Bridging the Innovation Divide: Applied Research in Romanian SMEs Versus EU Trends

Abstract

Small and Medium-sized Enterprises (SMEs) are pivotal to both economic resilience and innovation across the European Union. Despite representing 99.7% of all enterprises in Romania and employing over 65% of the workforce, Romanian SMEs remain significantly underrepresented in applied research initiatives compared to their Western European counterparts. This paper explores the structural and strategic challenges that hinder research integration within Romanian SMEs, including limited access to funding, weak innovation ecosystems, and insufficient collaboration with academic and technological institutions. Drawing on official data from Eurostat, the European Commission, and the National Institute of Statistics, the study highlights the discrepancy between Romania and the EU average in terms of research participation—particularly within Horizon Europe programs—and proposes actionable strategies to enhance technology transfer and policy alignment. Emphasis is placed on regional disparities, Smart Specialisation Strategies (RIS3), and the role of digitalisation in strengthening SME innovation capacity. The findings underline the urgent need for coherent policy instruments and targeted support to bridge the innovation divide between Romania and the rest of the EU.