sc. Zoran Aralica, Ekonomski institut, Zagreb
dr.sc. Jadranka Švarc, Institut Ivo Pilar, emeritus
The Croatian Innovation Policy Network (CIPN), in collaboration with the Institute of Economics, Zagreb (EIZ), organized its third roundtable on November 8, 2024, titled “Smart Specialisation Strategies in Croatia (S3): Experiences and the Way Forward.” The roundtable aimed to introduce participants to the new S3 strategy for the period until 2029 and to analyse specific aspects of S3 implementation. This strategy represents a key instrument of the European Union’s Cohesion Policy, focusing on the economic and social transformation of member states.
Several key topics emerged during the event that significantly influence the implementation, success, and future perspectives of the S3 strategy:
- Governance and Implementation Framework of S3
- Monitoring and Evaluation of S3
- S3 Perspectives and New Development Paradigms
As part of the first topic (Governance and Implementation Framework), it was emphasized that it is necessary to identify a primary institutional body responsible for the implementation of the S3 strategy in order to address the dual oversight currently held by the Ministry of Economy (MINGO) and the Ministry of Science, Education, and Youth (MZOM). This would ensure institutional stability, including resolving the discontinuity and dysfunctionality in the work of the National Innovation Council and Thematic Innovation Councils, as well as better alignment and synergy between public calls funded under S3 and other funding sources. Such coordination is essential because the success of S3, as a key component of national development, goes beyond the jurisdiction of individual ministries and narrowly defined innovation policies, relying instead on alignment with policies in other sectors such as education, industrial transition, entrepreneurship, and fiscal measures.
In the context of the second topic, it was pointed out that an efficient and purposeful monitoring and evaluation system is a prerequisite for effectively utilizing S3 funds and achieving the strategy’s objectives. The specific characteristic of the monitoring system for S3 in Croatia lies in its collaborative nature, as both MZOM and MINGO share responsibility for S3, while the Ministry of Regional Development and EU Funds currently plays a leading role in shaping strategic direction. To further improve the S3 monitoring system, it is necessary to:
a) maintain continuity in monitoring and in the development of gathered expert knowledge and experience;
b) improve the quality of data and indicators. Data quality involves collecting information from various sources, aligning them, and ensuring accuracy.
Exploratory analysis of S3’s impact on socio-economic transition indicates a positive influence in most areas targeted by the strategy. This includes increases in companies’ innovation capacity, digitalisation, and R&I expenditures. However, S3 has not had a significant impact on technological development or on social and institutional transitions. While GDP has grown significantly, Croatia still remains among the least developed EU member states. There has been a shift toward the service sector accompanied by a decline in industrial production, which follows European trends but raises concerns about the long-term sustainability of such development. In terms of institutional transition—as measured by indices of corruption and rule of law—there has been no notable progress. Similarly, there has been no improvement in social transition, as illustrated by data on wages and pensions, and indicators of social well-being and quality of life.
Regarding the third topic, which addresses S3 Perspectives and New Development Paradigms, participants of the Roundtable agreed that the global challenges currently facing the EU—particularly the decline in competitiveness relative to the US and China—will lead to changes in the paradigm of cohesion policy. These changes are expected to follow two key directions:
- a) a stronger focus on enhancing the EU’s competitiveness compared to the US and China, with reduced emphasis on convergence among EU member states, likely resulting in a decrease in cohesion funding;
- b) a shift in strategic orientation and financial support toward mission-oriented policies, which focus on specific tasks capable of driving structural change and transformation of regional and EU economies.
As a result, national innovation policy should be directed toward concrete themes and areas that are of critical importance for the functioning of national economies.
It is worth highlighting that the most recent approach to addressing societal challenges—through mission-oriented innovation policies—has already been conceptually adopted within the framework of the industrial transition programmes for Adriatic, Pannonian, and Northern Croatia. In line with this policy, financial support should be allocated to projects and programmes with clearly defined, specific missions aimed at tackling identified challenges. These missions must include clearly assigned responsibilities, deadlines, coordination mechanisms, and evaluation of outcomes.
The quality of implementation is of key importance in this process. To ensure this, it would be necessary to identify an institution or coordinating body at the government level that has the capacity to take a holistic view of national development and to ensure alignment and synergy among various programmes.
The intention of the Croatian Innovation Policy Network (CIPN) is to establish a permanent forum for expert and public debate on innovation, technological, and social development strategies, as well as for the evaluation of past achievements in innovation policy—particularly in relation to S3 and regional development.
