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RIS3 Strategy Croatia

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RIS3 Strategy Croatia Ref. Ares(2016)2541793 - 01/06/2016 b CROATIAN SMART SPECIALISATION STRATEGY 2016.-2020. March 2016 1 Contents 1. INTRODUCTION ......................................................................................................................... 13 1.1. Rationale for the Smart Specialization Strategy (S3) ............................................................ 13 1.1.1. The European Union rationale ........................................................................................ 13 1.1.2. The importance of the S3 for Croatia ............................................................................. 13 1.2. Main principles, methodology and conceptual framework of the S3 document ................... 14 2. ANALYSIS ................................................................................................................................... 18 2.1. Macroeconomic performance and productivity growth ........................................................ 18 2.1.1. GDP and economic growth ............................................................................................ 18 2.1.2. Trends in productivity .................................................................................................... 18 2.1.3. International trade and foreign direct investments (FDI) performance .......................... 19 2.2. Business sector competitiveness ............................................................................................ 23 2.2.1. Global competitiveness performance ............................................................................. 23 2.2.2. Firm demographics ......................................................................................................... 24 2.2.3. Gross value added and employment by economic activities .......................................... 25 2.2.4. International trade and RCA by economic activities ...................................................... 26 2.2.5. Manufacturing and natural resources ............................................................................. 31 2.2.6. Most important service sectors ....................................................................................... 36 2.2.7. Cluster policy and innovation related instruments ......................................................... 37 2.3. Research, Development and Innovation (RDI) ..................................................................... 41 2.3.1. Croatian RDI potential ................................................................................................... 41 2.3.2. Analysis of legal, institutional and fiscal framework for RDI........................................ 43 2.3.3. Scientific activity, excellence and science-industry collaboration ................................. 50 2.3.4. Patenting activity ............................................................................................................ 53 2.3.5. RDI potential of business sector ..................................................................................... 53 2.4. Identification of economic, research and innovation strengths and potential ....................... 60 2.4.1. Croatian participation in FP7 reveals strength in different R&D areas .......................... 62 2.4.2. Human potential for S3 .................................................................................................. 65 2.5. Conclusions ........................................................................................................................... 71 3. SWOT ANALYSIS ....................................................................................................................... 77 4. CORE STRATEGIES TOWARDS SMART, INCLUSIVE AND SUSTAINABLE GROWTH . 80 4.1. Vision and overall strategic objective ................................................................................... 80 4.1.1. Specific strategic objective 1: Increased capacities of RDI sector to perform excellent research and to serve the needs of the economy ............................................................................. 81 4.1.2. Specific strategic objective 2: Overcoming the fragmentation of innovation value chain and the gap between research and business sector ......................................................................... 82 4.1.3. Specific strategic objective 3: Modernizing and diversifying Croatian economy through increasing private R&D .................................................................................................................. 82 4.1.4. Specific strategic objective 4: Upgrading in global value chain and promoting internationalization of Croatian economy ...................................................................................... 83 2 4.1.5. Specific strategic objective 5: Working in partnerships to address societal challenges . 84 4.1.6. Specific strategic objective 6: Creating smart skills - upgrading the qualifications of existing and new work force for smart specialization .................................................................... 85 5. PRIORITY THEMATIC AREAS AND CROSS-CUTTING THEMES ...................................... 87 5.1. Principles and criteria’s to select the S3 priority thematic areas and cross-cutting themes .. 87 5.2. Selection and description of priority thematic areas (Building on strengths – Overcoming weaknesses – Securing the future) .................................................................................................... 89 5.2.1. Health and quality of life ................................................................................................ 90 5.2.2. Energy and sustainable environment ............................................................................ 102 5.2.3. Transport and mobility ................................................................................................. 114 5.2.4. Security ......................................................................................................................... 125 5.2.5. Food and Bioeconomy .................................................................................................. 136 5.3. Cross-cutting themes and their link with priority thematic areas ........................................ 145 5.3.1. Key Enabling Technologies (KETs) ............................................................................ 151 5.3.2. Information and Communication Technologies (ICT) ................................................. 154 6. DEFINITION OF COHERENT POLICY MIX AND ACTION PLAN ..................................... 159 6.1. Croatia’s policy mix is tailored to improve the National innovation system, improve innovation performance and competitiveness of the Croatian economy ......................................... 159 6.2. Definition and description of Coherent S3 Policy mix and delivery instruments ............... 161 6.2.1. Establishment of the more effective national innovation system ................................. 163 6.2.2. Developing a globally competitive and economically relevant research system ......... 166 6.2.3. Upgrading in global value chain and promoting internationalization of Croatian economy 174 6.2.4. Creation of smart skills ................................................................................................. 175 6.3. The main source of financing .............................................................................................. 181 7. THE S3 GOVERNANCE ........................................................................................................... 183 7.1. Governance system for the S3 ............................................................................................. 183 7.2. The role of institutions and bodies in the S3 governance system ........................................ 186 7.2.1. National Innovation Council ........................................................................................ 186 7.2.2. Interministerial working group for S3 management ..................................................... 187 7.2.3. Managing Authorities (MAs) for OPs 2014 – 2020, supporting ministries (IB1) and other relevant institutions acting as IB2 ....................................................................................... 188 7.2.4. Advisory Councils ........................................................................................................ 188 8. MONITORING AND EVALUATION ....................................................................................... 192 8.1. Monitoring and evaluation framework of the S3 ................................................................. 192 8.2. Methodology of monitoring and set of indicators ............................................................... 196 9. ANNEXES .................................................................................................................................. 209 9.1. Annex 1 - The results and continuation of entrepreneurial discovery and partnership consultations .................................................................................................................................... 209 9.2. Annex 2 Cross-sectoral table - matching of business and scientific research sectors strengths, capacities for RDI and the ability to connect with the response to social challenges ..................... 216 3 9.3. Annex 3 Short description of Sub-thematic Priority Areas ................................................. 219 9.4.
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