The Romanian authorities need to take urgent steps to stimulate the development of knowledge industries and catch up with the European countries, or else the European Union accession will be done at major costs induced by the chronic lack of competitiveness of the economy, reads the “Knowledge Economy in Romania” report by the World Bank and eRomania Gateway Association. “Romania’s economy is still very much under the effect of the industrial and agrarian era, which promoted products and services that can hardly withstand competition on the international market and are finding it harder to cope on the domestic market, as well. It is vital for all parties involved to understand the need to act right away to stimulate the development of knowledge industries and catch up with the European countries by an effort to innovate, by using new information and communications technologies and by improving the population’s education towards the new economy,” the report says. Experts warn that the competitive edge of an economy no longer comes from the use of products or services, from natural resources or from geographical or historical peculiarities. “The competitive edge is created by innovation, highly-skilled work force and widespread use of knowledge; in other words by a knowledge economy.” ZF