Innovation and Growth in the Republic of Moldova: European Integration, State AID and Innovation Intermediaries

Abstract

Research and innovation are indispensable for sustainable economic growth, which is why the study examines innovation in the Republic of Moldova from the perspective of economic activity and, in this context, highlights the role of state aid for research, development and innovation, as well as the role of intermediaries for innovation. The importance of the efficiency of the use of production factors (total factor productivity), largely due to innovation, is recognized in economic growth theories, while empirical studies prove the importance of innovation for the competitiveness and growth of the European economy in the 21st century. The Republic of Moldova currently has research and innovation potential, but it does not have complex industrial ecosystems that allow for the commercialization of innovations and, consequently, sustainable economic growth. Structural imbalances, such as the general regulatory framework, the underdevelopment of the financial market and the early stage of development of venture capital, do not stimulate innovation and its commercialization, but two central components that can partially mitigate the imbalances are the subject of research of the study, implicitly: state aid for research, development and innovation, in the context of European integration and; the role of Innovation Intermediaries. JEL: E1; H2; O1; O3; O4