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Smart Specialization in Croatia: Inputs from Trade, Innovation, and Productivity Analysis
Smart Specialization in Croatia: Inputs from Trade, Innovation, and Productivity Analysis
Smart Specialization in Croatia: Inputs from Trade, Innovation, and Productivity Analysis
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Smart Specialization in Croatia: Inputs from Trade, Innovation, and Productivity Analysis

By Arabela Aprahamian (Editor) and Paulo Guilherme Correa (Editor)

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Between 2003 and 2008, Croatia's rapid growth was fueled by rising domestic consumption, growing deficits, an increased dependence on international finance. Such growth is unlikely to resume in the near future, imposing social and economic costs. In this context, exports are critically important for Croatia's development and employment generation. However, the country's trade performance has been lackluster since the financial crisis. Export openness is lower than in countries with similar income levels, and the country's per capita GDP has stagnated. Low export diversification, weak competitiveness, and reduced technological sophistication help to explain stagnant exports. The fundamental problem is the failure to renew and transform the manufacturing base, which is linked to low rates of firm entry and exit. Another marker of a sluggish economy is the inadequate level of business research and development expenditure by Croatian enterprises and the weak governance framework for research and innovation, which is impairing the impact of research and development spending. In this context, Smart Specialization in Croatia aims to provide insights to the country's smart specialization strategy (RIS3) by looking at the main constraints and opportunities that it faces in its economic progress along three interrelated dimensions: trade, firm productivity, and research and development. The report also includes four case studies to illustrate potential RIS3 approaches to spur research and innovation specialization at the regional level. The report's ultimate objective is to help develop a strategy that fosters productivity growth, job creation, and a more diversified export structure.
LanguageEnglish
PublisherWorld Bank Publications
Release dateJun 24, 2015
ISBN9781464804595
Smart Specialization in Croatia: Inputs from Trade, Innovation, and Productivity Analysis

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    Smart Specialization in Croatia - Arabela Aprahamian

    DIRECTIONS IN DEVELOPMENT

    Countries and Regions

    Smart Specialization in Croatia

    Inputs from Trade, Innovation, and Productivity Analysis

    Arabela Aprahamian and Paulo Guilherme Correa, Editors

    © 2015 International Bank for Reconstruction and Development / The World Bank

    1818 H Street NW, Washington, DC 20433

    Telephone: 202-473-1000; Internet: www.worldbank.org

    Some rights reserved

    1 2 3 4  18 17 16 15

    This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries.

    Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved.

    Rights and Permissions

    This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) http://creativecommons.org/licenses/by/3.0/igo. Under the Creative Commons Attribution license, you are free to copy, distribute, transmit, and adapt this work, including for commercial purposes, under the following conditions:

    Attribution—Please cite the work as follows: 2015. Smart Specialization in Croatia: Inputs from Trade, Innovation, and Productivity Analysis. Aprahamian, Arabela, and Paulo Guilherme Correa, eds. Directions in Development. Washington, DC: World Bank. doi:10.1596/978-1-4648-0458-8. License: Creative Commons Attribution CC BY 3.0 IGO

    Translations—If you create a translation of this work, please add the following disclaimer along with the attribution: This translation was not created by The World Bank and should not be considered an official World Bank translation. The World Bank shall not be liable for any content or error in this translation.

    Adaptations—If you create an adaptation of this work, please add the following disclaimer along with the attribution: This is an adaptation of an original work by The World Bank. Views and opinions expressed in the adaptation are the sole responsibility of the author or authors of the adaptation and are not endorsed by The World Bank.

    Third-party content—The World Bank does not necessarily own each component of the content contained within the work. The World Bank therefore does not warrant that the use of any third-party-owned individual component or part contained in the work will not infringe on the rights of those third parties. The risk of claims resulting from such infringement rests solely with you. If you wish to re-use a component of the work, it is your responsibility to determine whether permission is needed for that re-use and to obtain permission from the copyright owner. Examples of components can include, but are not limited to, tables, figures, or images.

    All queries on rights and licenses should be addressed to the Publishing and Knowledge Division, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: [email protected].

    ISBN (paper): 978-1-4648-0458-8

    ISBN (electronic): 978-1-4648-0459-5

    DOI: 10.1596/978-1-4648-0458-8

    Cover photo: Cages for fish farming on the island Brac in Croatia. Copyright Mrak.hr./shutterstock.com. Used with permission. Reuse requires further permission.

    Library of Congress Cataloging-in-Publication Data has been requested.

    Contents

    Boxes

    Figures

    Map

    Tables

    Acknowledgments

    This report was developed by a team led by Arabela Aprahamian, senior operations officer, and Paulo Correa, lead economist, and comprised of Mariana Iootty, Daria Taglioni, Ana Paula Cusolito, Gabriela Elizondo Azuela, Michael Ferrantino, Swarmim Wagle,

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