Aligning Complementary Funding Opportunities – through TAS – the Smart Answer to the Challenges of Industry 4.0 Transformation

Abstract

Industry 4.0 transformation is an opportunity that needs to be carefully considered in a different way in emerging markets. The opportunity aims to reduce the gap with developed markets through the link of democratizing the elements of innovation (organizational and transformational technique). Although new funding programs have emerged, accessibility to funding for priority directions and for locations and regions of interest is only slightly related to expectations. Thus, the concept of complementary financing is proposed and alternative solutions and strategies based on the triple alternative assets -(venture capital and private equity funds), alternative strategies -(hedge funds adapted for emerging markets) and alternative partnerships (public -private partnerships) are identified. The proposed innovative idea is based on capturing the synergies between the three elements of the mentioned triplet and the ability to quickly connect to the financing flow through major programs (NRFF, H2020, NGD). The challenge refers to the reduced functionality of the Romanian capital market, the proposal aiming at practical solutions for creating the adequate complementary financing framework in relation to the real priorities, their dynamics but also the national strategy for reducing local and regional disparities in Romania. The idea is innovative, through modularity and scalability gives real integration capabilities in practice. It also provides an adequate response to the case of low functionality offered by emerging capital markets. In this case the special purpose vehicle SPV is represented by a special dedicated hedge fund with rotating sub-portfolios.