eco-innovation in croatia - european commission · eco-innovation in croatia 6" 1 |...

EIO Country Profile

2013

Eco-innovation in Croatia

Eco-innovation in Croatia 1"

Eco-Innovation Observatory

The Eco-Innovation Observatory functions as a platform for the structured collection and analysis of an extensive range of eco-innovation information, gathered from across the European Union and key economic regions around the globe, providing a much-needed integrated information source on eco-innovation for companies and innovation service providers, as well as providing a solid decision-making basis for policy development.

The Observatory approaches eco-innovation as a persuasive phenomenon present in all economic sectors and therefore relevant for all types of innovation, defining eco-innovation as:

“Eco-innovation is any innovation that reduces the use of natural resources and decreases the release of harmful substances across the whole life-cycle”.

To find out more, visit www.eco-innovation.eu

Any views or opinions expressed in this report are solely those of the authors and do not necessarily reflect the position of the European Commission.


Eco-Innovation Observatory Country Profile 2013: Croatia

Author: Ivona Malbasic

Coordinator of the work package: Technopolis Group Belgium


A note to Readers

Any views or opinions expressed in this report are solely those of the authors and do not necessarily reflect the position of the European Union. A number of companies are presented as illustrative examples of eco-innovation in this report. The EIO does not endorse these companies and is not an exhaustive source of information on innovation at the company level.

This brief is available for downloaded from www.eco-innovation.eu/countries

Comments on this brief are welcomed and can be provided at www.eco-innovation.eu/croatia


Table&of&contents&

Summary .............................................................................................................................................. 5!1! | Introduction................................................................................................................................... 6!2! | Eco-innovation performance ....................................................................................................... 7!3! | Selected eco-innovation areas and new trends......................................................................... 9!4! | Eco-innovation barriers and drivers in Croatia ....................................................................... 10!5! | Eco-innovation policy landscape.............................................................................................. 11!6! | Good practice examples ............................................................................................................ 13!References........................................................................................................................................... 16!


Summary Croatia joined the European Union on 1 July 2013, which allows many opportunities and also poses challenges for innovation. Companies need to increase their competitiveness: EU funds, together with the planned development of the comprehensive national innovation policy, can play an important role in strengthening innovation. Currently, the innovation system is fragmented and co-operation between the research community and business sector remains weak.

Croatia is in 20th place on the EU 28 Eco-innovation Scoreboard. The composite EI Index for Croatia accounts to 66% of the EU average. Eco-innovation input stands only at 22% of the EU average. In eco-innovation activties, Croatia scored 85% of the EU average. The eco-innovation output index puts Croatia almost at the EU average at 99%, mainly due to a very high score in media coverage and eco-innovation related publications. Croatia stood at 79% of the EU average on EI outcomes indicators, while the results for socio-economic activities were at 10% of the EU average.

The national strategies and policies relevant for eco-innovation include the Sustainable Development Strategy, Science and Technology Policy of the Republic of Croatia 2006-2010, National Renewable Energy Action Plan (NREAP) until 2020, Second National Energy Efficiency Action Plan for the period until the end of 2013, Waste Management Strategy (2005) and Waste Act (2008). Several funding mechanisms have been available for supporting energy efficiency and renewable energy projects. The government agency BICRO (Business and Innovation Centre of Croatia) plays an important role in supporting research and development and in implementing the programme for creation and development of knowledge-based SMEs. The Agency has several programmes that support research and development both in public and private sectors.

Another relevant policy document that can potentially promote eco-innovation and R&D cleaner technologies is the Draft Innovation Strategy, which aims at establishing an efficient innovation system in Croatia. According to the Strategy, fiscal incentives will be introduced to support new and innovative SMEs. Incentives, including tax relief, are planned for investments in innovative enterprises and start-up SMEs.

The challenges to eco-innovation in Croatia to a large extent are related to a lack of an effective innovation system with a clearly defined institutional structure, legislative and fiscal framework, and financial mechanisms for encouraging innovation and application of new technologies in the economy.

In spite of lack of a comprehensive innovation policy there have been developments in green technology, mostly in the areas of renewable energy and energy efficiency, as well as in the sustainable tourism sector.


1 | Introduction

Croatia is a market economy that joined the EU on 1 July 2013. GDP is 61% of the EU average (EUROSTAT, 2013) and the economy is still in recession following the global financial crisis. Unemployment has risen and stands at approximately 15% with more than 40% of those under 25 unemployed (Croatian Bureau of Statistics, 2013). According to the Global Competitiveness Report 2013 – 2014, Croatia is in 75th place out of 148 countries, which is a slight improvement from 2012 when the country was ranked 81st.

Croatia is rich in biodiversity and has 19 national and nature parks. Approximately 47% of the land and 39% of sea are protected areas (World Bank country overview). The natural beauty of the Adriatic coast attracts millions of tourists, particularly during the summer months. Tourism is an important source of income; however, it also poses challenges to natural protection mainly because of the construction and pressure on local infrastructure particularly during the summer months.

Croatia has large freshwater reserves and sufficient areas of agricultural land. Losses in the water supply system amount to 44%, largely due to defects in the water supply network and water use that is not paid by the users. A strategic objective of water management is to gradually reduce losses to 15 to 20% (Croatian Environment Agency, 2013).

In spite of its natural beauty and rich biodiversity the environmental infrastructure and protection quality levels in Croatia are lagging behind the more developed EU countries in most environmental sectors (EC, 2014). To fully comply with EU directives and legislation, three priority areas are identified in the operational programme ‘Environment’: development of waste management infrastructure (including construction of waste management centres and closure of landfill sites that do not comply with regulations) and improving the water supply network and wastewater treatment (EC, 2014).

Croatia became party to the Kyoto Protocol in 2007, committing to its general objectives. The National Renewable Energy Action Plan (NREAP) until 2020 sets clear goals regarding renewable energy and energy efficiency. The aim is to reduce carbon dioxide emissions by 20%, increase the renewable energy share of the energy mix to 20%, and improve energy efficiency by 20%, all by 2020. In 2011, Croatia produced 15,7% of energy from renewable resources (Croatian Bureau of Statistics, 2013). This high share is mainly due to energy produced by large hydro power plants, 58.9% of the total renewable energy produced in 2010, while 2.1% was produced from other renewable sources such as small hydro power plants, wind, biomass, landfill gas and biogas (Energy Institute Hrvoje Pozar, 2010).

According to the EU Regional Innovation Scoreboard (2012), Croatia is in the “moderate” category with 44% of companies being active in terms of innovation, while the EU average is 52%. Only 17% of companies in Croatia have introduced a new or improved product/service, and 21,7% have introduced new processes according to the last report by the Croatian Bureau of Statistics (2012).

The largest share of spending on research and development comes from the public sector, while the contribution of business sector represents 39,8% (the EU average is 54,1%). The expenditure for research and development stood at 0,75% of GDP in 2011 (the EU average is 2% of GDP) with the share of business sector investment at 0,34% of GDP (EU average is 1,27% of GDP).


2 | Eco-innovation performance

The analysis in this section is based on the EU 28 Eco-innovation scoreboard (Eco-IS) for the year 2013. Eco-IS via its composite Eco-innovation index demonstrates the eco-innovation performance of a country compared with the EU average and with the EU top performers. Eco-IS is based on 16 indicators which are aggregated into five components: eco-innovation inputs, eco-innovation activities and eco-innovation outputs as well as environmental outcomes and socio-economic outcomes

Figure 2.1 EU27 Eco-innovation scoreboard 2013, composite index

Source: EIO 2013

Croatia is in 20th place on the EU 28 Eco-innovation Scoreboard. The composite EI Index for Croatia accounts to 66% of the EU average and puts Croatia in a similar position with Lithuania, Malta, Greece and Romania. Eco-innovation input stands only at 22% of the EU average; Cyprus had only 13% while Bulgaria and Poland 18%.

Regarding Eco-innovation activties, Croatia scored 85% of the EU average; however, data were missing for two out of three indicators in this category – percentage of firms that implemented innovation activities aiming at a reduction of energy input per unit output and percentage of firms that implemented innovation activities aiming at a reduction of material input.

The eco-innovation output index (score 99) puts Croatia almost at the EU average, mainly due to a high score in media coverage (207% of the EU average) and eco-innovation related publications (87% of the EU average). There were only three eco-innovation related patents per million inhabitants.


With regard to EI outcomes, Croatia stood at 79% of the EU average, while the results for socio-economic activities were very modest at 10% of the EU average. Within the socio-economic category, the data for Croatia showed 0% employment and turnover in eco-industries. This is most likely due to poor coverage of the datadabase for Croatia.

Figure 2.2 Components of the eco-innovation composite index for Croatia, 2013

""Source: EIO, 2013


3 | Selected eco-innovation areas and new trends

In spite of lack of a comprehensive innovation policy, there have been developments in green technology, mostly in the areas of renewable energy and energy efficiency, as well as in the tourism sector.

Electricity produced from renewable energy sources is promoted by feed-in tariffs and loans from the Croatian Bank for Reconstruction and Development and the Fund for Environmental Protection and Energy Efficiency. The country’s hydroelectric and geothermal potential is significant and has developed in the last decades. Wind power is another important renewable energy source to produce electricity in Croatia. There is great interest shown by investors; it is greatly facilitated by favourable legislation and guaranteed sales prices (Delomez, 2012). The first wind turbine installation was in 2004 and currently in Croatia there are 204 wind turbines generating 207.1 MW of energy. But with around 960 new turbines coming on-line, it is expected Croatia could generate in excess of 1GW of electric energy from wind alone by the end 2015. The government aims for Croatia to generate 35-40% of all its energy from wind and solar by 2020.

Energy efficiency activities are promoted in Croatia through pursuing the national energy savings target of 9% of final inland energy consumption by 2016. Successful experience has been gained with Energy Service Companies (ESCO). For example, HEP ESCO, one of the leading ESCOs since its establishemnt in 2003 managed more than 50 energy efficiency projects in the areas of public lighting, buildings, industry and energy supply systems. Summary investment was 12,3 million Eur and annually 1,09 million Eur, 15.143.328 kWh, and 7.114.207 kg CO2 have been saved1

In the transport sector, the use of biofuels is promoted by biofuel quota obligation, a state subsidy for biofuel producers and a tax regulation mechanism that encourages the use of biofuels. In 2013, a contract to establish the first multi-feedstock biodiesel plant in Croatia has been signed with the Bio Energy International AG. It is the largest bio fuelplant in Croatia and south-eastern Europe.

Sustainable tourism is the area where eco-innovative trends are developing fast. The number of the hotels and campsites acquiring the national eco-label “Environmentally Friendly” has been growing over time. Owners of these facilities give visitors a clear indication that high environmental standards above the prescribed legal minimum are applied, whereby a contribution is made to the effective use of natural resources. Last year the main ‘Greenovation’ award2 for the best overall green programme of the Croatian economy went to Riviera Adria, a company that manages a large tourism complex on the coast (Croatian Association for Energy, 2014).

Furthermore, developments in water recycling, such as the use of purified ‘gray’ water for sanitation and irrigation can be observed in the tourism industry; however, much remains to be done to improve the sustainability in the sector.

1"http://www.hep.hr"

2"Croatian"Association"for"Energy,"a"nonAprofit"organization,"together"with"the"Energo"Media"Company"organizes"an"annual"competition"for"green"economy"award,"‘Greenovation’."The"award"is"given"in"ten"different"categories"some"of"which"include"the"best"green"startAup,"the"best"green"product"and"the"best"green"service.""


4 | Eco-innovation barriers and drivers in Croatia

Along with EU membership Croatia gained access to the EU market, which poses many opportunities and challenges. Companies need to increase their competitiveness, and EU funds can play an important role in strengthening innovation, including human resources and infrastructure. Programmes such as HORIZON 2020 and COSMO could help stimulate the development of a successful innovation system.

Innovation in general is encouraged by the Government agency BICRO (Business and Innovation Centre of Croatia), which also implements the programme for development of knowledge-based SMEs (see the following section for different private and public programmes supported by the agency).

The Environmental Protection and Energy Efficiency Fund of Croatia, regulated by the Act on Environmental Protection and Energy Efficiency Fund (Official Gazette, 107/2003) finances activities in environmental protection, energy efficiency and the use of renewable energy sources. Some counties in Croatia supported renewable energy projects through tenders, which include solar thermal collectors, heat pumps, small-scale biomass boilers, small wind turbines and photovoltaic household systems (Energy Institute Hrvoje Pozar, 2012). Incentives per renewable energy source installation usually amounted to 40% of the investment and installation costs.

Several commercial banks have started to offer soft ‘green’ credit lines for energy efficiency in buildings. The Croatian Bank for Reconstruction and Development (HBOR) finances energy efficiency and renewable energy projects through its Environmental Protection Programme.

The challenges to eco-innovation in Croatia to a large extent are related to a lack of effective innovation system with clearly defined institutional structure, legislative and fiscal framework, and financial mechanisms for encouraging innovation and application of new technologies in the economy (Draft Innovation Strategy, 2014; REC, 2009).

Much remains to be done to strengthen the co-operation between research institutes and businesses and to encourage the commercialization of research results.

Currently, the expenditure on research and development is low: only 0,75% of GDP and most of the investments come from the public sector. Furthermore, only 7% of investment in research and development relates to innovation, while data for eco-innovation are not currently available.

The business environment in Croatia has improved in recent years, but remains challenging in several respects. However, cross-country surveys continue to place Croatia in a disappointing light relative to other countries in central Europe. Croatia was ranked 103rd (out of 183 countries) in the World Bank’s Doing Business 2010 report; the same survey placed the country at 101st for starting a business. Difficulties with construction permits and the high social costs and inflexibility of labour are the most serious constraints, with the latter reflecting more general, deep-seated problems with labour market rigidities.

As most European countries, Croatia faced a contraction in economic activity since the beginning of the economic crisis. Its impact on Croatia’s economy spurred negative business developments, trickling down to the primary energy sector, affecting the flow and scope of investments in general and in green technologies (e.g. renewable energy). Nonetheless, steady technological improvements, cost reductions and state-supported schemes still render electricity produced from renewables to be attractive (Delomez, 2012).


5 | Eco-innovation policy landscape

The national strategies and policies relevant for eco-innovation include the Sustainable Development Strategy, Science and Technology Policy of the Republic of Croatia 2006-2010, National Renewable Energy Action Plan (NREAP) until 2020, Second National Energy Efficiency Action Plan for the Period until the end of 2013, Waste Management Strategy (2005) and Waste Act (2008).

Sustainable Development Strategy recognises the need for R&D and innovation in eco-technologies. However, there are no targets or indicators. Some of the measures include investment in research to use cleaner and more environmentally friendly technologies, and “stimulate the use of clean fuels and technologies” (Sustainable Development Strategy, 2009).

National Renewable Energy Action Plan (NREAP) until 2020 is in line with the European Union directive on renewable sources that sets a 20% target of renewables in energy consumption by 2020. It shifts the focus from encouraging wind farm construction to energy production from biomass, biogas, cogeneration plants and small hydroelectric power plants (NREAP, 2013).

Second National Energy Efficiency Action Plan sets a target to reduce the end-use energy consumption by 19,77 PJ until 2016, which is in accordance with the EC Directive on energy end-use efficiency and energy services (Directive 2006/32/EC).

National Strategy and National Plan for Environmental Protection (2002) defines economic instruments for financing environmental financing priority sectors, including the sector of sustainable energy. In this context, the strategy supports financing energy efficiency measures, measures for reducing emissions from existing energy facilities, reduction of the use of fossil fuels, improved use of renewable energy sources and production of environmentally acceptable fuels. Waste Management Strategy from 2005 and Waste Act (2008) include objectives that encourage eco-innovation related to waste and material recycling and cleaner production. The Strategy provides detailed stipulations for developing an integrated recycling system in the country, research and development in the field, and a wide spectrum of eligible mechanisms for financing these activities. The Waste Act includes the development of clean technologies, more efficient use of natural resources, technical development and promotion of products that minimise the negative impacts of waste and pollution, energy and material recovery from waste, while implementing the most (technically and economically) effective available technologies. Another relevant policy document that can potentially promote eco-innovation and R&D cleaner technologies is the Draft Innovation Strategy. It aims at establishing an efficient innovation system in Croatia, through a legislative and fiscal framework that will enable stronger links between scientific research community and business sector. The Draft Strategy sets four strategic goals and indicators until 2020:

1. Increasing the innovation performance of Croatia. The target is to increase the R&D expenditures from current 0,75% to 1,4% of GDP by 2020.

2. Increasing the share of business sector to 2/3 of the total investment in R&D.

3. Increase in basic and applied research aimed at strengthening the competitiveness of the economy by increasing the share to 1/3 by 2020 and to increase in the number of patent applications per million inhabitants from current 6,6 to 50.

4. To double the total number of researchers in in the economy by 2020.


Planned measures include establishment of the Office for Innovation in the Government, adopting the Law on Innovation and establishing a transparent system of intellectual property rights. Measures to support financing in innovation include tax incentives for newly established innovative companies, introducing tax breaks for investors in innovative SMEs and start-ups and creating a fiscal framework for venture capital.

Support for innovation is also a part of the Strategic Plan for 2014-2016 of the Ministry of Science, Education and Sports (2013) and Science and Technology Policy of the Republic of Croatia 2006-2010, which stipulates introduction of measures to promote cooperation between research institutions and businesses.

Currently, the Government agency BICRO has several programmes for supporting R&D in private sector and SMEs, including:

• Proof of Concept (PoC) – programme that supports entrepreneurs in the early development phase of new products, services and processes (pre-commercial activities);

• RAZUM – programme that supports development of knowledge-based companies and provides financing to start-up or established SMEs that apply research in developing new or improved products and services;

• IRECO – programme that encourages SMEs to cooperate with scientific and research institutions;

• Technology Infrastructure Development Programme (TEHCRO) that helps in establishing technology incubators, technology and business centres, centres of competence and research and development centres.


6 | Good practice examples

ECO-SANDWICH panels

ECO-SANDWICH is a ventilated prefabricated wall panel produced from recycled construction and demolition waste (CDW) and mineral wool. Mineral wool is produced by an innovative and sustainable Ecose® technology for reduction of primary energy consumption in building stock. ECO-SANDWICH tackles three major environmental problems: reducing greenhouse gas emissions by improved energy efficiency of buildings, increased resource efficiency through the use of CDW in panel manufacturing and minimising the use of regulated chemicals like phenol and formaldehyde from the insulation material production process. ECO-SANDWICH panels will be used for the first time at the university campus in Koprivnica. The project has been developed by a consortium that promotes research and development in private companies.

Source: http://www.eco-sandwich.hr/

RUCONBAR

RUCONBAR is an innovative and environmental friendly concrete noise barrier (www.ruconbar.com) that uses recycled tyres. RUCONBAR is a concrete noise wall panel composed of bearing and absorbing layer, which incorporates rubber granules recycled from waste tyres. Benefits of this concept are: preventing disposal of recyclable materials on landfills, preventing landscape degradation from the excavation of natural aggregates and clay (used in


production of noise barriers) and noise protection by utilisation of recycled materials. The project relies on a SME for recycling of waste tyres and a SME for production of concrete elements.

Source: www.ruconbar.com

MarineClean

MarineClean is a project co-financed by the EU EACI and implemented by eight partners from Croatia, Slovenia and Lithuania. The activities of the project include collection of marine litter with specially designed net that will allow collection of litter while preventing catching of fish and sea mammals; development of biodegradable packaging for the use on ships and development of fishing equipment that can be easily traced, collected and recycled.

Source: http://www.marineclean.eu/

'Environmentally Friendly' label

Croatia has received a lot of press lately as the “new” and relatively untouched area of Europe for wanderlusts to discover. The country offers pristine beaches, hiking trails and vineyards for adventures and culinary enthusiasts alike. Preserving all these while proving economic development for regions is now very strategic. Thus promoting sustainable tourism became an important sphere.

In 1993, Croatia instituted the Environmental Label, so consumers can understand the “environmental friendliness of a product…and an indication of continuous efforts (toward) environmental protection”.

Based on Germany’s eco-labelling scheme as well as ISO 9000 and ISO 19011, the Environmental Label of the Republic of Croatia was not specifically geared toward ecotourism until 2011 when it evolved to include accommodation providers and campsites.

The process for obtaining the Environmental Label includes an assessment of how a company’s specific eco-activity or accommodation consumes water, manages waste, uses energy, manages


natural resources, uses detergents and disinfectants, and preserves biodiversity. Croatia is presently revising the eco-label criteria in consultation with sustainable tourism professionals as well as relevant stakeholders in order to tackle challenges such as physical planning (e.g. zoning to discourage mass tourism resorts), energy efficiency, use of solar energy, and capacity planning for seasonal tourism.

Presently, applicants submit an application that details and provides evidence about how its company’s product fulfils the criteria of the eco label. The application must also include information about the company’s sustainable tourism business plan for continuous improvement, resource management, and guest interpretation. The application is then assessed and verified by a commission from the Ministry of Tourism.

Over 15 hotels and campsites have been awarded the Environmentally Friendly Eco-label since it was established.


References Bajo, A. and Primorac, M. 2011. Government guarantees and public debt in Croatia. Institute of Public Finance, Zagreb.

Croatian Association for Energy, 2014. Annual Report for 2013.

Croatian Bureau of Statistics, 2012. Innovation Activities in Croatian Enterprises, 2008-2010, No. 8.2.2.

Croatian Bureau of Statistics, 2013. A Statistical Portrait of Croatia in the European Union, 2013: http://www.dzs.hr/Hrv/important/PressCorner/StatPortraitOfCroatiaInTheEU2013.pdf

Croatian Environment Agency, 2013. The Environment in Your Pocket I.

Delomez Yann, 2012. Renewable energy in Croatia, Embassy of Belgium in Croatia – Economic and Commercial Office

European Bank for Reconstruction and Development (EBRD), 2013. Transition Report: http://tr.ebrd.com/tr13/images/downloads/357_TR2013v3.pdf

Energy Institute Hrvoje Pozar, 2010. Annual Energy Report, Energy in Croatia: http://www.eihp.hr/hrvatski/projekti/EUH_od_45/Energija2010.pdf

______________ 2012. Case Study on Energy Efficiency Financing, Croatia: http://www.unece.org/fileadmin/DAM/energy/se/pp/eneff/IEEForum_Issyk_Kul_Lake_Sept.2012/day_2/workshop_4/5a_Zeljko_JURIC_Croatia-EIHP.pdf

European Commission (EC), 2013. Operational Programme ‘Environment’, http://ec.europa.eu/regional_policy/country/prordn/details_new.cfm?gv_PAY=HR&gv_reg=ALL&gv_PGM=1356&LAN=7&gv_per=2&gv_defL=7

EUROSTAT, 2013. EU Enlargement on 1 July 2013, Croatia within the EU in figures: http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/1-25062013-AP/EN/1-25062013-AP-EN.PDF

Ministry of Economy of the Republic of Croatia, 2014. Draft Innovation Strategy of the Republic of Croatia 2014-2020: http://www.mingo.hr/userdocsimages/NACRT%20PRIJEDLOGA%20INOVACIJSKE%20STRATEGIJE%20RH.PDF (in Croatian).

Renewable Energy Action Plan (NREAP, 2013): http://www.hrt.hr/fileadmin/video/120._-_2.pdf.

Ministry of Economy, Ministry of Construction and Physical Planning of the Republic of Croatia, 2013. Second National Energy Efficiency Action Plan for the period until the end of 2013: http://www.mingo.hr/userdocsimages/energetika/2nd%20National%20Energy%20Efficiency%20Action%20Plan%20of%20the%20Republic%20of%20Croatia%20until%20the%20end%20of%202013.pdf

Regional Innovation Scoreboard 2012, Eurostat: http://ec.europa.eu/enterprise/policies/innovation/files/ris-2012_en.pdf

http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2013-14.pdf

Sevic, D. and Gerasina, R. 2009. Regional Study on Financing Eco-innovation in South Eastern Europe, The Regional Environmental Centre for Central and Eastern Europe (REC).

Svaljek, S. 2012. R&D Tax Incentives in Croatia, Beneficiaries and Their Benefits. Institute of Economics, Zagreb.

World Bank country overview; Croatia: http://www.worldbank.org/en/country/croatia/overview

World Economic Forum, 2013, The Global Competitiveness Report 2013-2014.

Eco-innovation in Croatia 17#

ANNEX 1. Policy measures addressing eco-innovations in Croatia

Focus of policy measure (tick if relevant)

Group of policy measures Type of policy measure

Specific measure

Please provide reference to or brief summary of specific measures (national, regional)

add cells if necessary

Generic focus on

eco-innovation

Resource

efficiency

improvement

Energy efficienc

y improve

ment

Reduction of emissions incl. CO2

Other relevant

areas (e.g. renewable

energy, etc)

Croatian Private Equity and Venture Capital Association (CVCA) – facilitates private equity and venture capital investments in Croatia and South East Europe. CVCA organises events of the VentureXchange South East Europe and aims at improving the investment environment in Croatia and the region.

x x x x x

- HMAG Invest (Croatian Agency for SMEs and Investments) is a government agency that promotes foreign investments in SMEs and publishes a catalogue of private companies looking for equity investments

x x x x x

Venture capita funds

-

- The Government provides guarantees to the Croatian Bank for Reconstruction and Development that supports SME sector, energy efficiency projects and renewable energy, among other activities.

x x x x x

Equity/business support

Public guarantee funds

BICRO – Croatian Business Development Agency provides funding for SMEs through several programmes; Proof of Concept (PoC) – the programme supports entrepreneurs in the early development phase of new products, services and processes (pre-commercial activities)

RAZUM – Programme that supports development of knowledge-based companies and provides financing to start-up or established SMEs that apply research in developing new or improved products and services.

IRECO – Programme that encourages SMEs to cooperate with scientific and research institutions

X

SUPP

LY S

IDE

FOC

US

Support for R&D in public

sector and industry

R&D funding

BICRO provides funding to public sector through several programmes:

- Proof of Concept Grant - supports scientists and researchers from Croatian universities and institutes to help turning the scientific results into a commercial potential. This programme supports established and start-up businesses and university spin-outs for developing innovative products and processes.


- Technology Infrastructure Development Programme (TEHCRO) – aims at increasing the competitiveness of Croatian economy through development of effective institutions that would create favourable environment for technology transfer and increase the opportunities for growth and sustainability of innovative technology companies, in particular those that arise as the "start-up" or "spin-off" companies, with its foundation based on knowledge, the results of scientific research and the use of new technologies.

Program TEHCRO has four program lines:

- Technology Incubators

- Technology and Business Centres

- Centres of Competence

- Research and Development Centres - Technology Oriented Projects (TEST Programme) - provides government subsidies to applied research in the field of technology with the emphasis on encouraging hi tech development.

x x x x x

Croatia has participated actively in the 7th Framework Programme for Research and Technological Development, (FP7 Programme) and collaborated most intensively with universities and research institutes from Germany, the UK and Italy.

x

Croatia participated in the EU’s Competitiveness and Innovation Framework Programme (CIP) from 2007-2013

x x x x x Collaborative grants

Croatia has been a member of the EU COST Programme since 1992.

Croatia participates in the EU EUREKA Programme and TEMPUS Programme.

Costs related to R&D infrastructure are eligible under BICRO programmes. x x x x x

R&D infrastructure

- profit tax base can be lowered by 150% of the eligibility cost for fundamental research, 125% for industrial research and 100% for development research

x

Fiscal measures

Tax incentives for R&D and start-ups

- for SMEs, further 20% for industrial and development research can be applied, and for medium-sized companies additional 10%


- most tax incentives went to big companies according to 2008 – 2009 data and 90% went to companies located in the capital city and county of Zagreb (Svaljek, 2012)

- eligible costs include salaries and reimbursements for employees directly participating in researches

x

Tax incentives for R&D personnel

Tailored training courses

for companies, entrepreneurs

Business and Innovation Centre of Croatia (BICRO) provides advise for SMEs

Advise/consulting for start ups, companies, entrepreneurs

Placement schemes for students

Education, training and

mobility

Support for R&D workers recruitments

Biosciences Technology Commercialisation and Incubation Centre – BIOCentre, is developed in partnership between BICRO, the University of Zagreb and the city of Zagreb with support of the Instrument for Pre-Accession Assistance (IPA).

The aim of the BIOCentre is to facilitate cooperation between basic and applied scientific research and industry, technological infrastructure and new biotechnology companies in the process of developing new products.

Centre for Technology Transfer , Zagreb, supports SMEs

Networks and partnerships

Competence centres, clusters, science-technology parks

Rudjer Innovation, provides services regarding the Intellectual Property Rights


Technology platforms and innovation networks

Foresight and common vision building

Market intelligence and other forms of information

sharing

New Draft Innovation Strategy sets targets for innovations in general.

Regulations, targets, cap & trade schemes

Regulations and standards

Performance standards, labeling, certification

GPP2020 is being implemented in Croatia since 2014

“Green“ public

procurement of goods and services

R&D procurement

Public procurement

Pre-commercial procurement

Advisory support for technology adopters

DEM

AN

D S

IDE

FOC

US

Technology Transfer

Financial or fiscal support for technology adopters


(e.g. grants for purchasing new technology)

Tax incentives for consumers (e.g. for

purchasing environmentally efficient

products)

Tax reductions for

products and services (e.g. VAT reductions)

Demand subsidies (e.g. eco-vouchers, consumer

subsidies)

Support of private demand

Awareness raising and information provision

About the Eco-Innovation Observatory (EIO)

The Eco-Innovation Observatory (EIO) is an initiative financed by the European Commission’s Directorate-General for the Environment. Since 2009 the Observatory has been developing an integrated information hub on eco-innovation addressed to business, policy makers, innovation service providers and researchers. The EIO supports the implementation of the European Eco-Innovation Action Plan of the European Commission.

Visit our website and get full, free access to the EIO’s reports and databases.

www.eco-innovation.eu

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