ROMANIA IN EU CONTEXT. COMPETITIVENESS AND KNOWLEDGE-BASED ECONOMY Gheorghe Zaman, Professor PhD Corresponding member of Romanian Academy Blănaru Adrian, PhD ABSTRACT: The paper analyses Romania’s competitiveness and knowledge-based economy in an EU comparative context for the 2006-2007 period. The main compared pillar-indices are the following: global competitiveness index; higher education and training; technological readiness; business sophistication; innovation. Each pillar index is disaggregated into several relevant sub indices. Comparisons are made between Romania and EU-25, EU-10 (new member states since 2004), Bulgaria and Turkey on the basis of positions and scores of each country or group of countries, within a total framework of 131 countries. The size of Romania’s “digital divide” vis-à-vis EU-25 can be used as a tool for national priority setting and better policies regarding catching up and convergence processes in digital economy. Keywords: competitiveness; knowledge-based society; national and international value chains; catching-up; convergence; digital divide; brain drain; knowledge creation, absorption and diffusion. JEL Codes: E00.