Competitiveness and Economic Growth through Education and Investments: The Case of Moldova

Abstract

This article explores and emphasizes the importance of education and innovation activity for competitiveness, and qualitative economic growth, using the case study of the Republic of Moldova. Specifically in context of globalization, when developing nations experience pressures of economic and societal imbalances, the importance of basic cornerstones of the economy cannot be overestimated. Starting with education, an economy builds the platform to nurture and hopefully retain talent. Entrepreneurs create new business streams, new products and services, and new areas for investment. Investments, in their turn, can be used as another powerful mechanism to obtain quality in economic growth. Besides necessary investments in infrastructure and healthcare, investments into science, technology and various R&D activities that lead up to the increased share of high-technology in the GDP structure of countries like Moldova are necessary, as well as possible due to high potential of Moldova’s skilled population making up for the lack of other resources available to the developed economies. In this context, economic competitiveness and qualitative growth by importing, adapting, implementing and developing new technologies, can be reached by the industrializing economies sooner than expected.