Croatia Digital, Innovation, and Green Technology Project

The USD 116.4 million Croatia Digital, Innovation and Green Technology (DIGIT) Project will facilitate digital transformation and green transition of the Croatian economy, increase resources for applied research and experimental development, and support the efforts of the authorities to strengthen its institutional capacity to deliver research and innovation policies.

Digital transformation entails the integration of digital technologies to increase productivity and economic efficiency. At the same time, green transition aims to promote solutions that enable a shift towards a climate-neutral and environmentally friendly economy.

Croatia continues its ambitious path towards the dual – digital and green – transition. Through the National Resilience and Recovery Plan (NRRP), Croatia has committed to an array of reforms focusing on resilient, inclusive, green, and digital recovery. In the context of science, technology, and innovation, the country’s current efforts to expand climate sensitive policies through investments in digital and green technology have been noteworthy.

However, most dual transition funding comes in the form of support for technology adoption, with no programs directly targeting digital and green technology creation. Yet, research suggests that firms that invest in research and development tend to outperform their peers.

Thus, the challenge for Croatia is to improve results in digital and green research and innovation, which continue to be modest. So far, the research community has been facing challenges in producing high quality research and in establishing effective linkages with the business sector, often due to a lack of funding, outdated infrastructure and equipment, and a suboptimal governance and institutional framework. Participation in competitive international research and development funding has also been low. In the digital and green space, research and innovation have been limited, with very few patents in industrial digital technologies, and only 9.5% of domestic patents in environment-related technologies.

The Government of Croatia, through the Ministry of Science and Education’s Digital Innovation and Green Technology Project, supported by the World Bank, is seeking to address this gap in the policy mix and propel domestic digital and green technology creation. The Project strives to improve conditions for research, development, innovation and with-it Croatia’s standing in the digital and green transition. Project activities will finance, through various grant schemes, digital and green research and innovation, complement and enhance the effectiveness of investments, and build the capacities of institutions to deliver on this agenda. The Project will also support reforms envisaged in the NRRP, the Smart Specialization Strategy, and activities important for the country’s accession to the Organisation for Economic Co-operation and Development.

DIGIT will not only help catalyze the transition, but benefit Croatia’s entire economy by improving the systemic outlook and conditions for research and development, business growth, productivity, and subsequent job creation.