The IP Gap in Romania’s Tech Landscape by Tudor Stanciu

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In ANIS‘ recent report, nearly 80% of Romania’s IT firms report engaging in innovation, yet only about 5% have successfully launched new products as a result. One commonly cited barrier is a lack of intellectual property (IP) expertise.

From a consulting perspective, we’ve observed firsthand the significant differences between product-first and services-first companies in their approaches to IP. Product-first companies, often startups, are more likely to begin with a strong focus on IP, recognizing its importance early on. These firms generally allocate time, money, and tools (such as IP registration procedures and contracts) to establish and protect their IP assets at a foundational level. This practice echoes Silicon Valley’s long-standing message that IP is crucial from the outset.

In contrast, services-first companies, which traditionally focus on delivering services rather than products, face greater challenges in shifting toward product development. These companies tend to view IP as an internal asset rather than something to package with their services, which can hinder their transition to product-building.

To increase IP investments that lead to products, a mindset shift is essential, perhaps alongside a new set of skills or roles within the organization. Once this cultural change is underway, companies can focus on the structural steps needed, like setting up spin-offs with favorable tax and contractual frameworks. But the first step is understanding the animal you’re trying to tame.

Lastly, it’s worth noting that Romanian companies should leverage local R&D tax incentives, which can offer up to an 8% tax saving. By understanding and applying these incentives effectively, companies can support and enhance their innovation efforts.

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