Bucharest is top 15 in terms of concentration of knowledge-intensive jobs out of Europe’s 278 regions, according to the 2020 edition of The Geography of Europe’s Brain Business Jobs: 2020 Index, which calls Bucharest a brain business hub.
“There are 188 400 Brain Business Jobs in the Bucharest region, corresponding to 12.3 percent of the working age population. This is one of the highest shares amongst 278 regions in Europe, higher than Berlin, Helsinki, Brussels, Madrid as well as Vienna. The Brain Business Jobs concentration of Bucharest is only slightly lower than that of Amsterdam and Oslo, creating an opportunity to overtake these regions in knowledge-intensive jobs concentration in the years to come,” the report says.
In Romania, the number of employees of the most knowledge-intensive firms has grown from 347,800 in 2012 to 447,500 in 2019. Out of the 99,700 new Brain Business Jobs, 64 percent have been created in IT&C, 15 percent in advanced services, 14 percent in the tech sector and the remaining 7 percent in creative professions. Romania stands out as one of the countries in Europe with the fastest increase in knowledge-intensive jobs concentration.
Compared to the rest of Europe, Romania has a number of relative strengths. The main strength is in telecom, followed by high-tech manufacturing and IT services. On the other hand, Romania has a lower concentration when it comes to areas such as pharmaceuticals, design & other creative work as well as head offices & management.
In Romania, the Brain Business Jobs are highly focused to the Bucharest area. There are 188,400 Brain Business Jobs in the Bucharest region, corresponding to 12.3 percent of the working age population. This is one of the highest shares amongst 278 regions in Eu- rope, higher than Berlin, Helsinki, Brussels, Madrid as well as Vienna. The Brain Business Jobs concentration of Bucharest is only slightly lower than that of Amsterdam and Oslo, creating an opportunity to overtake these regions in knowledge-intensive jobs concentration in the years to come.
The strong performance of Bucharest is due to the high supply of talents combined with lower wages for these talents compared to in Western and Northern Europe. The rest of Romania has lower shares of knowledge-intensive jobs, lagging behind the rest of Europe.
In the West region there are 39,700 Brain Business Jobs (3.5 percent of the working age population), compared to 52,500 in the North-West region (3.3 percent). The lowest shares are found in South-West Oltenia and South-Muntenia (1.3 percent). The challenge ahead for Romania is to uphold the growth of knowledge-intensive jobs, in the leading capital region as well as the rest of the country. Significant regional inequality will arise if the number of Brain Business Jobs continue to grow in Bucharest but not in other parts of the country.
Sofia, Prague and Bucharest strengthen position as new Brain Business Hubs. The third fastest rate of Brain Business Jobs growth is found in Sofia, followed by Prague and Bucharest. The five regions with strongest rise in knowledge-intensive jobs are all capital regions, and four of them are in the East/Central European greater region.
Supply of talent, coupled with competitive wages, drives economic activity to the region. Firms are increasingly mobile in Europe, shifting knowledge production to countries with lower cost for talents and advantageous taxation rules.
Additionally, it is increasingly common that firms in Northern and Western Europe subcon- tract part of knowledge-intensive work to partner firms in East and Central European capital regions. Brain Business Jobs are thus growing through co-operation, as well as competition, between knowledge-intensive hubs throughout Europe.
|Table 4. Regional Ranking of Brain Business Jobs|
|Rank||Region||All brain business sectors, jobs per 1 000 working age population|
|2||Berkshire, Buckinghamshire and Oxfordshire||178.6|
|11||Prov. Brabant Wallon||136.0|
|18||North Eastern Scotland||112.6|
|22||Bedfordshire and Hertfordshire||107.5|
|24||Surrey, East and West Sussex||106.3|
|29||Hampshire and Isle of Wight||99.0|
|31||Gloucestershire, Wiltshire and Bristol/Bath area||91.3|
|48||Comunidad Foral de Navarra||73.5|
|49||Herefordshire, Worcestershire and Warwickshire||72.8|