Romania is among the few countries in Europe and Central Asia (ECA) where industrial policies have a more pronounced orientation towards specific firms, not sectors.
According to a World Bank report, along with Poland and Bulgaria, Romania is one of the countries where over 40% of industrial policy interventions target individual companies, while in most other countries in the region the share of this type of interventions remains below 20%.
Overall, however, most industrial policies in the ECA continue to be oriented towards economic sectors, not individual firms.
Romania: innovation through public procurement and stimulating local industry
An increasingly important industrial policy instrument in Romania is public procurement for innovation.
„Romania tested procurement schemes for innovation under EU co-financed programs, using procurement to incentivize domestic companies to develop new solutions in medical technology and digital infrastructure,” according to the WB report.
These initiatives are part of a broader trend at regional level, where public procurement — equivalent to around 10–15% of GDP in countries such as Romania, Poland and Bulgaria — is increasingly being analyzed as a potential industrial policy tool.
Despite this, their systematic use for this purpose remains limited in most ECA countries, the institution’s experts say.
Poland and Serbia: local content and supply chains
Regional experience shows different approaches to using public procurement. Poland introduced local content provisions in public tenders in infrastructure and defense, requiring contractors to purchase a share of inputs domestically and to collaborate with Polish firms for technology transfer, particularly in sectors such as rail transport, energy and advanced production.
Serbia has also integrated public procurement into its automotive industry development strategy, granting preferential treatment to companies that meet domestic supply requirements or that create jobs locally.
Industrial policies in ECA: between sectors and firms
Industrial policies have seen a significant expansion since 2020 across the ECA region, in the context of the COVID-19 pandemic, supply chain shocks and increased economic uncertainty. Priorities have subsequently shifted to energy and food security, green transition, energy efficiency, innovation and supply chain resilience.
Although the use of these policies has increased, their structure varies depending on countries’ income levels. High-income countries—including those in ECA—tend to target specific firms more often, while middle-income economies tend to focus more on broad sectors or regulation policies.
In ECA, industrial policy measures frequently include trade instruments, to a greater extent than in other regions, while in the European Union and China domestic subsidies predominate. Lower-income countries rely more on tariffs and non-tariff measures, with average tariff levels of up to 12%, significantly higher than in developed economies.
„In resource-rich ECA countries, diversification of exports and production has largely driven the focus on industrial policies in recent years. Turkey stands out among ECA countries with its strong focus on improving competitiveness and self-sufficiency in strategic sectors,” according to the document.
A region with over 2,600 industrial interventions
Since 2009, ECA countries have announced over 2,600 industrial policies. More than a third of those adopted in the last four years are still in force. Russia and Turkey are the most active players in the region, together accounting for over 70% of all interventions.
Between 2020 and 2021, around half of the measures introduced were subsequently withdrawn, reflecting their temporary nature and related to the response to the COVID-19 crisis. However, in around a third of countries, the number of new policies remains above pre-pandemic levels, particularly in Central Europe, Serbia, Russia and Turkey.
The World Bank report highlights a structural change in the way ECA countries use industrial policies: from one-off interventions to complex strategies blending competitiveness, economic security, green transition and regional development objectives. „The concept of industrial policy has expanded in recent decades to include economic and supply chain resilience, the reduction of energy intensity in production, national and energy security, innovation and regional development. This broader vision has been accompanied by a growing awareness that, to be effective, industrial policy must address identified market failures and be compatible with market discipline, promoting a level playing field for all enterprises and ensuring contestable markets,” the WB experts argue.
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