The local startup ecosystem of Oradea, in North-West Romania, has been making headlines for the past two years. Besides being a beloved destination for tourists and having a high-performing public administration, Oradea has made it to the list of the most attractive and innovative startup hubs in Romania and is not stopping here. It aims for 100 product companies to be developed in Oradea, in the next 20 years.

We looked at the key milestones reached in the last two years, and spoke with David Achim, Executive Director of the Make IT in Oradea non-profit organization, Alina Silaghi, General Director of the Oradea Local Development Agency (ADLO), as well as with Cătălin Rus and Ioana Rus from Prime Dash, an innovative global FinTech startup founded locally, promising to revolutionize business decision-making processes through AI technology. Spoiler alert: public institutions can also benefit from the solution to increase their transparency and financial performance – but let’s set the scene first and dive into the details later on.

Update time: how has the local startup scene evolved in the last two years?

As we were sharing back in 2020, the public-private initiative Make IT in Oradea was launched by the Oradea City Hall and local IT companies (such as Paymo, Mobiversal, Smartware, Helion, Ro et Co), in partnership with Orange Romania. We all know the challenging context of the time, but in terms of building the startup ecosystem in Oradea, the time was ripe. The initiative offered a framework for accelerating startup ideas and developing a stronger tech community through the Bright Labs incubator program, offering comprehensive mentorship program for founders, in order to launch their products within 6 months. The City Hall finances viable startup ideas with up to €50,000, within a total annual budget €300,000. The financing is also available for startups developed outside the incubator program, with the condition to establish their headquarters or open an office in Oradea and have part of their team here.

The city has assumed a bold approach to become competitive in the market of services with high added value. David Achim, Executive Director of Make IT in Oradea, put the goal of the initiative clearly: to have 100 product companies developed in Oradea, in the next 20 years. The program also includes tax facilities for IT companies, as well as scholarships for students interested in building a career in tech.

In the past two years, Oradea was put on the map of startup communities in Romania. Just recently, when you talked about startups, Oradea would not come to your mind. The ongoing initiatives have changed this and brought visibility for the city as a startup hub.

David also made the point that while many of the startups were founded long before, it was only recently that they became known on a wider scale, as part of a well-coagulated community. At the same time, the local ecosystem celebrated important exits, such as Appointfix, an appointment scheduling app created by Mobiversal, which was acquired by a US company and Paymo, a cloud project management application that bundles task management, time tracking and invoicing. 

In terms of public investments, the city is continuing its pro-active and accelerated development. The Oradea Local Development Agency plays a key role in addressing the needs of investors and future innovators, from the management of industrial parks, to involvement in the development of major transport, educational and research infrastructure.

 “The industry is constantly adapting and changing to market requirements. Oradea is trying to adapt to the demands of companies, with projects such as the Intermodal Terminal and Cargo Terminal, new road connections, the development of public transport in the metropolitan area and science and technology parks which will provide innovation and research, as well as technology transfer to companies”, says Alina Silaghi, General Director of the Oradea Local Development Agency.

The Bright Labs incubator program, at the second edition

The results of the past two editions of the incubation program financed by the public administration are very promising. In 2021, over 30 teams participated in the selection process, and 8 ended up in the third phase of incubation. Out of these, 3 startups were granted funding, totaling €115,000.

After an exciting Pitching Day event in May, the teams moving forward into the 2022 Bright Labs incubation stage have recently been announced. The pre-selection stage took place between February and April and 20 startups went on into the validation phase. 8 teams were selected for the incubation stage and each received a prize of 5,000 euros to further develop their idea. Similar to the previous edition, the selected startups were from industries such as Smart City, Medtech and SaaS, but also web3 and NFT, applied in the tourism industry. The incubation stage begins in June and will last until the end of September.

If you are interested in joining or supporting the event next year, keep in mind that the program is open to applicants beyond the city of Oradea. This year’s edition included events organized in partnership with Cluj Startups and Cowork Timișoara, as well as a pitching event for expats, Romanians who live abroad or have recently returned. In terms of criteria, the jury will focus on your team, market size, innovative component and validation with the target audience. The Make IT in Oradea team also awarded a grade for the level of involvement of each team during the validation stage. 

Winners of the Pitching Day event 2022:

Palm Benefits – a marketplace that facilitates the communication and business relationship between property managers and property service providers;

DocsGen – a web application that generates documents based on a form;

NFTickets – a blockchain-based system that gives event organizers control over ticket sales, as well as fair prices for participants who buy them;

2 people – a fashion platform dedicated to exchanging clothes;

TreeDev Software Solutions – a solution that offers a wide range of features to help institutions function efficiently

Hygge – a mindfulness diary guided by artificial intelligence;

PackE – a platform that contributes to improving local tourism and building customer loyalty using NFTs;

MD Priority – a support system that will contribute to better health care in emergency units.

Founders corner: Meet Prime Dash

At the beginning of May, Urbanize Hub organized an event in Oradea, bringing together experts, local and national representatives and startups, which hosted the launch of the „Romanian City 4.0” book. The book offers a fresh, post-infrastructure approach to urban development, including economic strategic guidelines, major trends in technology, smart planning and governance and hot topics like designing cities for children and digital nomads. At its core, the book is about the main driving force of any city – its people, and can be found here (in Romanian).

During this event, we had the opportunity to talk to Ioana Rus (Chairwoman of the Board) and Cătălin Rus (Co-founder and COO) from Prime Dash, a successful global FinTech startup founded in Oradea, with offices across three continents (Oradea, Bucharest, London, Senegal and Virginia). Prime Dash takes BI to a new level and uses advanced analytics and machine learning to help entrepreneurs and financial institutions make data-based decisions in real time, in order to attain their financial objectives, regardless of their industry or business size.

On the platform, users can simulate different scenarios to visualize the impact of their decision on the company’s results and receive recommendations to optimize their strategy. The app also bridges the gap between banks and SMEs, as financial institutions can automate and control their lending processes, enhance risk mitigation, while companies can receive loans within hours, based on easily accessible performance data.

What is more, the tool is also suitable for public administrations looking to the ensure the transparency of the budget execution for public companies in their subordination. For instance, the app can deliver ROI analysis for all costs and identify cost optimization patterns to increase the performance of public spending. Building on the existing local talent, the Oradea City Hall has partnered with Prime Dash to become the most transparent public institution in terms of how citizens’ money is used. Prime Dash is eager to have other administrations onboard, at no cost, and can offer direct support for implementing the solution.

What is the story of Prime Dash?

“We started Prime Dash as a result of an exchange of ideas with our US partner Madou Sylla back in 2014. The goal was to develop the best financial advisor for decision makers, and we began mapping the steps to make this possible. The key focus areas were R&D, tech and business development.”

The team of founders was formed of Madou Sylla (CEO), Cătălin Rus (COO) and Cosmin Ghiță (CTO). The product went into a validation phase with two major financial institutions in 2017, and was launched in a beta version two years later. 

“We presented our beta version at the Future Banking event in Bucharest, as we were looking for investors. Banca Transilvania (BT) contacted us and proposed us a partnership to promote the product towards their SME portfolio.”

This partnership also prompted the team to refactor the app into a SaaS (software as a service), as it previously needed to be installed locally by users. The first cloud version of the app was launched in BT Store in the summer of 2020, but the pandemic context put the bank’s store project on hold.

The startup had a global vision from the beginning. Other major partnerships with Microsoft, BCR InnovX (an accelerator of the Romanian Commercial Bank) and the inclusion in the Visa Innovation Program have allowed Prime Dash to scale up and accelerate their international journey. As part of a program of the UK Department of International Trade (DIT), Prime Dash will soon be headquartered in London, while the software development and the business development for Central and Eastern Europe will remain in Romania.

What makes the product different from competitors and how does it work?

“In Romania, Prime Dash is the only AI-driven tool offering financial modelling to improve decision-making for SMEs. There are two aspects that differentiate the product from a traditional BI software – a virtual financial consultant based on artificial intelligence and the ability to simulate financial scenarios and visualize the impact of decisions in real time.”

The first step is to import accounting data onto the platform, which is then interpreted for optimizing financial decisions.  This can be done, ideally, by real time connection to accounting systems through an API, or by manual upload of pdf documents. The first option ensures that real-time data can be processed and used at any time, compared to quarterly uploads of data. Ensuring this compatibility is a key requirement for making the most out of what the product can offer.  

Who were the first investors?

“The team of people who worked for this product was the first to invest money in it – as a result, the initial product was evaluated at approximately €500.000 at the time (authors note: currently Prime Dash is evaluated at €10 million). Another key investment came from the legal team behind the project, with a strategic role in navigating the banking and financial ecosystem. We could not afford to hire our own legal department, so we proposed them to make an investment in the product.”

Prime Dash received its first angel investments through a brokerage company which helps companies prepare for listing on the stock exchange. In total, by 2020 the company attracted over €600.000 in angel investments, to further develop and promote the product.

How much did the product change from the initial idea?

“There was a lot of work to get here – our app had over 70 updates, focusing on making it as a simple as possible for the users. We took in the feedback coming from our first clients in the US, Africa and Europe, as well from consultancy firms, and more optimizations will follow, as we are headed for a new round of investments of €1.5 million.”

How has the local startup ecosystem changed in the last years?

“We noticed that there is a strong orientation towards building new products, instead of the outsourcing model. With outsourcing, there is always the risk that due to increased costs, clients will move their business to cheaper markets. Today, in Oradea, we have more and more startups designing innovative solutions for a wide range of industries.  The support offered through the Make IT in Oradea initiative, as a result of the partnership between the Oradea City Hall and local tech companies, is very valuable for encouraging young people to develop their ideas and for promoting them beyond the local market. The growth of this ecosystem of stakeholders is a key asset and shows that there is a lot of potential here, locally.”

Interested in more information about the startup scene in Oradea?

The Oradea Tech Hub, created in 2015 with the aim of strengthening the local tech community, published a report on the local startup ecosystem in 2020, showcasing 22 startups. 

The main local startup industries are project management (Paymo), app development (Mobiversal), cybersecurity (TypingDNA, East-Tec Eraser), FinTech (Prime Dash, Finboard), ad design and creation (Creatopy), appointment scheduling and field services (Appointfix, Fieldvibe), HoReCa (OptiOffer, tapTasty), professional services platform (Ex€pert24.ro), online ads platform (Publi24), graphic design and online catalogs software (SVGator, Bannersnack, Flipsnack),  academic conferences (confDesk), online  marketing (Relevon), POS (ExpertPOS),  ERP software (ExpertAccounts), personal shopping assistance (Cartloop), parking (Keyticket), hotel management (HoteloPro) industry 4.0 solutions (Octavic) and biotech – creating medical exoskeletons (Axosuits), automotive (Tracknamic).

Let’s turn to the city: how is Oradea changing?

The city has been keeping up its high pace of development and is continually investing in becoming more attractive for citizens, tourists, innovators and investors. Besides being a popular touristic attraction and the “ArtNouveau capital” of Romania, Oradea has embarked on the journey towards the “smart city”, understood as a city which has a good economic balance, efficient services and quality of life. The smart approach will consist of continuing the digitalization of the administration, the improvement of public services and simplifying the way in which citizens and companies interact with local institutions, as well as data-based decision making with the help of AI. The Smart City components will also focus on health, education, the environment and energy efficiency.

Developing air transport is another key priority for Oradea, with the aim of attracting investments and tourists in the city and the Bihor county. The local airport currently offers external connections to London, Dusseldorf, Milano and Bologna, with two airlines. Since last year, the city has established its own public airline, Air Oradea, which will most likely start operating this fall and will extend the current flight offer to Bucharest and other European capitals of interest. The ambitious airline project has been initiated as a partnership between the City Hall and the County Council, making it the first of its kind in Romania. The Cargo terminal is another major investment that shows the commitment to better connect the city to economic markets and accelerate its development. The terminal will ensure conditions for the transport of necessary products to local production companies, and the other way around. To this end, a new logistics base will be created in Bihor County. The construction works have already started and the terminal is set to be finished at the end of 2023.

The four industrial parks, managed by the Oradea Local Development Agency (ADLO), in which the majority shareholder is the Oradea City Hall, have attracted investments of over €425 million and created close to 10.000 new jobs. Based on these results, the local Agency was also handed over the administration of the entire network of existing and new industrial parks in the county, which will comprise of 11 units.  Another significant project implemented by ADLO, in partnership with the Bihor County Council and the University of Oradea is the establishment of the city’s first Science and Technology Park, which will facilitate technological transfer and foster innovation.

In the coming years, continuing the support for strengthening the tech and startup community, implementing the planned infrastructure investments and developing the metropolitan dimension, in order to connect people to opportunities will be key for sustaining the city’s development. What the story of Oradea’s startup ecosystem shows is that where talent, mentorship, financial support, a performant public sector and a culture of partnerships exist, the rest is only a matter of time.

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Make IT in Oradea, and NGO founded by local authorities and companies in Oradea, North-West of Romania, launches the Bright Nights Incubator program for startups, which offers mentoring and funding of up to €50,000 for technology enthusiasts who have innovative business ideas and who want to start a business in Oradea. The program has an annual budget of €300,000, granted by the City Hall.

Oradea’s continuous investment in improving the quality of life of its citizens and in public infrastructure, coupled with new programs and initiatives aimed at supporting the creation of new startups are setting the city to become one of the most attractive startup hubs in Romania. With a highly developed entrepreneurial culture due to its proximity to the border and various historic reasons, having excellent healthcare facilities and offering unique cultural experiences, Oradea’s future may reside in its rather “softer” skills, a combination of business development talent and wellbeing services, complementing the more techy nearby hubs of Cluj and Timișoara.

Make IT in Oradea is a non-profit association founded this fall by local companies Paymo, Helion, Smartware, Mobiversal, Roetco and local authorities, through the Oradea Local Development Agency (ADLO), in collaboration with external partners such as Orange Romania, through the Orange Fab program. The startup incubation program kicked-off on December 4 with a virtual event dedicated to students in Oradea, passionate about technology & eager to start their startup.

Bright Nights Incubator is an an educational and entrepreneurial programme aimed at all technology enthusiasts, young people with ideas or experienced business people, who have an innovative idea that uses modern technologies. The incubation program offers them the opportunity to test their idea and develop it to the stage of financing.

The objective of Make IT in Oradea is to develop the creative industry in the region by setting up innovative startups in the technological sector

The Make IT in Oradea strategy for 2021 aims at developing a local community of IT startups, in three stages: identifying and selecting innovative ideas in the IT field, transforming them into business ideas under the guidance of experienced mentors and, in the final stage, financing each selected business with amounts of up to €50,000. The programme will run each year for a period of approximately 9 months.

• December 2020 – March 2021: Pre-selection stage, in which participants are invited to submit their idea on the platform for one of the idea competitions that will take place in the coming months.
• April – August 2021: Incubation stage, in which the selected teams are guided by mentors and experienced partners, so that the idea to develop to the business stage.
• September 2021: The financing stage, in which the business ideas selected in the final will receive financing of up to €50,000.

In the first phase, those who want to participate are invited to join the Bright Nights Incubator program to present their ideas. Both individuals and teams can join the program. There are no criteria for registration, but each idea entered will be approved in competition, in advance, by the organizers. Due to the current health context, the meetings within the program will take place online.

Additional information and details can be found here: makeitinoradea.ro.

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Oradea’s continuous investment in improving the quality of life of its citizens and in public infrastructure, coupled with new programs and initiatives aimed at supporting the creation of new startups are setting the city to become one of the most attractive startup hubs in Romania. With a highly developed entrepreneurial culture due to its proximity to the border and various historic reasons, having excellent healthcare facilities and offering unique cultural experiences, Oradea’s future may reside in its rather “softer” skills, a combination of business development talent and wellbeing services, complementing the more techy nearby hubs of Cluj and Timișoara. 

In recent years, Oradea has become one of the favorite destinations for Romanian and foreign tourists, with the number of tourists exceeding for the first time the number of inhabitants in 2018. The city has a unique combination of attractions, such as the Art Nouveau-style historical center, recently refurbished to bring back the splendor of the past, the Nymphaea Aquapark, one of the largest and most modern in this region of Europe and the Băile Felix resort, one of the most popular destinations for spa tourism in the country. 

High quality of life and the safest city in Romania

Oradea is a “magnet city” not only as a holiday destination. A report published by the World Bank in 2017 shows that the city is increasingly attracting both tourists and new residents. Oradea is perceived as a city with a high quality of life and the World Bank experts estimate that the city’s population grows every year by 3,000 inhabitants. Coupled with the relatively lower cost of housing, these data rank Oradea in the top of the preferences for those planning to move. The city is attractive through its growing job offer, as well as generous areas of green spaces, easy traffic, well developed cycling infrastructure and the pedestrianization of public spaces. 

“The quality of life and jobs are first and foremost in our scoring. The people see Oradea as a city with a Western European touch, that has changed, modernized”, says Marcel Heroiu, urban development expert at the World Bank.

A survey published by the real estate platform Storia.ro also ranks Oradea as the safest city in Romania. In the study involving almost 100.000 participants across the country, Oradea received the highest score when it came to the safety offered to its inhabitants. The large-scale research conducted by Storia also looked at other aspects, such as: the general cost of living, access to public health institutions, the situation of public transport, the quality of the environment or the cleanliness and area of green spaces.

Moreover, Oradea has been included in the top safest European destinations based on the efficient management of the COVID-19 pandemic. The European Best Destinations Association recommends Oradea for „slow, stress-free tourism”. 

Efficient public administration and increased connectivity

The north-western city has also been acclaimed to have one of the most efficient and proactive local public administration in Romania. The investors who settled in Oradea are very pleased with the collaboration with the local authorities, based on transparency and active involvement. It is worth noting that, for example, the time for receiving a construction permit is by far the shortest in the country, as highlighted in the World Bank’s Doing Business 2017 study.

In terms of connectivity, one of the greatest advantages for investors settling here is the rapid access to Central Europe’s highway and rail infrastructure. The city will also be directly connected to the Transylvania highway, making transport to and from Central and Western Europe, through Hungary, even easier. A belt road around the city is already taking on all heavy traffic and, as part of an alliance with three other major cities in Western Romania (Cluj-Napoca, Arad, Timișoara), a high-speed railway will be connecting the region. 

3 fully equipped industrial parks and a future startup incubator

The measures taken by the local administration for the development of industrial parks and startup incubators, combined with the high quality of life and urban infrastructure put Oradea on the map of the most attractive cities in the country for investment. 

Oradea has 3 fully equipped public industrial parks, with a total  area of ​​231,3 ha, which already house 97 companies, 2/3 of which are foreign, and a fourth park (6.5 ha) is currently under development. The 3 industrial parks have attracted investments of about 397 million euros, creating about 8580 new jobs by the end of 2019.

The sites provide interested investors different sizes of lots, already connected to the transport infrastructure and public utilities in the area. Other private industrial and logistics parks add to Oradea’s business infrastructure.

“What we have been trying to do is to attract companies that offer the jobs of the future, such as Braintronix, a company specialized in the production of AI robots. They want to do part of the R&D in Oradea and they are 100% determined to train new specialists here.”, said Alina Silaghi, Oradea Local Development Agency.

To continue and sustain growth, Oradea is focused on attracting more high value-added investments. The latest investors announced in the industrial parks are focused on innovative, cutting edge technology: production of robots (Braintronix), batteries / accumulators needed in the automotive and aeronautics industry (ATNOM). In order to further develop these high value-added sectors, the local administration is committed to continue the investments in urban quality of life and has a strategy for attracting and training IT specialists in the city, through a package of facilities and incentives, as part of the “Make IT în Oradea” program.

“Oradea is very welcoming and offers a lot to startups and to large companies. I am talking to people that I know from several large companies and encourage them to come to Oradea because they can get land where they can build a headquarters, close to the city and also close to the new highway that will connect Oradea to the rest of Europe, through Budapest.”, said George Haber, investor and board member of Braintronix.

Besides the industrial parks, the City Hall of Oradea is investing in a startup incubator and a Center for Creative Industries, a project consisting in the rehabilitation of an unused building that will house 17 offices for future residents and an open work area of 30 workspaces.

“Oradea will have an infrastructure that will be made available to those who have innovative ideas, to those who work in the creative industries.”, says Deputy Mayor Mircea Mălan.

The university of tomorrow

Oradea’s university center has a tradition of almost 30 years and enrolls about 20,000 students. The municipality and the University of Oradea are working on the development of a unique university campus in the country, which will combine educational spaces with those of research, innovation, technological transfer, continuous training, accommodation and leisure.

The new Technological Transfer Centre will create a synergy between the academic environment and the local economic environment, as well as connections with the key actors in the areas of intelligent specialization at national and international level. The project proposes the construction of a new “smart-campus”, with a built area of approximately 827.5 square meters, on three levels. 

The building will be equipped with laboratories (for industrial robot lines, laser welding, numerical control processing centers and their programming etc.), research and innovation office spaces, conference spaces, as well as areas for courses, presentations and exhibitions.

Another major investment project of the Oradea City Hall aimed at supporting the development and competitiveness of higher education is the construction of two additional dormitories, with a total of 464 rooms. The area will also benefit from the expansion of the road and tram networks, as well as important investments in the utility infrastructure.

A program to boost the startup ecosystem, initiated by the municipality of Oradea and the tech business community

Make IT in Oradea is a joint initiative of City Hall of Oradea and the Oradea tech community to support the development of a competitive IT ecosystem. The program grants fiscal facilities (reducing the tax on buildings) for the premises on which the IT companies operate and supports the development of local start-ups, entrepreneurs and SMEs in the IT field. The startup incubation program will be launched over the next months and will have an annual budget of € 300,000, granted by the City Hall.

“The challenge of Oradea Tech Hub and Make IT în Oradea: to gather and create a sustained joint effort”, says David Achim, Executive Director of the Make IT in Oradea Association.

One of the key objectives of the project is to encourage young people to stay or return to Oradea and to connect them with the local opportunities. The program also offers a package for supporting highschool and college students, laying the foundations for the new generation of IT specialists. The support measures include scholarships, as well as meals and accommodation for students from nearby localities.

A vibrant startup scene

Talent, courage, a match between tech genius and a business mindset, powered by local and international investors make up Oradea’s growing startup scene. Founded in Oradea in 2016, TypingDNA is Oradea’s biggest startup success story and one of the most innovative startups in cybersecurity, offering a seamless experience of authentication based on typing biometrics. The AI-based technology works like this: after inputting an initial typing sample, the user’s unique patterns are learned and matched with each new authentication and password recovery attempt. Based on keystroke dynamics, each user is assigned a typing “DNA”, enabling one of the safest, user-friendly and non-intrusive authentication methods.

In 2018, the company moved its headquarters to New York and received a round of seed financing of $1,5 million from GapMinder Ventures. The startup raised another $7 million Series A round led by Gradient Ventures, Google’s AI-focused venture fund late 2019 and has opened new positions in both Oradea and New York.

Another key contributor to the development of the tech scene in Oradea is Mobiversal, a full-service app-building agency founded in 2011. The company has a portfolio of over 60 international clients and has successfully launched its own product, the appointment scheduling app Appointfix. 

Looking at the industries in which these startups are active, the innovative solutions developed in Oradea include cybersecurity (East-Tec, TypingDNA), appointment scheduling (Appointfix and Fieldvibe), project management (Paymo), graphic design software (Bannersnack and Flipsnack),  e-mail and real-time text marketing (Relevon), personal shopping assistance (Cartloop), parking (Keyticket), industry 4.0 solutions (Octavic) and biotech (Axosuits – medical exoskeletons).

Supporting the community during difficult times is also high on the agenda of Oradea’s startups. Following the closing of schools, Flipsnack, one of the most well-known international platforms for creating and publishing digital magazines and books, offered teachers free access for a year for digitizing educational materials and creating interactive PDFs. Typing DNA has also made its API free for supporting online learning.

A growing community of tech startups

Oradea Tech Hub is the first organization in the city that manages an IT hub, including co-working spaces and interaction between freelancers and start-ups. Based in the Oradea Fortress, the hub was established in 2015 and has managed to create a strong community, invested in empowering the public and NGO sector with technical solutions. Oradea Tech Hub also offered its support to the “Online teacher” project, a fast-track program initiated by Digital Nation in the middle of the Covid-19 crisis, designed to train teachers in basic digital skills for online education, with over 25.000 participants. 

The tech hub has recently published its first report, detailing the activity of startups that have developed their own software products, based mostly on local resources. According to the report, the tech startup ecosystem in Oradea currently counts 336 employees and has reached over 11 million users worldwide, with the total of investments attracted amounting to $9 million. 

“The purpose of the Oradea Tech Hub was exactly this: to coagulate and bring together companies, freelancers and local stakeholders to help develop the city towards higher value-added services and products than the well-known outsourcing.”, Alin Mercheș, President of Oradea Tech Hub. 

A vision for the future

The geographical location of Oradea, placed near the border with Hungary and in the middle of the distance between Cluj-Napoca and Timișoara offers Oradea the opportunity to easily sustain cooperation across the region. The areas can be R&D, software development, (a sector which is better represented in larger cities, with a higher density of programmers), as well as medical services and innovation within universities through cross-border cooperation. The local administration has embarked on the journey of smart specialization, envisioning the development of industries such as cosmetics, pharmaceutics, as well as organic agriculture.

Healtech and wellness tech are also set for growth in Oradea, given the city’s geothermal water resources and wellbeing facilities. The presence of robotics and automation companies in the industrial parks of Oradea is also a big strength, possibly spurring new startups in the area of IoT within Industry 4.0. Robots like the ones designed by Braintronix in Oradea are becoming all the more important in this pandemic, with automation needed for sanitizing hospitals and other public spaces.

While the effects of the current crisis put a significant pressure on the economy, Oradea has demonstrated resilience in counteracting these setbacks and continues its course to become one of the most attractive startup hubs of North-West Romania in the coming years. Investors and entrepreneurs benefit from a close cooperation between a highly efficient administration and a dynamic private environment, in a city well connected to the economic heart of Europe and to other competitive cities in the region.

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The measures taken by the public authorities to manage the crisis caused by the COVID-19 virus confirm the efficiency of the Oradea public administration, as demonstrated over the years by the high absorption rate of European funds and the overall development of the city. 

The ability to adapt and intervene quickly is all the more necessary in border counties, which are constantly exposed to transit. Among the most important measures to combat the pandemic caused by coronavirus were the provision of medical supplies for medical staff, the provision of remote thermometers and protective masks for companies, markets, and public institutions in Oradea. The purchase of three PCR testing devices raised the total capacity up to 660 tests / day. Following the collaboration with multinational private companies, sanitary equipment was purchased directly from China at advantageous prices and in a timely manner. They arrived in Oradea in mid-April and cover the needs of hospitals in Bihor for at least two months.

According to the latest report of the Romanian Strategic Communication Group, just a few hundred cases of coronavirus were registered in Bihor county.

All people were tested before being released from quarantine

Given the proximity to the border with Hungary (13 km), among the first measures taken was the escort of convoys of cars entering the country to the administrative limit of the county and the organization of strictly guarded quarantine centers outside the city. As a precaution, Bihor was the only county in the country to test all persons before leaving the quarantine, at the initiative of Prefect Dumitru Țiplea. 

“Since the beginning of the crisis in Bihor, a total of 11 quarantine centers have been established, by decisions of the County Committee for Emergency Situations. Bihor was the only county in the country where quarantined people were tested, leaving quarantine after having negative results.”, according to the Prefecture of the county.

As a result of the effective measures taken at administrative level, the number of quarantined persons has decreased considerably: out of the total of 11 centers, only 2 are active at the moment. Currently, there are 47 people in quarantine in these centers, from 1,201 in April 24.

Oradea’s hospitals, administered by the City Hall

A peculiarity at the city level is that the hospitals in Oradea are subordinated to the City Hall, which was a major advantage during this period. The two hospitals (Municipal and County Hospital) offer a total of approximately 900 beds and 75 places for intensive care. In order to limit the spread of the virus, the Municipal Hospital of Oradea was transformed into a hospital dedicated to COVID-19 cases, with a separate emergency unit.

Even if the hospitals are managed by the City Hall, it does not pay the operating expenses, such as utilities, but allocates money only for investments, facilities and rehabilitation. Thus, the accountability of the hospital administration is encouraged and emphasis is placed on their development.

Testing of all patients before hospitalization

In order to reduce the time needed to process the samples (initially sent to Cluj-Napoca) and increase the testing capacity, the municipality purchased a first Real Time PCR rapid test device in March 23rd from donations made by companies in the city. Two additional devices were purchased, with one of them being donated by the RCS-RDS telecommunication company. Thus, the testing capacity of the city increased to 500-660 / day.

To protect doctors and patients, all patients coming in the emergency room as well as patients from the Infectious Diseases Department of the County Hospital (dedicated to cases of patients not infected with coronavirus) were tested as a preventive measure. The risk groups are also tested periodically, according to the manager of Oradea County Hospital and the coordinator of the hospitals in the county, Dr. Gheorghe Carp.

Group testing of medical staff and quarantined persons

To protect all medical staff, including those not working with COVID-19 cases, the hospital management implemented a “pool testing” method. This involves taking nasopharyngeal secretions from 32-64 people, isolating those in the group with potential infections and testing individuals if the result is positive. According to the manager of the Oradea County Hospital, the method is successfully applied in Israel and Germany.

This method was also applied for the groups in quarantine centers. Further consideration is given to extending testing so that vulnerable people such as elderly in nursing homes and those who work for them, can be tested.

“Regarding the mortality in Bihor County, it is less than 2% of the total number of those infected and hospitalized. This is also due to the professionalism of those who deal with these cases.”, states Dr. Gheorghe Carp in a statement from April 23.

Collaboration with multinational companies in the city for the import of materials from China

The problem of protective equipment has been solved at county level for at least 2 months, since mid-April. In the context of the crisis caused by the virus, the lack of materials (masks, coveralls, footwear protection, visors etc.) and extended delivery times were the main problems that the local administration of Oradea faced. Immediately after the decree of the state of emergency in Romania, the hospitals in Oradea carried out an analysis of their stocks of sanitary protection materials, potential suppliers, purchase prices and delivery terms. 

The identified solution was to import protective equipment directly from China, with the support of multinational companies from Oradea that had production units or partners in China. They also helped to conduct a market study and to identify potential suppliers. 

Mihai Jurca, responsible for the purchase of these sanitary materials and director of APTOR, stated: “Initially we conducted a market study in which we followed three very important factors: the cost of materials, their delivery time and payment term. This process is based on the expertise, contacts and know-how of some multinational companies from Oradea.”

The products, worth over $3 million, have a European certificate of conformity and were inspected by a specialized company before ordering. The representatives of the municipality mentioned that during this period the transport costs would have been much higher, but they also benefited from the support of the carriers.

„All the companies mobilized in an admirable manner and supported the struggle of local public authorities with substantial sums to equip the Municipal Hospital with equipment, apparatus and consumables in the fight against COVID-19, providing an example of sustainable development and social responsibility. With their help, Oradea managed to react to combat not only the medical effects of the pandemic, but also the economic ones.”, shared Alina Silaghi, Director of the Oradea Local Development Agency (ADLO).

Due to the lock-down, infrastructure work could be done more easily in the city and many were finalized ahead of schedule. In the context of declining revenues due to the COVID-19 pandemic, Oradea City Hall reduced its expenses by 9 million euros, both in terms of investments and operating expenses. However, “all the European projects that Oradea City Hall has won will be carried out with maximum speed, in such a way as to maintain the absorption of European money at the highest possible level.”, explained the mayor Ilie Bolojan.

Measures to support the local economy

The City Hall gave a powerful message in terms of finding solutions to avoid a complete shutdown of economic activity. In order to support Oradea’s economy, the administration distributed thermometers with remote reading to companies, public institutions and all food markets. Also, the City Hall of Oradea plans to install these remote thermometers in supermarkets and in public transport vehicles, so that gradually, economic activity can be resumed, with minimal risks.

The devices were  distributed  to companies with over 50 employees (around 300), while companies with more than 25 employees can request a free device / company from ADLO. Those with fever can be tested, with a medical team being prepared to take samples at the request of companies.

In order to avoid outbreaks of infection, companies with more than 25 employees can request surgical type protection masks, at purchase price. Moreover, masks were made available to the citizens at a price of no more than € 0,3 / piece, through an suplier of masks from Bihor county.

The private sector in Oradea enjoys a good relationship with the local administration, due to several reasons. The main one being the lack of major corruption scandals in the public administration: „Since 2008, we have not had a major corruption scandal. The other aspect was the predictability that we saw from the Mayor’s office, they say what they mean and they mean what they say. Business people look at Oradea and feel that the mayor likes them and is available to help. He also holds a gathering of the top tax contributors once a year where he personally thanks them for their tax contributions. It really makes a lot of difference.”, thinks Sebastian Vaduva, local entrepreneur and director of a private management school in Oradea.  In his view, the mere fact that the situation was well managed by the public administration brought a huge reassurance for the business community.

Scenarios for innovation in the business sector

Companies will be faced with the option of losing people, sending them in unemployment, or possibly setting up a new department for innovation and creating their own products. „In the short run, the companies in Oradea , especially in the automotive industry, are impacted negatively. But there will also be a minority of 10-20%, that will wake up and try to find solutions. It is going to be those small minorities that are going to make a difference.”, believes Sebastian Văduva.

One of the possible scenarios involves the migration from the outsourcing model into a product-based model, requiring innovation: „I foresee some of the traditional outsourcers that are going to attempt to be innovative. They also have money stashed up, and can afford to allocate a small team of people to develop a new software (especially in telemedicine)”.

In his view, the sectors that can lead the way out of the current crisis are IT, high-end manufacturing and agriculture, with diaspora returning to the city possibly setting up  factories for processing and branding of agricultural products for Romanian consumption, neighboring county consumption, and beyond.

Robotics and AI – innovation and utility in times of crisis

According to George Haber, investor in Braintronix, a company specialized in the production of AI robots, this crisis is an opportunity to innovate, to create solutions that will change human society, moving forward. “Braintronix is in this category. These robots are becoming even more important in this pandemic, with automation needed in environments and situations where people could get sick, like sanitizing hospitals or shops”, explains Haber. Braintronix is based on a modular concept, on the “lego” principle, with a common base, so it can be easily transformed. A factory can use the same robot for different tasks during the day and sanitation in the evening. 

In making the decision to open Braintronix in the Eurobusiness Oradea Industrial Park earlier this year, the team evaluated the offer and the lifestyle enabled by the city and its connection to transport infrastructure: “The city is beautiful, you have everything you need to do business and it is fantastically well located for a production line. You’ve got great road infrastructure, easy connection to Europe and to the rest of the country.”, shared George Haber.

The transparent and efficient communication with the public administration were, however, major factors in choosing this location: „What impressed me the most in Oradea was how direct, simple and transparent the communication is with the mayor and the public administration. It is a very important thing to do business. I told the CEO of the company: “Come to Oradea, to see what a business friendly city means.“, added George Haber.

Investor George Haber also appreciates that Oradea is an airy, relaxed and well designed city, with large public spaces and many parks – which in this period of pandemic proves to be even more important.

In terms of adapting to the current crisis, the key word is resilience. In Haber’s view, “resilience means to accept reality, understand it, adapt to it and continue to smile and move forward. At Braintronix, we think every day about what we need to change, we evaluate the possibilities so that we are prepared. The world after COVID-19 will seem similar to the world before, but it will not be the same. Every company that wants to be successful in the future has to fully adjust what it was doing before.”

Positioning as an alternative to China

According to Sebastian Vaduva, Oradea can position itself as an alternative to China and win by doing an evaluation proposition to Western multinational companies in terms of costs, safety, proximity. „We want to reveal that Oradea, specifically and Romania, in general can be a wonderful alternative to China. I think that Romania can position itself extremely well in terms of manufacturing (especially  high-end manufacturing). Out of all the cities în Romania, I think Oradea is the best positioned: you’ve got a very good combination between space (good real estate prices, open spaces) and a very agile administration.”

Internal tourism – an opportunity for Oradea

Tourism is a strongly affected sector due to the social distancing measures in place, and there are no ready-made solutions regarding the way forward. While we may not travel to other countries as much we used to, internal tourism will probably be on the rise. It is worth noting that Oradea has just received the status of tourist resort of national interest, which will enable Oradea to attract more investments and European funds for tourism development. 

The impact of the crisis on the ecosystem of startups in Oradea

Some startups in Oradea proved to be very well positioned in the current situation, such as Smartware, with the Flipsnack application, one of the most well-known international platforms for creating and publishing digital magazines and books, founded in 2011. The tool creates interactive PDFs and also allows the integration of videos and animations in these materials. These features are useful in digitizing educational materials. Following the closing of schools teachers were offered free access for a year. To receive access, teachers are encouraged to contact the company directly. 

“The crisis has not had an impact on the financing of local startups”, states David Achim, Oradea Tech Hub’s Executive Director. Most of the startups in Oradea, except for TypingDNA, are developed on a bootstrapping model, their focus being almost completely on creating and improving their own products. That’s why they haven’t looked for rounds of funding in recent years, except for TypingDNA in particular, which struck an important investment deal at the end of 2019.

According to David, companies need to strike a balance between adapting and maintaining their position. „It’s pretty hard to decide between going forward, pivoting or stopping altogether, but I think that in this situation, pausing the project until things become more clear is the safer option. We have to come with a dose of humbleness, so to speak, and admit that we have never been here before. We are all exploring.”

Launching of the incubator program “Make IT în Oradea”

There are positive developments ahead, with the launch of the “Make IT in Oradea” program, aiming to accelerate the development of product startups, together with the City Hall and other private local actors. The startup incubation program will have an annual budget of € 300,000, granted by the City Hall. The program will include idea jams, hackathons and bootcamps, after which the “award-winning” startups will be selected and they will enter the incubation stage of the program, for 6 months. Established companies pivoting to another product can also participate.

„We want to give some general directions of sectors and industries, but we will not limit ourselves to them. We will adapt according to the ideas and passions of the applicants. These are not yet finalized, but the targeted sectors will most likely include digital security, IoT, Smart City, automotive and in particular, smart cars.”, shared David Achim, Director of Oradea Tech Hub.

Due to the measures taken by the public administration and the good coordination with the private sector, the citizens benefited from a sense of stability and a strengthening of confidence in the efficient management of the municipality. They will also benefit in the gradual resumption of economic activities, which brings Oradea at the forefront of good practices and resilience in crisis situations.

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