Croatian economy does not appear to be very innovative.
The list of world's most innovative economies is dominated by European counties, and Croatia has somehow managed to stay in the top half of the list. Among 128 countries included in this year’s Global Innovation Index, which make up 97.9 percent of the global economy, Croatia is at the 47th position, reports Večernji List on August 19, 2016.
Compared to last year, Croatia fell seven places, even though last year’s list included as many as 141 countries. Among Croatian neighbours, better results were achieved by Slovenia (32) and Hungary (33). Lagging behind Croatia are Montenegro (51), Macedonia (58), Serbia (65), and Bosnia and Herzegovina (87).
The Global Innovation Index is a project of the World Organization for Intellectual Property, Cornell University and Insead Business School. The list takes into account several areas, such as infrastructure development, the stability of institutions, market and business sophistication, creative production and research. Croatia is best placed in the area of stability of institutions, where it took the 42nd position. The worst result (73rd position) was achieved in the market sophistication sector, which includes access to loans and investor protection.
The results of the research are not surprising if we compare Croatia with neighbouring countries and comparable economies, says Zdeslav Šantić, the chief economist at SG-Splitska Banka. “Innovation is the key for a small economy like Croatian, especially since Croatia has a modest and declining work force and cannot compete with larger economies in mass production. Innovation will largely determine how the economy will restructure towards the production of goods and services of higher added value”, says Šantić and adds that the study recognized the problem of funding innovative projects in their initial phase, when they are to be converted into commercial endeavours.
One of the key findings of this year’s reports is that the growth of innovation is a result of cross-border influx of knowledge and talents. The report emphasizes that, prior to 2009, spending on research and development in the world grew by seven percent a year. However, since 2014 it has been growing by just four percent a year, mainly due to lower investment in developing countries, especially China, as well as austerity in developed western countries.
