Since independence, Moldova has navigated the challenging transition to a market economy while achieving significant, albeit volatile, economic growth, reduced poverty levels and the status of a lower-middle-income economy. However, productivity growth has declined as original drivers of structural change in the early post-independence era have run out of steam. Moldova’s commitments under the United Nations 2030 Agenda for Sustainable Development and the imperative to transition towards a more circular and inclusive economy, will mean that innovation, in the form of systematic experimentation with ideas, must take centre stage in development efforts. Recent events have made such an approach even more important to ensure a resilient post-pandemic recovery.

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