In focus: services

Northern Transylvania has a strong service-oriented economy, in line with the tertiary sector trend observed at the European level. The services sector contributes the most to the regional added value and includes a wide range of sub-sectors. In this context, the focus is on business services and professional services, which encompass activities such as IT\&C, management consulting, financial and accounting services, advertising and marketing, legal services, architecture and engineering, recruitment services, and other business support services. These services, often knowledge-intensive, have experienced rapid expansion in recent years in the urban hubs of the region – particularly in Cluj-Napoca and Oradea, which have established themselves as regional hubs for IT and outsourcing. Oradea (Bihor County) has developed in industrial and logistics services but is also beginning to attract investments in support services (BPO) and IT. Overall, the business services sector in the North-West has proven to be one of the most dynamic drivers of regional economic growth, supporting the development of a modern local economy based on innovation and added value.

Investment Opportunities

Business Service Centers (SSC/BPO) – Romania is a regional hub for outsourcing (SSC, BPO) in IT, accounting, HR, etc.; the country's business services sector has exceeded €4.5 billion, with Cluj concentrating around 15,000 employees (6% of the national market). Competitive salary costs and the multilingual factor (Romanian, Hungarian, English, German) make the region attractive.

Call Centers and Customer Support – Many young people fluent in foreign languages, low costs, and good living conditions enable the establishment of international customer relationship centers.

Financial, Accounting, and Back-office Administration Services – Companies in the region can take on accounting, payroll, or management services for European companies, benefiting from a skilled workforce and subsidies for digitalization.

Consulting and Professional Training – The need for upskilling in the industrial workforce (automation, digitalization) and business consulting (strategy, supply chain) provides opportunities for consulting firms and continuous training centers.

Logistics and Supply Chain Services – The strategic location of North-West Romania, with a border to Hungary, and the infrastructure for rail/road transport attract investments in warehouses and transportation. For example, DHL has opened a regional hub at Cluj Airport, stimulating investments in courier and local distribution services.

Tourism and Hospitality – Natural and cultural attractions (Apuseni Mountains, spa resorts, festivals) create demand for hotels, restaurants, and travel agencies.

Medical and Wellness Services – Private medical centers and spa resorts (Băile Felix) can be expanded for medical tourism, supported by the growing global interest in preventive health.

Education and Training (Educational Services) – Universities in Cluj, Oradea, and Baia Mare can collaborate with private companies to offer specialized courses (IT, robotics, agriculture).

Marketing, Advertising, and Creative Media – Local companies can provide digital marketing, design, and media production services to global clients; the startup ecosystem in Cluj supports creative industries.

Coworking and Business Incubators – Incubation and acceleration facilities support local entrepreneurs; urban regeneration projects funded by the EU include shared workspaces.

Agricultural Services and Agri-Tech – Agricultural consultancy and related services (e.g., value chain management, food logistics) are in demand with the digitalization of farms and the expansion of agri-food exports.

Context
The North-West region is one of the most prosperous areas of Romania. In terms of living standards, the region has made significant progress, indicating that the local economy has accelerated toward European standards. However, in the EU regional competitiveness ranking, North-West ranked 226th out of 234 regions analyzed (according to the Regional Competitiveness Index 2022) – still far behind the EU average. The region's economic composition is diverse, with an increasing share of services and a notable decline in agriculture in the workforce structure. Cluj has a predominantly service-based economy (a developed tertiary sector and a very small primary sector), while counties such as Satu Mare and Sălaj maintain a more industrial-agricultural profile. This concentration explains the marked intra-regional disparities: Cluj surpasses other counties in most socio-economic indicators. Business infrastructure has also seen development: there are 23 industrial parks in the region, covering over 765 hectares and hosting more than 240 resident companies in total. Industrial parks (such as Tetarom I – Cluj, the first in the region, or the industrial parks in Oradea, Dej, Bistrița, etc.) have attracted investments in production and logistics, but some also host IT companies or service centers in dedicated areas. These facilities, along with the presence of prestigious university centers and a favorable geographic location (near the Hungarian border, connected to European transport networks), create a favorable context for service investments. Local and regional authorities have collaborated to promote the smart specialization of the North-West economy, focusing on value-added areas such as business services and digital technologies. All these contextual elements indicate that the North-West region offers a conducive environment for the development of professional services, although there are still challenges to overcome in terms of uniform development and increasing competitiveness.

Innovation and entrepreneurship

The region is the second most innovative in Romania, after Bucharest-Ilfov, according to the EU innovation scoreboard. Regional innovation performance has significantly improved over the past 10 years, a remarkable development that reflects the efforts of local actors to stimulate research, development, and entrepreneurial spirit. However, the overall level of R\&D investments remains relatively low compared to the EU average, and the innovation ecosystem is not yet fully mature: the local business environment does not sufficiently capitalize on collaboration between businesses and universities/research institutes, limiting the transformation of research into commercial innovation. In terms of entrepreneurship, North-West stands out with a dynamic and dense business environment. This entrepreneurial vibrancy is largely driven by university urban centers such as Cluj-Napoca, which offer both qualified human capital and a pro-startup culture, with numerous coworking spaces, networking events, and incubation/acceleration initiatives. Large and medium-sized companies in Cluj and Bihor are particularly investing in innovation, but there is also a wave of high-potential tech startups – from software applications and IT outsourcing solutions to e-commerce platforms, fintech, and creative digital services.

Types of companies

By industry, the most numerous companies in North-West operate in: trade, transportation and storage, construction, manufacturing, hospitality (HoReCa), IT and communications, professional, scientific, and technical activities (e.g., business consulting, legal services, accounting, design, advertising), and administrative services. Another notable aspect is the territorial distribution of companies in the region. Cluj County holds the largest share of active local units, followed by Bihor and Maramureș. In recent years, local governments in the region's cities have implemented measures to improve the business climate – such as partial digitalization of counters, reducing the time required to obtain permits, and creating spaces for young entrepreneurs – which has contributed to the increase in the number of companies. However, the survival rate of new businesses remains a challenge: according to reports, the main difficulties faced by local startups are finding customers, access to financing, and lack of managerial experience.

Workforce

The labor market in the services sector is characterized by high participation and a low unemployment rate, as well as a high demand for skilled personnel in certain fields. The employment structure by sector reflects economic transformations: the share of the population employed in agriculture has decreased significantly, while more than half of employees now work in services (including trade, transportation, public administration, education, healthcare, and private services). Particularly in urban areas, jobs in the tertiary sector dominate. The quality of the workforce is a key asset for the region: we have a higher-than-average percentage of employees with higher education, thanks to the graduates trained by local universities. However, there are also internal disparities: in rural areas of the region, a significant portion of the employed population still works in subsistence agriculture or has a low skill level. A phenomenon that has recently influenced the labor market is remote work. During the COVID-19 pandemic, remote work increased significantly, and in centers like Cluj, many IT employees continued working remotely post-pandemic. Overall, the workforce in North-West is a strong point for investors: it is numerous, varied in specializations, and on average, more productive than in many other regions of the country.

Average Wage

The evolution of wage earnings in the region reflects the economic transformation of the area and the increasing competitiveness of the local labor market. The average net salary in the region has increased substantially over the last decade, keeping pace with the national average, and is now among the highest in Romania, after the capital area. Salary differences largely reflect the occupational structure. The highest-paid sectors in the region (similar to the national trend) are technical and professional fields: IT is at the top, followed by the oil and gas industry (a sector less present in the North-West), then construction and installations. Also among the top are financial-accounting fields, auditing, and business consulting. In contrast, traditional sectors or those with lower added value have average salaries below the regional average. However, even these sectors have seen consistent salary growth, driven by the increase in the minimum wage and competition for the workforce. In real terms, the average net regional salary (relative to the local cost of living) has allowed a noticeable improvement in the standard of living – a fact also highlighted by the decrease in the share of the population at risk of poverty.

Education

Human capital is the foundation for the development of business services, and the North-West region holds a clear advantage due to its educational network, especially at the university level. The region hosts prestigious and well-established university centers and has over 100,000 students enrolled in higher education in any given year, providing a substantial talent pool for employers. The fields of study cover the full spectrum necessary for business services: computer science and automation, economic sciences (business, finance-banking, accounting), law and administrative sciences, foreign languages, social sciences, engineering, architecture, and even visual arts and design. The quality of education is generally high – UBB (Babeș-Bolyai University) and UTCN (Technical University of Cluj-Napoca) are ranked internationally, and partnerships with the private sector have intensified. In recent years, universities in Cluj have launched new specializations tailored to the job market: Data Science, Artificial Intelligence, Cybersecurity, Business Analytics, and foreign language programs aimed at international careers. At the pre-university level, the North-West is proud of its prestigious high schools that feed the technical and economic profiles into university faculties.

R&D

Research and development activity in the North-West region is primarily supported by universities and public institutes, with a growing involvement of the private sector, especially in technological fields. The region hosts branches of national research institutes, university research centers, as well as laboratories of major companies (e.g., the Bosch R\&D center in Cluj focused on automotive engineering, Endava's innovation lab in Cluj for IT, etc.). Due to this infrastructure, the region generates a significant portion of the country's scientific output. Cluj, in particular, ranks as the second academic center in Romania in terms of ISI publications and granted national patents. There are numerous applied research contracts in Cluj between faculties and IT or manufacturing companies, aimed at developing prototypes, testing solutions, or optimizing industrial processes. However, total investments in R\&D remain below potential. Private funding for research is still limited – many SMEs cannot afford their own research departments. Despite this, there is noticeable progress at the attitudinal level – major employers in the region, such as Emerson, Bosch, NTT DATA, and Tenaris, are increasingly investing in local development centers, integrating North-West Romania into their global innovation networks.

Challenges

Although the region has made significant progress, there are several challenges that need to be addressed in order to ensure a balanced and sustainable development of the business services sector and the regional economy in general: • Significant territorial disparities between counties. • Lower overall productivity in certain sectors and areas. • Limited access to funding for innovation and growth. • An insufficiently collaborative innovation climate. • Shortage of skilled labor in services and industry. In summary, although the region has solid foundations to continue its economic ascent, public and private actors must focus on addressing internal imbalances and strengthening long-term resilience. A more balanced region, with an innovative and inclusive business environment, modernized infrastructure, and an educated population, will be able to fully leverage the potential of business and professional services – transforming it into a sustainable engine of growth and prosperity.

Legislative Context
Law no. 346/2004 on Stimulating the Establishment and Development of SMEs Law no. 102/2016 on Business Incubators Law no. 120/2015 on Stimulating Individual Investors – "Business Angels" Labor and Telecommuting Legislation Education Legislation (Law no. 198/2023 and Law no. 199/2023)

This is the primary legislative framework that establishes support measures for small and medium-sized enterprises (SMEs). Law no. 346/2004 (as amended) defines SMEs and provides benefits such as preferential access to national funding programs, free consultancy through government agencies, and historically, it offered reductions in qualification criteria for public procurement (e.g., 50% reduced guarantees for SMEs in public tenders) – benefits that were abolished in 2016 due to EU requirements. However, it remains the framework law that guides SME promotion policies (grants, guarantee funds, and de minimis aid schemes).

This regulation governs the legal framework for the establishment and operation of business incubators and accelerators. Law 102/2016 provides tax incentives for incubators (such as exemptions from local taxes on buildings/land) and establishes certification criteria for incubators, encouraging local authorities and universities to support these structures. The law's purpose is "to stimulate the creation of business incubators, to generate new jobs, diversify local economies, and foster an entrepreneurial environment in local communities." In the North-West region, this law has facilitated the development of these incubators (e.g., enabling access to POR funding and public-private partnerships for incubators).

Law no. 120/2015 on Stimulating Individual Investors – "Business Angels" – outlines the conditions under which individuals investing in micro-enterprises and small businesses can benefit from tax incentives. Specifically, a "business angel" investing in a new company (through a contribution to the share capital) may be exempt from income tax on dividends from that company and capital gains tax when selling shares, provided they meet certain conditions (e.g., holding shares for 3 years). This law was designed to encourage private investments in startups. In practice, its impact has been modest at the national level (with few official cases of registered business angels), but the promotion of private investors remains a strategic focus. For example, in Cluj, there is an active group of angel investors who, although they do not directly use the incentives under Law 120/2015, are influenced by its spirit in funding local tech startups.

Given the nature of the services sector (where remote work is feasible), Law no. 81/2018 on the regulation of telecommuting is particularly relevant, as it provided the legal framework for working from home. Additionally, the Labor Code (Law 53/2003, updated) has undergone amendments that directly impact services: for example, Emergency Ordinance 132/2020 introduced Kurzarbeit (flexible work program with state subsidies during crisis periods), a measure that benefited service companies in the North-West during the pandemic. The challenge remains in the flexible implementation of the legislation, ensuring that employers can adopt modern work models while maintaining employee protection.

These new laws replace the previous National Education Law (1/2011) and introduce reforms designed to better prepare the future workforce. For the professional services sector, a key aspect introduced by Law 199/2023 (higher education) is the requirement for internships in university programs, ensuring graduates' relevance in the job market. Additionally, Law 198/2023 (pre-university education) focuses on strengthening dual education, flexible qualification pathways, and partnerships between schools and companies. The implementation of these provisions will directly impact the availability and quality of personnel in the business & services sectors in the coming years, helping to bridge the gap between employer demands and the school curriculum.