at top US/Can institutions. Based on my observations, the ratio of Romanian top researchers to Rom. population is much, much higher than for other countries (for ex. India, or even other East. European countries). AFAIK, there is nothing that Romania has done (at least informally) to contact or get help from these people in any way (unlike other countries; I know of Morocco as a fact). 2. Take a look at this. http://snsb.online.fr/eng/index_eng.php3 It's not a business school, or a high-tech/R&D school. But it's the only step in the right direction that I know of. Personally, I think the revolution of the R&D (post-secondary) education system will never happen in Romania (at least in our lifespan). The only way it could happen is from the exterior, by tapping into resources that can produce a change soon and in the right direction. I very much liked that you pointed out academic education/R&D as being a really big problem. I couldn't agree with you more.