After IT, a new sector which requires a highly skilled workforce has emerged as an area of focus for the government. Although it is considered an important factor for economic growth, the R&D sector is poorly developed in Romania, as we currently rank last in Europe for Innovation. The most recent measure taken to encourage R&D development is the introduction of the income tax exemption on salary income earned from carrying out applied research and technological development activities, which took effect from August 2016.
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