Digital start-ups in eastern Europe told to take more risks to boost the local economy

After the collapse of foreign direct investment and with tightening labour markets, new growth models are needed for the region. Two key ingredients are home-grown innovation and policies to maintain and strengthen the skilled labour force, says Florin Zubascu in an article for ScienceBusiness.net.

Entrepreneurs in central and eastern Europe are being encouraged to help shift the economic model from dependence on foreign direct investment and low labour costs, to one of home-grown innovation and creativity in the digital sector, but experts in the region are warning the shortcomings of education and funding systems will prevent this transition.

Speaking at the Startup Europe Summit in the north western Romanian city of Cluj-Napoca last week, Maryia Gabriel, EU commissioner for digital economy and society encouraged young entrepreneurs to take more risks to boost digital innovation in the region.

Gabriel gave the example of UiPath, a robotics process automation start-up co-founded by two Romanian programmers that is now raising a fourth round of more than $400 million from venture capital investors, at a valuation of $7 billion.

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