Digitalization and Platformization in Romania Based on the Digital Platform Economy Index 2020

Abstract

This article examines the Romanian Digital Platform Economy. In particular, it discusses how this novel paradigm could help Romania adapt to new technological and structural conditions and participate in the upcoming industrial-digital revolution. It intends to investigate the bottlenecks in the country's platform economy. Moreover, it compares the health of the digital entrepreneurial ecosystem with that of neighbouring countries. So that Romania may achieve sustainable growth, it suggests ways to enhance the platform economy framework. The methodology and data analyzed in the study are based on The Digital Platform Economy Index 2020. It combines 61 indicators from different sources in 24 variables, twelve for the digital environment and twelve for the entrepreneurial ecosystem. These variables comprise the 12 pillars. Providing a basis for comparison, they are a crucial component of the model. Lastly, the four sub-indices and the main super-index are calculated. Platform economies like Romania lack technology transfer, financial facilitation, and digital literacy, according to the research. Demand side issues, such as fewer companies operating online and utilizing cloud technologies and low consumer online purchases, inhibit the introduction of new online businesses and technologies. Digitalization of industrial processes is not a trend in Eastern European countries. It is important to note that the study is limited by using macro-level indicators. With no platform-specific examples, it generalizes the concept of the digital economy. As a study topic, the digital platform economy presented in this article is an emerging field of research. <br />Implications for Central European audience: This article identifies the bottlenecks in the digital platform economy in Central and Eastern European countries. Particularly, it emphasizes the necessity to improve digital literacy, the number of multisided platforms networking, as well as technological transfer pillars of the platform economy. Cross-country also compares several dimensions of the digital platform economy. The author theoretically proves the importance of changing business models and embracing digitization in order to move towards a platform economy. In addition to describing what platform economies are and what they are not, the article also discusses how platforms can be combined with traditional firms to maintain a constant economic growth rate.