Implementation of the National R&D Strategy for 2007-2013 is underway but major
challenges remain. In particular the foreseen increase in public R&D funding (to 1%
of GDP by 2010) should go hand in hand with a reform of the R&D system and
measures to address the key factors that constrain innovation. A significant
consolidation of the still fragmented research base is required, by cutting off funding
to institutes with low scientific performance and by consolidating those that have
potential. In spite of rising public financing, business expenditure on R&D has
declined during the last decade and the R&D content of FDI has remained low.
Public funding should be used more to leverage private sector investment, strengthen
links between business and research institutes, increase the attractiveness of research careers, and better link knowledge production with societal demand. Romania should
set up a comprehensive monitoring system, based on international standards, to
measure results and make adjustments.

(December, 2008)
http://ec.europa.eu/growthandjobs/pdf/european-dimension-200812-annual-progress-report/annualass_detail.pdf