Moldovas Clusters: Key Drivers for Innovation and EU Integration

Submitted by LOW Associates Brussels on 29 October 2024

The Clusters Meet Regions event, held on 10-11 October 2024 in Chișinău, Moldova, brought together over 200 participants to foster international collaboration and strengthen interregional value chains. Organised by the European Cluster Collaboration Platform (ECCP) on behalf of the European Commission, in partnership with the United Nations Development Programme Moldova and the Romanian Cluster Association (CLUSTERO), the event focused on how clusters can drive regional development and cooperation, particularly in the Danube and Black Sea regions.

A standout feature was the matchmaking session with 101 successful bilateral meetings, highlighting the role of clusters and SMEs in building strong partnerships across Europe. The event underscored the importance of cross-border cooperation, setting the stage for future joint initiatives.

Image
Clusters meet Regions in Moldova
Image
Clusters meet Regions in Moldova
Opening Remarks on Clusters' Role in Moldova's Economic Growth

Christina Cheva, State Secretary of the Ministry of Economic Development and Digitalization, opened the event by emphasizing the importance of clusters in Moldova's economic framework and in its efforts to drive innovation. She highlighted that Moldova is home to 20 cluster organisations across sectors such as construction, agri-food, energy, mobility, and tourism: “These clusters represent diverse sectors of the Moldovan economy and serve as a key driver for regional and international collaboration​.”

Natalia Bejan, Director of the Investment Agency in Moldova, also added: “When companies are coming together, they are learning from, sharing with others, and are strengthening the group and community [...] We need to make sure we are preparing ourselves [...] to play a significant role in the value chain, not only in Moldova but also in the region and the European Union.”

Clusters as Drivers of Interregional Value Chains

The first panel session began with an input paper presented by Dr. Jan-Philip Kramer, Head of EU-Services at PROGNOS AG, on behalf of the ECCP, which offered an overview of Moldova’s economic landscape and the potential of cluster development. The paper drew attention to Moldova’s trade growth from €1.1 billion in 2012 to €7.5 billion in 2022, driven by agriculture, textiles, and ICT. It also pointed out challenges, such as agriculture employing more than 20% of the workforce but contributing less than 10% to the GVA, while ICT has seen significant growth with a 35% rise in employment between 2019 and 2022.

Dr. Kramer stressed: "The potential that you're building with clusters can translate directly into economic competitiveness, and that's, I think, why we're all here."

The panel built on these insights, focusing on how Moldova’s clusters can integrate into European value chains. Linda Perina from the European Commission discussed tools and funding available through the European Cluster Collaboration Platform and Euroclusters initiative to promote cross-border cooperation. Daniel Cosnita from the Romanian Cluster Association affirmed the need for Moldova to improve competitiveness, noting: "We have a competitiveness problem in the Danube region, particularly in manufacturing. We need to lengthen the value chain to improve our position."

Jiri Herinek, President of the National Cluster Association of the Czech Republic, underscored the role of technology in cluster management, suggesting that artificial intelligence can help cluster managers identify member capabilities and foster more effective collaboration. He outlined that AI can be used to map out technology profiles and identify potential connections for our clusters, making collaboration more targeted and productive.

Clusters Driving Moldova’s EU Integration

The second panel highlighted the essential role of clusters in driving growth and integrating Moldova into European value chains. Supported by the EU and UNDP through the EU4Moldova Focal Regions Program, financial aid and technical assistance have boosted emerging clusters like the VIA Cahul Tourist Cluster, which was nominated for a Sustainability Award. "UNDP Moldova has always supported local development," pointed out Olesea Kazakhu from UNDP Moldova.

Academia also plays a key role in cluster development, with the University of Economic Studies of Moldova aligning its curricula with the needs of local clusters. "We serve as a bridge between cluster entities, private sectors, and students," explained Irina Calugareanu.

Sergiu Harea from the Chamber of Commerce  of Moldova asserted that "clusters are crucial for economic development" and their success can lead to better integration into EU value chains, attract investment, and improve productivity.

However, challenges remain, with representatives like Angela Cascaval, Head of the Nistru Tourism Cluster (Moldova), and Ciprian Morcan, General Manager of the Transylvanian Furniture Cluster (Romania), calling for stronger national regulations and infrastructure. C. Morcan suggested the value of "cluster exchange," allowing Moldovan clusters to learn from EU counterparts, which he believes is crucial for young initiatives.

Image
Dr. Jan Phillip, Clusters meet Regions event in Moldova
Image
Clusters meet Regions event in Moldova
Facilitating direct collaboration

The matchmaking session, organised with the support of the Enterprise Europe Network Romania, was the key highlight of the event. A total of 61 participants took part in the session, representing 11 different countries (Romania, Moldova, Ukraine, Greece, Germany, the Czech Republic, Slovakia, Hungary, Finland, Georgia, and Turkey). The participants engaged in 101 bilateral meetings,  fostering extensive networking opportunities and the exploration of potential partnerships. At the end of the day, an MoU was signed between two digital innovation hubs: Wallachia eHub and the Digital Innovation Hub of Moldova. This partnership aims to enhance connections between startups and investors, providing access to financing for digital transformation initiatives in the Republic of Moldova.

Participants from various countries shared their thoughts on the importance of these sessions. Nicu Vrabie, Program Manager of the Moldovan Technology Transfer Network, reiterated the significance of international partnerships, stating: "These events organised in the Republic of Moldova with the participation of European companies and clusters are a great opportunity for us to make partners.”

Georgiana Mihailovici, General Secretary of the OpenHub Creative Cluster(Romania), stressed the value of international exposure: "It's really important to be present here and make a lot of connections with certain stakeholders so that we can go international more easily, share experiences, and also resources".

Olga Shapoval, Executive Director of the Kharkiv IT Cluster (Ukraine), appreciated the multifaceted benefits of such events: "These events facilitate connections with peers in similar roles across various clusters, allowing [us to share] expertise and experiences"​. She also underscored the importance of project partnerships, noting that she had multiple meetings that led to discussions about future collaborations.

The first event day ended with the pitching sessions focused on the achievements of 32 clusters from 6 different countries, including Moldova, Ukraine, Romania, Finland, Hungary and Greece, which shared their progress and innovations in their sector.

Notable achievements from Moldovan clusters included the creation of new jobs, the establishment of an oenology centre, and the implementation of sustainable practices, such as photovoltaic power plants. The session demonstrated how Moldovan clusters are focusing on modernization and training to boost competitiveness. The session also underlined the importance of international collaboration and gender equality.

  • ARHIPELAGO / Afaceri.ro (Romania)

  • Create Cluster (Moldova)

  • GAL Inima Nistrului (Moldova)

  • Association for the Development of Electronic Communications and Innovative Technologies (ACETI) (Moldova)

  • Transylvanian Furniture Cluster (Romania)

  • Winemaking Cluster Cahul (Moldova)

  • Regional Tourist Cluster Ungheni 2030 (Moldova)

  • International Agricultural Cluster "Dnister" (Ukraine)

  • European Cooperation System (France)

  • Openhub Creative Cluster (Romania)

  • World Academy of Arts and Science (Moldova)

  • AIDDA (Romania)

  • IND-AGRO-POL cluster (Romania)

  • Vladimir Andrunachievici Institute of Mathematics and Computer Science, State University of Moldova (Moldova)

  • Oy Merinova Ab EnergyVaasa Cluster (Finland)

  • Hungarian Construction Cluster (Hungary)

  • Association of Industrial Automation of Ukraine (APPAU) (Ukraine)

  • ARHIPELAGO (Romania)

  • UNDP-PRIM/Cluster Herbafruct (Moldova)

  • NSI Innovation (Belgium)

  • Association Romanian River Transport Cluster (Romania)

  • CANEPARO (Romania)

  • Kharkiv IT Cluster NGO (Ukraine

  • Agency of Regional Development of the Tavria Assocation of Territorial Communities

  • (Ukraine)

  • Association for the Development of Electronic Communications and Innovative Technologies (Moldova)

  • TIASI (Greece)

  • Centre of Polymer Systems, Tomas Bata University in Zlin (the Czech Republic)

  • Regional Tourism Organization «Dnestr» (Moldova)

  • The Livestock (Sheep & Goats) Cluster form Cimislia-Basarabeasca (Moldova)

  • Vicolemn (Moldova)

  • Agrofood Regional Circular Economy Cluster (Romania)

Image
Clusters meet Regions event in Moldova
Image
Clusters meet Regions event in Moldova
Circular Economy and Sustainability: Integrating Practices for Cluster Development

The second day started with a workshop on circular economy practices within clusters, organised as part of the Plan C project. Experts discussed how clusters can adopt circular economy principles to enhance sustainability. Vladimir Sedlarik from Thomas Bata University (the Czech Republic) presented his research on sustainable polymer technologies, while Andrei Mirza from the SORINTEX (Romania) cluster pointed out the country’s low recycling rate of just 3%. He stressed the urgent need for better waste management infrastructure to support Moldova’s shift toward a circular economy.

The discussion also brought to light the potential of natural materials like hemp to replace conventional plastics in industries such as construction and textiles. Peter Kiss from the Hungarian Clusters Alliance discussed the challenges of securing funding for sustainability initiatives but emphasized  that integrating circular economy practices into cluster operations is vital for long-term success​.

Image
Clusters meet Regions event in Moldova
Image
Clusters meet Regions event in Moldova
Sustainable Development, AI and Digital Clusters

The event concluded with a session on sustainable development and digital clusters, focusing on how AI-driven data analytics could enhance cluster management. Participants agreed that AI has the potential to streamline operations, such as data collection and partner matching, based on shared goals. However, they affirmed that "AI is a tool, not a replacement for human judgment," calling attention to the need for human oversight to ensure accuracy.

Proposals included developing AI platforms to provide real-time information on market dynamics and resource mapping. Participants suggested a "cluster-centric AI platform" with features like AI-driven matchmaking and heat maps to identify regional opportunities. “AI can help clusters find the perfect partners by providing relevant geographical data and specific business profiles," pointed out Johan Wasberg, Senior Expert at Oy Merinova ab EnergyVaasa Cluster.

Image
Clusters meet Regions event in Moldova
Image
Clusters meet Regions event in Moldova
Conclusions

The Clusters Meet Regions event in Chisinau offered a comprehensive platform for Moldova’s emerging cluster ecosystem to connect with European counterparts and explore new opportunities for growth and collaboration. It called attention Moldova’s potential to drive economic development through clusters, especially in sectors like agriculture, ICT, and manufacturing. The event also reiterated the importance of sustainability and digitalization, which are crucial for Moldova’s continued integration into European and global value chains.

The key takeaways from the event included the critical role of clusters in fostering innovation and competitiveness for Moldova’s SMEs, the value of international cooperation in driving regional development, and the need to embrace digital tools like AI to enhance cluster management and matchmaking. Moldova's journey toward greater economic integration with the European Union continues, with clusters playing a central role in this transformation.

"Clusters are not only economic entities, we see them as catalysts for progress, and by fostering collaboration, knowledge sharing, and innovation, they can really help unlock the economic potential of this country and contribute to a sustainable and prosperous future for Moldova." – Julda Kielyte, Team Leader Competitive and Inclusive Growth EU Delegation.

54068449281_ac071d8f0a_o
Share this Article