1. Enhancing the Competitiveness of Croatian Economy through Smart Specialisation
“2nd Training Workshop on Smart Specialisation for South East European countries”
Skopje, November

2. EU 2020 Europe 2020 is the EU's growth strategy for the coming decade
EU wants to become a smart, sustainable and inclusive economy. These three mutually reinforcing priorities should help the EU and the Member States deliver high levels of employment, productivity and social cohesion
EU has set five ambitious objectives - on employment, innovation, education, social inclusion and climate/energy - to be reached by Each Member State has adopted its own national targets in each of these areas
Concrete actions at EU and national levels underpin the strategy

3. Croatia/Europe 2020 headline targets

4. S3 - Context
Key objective for EU-economy is increasing competitiveness through “smart, inclusive and sustainable growth” (Europe 2020 strategy, 2010)
Key objective is broken down in 11 thematic objectives, to be achieved through sectoral and regional policy interventions
EU-Cohesion Policy, Horizon 2020, and funding for programming period will be closely related to Europe 2020 strategy
Smart Specialisation Strategy (S3) is ex-ante conditionality for investments from ERDF in research and innovation (R&I) and access/quality of ICT-infrastructure in each EU-Member State

5. Smart Specialisation in Croatia
Will focus on those niches and S&T-areas where Croatia has prospects for smart, inclusive and sustainable growth, building on the country’s strengths, comparative advantages and potential for excellence
Will concentrate policy support and investments on key national priorities, challenges and needs for knowledge-based development, including ICT-related measures
Is based on a broader concept of innovation, not only investment in research or the manufacturing sector, but also building competitiveness through design and creative industries, social and service innovation, new business models and practice-based innovation
Should make bridge between sectoral analyses/strategies and development of OP-priorities , with a longer term perspective

6. COMPETITIVE CROATIA STRATEGY FOR BOOSTING COMPETITIVENESS
How can we effect competitiveness?
CHOICES AND CRITICAL MASS
COMPETITIVE ADVANTAGE
Priorities carefully selected based on territorial capital and smart specialization
Match R&D and innovation capacities with priority sector needs 4C
COLLABORATIVE LEADERSHIP
CLUSTERS AND CONNECTIVITY
Effective innovation system based on public and private partnerships
Cluster development and connecting business, science and government

7. Identified sectors of importance to Croatia
Sectors with high added value (pharmaceuticals and medical equipment production, chemical industry, automobile industry, defense industry, electrical and mechanical machines and equipment production, ICT, creative industry, construction industry)
Traditional sectors with territorial capital
(food-processing industry, wood processing industry, the maritime industry, textile industry)
Horizontal sectors: biotechnology, nanotechnology, micro-and nano-electronics and photonics, advanced materials and technologies

8. Competitiveness Clusters
Cluster Policy in Croatia
BUSINESS
CLUSTERS
COMPETITIVE
CLUSTERS
Croatian cluster
Improving competitiveness of Enterprises
Ministry of Entrepreneurship and Crafts
Improving competitiveness of Croatian Economy
Ministry of Economy

9. Croatian Competitiveness Cluster
Public Sector
Sector specific non-profit organization which brings together the business, scientific and policy making communities in a formal structure. Stakeholders in combination, represent the ‘Triple Helix’ concept. The intention is to gather the best players in their field – small, medium and large companies, business clusters, public and science and research institutions in order to develop synergies and cooperative efforts. The final outcome of this synergy will be increased national Sector competitiveness.
Business Sector
R&D and
Science
Institutions

10. Competitiveness Cluster – Horizontal technology platforms
AUTOMOTIVE INDUSTRY SECTOR
(AGRO-FOOD PLATFORM)
WOOD-PROCESSING INDUSTRY
(NANO PLATFORM)
(WOOD PLATFORM)
FOOD-PROCESSING INDUSTRY
CREATIVE INDUSTRY
(AUTO PLATFORM)
(BIO&LIFE-SCIENCE PLATFORM)
CHEMICAL INDUSTRY
(MARITIME PLATFORM)
DEFENCE INDUSTRY
(ADVANCE MATERIALS AND PHOTONIC)
ELECTRO AND PRODUCTION MACHINERY , TECHNOLOGY AND EQUIPMENT
(ENERGY&ENVIRONMENT PLATFORM)
HEALTH INDUSTRY
(MEHATRONIC AND ROBOTIC PLATFORM)
ICT I
(MICRO&NANO ELECTRONICS PLATFORM)
MARITIME INDUSTRY
(BUILDING&CONSTRUCTION PLATFORM)
TEXTILE INDUSTRY
(ICT&CREATIVE PLATFORM)
CONSTRUCTION INDUSTRY

11. The EU membership and the Republic of Croatia
In the period from 1 July to 31 December 2013, million euros is allocated from the EU budget, mostly from the structural instruments of the Cohesion policy (449.4 million euros)
For the same period the Republic of Croatia has to pay million euros, which makes Croatia net recipient country (potential)
In the period from cca 7.5 billion euros will be available to the Republic of Croatia

12. Main challenges
Low labour market participation, inefficient education system and a difficult social situation
Under-developed knowledge based growth factors and insufficient infrastructure
Protecting the environment and natural resources and adapting to climate change
Inefficient public governance
at central/local level and weak involvement of partners

13. Thematic objectives
strengthening research, technological development and innovation
enhancing access to, and use and quality of, information and communication technologies (ICT)
3. enhancing the competitiveness of SMEs, the agricultural sector and the fisheries and aquaculture sector
4. supporting the shift towards a low-carbon economy in all sectors
5. promoting climate change adaptation, risk prevention and management
6. protecting the environment and promoting cultural and natural assets
7. promoting sustainable transport and removing bottlenecks in key network infrastructures
8. promoting employment and supporting labour mobility
9. promoting social inclusion and combating poverty
10. investing in education, skills and lifelong learning
11. enhancing institutional capacity and an efficient public administration

14. Funding priority: Strenghtening the competitiveness of the economy
Strenghtening Croatia´s innovation profile through smart specialisation
Supporting the modernisation and competitiveness of enterprises
The extension and upgrading of the transport and ICT infrastructure

15. Positioning of S3 in Croatian context

16. Approach in S3-design

17. Bodies involved in S3-design and their composition
MANAGEMENT AND DRAFTING TEAM
Ministry of Economy
S3 Expert team
INTER-MINISTERIAL WORKING GROUP
MoE, MRDFEU, MSES, MEC, MLPS, MINT, MoA, MC, MFAEU, MMATI, HAMAG INVEST, AIC, ARD, BICRO, Central Bureau of Statistics, HUP, National Science Foundation
PARTNERSHIP CONSULTATION GROUP
CoE, CoC, HBOR, Universities, local self governments, counties&county development agencies, IMO, EIZ, IRB, Competitiveness Clusters, FINA
INTER-MINISTERIAL STEERING GROUP
line ministries
Office of Prime Minister

18. Steps in S3-design (*)
Analysis of national/regional context and potential for innovation and competitiveness
Governance: ensuring participation and ownership
Elaboration of overall vision for the future
Identification of priorities
Definition of coherent policy mix, roadmaps and action plan
Integration of monitoring and evaluation mechanisms
(*) EC, Guide to Research and Innovation Strategies for Smart Specialisations (RIS3), 2012

19. S3 - prioritisation process

20. Criteria competitiveness and innovation scan
Top down approach
Croatia’s performance in global perspective
Contribution to GVA and employment per economic sector, 2012 and recent development
Productivity in industry per economic sector
Profitability in industry per economic sector
Export performance in industry per economic sector
Educational profile in industry per economic sector
Foreign Direct Investment in industry per economic sector
Growth perspectives per economic sector (EU, globally)
Bottom up approach (Entrepreneurial signalling mechanisms)
Penetration of Key Enabling Technologies per economic sector/clusters
Level and type of innovation (process, product, service, organisational, marketing) per economic sector/cluster
Position and upgrading possibilities in value chain
Named company use of R&D tax credits
Granted patents to EU/ USA and Japan attributed to HR inventors and HR enterprises EU and national funding secured by individual companies
Technology needs per economic sector/cluster

21. Criteria science&technology scan
Top down approach
EU Member States comparative strengths
R&D investment by economic sector
Patent applications/grants and citations by technology field
Publications and citations by scientific field
Funding secured by priority area (FP7)
Bottom up approach (Entrepreneurial signalling mechanisms)
Named company use of R&D tax credits
Publication quality and impact attributed to individual research groups
Granted patents to EU/ USA and Japan attributed to HR inventors and HR enterprises
EU and national funding secured by individual research groups (FP7 RegPot, Proof of Concepts)
Technology mapping of individual research groups (expert opinion)

22. Follow-up Steps Inter-ministerial WG Meeting PSC Meeting
First results from analyses (competitiveness, R&D/S&T)
Identification of priorities for S3
Challenges, vision and strategic objectives
First ideas on policy mix and governance

23.
Thank you
Directorate for Industry, Investments and EU Programmes and Projects
Ministry of Economy
Republic of Croatia