OECD Review of Croatia's Innovation Policy: Summary
Executive Summary
The OECD Review of Croatia's Innovation Policy is part of an ongoing series aimed at enhancing innovation capacities in Southeast Europe. This specific review was conducted under the auspices of the Committee for Scientific and Technological Policy (CSTP) and the OECD Investment Compact for South East Europe.
Achievements and Challenges
Progress on building innovation capacity has not yet translated into expected outcomes for Croatia. While there are areas of strength, notably in research and development (R&D) activities and higher education institutions, the review highlights persistent challenges:
- Weak Linkages: There is a lack of strong connections between research institutions, businesses, and policymakers.
- Lack of Funding: Adequate funding for innovation projects remains a significant challenge.
- Inadequate Infrastructure: The infrastructure supporting innovation, including digital infrastructure, needs improvement.
- Limited Entrepreneurship: The ecosystem for fostering entrepreneurship and startups is underdeveloped.
- Policy Implementation: Effective implementation of innovation policies is hindered by bureaucratic barriers and a fragmented policy landscape.
Main Strengths and Weaknesses
Strengths:
- Research and Development (R&D): Croatia has a robust R&D sector with active participation in EU-funded programs.
- Higher Education: Universities and academic institutions contribute significantly to innovation through research and human capital.
- Digital Access: There is a relatively high level of internet access and usage compared to some other Eastern European countries.
Weaknesses:
- Innovation Ecosystem: Limited integration between academia, industry, and policy-making.
- Funding Mechanisms: Insufficient public and private investment in innovation projects.
- Entrepreneurial Culture: A culture that is not yet fully supportive of startups and small businesses.
- Policy Coherence: Lack of a cohesive national innovation strategy and fragmented policy implementation.
Scope for Improving Innovation Policy
The review identifies several areas where Croatia could enhance its innovation policy to better align with global best practices and improve economic competitiveness:
- Strengthening Links: Develop mechanisms to better connect research institutions, businesses, and policymakers.
- Enhancing Funding: Increase public and private investment in innovation through targeted funding schemes.
- Improving Infrastructure: Invest in digital infrastructure to support innovation and knowledge dissemination.
- Promoting Entrepreneurship: Foster a culture that encourages risk-taking and supports startup ecosystems.
- Streamlining Policies: Create a coherent national innovation strategy and improve the implementation of existing policies.
Recommendations
The review recommends a series of strategic actions to address these issues, focusing on strengthening innovation capacity, improving policy coherence, and enhancing the innovation ecosystem. These recommendations aim to guide Croatia towards a more innovative and competitive economy.
Conclusion
The OECD Review of Croatia's Innovation Policy provides a comprehensive assessment of the country's innovation system, highlighting both achievements and challenges. With targeted policy reforms and increased investment in innovation, Croatia has the potential to significantly enhance its innovation capabilities and drive economic growth.
