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Bucharest ranks 9th most knowledge-intensive capital in Europe

The European Centre for Entrepreneurship and Policy Reform (ECEPR) just released the report The Geography of Europe’s Brain Business Jobs by Dr. Nima Sanandaji and Prof. Stefan Fölster, regarding the percentage of ‘brain business jobs’ in Europe. Romania’s capital looks good, Bucharest is on 9h place in comparison with other capital regions in Europe. Successful Bratislava and Prague show that Bucharest stands a chance of attracting much more brain business.

However, Bucharest does much better than the country as a whole. Romania occupies the 28th place in the country ranking of brain business jobs, with 28.8 such jobs per 1000 working age population. Investment in R&D is the lowest in the EU. In the ranking in this report Romania shows some presence in telecom and advertising.

Surprisingly, the geography of brain business jobs in Europe no longer follows a simple division between North and South, West and East. Many countries in Eastern and Central Europe outpace their Southern European fellow EU-members in brain business job intensity. The brain jobs of the former planned economies of Eastern and Central Europe tend to be strongly focused to the capital regions. The Slovakian capital region of Bratislava has the highest share of brain business jobs in all of Europe, despite the fact that Slovakia as a nation has a mediocre concentration of brain business jobs – it ranks 18th amongst 28 European countries.

“The analysis reveals a totally new landscape. Several Eastern European regions have outflanked southern Europe in creating brain business jobs,” says Nima Sanandaji.

“There is a clear pattern. Brain business jobs are mobile and will quickly migrate to regions that provide favorable conditions. That is where economic growth will take off,” adds Stefan Fölster.

The methodology adopted for this analysis looks specifically at the main activity of businesses rather than the specialization of professions across industries. Therefore the report perfectly captures clusters of knowledge-intensive industries, what can be called “Brain Businesses”.

More about the ECEPR report here.

About Anca Bernovici