THE KNOWLEDGE AND THE INTERNET ROMANIAN ECONOMY RECOVERY TOOLS

Vasile Dumbravă  Prof. Ph.D. University „Titu Maiorescu” Bucharest, Faculty of Economics

Iacob Vlăduţ – Severian  Lecturer PhD Alma Mater University of Sibiu, Faculty of Economics Bacau

Summary
The digital era has begun at the end of last century. The huge amounts of knowledge classified, stored, and / or put on the market have shown that technology can influence the evolution of knowledge, its management and the possibilities for economic recovery.
The access to the globalized knowledge was possible thanks to increased development of communications and particularly due to the development of the Internet.

Tags: Knowledge, economic recovery, digital economy, knowledge society, sustainability, sustainable development, information, internet.

Foreword

Unprecedented changes of recent years, particularly those from technological field, determined an increase impressive amount of information and their transfer, and trade links and business overall, for the world economy. Therefore, „digitization of economy” has become a phrase superimposed over actual reality where governments and individuals are witnesses of the effects of their own actions based on knowledge. Congestion aware of ideas and information in order to obtain economic performance is „the foundation of the knowledge economy”(Drucker, 1966), the concept that clearly differentiates labour specialization – worker vs. “knowledge worker” (Drucker, 1969), – which also represents a new stage of human civilization, where the use of technology involves the implementation of a new economic order.

NEW ECONOMY, KNOWLEDGE AND ITS EXPONENT

Aiming to achieve a profitable result representative of economic life is constantly adapting to the changes taking place in economy, mainly to those which provide a higher utilization of resources which appear to be increasingly rare. Thus, their fight for survival as for development involves the acceptance of the new manifested requirements by the consumer in market requirements due to the needs, more or less sophisticated of daily living.

As such context it is easy to observe that the impact of use of knowledge latest technology, but mostly scientific management methods, but mostly scientific management methods induces to users a greater flexibility into the existential confrontation while facilitating further recovery of world economies a chance. The Knowledge, which requires „the identification, description and the control of the form, of the property or event through comprehensible delimitation operant conceptual of causality of the criteria that enable the emergence and development of different objects, properties, actions and conditionings configured in reality „, – represents all that people know and can exist in the organizational processes, in commodities, services, etc.

„New Economy2(the digital economy or knowledge economy) considers the present manifestations of the economic activities as being the result of using of digital technologies that provide access, the processing and storing of information in a manner cheap and easy3. It provides the economic recovery, the introduction of innovation in production by increasing the importance of learning and knowledge, by virtue of sustainable development, globalization.

Into the new economy, the balance and the stability claimed by the traditional economy analysts no longer arouse the interest of competitors even if such an approach prefigures a secure formula for success. The new approach, higher quality,

considers the economies as „adaptive systems, dynamic” (Haralambie, 2006), and the information and the knowledge essential components of contemporary reconfiguration and economic development. The complexities of the knowledge economy model are given by the many processes and of evolutionary trends occur at all levels in relation to the reorientation of human to nature, with the reconsidering of the traditional production factors, and especially of new factors, of that „knowledge is only really relevant resource” (Rosca, 2006). Therefore, knowledge acquired by its characteristics (Sveiby, 2003) – implicit, dynamic, regulation, action-oriented-  an utmost importance and added value as it is disseminated and utilized in comparison with the work, land and capital, „factors that do not disappear”, but which in the context of new perspectives „are secondary” (Drucker, 2006).

Accelerating the role of knowledge is supported by speed of innovation and technological breakthroughs enter in the areas of human activity providing the continuous development adapted to the new sustainability requirements set out more often lately.

The views of specialists highlights the emergence of „cognitive domains” who value non materiality of knowledge, more precisely on the synthesis of ideas whose value far exceeds the value of physical assets. This is why the intangible assets such as knowledge and their management „Become the new the core of competences (Ene, 2002)”, „key elements of achieving high productivity and competitiveness” (Cristea, Moşneanu, Glod, 2008) for economies. Therefore, the organizations in that are attracted and assimilated elements of knowledge provide a more specific entrepreneurship, generating a new sense to managers of finding optimal solutions into recovery activities the allocation of factors and maximizing profits.

In this connection support the claim that the knowledge employee (Joavină, 2006) it can only be an educated person with multidisciplinary knowledge, whose mission is to make oneself understood and to promote the  necessity of proper understanding of the economy and knowledge society.

The existence of these characters is already a challenge to the current economy and society.

With such skills and capabilities the new type of employee is the owner of cohesive and formal knowledge and he is in a continuous assimilation approach of theoretical concepts, with a high interest into practice of capitalizing the results of biological theories in astrophysics, of Chinese military strategy and of Indian philosophy of sales coaching, of meditation in performance, being a person with a positive deeply mentality towards change and innovation. (Joavină ,  2006).

INTERNET AND ITS IMPACT IN THE DIGITAL AGE

The digital age has begun at the end of last century. Huge amounts of knowledge classified, stored, and / or put into circulation demonstrated how the technology can influence the evolution of knowledge and its management. Furthermore the access to the global knowledge was possible thanks to increased development of communication with costs increasingly smaller but particularly due to the emergence of the great innovations of the century, the Internet. Quickly became a socio-technical phenomenon Internet as a form of use of electronic networks open, has a major impact on society and its future by:
• Data exchange using electronic messaging;
• simplification of work processes and communication;
• minimal costs related to communication and information and data handling;
• fostering collective creativity, teamwork;
• globalization links using global technologies;
• access to impressive sources of information.

The exploitation of the above mentioned facilities have different purpose depending on its purpose of accessing the network: society, individuals or organizations. In that way, can be distinguish original social new practices which are interesting.

At the institutional level Internet increases communication effectiveness making flexible the structures stimulating creativity and teamwork, generating more competition. Furthermore, using this vehicle is emerging a new strategic dimension related to mastery of information and the possibility of appropriate interventions in the correction of certain phenomena, and the development of new partnerships. It can also reveal the fact that the interest of citizens for the public information constrains more and more governments, and the administrations to answer satisfactorily questions raised by this. Obvious changes are recorded into mobility of persons. The modern technologies and easy access to information which is given by the Internet causes changes into the structure and the distribution of jobs in a country in a specific geographical area. Itself creation and use of these technologies, their promotion, the interference with other markets generates the emergence of new professions and specializations.

But the movement of individuals shall be made not in the interest of job search only but also may be made in touristic interest. Thus, the Internet produces a great opening for practicing all forms of tourism through the promotion of tourism. Online advertising web sites, videos, documentaries travel, are a method of dissemination of information.

Table no. 1 The increase ratio of Internet use around the world

world regions

population of 2010 (estimated)

Internet

Users 2000

Internet

Users 2010

%  Population

coverage

Growth

2000 . 2010

Africa 1.013.779.050 4.514.400 110.931.700 10.9 % 2.357.3 %
Asia 3.834.792.852 114.304.000 825.094.396 21.5 % 621.8 %
Europe 813.319.511 105.096.093 475.069.448 58.4 % 352.0 %
Middle East 212.336.924 3.284.800 63.240.946 29.8 % 1.825.3 %
North America 344.124.450 108.096.800 266.224.500 77.4 % 146.3 %
Latin America 592.556.972 18.068.919 204.689.836 34.5 % 1.032.8 %
Oceania 34.700.201 7.620.480 21.263.990 61.3 % 179.0 %
Worldwide 6.845.609.960 360.985.492 1.966.514.816 28.7 % 444.8 %

Source: http://www.internetworldstats.com/stats.htm

Related to communication, knowledge and wide access offered by it, we grasp the impact of new technologies in education, health and culture, etc. the highest rate of use and expansion of Internet being the scientific environment through the development of cooperation between researchers. The intensity of contacts, the rapid multiplication of Web sites and forums reconfigures vision of how is made research and science communication.  At the same time, the Internet, by its architecture is a primary vector to promote the sustainable development concept and its purpose, respectively, achieving a dynamic balance of human and social needs with the eco-system through a „policy of stimulating human creativity in finding solutions to serious problems of the contemporary world4 (Dobrotă, 1997).

Reduction of manufacturing costs, at producers of the one hand, of initiation and implementation of government policies work grant, on the other hand, corroborated with the orientation towards digitalized society made possible an extraordinary increase of acquisitions of computers, and an unprecedented explosion of Internet traffic, obviously.

Considering the traffic data for the year 2010 increased use of Internet world was 444.8%, Asia (Figure # 1) occupying a volume of 42% of all users worldwide. Like any other instrument, the Internet can be used for destructive aims.

The free access allows to any user „surf the net” to get information from a variety of databases around the world. A malevolent elsewhere in the world could cause great damages to individuals, local communities or regional or even states? Therefore, with its spectacular development Internet has proliferated and harmful and dangerous phenomena in the field of crime. Practically, every „good” field of this mega-network may be associated with „criminal fields offering „at least three advantages of leading crooks: eliminating distances, minimum cost and a front and anonymous” (Le Doran, 1998). Therefore, through the parties to „dark”, the Internet should be regarded as a generator of risk. We first could mentioned the problems arising from the „cyber attacks” on some systems, more or less well protected, those related to the attempt on private life, confidentiality and the risk of financial or monetary transactions on unsecured networks. that violates the rules established by the moral or society: instigation to racial hatred, defending causes intolerable (neo-Nazism, Holocaust denial), pornography, advocate and proliferation of death, suicide, perverse behavior, etc.

The decrease of these realities is made in many countries by creating observation and control devices for abnormal behavior, through the specialized branches of law and strengthening legislation etc.

ROMANIA OF KNOWLEDGE

The emergence and the development knowledge society in Romania is related to the overall development of knowledge due, mainly, informatics boom of the last decades of last century. Therefore knowledge as „the processed state of an informational system coupled with an ambient reality5” made itself felt throughout the global economy, and therefore, also for sectors of Romanian economy, proved to be the only chance for recovery the gaps. Based on the determinant role of information as: „Source of value and economic competitiveness and organizational coherence”, since 2001, Romania has initiated the transition to „Information Society – Knowledge Society” (Filip, 2001) aiming to create the national information infrastructure, contemporary governance, increasing access to Internet to continuously improve the knowledge for the citizens, organizations and states. This was possible at that time, considering the European guidelines related to the new type of society and by necessity to elaborate a purely national model of the knowledge society an option expressed by National Strategy6, in 2002 taking into consideration a series of advantages (preparation of professionals in information technology and communications, interest shown by the young people towards this technology) and limitations (lack of computers, urban-rural gaps, ‘brain drain’ reluctance at computerization, etc.). Therefore, „as the main drivers of development SI-SC in Romania have been identified: extended Internet, e-books, intelligent software agents, mobile communications „(Draganescu, 2001).

The achievement of Romanian of Knowledge has made possible through the active involvement of the State that as a partner and beneficiary, has provided pilot project design, has financed investments in ICT, enhancing the legal framework together with the design and implementation by stimulating policies.

But the state is not alone on the stage of knowledge society. It provides the building „pillars” as economy based on knowledge were outlined in the study conducted by the World Bank (2005)7: ”the entrepreneurial spirit, education, human factor, an innovative system by training (companies, research centers, universities), communications networks and the Internet” (Rosca, 2006). The task of developing the new economy is also: „Organizations in the economy of the civil society, academia and research, media and broadcasting, strategic foreign partners, foreign institutional factors” (Philip, 2001).

In 2010, Ministry of Communications and Information Society in Romania carrying out the project „Knowledge-based economy, with a budget of 69.4 million dollars8,” intended for small rural and urban, in partnership with municipalities in 255 villages and towns with fewer than 30,000 inhabitants, where there is no access to digital information, and therefore no skills to use and operate.

Providing high speed internet access, PCs in schools and the general public, initiating actions and programs for training tutorials, the project mainly supports local public administration, to provide quality services to the population of these villages (over 8% of the population), while underlining Romania’s membership of „Europe 2020”.

Such EU strategy, Europe 2020 „offers a vision for Europe’s social market economy9

In the next decade based on three priority areas:

  • Smart growth, developing an economy based on knowledge and innovation;
  • sustainable economic growth, promoting a competitive economy, low emissions and efficient use of resources;
  • and inclusive economic growth, promoting a highly labor employment, generating social and territorial cohesion.

INTERNET FOR ROMANIAN

For a long time, considered „unnecessary luxury”, the Internet, had not a great response. Even now, for personal use, mainly due to high costs of telephone services, is rather unusual especially in rural areas. If in terms of infrastructure, things have advanced a lot, in terms of computer resources available, this development is slow. If most companies and even some administrative structures have understood that Internet presence is very important, there are no significant Romanian resources and information storage, yet. „For this reason the network traffic is observed to bring more external information than the export of information and exchange of information in the country” (Teţcu, 2010).

Due to the spread of new technologies, only by the touch of a button, the user and his computer becomes part of a huge network of networks (commercial, military, academic, academic, educational, etc.).

Figure #2 The Romanian Interest for Information Field


Source: own processing the data in the Romanian Institute for Assessment and Strategy – IRES

Romanians, by using the Internet, are seeking to inform themselves (96%), conduct correspondence by e-mail (80%), to social networking (70%), reading, listening to music to look online and to download movies.

Among those who access information on the net are mainly interested in sports (18%), entertainment (15%), health (15%), politics (14%), utilities (12%), art and culture (9%). Although one of the main areas of information on the Internet Romania is the political, only 5% of individuals pursuing or access the website of a political party. The most common browser used by the Romanian is Google Chrome, 36.8% of the survey respondents saying they prefer, closely followed by Mozilla Firefox (27.5%) and Internet Explorer (27.2%).

AN UTILIZATORI POPULATIA % Pop.
2000 800 22,217,700 3.6 %
2004 4,000,000 21,377,426 18.7 %
2006 4,940,000 21,154,226 23.4 %
2007 5,062,500 21,154,226 23.9 %
2010 7,786,700 21,959,278 35.5 %

Table No. 2 use of internet in Romania

High-use category at the country level, young people from Romania, aged 16-24 years compared with other countries show low levels of regular use – 54%, from Bulgaria (65%), Hungary (87% ), Macedonia (75%), Greece (71%). Research shows that internet users’ skills are low, medium and high12. For users of our country 57% of respondents with Internet access have low skills (compared with 48% EU average), 36% average skills (38% ME) and only 7% higher skills (13% ME), similar to Belgium, Germany, Cyprus, Sweden , United Kingdom and Greece (Tufa , 2009).

Figure no. 4 Access to PC and the Internet, by area of residence Source: NIS, Survey on ICT in households, 2008


Using data provided by the National Institute of Statistics, in the year 2008, we can specify that access to personal computer in the household, urban-rural ratio is about 3:1 and as regards access to Internet at home, the ratio is about 5:1.This polarization may reveal, an allocation of financial resources lower in rural than in urban areas, and it could be the lack of necessary infrastructure to connect to the Internet in some rural areas.The access to Internet incremented in accordance with the degree of education. The moments of maximum growth occur for secondary education (25%) and university (29%).

Figure # 5 Shares of households having access to a computer at home, on the training


Source: NIS, Survey on ICT in households, 2008

Internet access in the household is dependent on having a computer, which could be an indicator of above-average income. Individuals with higher education generally have a high income, so the above data can translate the link between income and owning a computer, rather than direct relationship between education and Internet access. Besides the explanation of financial (cost of buying a PC for a monthly fee of internet connection) is likely to influence the educational level and perceived need an Internet connection. Under the same studies employers, students and employees have greater access to the Internet into their home, compared with under a fifth of the inactive (unemployed, homemakers, retirees.

Figure # 6 Share of households having internet access at home, into total households, the employment status


Source: NIS, Survey on ICT in households, 2008

KNOWLEDGE AND TECHNOLOGY TO „AE Electronics” AND „ELMET” in Bacau

With private capital commercial company, founded in 1998, S.C. A-E Electronics S.A. (Romania) has proven manufacturing capabilities “high mix low volume” in the field of subassemblies and integrated electronics, cables and cable trees, aerospace and defense industries for. Also, AE Electronicshas been developed unique capabilities design and manufacturing of automatic test solutions in a space (about 6000 m2) temperature and humidity controlled, secure ESD (Electro-Static Discharge) „ by making use of current technologies in the industry, providing its customers maximum value at low cost.

Actual requirements of the production of military electronic equipment have been corroborated with the investment policy of the company which ensured continuous technological compatibility of equipments:

SMT lines13 with high (0201 components, fine pitch and Micro BGA);

• Automatic Optical Inspection (AOI14) and X-ray;

• wave soldering machines and selective wave, under nitrogen;

• Cleaning equipment and electronic assemblies for measuring contamination;

• Facilities of processing and assembly of cable wires and trees;

• Automatic testing electronic assemblies (ICT15, JTAG16 and functional test), cables and cable trees;

• acrylic paint and coatings comply with polyurethane;

• Equipment for environmental testing, ESS (random vibration / sine, shock, climate room).

Aiming benefit of the customer, material and the costs management is carried out through a system ERP17 which provides reduction of the total time from application to delivery of the product. Engineering activities are performed using CAD tools and a powerful PLM database.

Mechanical parts processing industry „HIGH TECH”aviation, military equipment, electronics, medical equipment) and „SHEAT METAL” – components and parts for the commercial market (on canvas copy machines, medical equipment, miscellaneous).

Turnover of Elmet International SRL is growing since 1999. Since 1999 to 2009, turnover increased by U.S. $ 33,140,458.00, that is with 3831.51%. The highest value of the turnover was made in 2009 – value: 34.005.403, 00 RON.  The smallest value of the turnover was made in 1999 – value: £ 864,945.00. In the last balance sheet (balance from 2009) the turnover of Elmet International SRL, increased by U.S. $ 4,532,813.00, which is with 15.38%, compared to last year.

CONCLUSIONS

The concept of new economy, digital economy is closely related to advent transfer processing and storage technologies of information in order to achieve high performance in various sectors by reconsidering the factors of production, with a greater emphasis on human intelligence and individual skills. Therefore the information society is a direct consequence of the accumulation of knowledge and use of inventions and innovations in communications, making reference here to the advent of the Internet, at the end of last century. Information Society in Romania was prefigured while new trends technological world, but initiatives for establishing a strategy in this area have been driven by social-political stimulation exerted by the European Union as a direct consequence of the application for membership in 2001. Internet, the invention which revolutionized the century world as a whole generating unprecedented traffic information has had a difficult start in Romania. Although there are obvious advantages of its use in research, education, tourism, economy and other areas, this huge „network of networks” presents risks to the challenge of deep crisis, damaging  states and Organizations and individuals that are created with ill will association with crime, drugs, prostitution, terrorism, etc.  Monitoring allows the network demonstrates through studies profile organizations, the extent of use of the Internet world, fantastic increases in recent years in Romania, although state efforts to achieve the infrastructure, the situation of Internet use of 35.5% is lower than the European average, 67.6%, but higher world average, 28.7%, highlighting the existence of the constraints of Internet access by education, income, age

However Romania has 46% of Internet users log on speeds above 5 Mbps, being ranked even better place than the United States of America, where only 26% of Internet users have high speed Internet. Romania Also ranks 7 of 14 in a top of the countries considered ready for online applications of the future, such as high definition television over the Internet or high-quality video communications.

4 It is about pollution, natural resource exhaustion, overpopulation, hunger, housing needs, and education needs of self and human
5 ro.wikipedia.org/wiki/Cunoaștere(ro.wikipedia.org / wiki / Knowledge)
6 National strategy for promoting and implementing the new economy of information society, published in Official Gazette 933 of 19 December 2002 (Official Gazette. 933/2002).
7 http://go.worldbank.org/QYZPRJD1Y0
8 http://www.stirisidistractie.com/regional/constanta/10455
9 http://www.euractiv.ro/uniunea-europeana/articles|displayArticle/articleID_19573
Although they have ease noticed this type of communication, Romanians have adopted it quite slow and have integrated it with the same speed in all sectors especially revolutionizing electronic commerce of goods and services. The impact on society and electronic commerce companies is particularly so in scope and intensity. For companies electronic commerce offers unique opportunities to restructure their affairs10 , redefining the markets or creating new markets. E-commerce initiatives can generate cost decreases in, in revenues increases and operational efficiency for companies seeking to gain a competitive advantage in today’s economic environment. The evolution of electronic commerce is closely related to increase Internet users and accessibility of this environmen. According to international statistics over the last ten years, the proportion of Internet users in Romania increased for 10 times, reaching from 3.6% in 2000 to 35.5% in 2010 (relative to population11). Despite of this increase, Romania is on the last position in the European Union in terms of Internet users, a 35.5 percentage well below the EU average which is 67.60.
10 Lucian Velea – „Life on the Internet” – Ed Edusoft Iasi in Romania in 2007
11 http://www.Internetworldstats.com/eu/ro.htm
12 In 2008 Eurostat data
13 – Surface Mounted Technology
14 – Automatic Optical Inspection
15– In-Circuit Testing
16 – Joint Test Action Group
17 – Enterprise Resource Planning

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