Republic of Croatia Ministry of Economy, Entrepreneurship and Crafts
Invest in Croatia Manufacturing sector
Mechatronics Robotics Electronic and optical products
mechatronics, robotics, electronic and optical products manufacturing invest in croatia 38 Invest in Croatia Manufacturing sector Mechatronics Robotics Electronic and optical products
January 2020
Republic of Croatia Ministry of Economy, Entrepreneurship and Crafts 1. About Croatia 4 Contents 1.1 Country factsheet 4 1.2 Economic stability 6 1.3 Country competitiveness 7 1.4 Developed infrastructure 8 1.5 Human capital 10 1.6 Quality of Life 11 This publication gives general information on the Croatia’s 12 investment climate and the potential 2. Manufacturing sector in mechatronics, robotics as well as the electronic and optical products 2.1 Manufacturing sector overview 13 manufacturing in Croatia. These 2.1.1 Value and investments 14 sectors are expected to be one of 2.1.2 Persons in employment 15 the drivers of the future growth and 2.1.3 Sources of qualified human capital 17 development due to R&D activities, innovation and added value. 2.2 Mehatronics and robotics sector 20 2.2.1 Mehatronics sector - qualified human capital 21 2.2.2 Robotics sector - qualified human capital 22 2.2.3 Educational Institutions 23 2.2.4 Sucess stories 24
2.3 Electronic and optical products manufacturing 25 2.3.1 Electronic and optical products manufacturing – qualified human capital 26 2.3.2 Popularization of electronic and optical products manufacturing 27
3. Ready investment locations 28
4. Incentives and financing 30
4.1 Investment incentives 31 4.2 Access to financing 32
5. Institutional support 34
mechatronics, robotics, electronic and optical products manufacturing invest in croatia 2 mechatronics, robotics, electronic and optical products manufacturing invest in croatia 3 In the second quarter of 2019, Croatia posted Capital a budget surplus of 2.5% of GDP. In the same Zagreb 1. period last year, Croatia’s budget posted a Population surplus of 1.1%. 4.088 million Official language Since 2015, GDP per capita has been growing Croatian About at an average growth rate of 4.07%. In 2018, Land area GDP per capita was EUR 11,940. 56,594 km2 Time zone Croatia In 2019, Croatia has met the requirements for GMT +1 introduction of the euro and commenced the Climate process of joining the European Monetary Continental and Union which is expected to enhance further Mediterranean economic growth. Currency Kuna (HRK)
1.1 Country factsheet
Croatia is situated in the very heart of Europe, on the crossroads of Central and Southeast Europe. With the Adriatic Sea in the west and Danube River in the east, the country’s unique geographical location offers access to the global markets.
The country is organised into 21 territorial and administrative units (20 counties and the City of Zagreb, the capital, economic and political centre). The rich history, diverse culture, safe environment 2013 2009 2000 and modern infrastructure make Croatia a desirable place for Croatia became a member Croatia became a full member Croatia became a member of business and living. of the European Union. of the NATO Alliance. the World Trade Organization.
mechatronics, robotics, electronic and optical products manufacturing invest in croatia 4 mechatronics, robotics, electronic and optical products manufacturing invest in croatia 5 1.2 Economic stability 1.3 Country competitiveness
Croatia is currently going 16.2 Main macroeconomic indicators The World Bank published the Key area of improvement in 2019: (Croatian National Bank, 2019) through a period of significant 17th edition of its Doing Business economic development, driven 13.1 Report 2020 comparing 190 Starting a business by GDP growth, positive 11.2 world economies. Croatia Starting a business has been made easier with the abolishment inflation and a continuous is ranked in the top third of of requiring to reserve a company name and obtaining director decrease in the unemployment 8.4 observed countries and has signatures for company registration, as well as reducing the rate. Furthermore, improvement made significant steps to climb minimum starting capital requirement (from EUR 1,347 to EUR 673). in public finance and a stable 14 positions when compared to monetary system contribute to its ranking in the 2015 Report. Dealing with construction permits the business environment. 3.5 3.1 Dealing with construction permits is less costly with the reduction 2.4 2.6 of water contribution fees for the construction of warehouses. Real gdp growth (%) Ease of doing business (Rank; 2015 - 2020) Unemployment rate (%) Registering property 2015 2016 2017 2018 Croatia has made it easier to transfer property by decreasing 65 51 property transfer tax and reducing the time needed to register property title transfers. The most important trade partner of In the WB Doing Business Report, Croatia is the best ranked Croatia is the European Union (78% of country in the Trading across borders category. Croatia also 1 / 190 imports, 69% of exports occurs within BBB Double taxation stands out as a country with the best regulatory performance EU borders). Most of the exports Croatia’s credit ranking in 2019 avoidance with under the thematic section Time to comply with VAT refund. outside the European Union take 55 countries place with CEFTA countries, as well as In 2019, the World Economic Areas in which Croatia has made significant improvements are countries in Asia and America. Forum published the 38th edition infrastructure, macroeconomic stability and health: of its Global Competitiveness Report analysing 141 countries. Infrastructure Croatia is recognised as a (Rank; 2015 -2019) 46 32 Trade of good and Import In 2018, over EUR 23 billion country with the biggest services (000; 2018; eur) worth of goods and services improvement in overall ranking Macroeconomic stability 23,747,557 were imported into Croatia in Europe compared to the 2018 Foreign trade in goods of the (Rank; 2015 -2019) 63 43 from all around the world, and Report. Republic of Croatia (Croatian Export Bureau of Statistics, 2018) EUR 14 billion worth of goods and services were exported. In Global competitiveness index 14,543,427 all, the manufacturing sector 4.0 (Rank; 2015 -2019) accounts for 90% of all exports, and in terms of imports, it is approx. 80%. 63 77
mechatronics, robotics, electronic and optical products manufacturing invest in croatia 6 mechatronics, robotics, electronic and optical products manufacturing invest in croatia 7 The motorway network in International airports 1.4 Developed infrastructure Croatia is among the best in 8 Europe. Three PAN-EUROPEAN Seaports international corridors pass 6 Situated in the heart of Europe, Croatia is strategically located less through Croatia, making it Riverports than three hours by plane from all major European capitals. As a an essential European and 4 result of significant investments in airport infrastructure, over the international transport route. last five years Croatia has been experiencing average annual growth of 15.6% in the number of air passengers. The network of modern infrastructure positions Croatia among leading European countries, Major road and rail corridors More than and offers conditions for reliable transport of people and goods. International airports Seaports HU 1,313 km SK of highways Riverports CZ
SI AT IT DE
3 H
2 H BA RS BG RO 1 H More than 2,722 km 13 / 141 of rail network The WEF Global Competitiveness Report More 2019 ranks Croatia than 70 13th in the world in the air destinations category of Quality of road in 2019 infrastructure.
mechatronics, robotics, electronic and optical products manufacturing invest in croatia 8 mechatronics, robotics, electronic and optical products manufacturing invest in croatia 9 1.5 Human capital 1.6 Quality of Life
As shown below, Croatia’s human capital offers the most important Croatia has preserved environment and beautiful qualities for market competitiveness and employability, meaning nature with over 400 protected areas covering that the country has a skilled, multilingual and highly productive workforce. around 9% of the territory, two predominant
105 climatic zones (Continental and Mediterranean) and one of the most beautiful costs.
Real labour productivity per person employed 102.5 (index; 2018) Croatia ranks highly among the top 140 countries by safety and life quality according to the World Economic Forum's Travel and Measuring real labour productivity offers a clear picture of Tourism Competitiveness Report 2019: productivity developments that have taken place in the economy. th In 2018, Croatia was above the EU 28 average and among the more 14 productive European economies. in environmental sustainability Real labour productivity per person employed (Eurostat, 2018) EU 28 Croatia 20th in natural resources English proficiency (rank; 2019) 22nd Based on research in the 9th edition of Education First, Croatia held th th 14th place in English proficiency (among 100 countries). Between 17 14 in health and hygiene very low, low, moderate, high and very high rankings of countries in 2018 2019 rd English proficiency, Croatia achieves a very high proficiency. Also, 23 the proficiency trend shows that Croatia has improved by three EF English Proficiency Index in natural and cultural resources places since 2018. (Education First, 2019) Croatia is also ranked at a “Level One” by the U.S. Department of State Travel Advisory—the safest category.
Proportion of students In 2017, more than 94% of that learn two or more Croatian students in general upper secondary education foreign languages learn two or more languages, (%; 2017) whereas the EU average is 59%. 59 94
Foreign language learning in the EU (Eurostat, 2019) EU 28 Croatia
mechatronics, robotics, electronic and optical products manufacturing invest in croatia 10 mechatronics, robotics, electronic and optical products manufacturing invest in croatia 11 2.1 Manufactoring sector overview
Croatia’s manufacturing total value of sold products development of human capital, industry plays an important from all industries and the manufacturing high quality role in the development and manufacturing sector is growing, products and environmentally growth of country’s economy. especially of exported products, friendly manufacturing Over 42% of the total value and is experiencing average processes. of all manufactured products yearly growth of over 4%. is sold abroad, which in turn Mechatronics, robotics, and The diversity of production contributes positively to the electronic and optical products lines, innovation, educated and country’s balance of trade. As manufacturing sectors are trained human capital, along the largest industry sector among the most prospective with a commitment to success in Croatia by total value of in Croatia, characterised means mechatronics, robotics products sold on domestic and by a high growth potential. as well as electronic and optical foreign markets, manufacturing Businesses operating in these products are a prospective accounts for 80% of all sectors focus on introducing business opportunity in Croatia. industrial activity in 2018. The new technologies, professional
Mechatronics is a complex sector that involves efficient interplay between mechanics, robotics, electronics and IT. Mechatronics is present in various sectors such as automotive engineering, machine tool building, electrical, medical and electronics industry, environmental technology and other. 2. Robotics, as an interdisciplinary sector of engineering and science, is complementary to mechatronics. Elements of robotics can be found in the Manufactoring most high-tech components which enables its wide application and use. The manufacturing of electronic and optical products is one of Croatia’s high-tech activities. The industry includes production and assembly of electronic products for personal, specialised and military purposes which in sector turn are used in other industrial activities.
mechatronics, robotics, electronic and optical products manufacturing invest in croatia 12 mechatronics, robotics, electronic and optical products manufacturing invest in croatia 13 2.1.1 Value and investments 2.1.2 Persons in employment
Of that abroad From over 230,000 persons employed in the manufacturing sector, the largest proportion of workers Sold is employed in the following manufacturing activities: food products (18%), fabricated metal products (13.1%) machinery and equipment including computer, electronic and optical products (7.8%). Production and sale of industrial 18,953,537 18,148,139 products for 2015-2018 (Croatian 8,014,264 7,946,080 16,215,338 Bureau of Statistics). Proportion of persons 16,648,454 7,207,257
7,094,455 4.4% Rubber and plastic products employed in manufacturing by manufacturing activities 4.5% Leather and related products Value of products sold in (%, 2018) total industry (eur; 000) 4.6% Non-metallic mineral products Number of persons in paid employment 2017 in legal entities (Croatian Bureau of 2015 2016 2018 Statistics, 2018) Value of the products 4.7% Electrical equipment sold in the manufacturing Repair and installation of sector (eur; 000) 4.9% machinery and equipment
5.4% Wearing apparel
Wood and products from wood and cork, except 13,902,663 13,820,654 6.3% 14,721,142 7,079,701 6,975,488
15.199.724 furniture; articles from straw and plaiting materials 7,773,043 7,922,863 Machinery and equipment and computer, 7.8% electronic and optical products Fabricated metal products, except 13.1% machinery and equipment Gross investments are an indicator Comparison of gross All industries 18.0% Food products of a country’s stability and industry investments in new Manufacturing sector potential. Total gross investments and existing fixed in new and existing fixed assets are assets in total industry steadily increasing in all industries and manufacturing Gross investments, 2015 – 2018 Computer, electronic and optical products Yearly increase of persons and the manufacturing sector, (eur; 000) (Croatian Bureau of Statistics) Machinery and equipment employed in certain confirming that Croatia is a positive manufacturing activities investment environment offering compared to total industry (%) industrial potential. Number of persons in paid employment in legal entities, 2015-2018 (Croatian In 2018, over 16% of all gross Bureau of Statistics) investments in all industries were in the manufacturing sector. 6,258,000 851,310 6,548,000 928,549 7,089,000 1,141,905 7,371,000 1,196,228 0.42% 0.91% 0.44% 0.93% 0.46% 0.94% 0.45% 0.94%
16.2% 2015 2016 2017 2018 2015 2016 2017 2018
mechatronics, robotics, electronic and optical products manufacturing invest in croatia 14 mechatronics, robotics, electronic and optical products manufacturing invest in croatia 15 As the largest sector in terms of 2.1.3 Sources of qualified human capital number of employed persons, the manufacturing sector employed 233,196 persons in 2018, i.e. 17.8%. Number of the persons Croatia is increasing investments in human capital and work employed in the specialisation to continuously meet market demand. There are 30 manufacturing sector technical school centres in the Republic of Croatia (shown on the Employment (administrative sources, map below) that provide education for jobs in the sectors covered 210,072 221,049 228,353 233,196 Croatian Bureau of Statistics) in this publication. 2015 2016 2017 2018 Twelve of these centres are located within the so called regional centres of competence, ensuring the availability of an educated and Number of persons employed in the machinery and equipment manufacturing specialised work force. sector compared to the computer, electronic and optical products sector Čakovec Varaždin Machinery and equipment Computer, electronic and Zagreb
10,719 4,884 11,422 5,368 11,889 5,792 12,276 5,834 optical products Osijek Employment (administrative sources, Rijeka Croatian Bureau of Statistics) Sisak Vukovar 2015 2016 2017 2018 Slavonski Brod Senj Average yearly increases The computer, electronic and optical products sector as well as the in employment for certain machinery and equipment sector recorded above-average rates of manufacturing activities and employment growth amounting to 6.16% and 4.56%, respectively. sector (2015 - 2018) Since 2015, the manufacturing sector has seen a 3.53% yearly Zadar average increase in employment.
Employment (administrative sources, 6.16% 4.56% 3.53% Šibenik Croatian Bureau of Statistics) Split
Technical schools Computer, electronic Dubrovnik and optical products Machinery and equipment Manufacturing sector Technical schools and Universities
mechatronics, robotics, electronic and optical products manufacturing invest in croatia 16 mechatronics, robotics, electronic and optical products manufacturing invest in croatia 17 Croatia has a well-established High school education in Croatia covers a maximum of five years, Some of the most important faculties in Croatia which are a key system of secondary schools providing education and skills necessary for entering the labour source of qualified human capital for the mechatronics, robotics as and universities preparing market or ongoing education. well as electronic and optical products manufacturing sectors are pupils and students to acquire listed below. skills and knowledge for Vocational secondary schools are a source of highly qualified, competitiveness in a changing motivated and multiskilled workforce for mechatronics, robotics Faculty of Electrical Faculty of Electrical labour market. as well as electronic and optical products manufacturing sectors. Engineering and Engineering, Computing, University Mechanical Engineering Number of graduates from Share of mechanical and electrical engineering graduates from of Zagreb (FER) and Naval Architecture, vocational secondary schools all vocational secondary school graduates (%, 2017) University of Split (2017) A leading research and 12% 14% education institution in (FESB) Mechanical engineering electrical engineering and computing, which has a special Its fundamental activities are 3,469 robotics department. higher education, scientific Mechanical Electrical research, developmental and Electrical engineering engineering engineering professional work in scientific Faculty of Mechanical areas such as electrical 3,948 Engineering and Naval engineering, mechanical Total Architecture, University engineering, naval architecture, computing and basic technical Statistical Yearbook of the Republic of Croatia, 2018 (Croatian Bureau of Statistics) of Zagreb (FSB) 28,373 sciences. One of the most respected technical faculties in Croatia, Faculty of Electrical Tertiary education takes place at universities and professional In 2018, one quarter of all with a special Department of Engineering, university graduates graduated study programs. There are 131 institutions of higher education Robotics and Automation of Computer Science accounting for 160,361 students. from technical sciences. Production Systems. and Information Number of University Share of University engineering and biotechnical graduates from Faculty of Engineering, Technology, University graduates (2018) all University graduates (%, 2018) University of Rijeka of Osijek (FERIT) Engineering 26% 22% (RITEH) A regional leader in the field of electrical engineering, computer 8,481 A prominent higher education, science and communications Biotechnical, scientific and research Biotechnical, biomedicine and biomedicine technologies. health and natural sciences Engineering and health institution offering programs and natural in mechanical engineering, 6,879 sciences naval architecture, electrical engineering and computer Total engineering. Students who graduated from university study programs in 2018 33,241 (Croatian Bureau of Statistics)
mechatronics, robotics, electronic and optical products manufacturing invest in croatia 18 mechatronics, robotics, electronic and optical products manufacturing invest in croatia 19 The mechatronics and 2.2.1 Mehatronics sector 2.2 Mehatronics and robotics sectors in Croatia are continuously expanding Qualified human capital robotics sector and advancing. The value of sold machinery, equipment, The ability to connect Education level Education of Mechatronics Engineers electronic and optical products (Economic Research Institute, 2019) and transfer know-how of Mechatronics is increasing along with exports. between higher education institutions, entrepreneurial engineers Value of machinery, equipment, computer, electronic and In 2018, more than 78% of support institutions and the optical products sold and exported (000) manufactured products in private sector in mechanical the machinery, equipment, engineering, electronics Sold computer, electronic and optical and IT means that Croatia’s 23% High school Of that abroad products sectors is exported mechatronics industry is to foreign markets. Exports are sizeable and growing. continuously growing on an 46% Bachelor average yearly rate of 3.35%. Cross-sectoral collaboration leads to a highly skilled and Foreign trade in goods of the Republic market-ready workforce.
797,075 638,796 829,934 645,610 851,880 689,116 895,417 704,776 of Croatia for 2018 (Croatian Bureau of Over 54% of all mechatronics 23% Associate Statistics) engineers have a university 2015 2016 2017 2018 degree, and 46% have completed secondary 8% education. Master
Total income of enterprises Croatia has 1,160 registered in the machinery, equipment, enterprises involved in Top Croatian universities Croatian mechatronics engineers are in demand, computer, electronic and mechatronics and robotics. offer dedicated bachelor’s not only in Croatia, but also abroad. A recent optical products sectors (eur) Their income is continuously and master’s courses in growing at an average yearly success story in mechatronics in Croatia testifies Source: Croatian Chamber of their curricula for industrial Commerce, Digital Chamber, 2019 rate of 4.9%. and engineering sciences to the quality of its workforce. 1,718,917,227 1,843,385,507 1,855,857,523 1,975,629,873 and cover topics such as 2015 2016 2017 2018 4.9% mechatronic design, electro- mechanics, robotics and Through his innovative work, a student at the mechatronics, ICT and Faculty of Mechanical Engineering and Naval Total number of employees Number of the employees in mechatronics, mechatronic Architecture in Zagreb won a gold medal and in the machinery, equipment, mechatronics and robotics drive systems and more. computer, electronic and enterprises is growing at an a diploma in innovation at the iENA Nurnberg optical products sectors in average yearly rate of 4.5%. exhibition in 2019. The project titled ”Autonomous Croatia Vehicle Driven by Pneumatic Muscles” was
16,886 17,501 18,447 19,239 Source: Croatian Chamber of 4.5% supported by the Faculty’s Mechatronics 2015 2016 2017 2018 Commerce, Digital Chamber, 2019 Association.
mechatronics, robotics, electronic and optical products manufacturing invest in croatia 20 mechatronics, robotics, electronic and optical products manufacturing invest in croatia 21 2.2.2 Robotics sector 2.2.3 Educational Institutions Qualified human capital
Croatian schools and Education level of robotics engineers Many Croatian faculties and colleges constantly invest in developing their universities offer degrees Education of Robotics Engineer (Economic Research Institute, 2019) capacities and that of students through various programmes and projects. in key robotics fields such as engineering, computer They actively apply for grants from EU funds and EU funded projects. science and data science. The competitiveness of Croatian The faculties also encourage collaboration with the private sector and students was evident at the latest iENA international 17% other educational institutions. Great importance is placed on encouraging exhibition of innovations where Master development and education in the mechatronics and robotics. Croatia has a number of associations in mechatronics and robotics. Croatian students won a total of 10 gold, four silver and two bronze medals including six robotics businesses to assist special awards. They also won Bjelovar University of Innovation centre in developing and applying the Grand Prix prize organised Applied Sciences Nikola Tesla (ICENT) advanced robotic systems in by the Association of European manufacturing. CROBOHUB also Innovators and the Grand Prize A more recent Croatian The Croatian Robotics Digital assists in establishing contact from the AFAG organisers of the 83% project is “Modern Education Innovation Hub (CROBOHUB), High school with investors, facilitates exhibition. of Professionals Holding located at the ICENT, is a key access to finance for digital a Bachelor’s Degree in Croatian non-profit facility transformation, helps connect Mechatronics in Compliance with the role of supporting users and suppliers of robotic with Requirements of the companies to increase their innovations across the value Croatian Qualifications competitiveness by improving chains and fosters synergy Framework” funded by the business/production processes, between digital and other key European Social Fund. as well as their products and The popularisation of robotics Croatian robotics engineers are in demand both services by up-taking digital enabling technologies (biotech, advanced materials). in Croatian elementary schools in Croatia and abroad. A recent success stories The aim is to improve the technologies and robotic in collaboration with the solutions. in robotics in Croatia testifies to the country’s undergraduate professional Croatian Robotics Association program in Mechatronics, is an important incentive for quality workforce. developing an interest in CROBOHUB is helping young people. The Association becoming a mechatronics companies from Croatia provides advanced courses Gideon Brothers is an artificial intelligence and engineer and aligning and Southeast Europe to incorporating practical qualification standards with digitalise their businesses and exercises and interaction with robotics company that has developed advanced Guidelines for Development efficiently orchestrate various educational robots, the aim autonomy technology. Their robots are used by and Evaluation of Qualification stakeholders in the robotics of which is to further develop many Croatian companies, as well as leading Standards and Guidelines for innovation ecosystem such as specific skills and knowledge. Harmonising Study Programs research institutions, business global logistic providers. Their success has been with Qualification Standards. support institutions and recognised by numerous global companies.
mechatronics, robotics, electronic and optical products manufacturing invest in croatia 22 mechatronics, robotics, electronic and optical products manufacturing invest in croatia 23 2.2.4 Sucess stories 2.3 Electronic and optical products manufacturing Rimac automobili Ltd.
Founded in 2009 with headquarters in Croatia, Rimac started as The electronic and optical products manufacturing sector is characterised by short product life cycles, a garage project and grew into a globally recognized technology strong global demand and a comparatively strong emphasis on R&D. In responding to market demand leader, built upon the passion and vision of the company’s Founder in the last six years, Croatia has been investing significant EU funds into this sector, through grants and CEO Mate Rimac. It is a technology powerhouse focused on and various financial instruments which enable enterprises to be more agile and responsive to market design, engineering and manufacturing of electic hypercars and fluctuations. high-performance EV technology. Rimac’s EV hypercars are some of the most powerful and technologically advanced cars in the Value of computer, electronic and optical Sold Exports from this sector grew world, pushing the boundaries and proving the potential of electric products sold and exported (000) Of that abroad continuously in each of the powertrain. Annual PRODCOM Results (Croatian Bureau of observed years with an average statistics, Industrial production in 2017) yearly increase of 12.03%. The Today, the company numbers over 600 people and has grown into share of exports in the total a leader within a highly competitive industry delivering technology value of production shows to OEMs such as Porsche, Hyundai, Aston Martin, Pininfarina, that more than 61% of the total Koenigsegg and more. In 2018 and 2019 Porsche AG and Hyundai value of products is exported to Motor Group also joined as minority shareholders and strategic foreign markets. partners.
Ronna G4 Croatia has 528 registered
170,101 100,669 175,090 111,730 218,563 148,922 222,452 136,835 enterprises in electronics and optics activities. Their income Eight years ago, the RONNA G4 (fourth generation robotic 2015 2016 2017 2018 neuronavigation) project was launched at the Faculty of Mechanical is continuously growing at an Engineering and Naval Architecture in Zagreb, in collaboration with average yearly rate of 2.7%, the Dubrava Clinical Hospital and Croatian Brain Research Institute. with the exception of 2017.
“RONNA G4” was named the Best Scientific and Technological 2.7% Achievement in Medical Robotics at the 2018 International Hamlyn Total income of Total number of Symposium in London. RONNA enables doctors to perform enterprises (eur) employees Highly qualified engineers and surgeries in a faster and less invasive way, resulting in faster technical experts are among recovery of the patient, better utilisation of hospital operational the most valuable capital resources, and the mastering of new knowledge and technologies, in this sector. The average as well as introducing them into medical practice. yearly increase in the number of electronics and optical
882,310,378 930,187,790 883,855,953 948,987,286 6,377 6,645 6,902 7,324 engineers is 4.8%. 2015 2016 2017 2018 2015 2016 2017 2018 Source: Croatian Chamber of Commerce, Digital Chamber, 2019 4.8%
mechatronics, robotics, electronic and optical products manufacturing invest in croatia 24 mechatronics, robotics, electronic and optical products manufacturing invest in croatia 25 2.3.1 Electronic and optical products manufacturing 2.3.2 Popularization of electronic and optical Qualified human capital products manufacturing
Optical engineers and electronic engineers are professionals specialised in optical technologies and According to the S3 Strategy Ericsson Nikola Tesla Ltd. experts in applying electrical energy in different ways. Due to the complexity of their job and rapid of the Republic of Croatia, technological changes, these engineers need extensive education and practical training in order to this sector has great potential Ericsson Nikola Tesla is the leading regional provider of produce high quality products. More than 90% of all electronic engineers in Croatia have a bachelor’s or for future development due communications products and services in the operator segment, master’s degree. to the existence of strong as well as a provider of innovative information and communication human resources possessing a solutions for healthcare, transport, government, utilities and tradition and experience in the multimedia communications. Ericsson Nikola Tesla is a socially related fields. responsible company with a strong reputation built on reliability Education level of and good relations with all stakeholders. It supports sustainable electronic engineers in Also, it is one of the industries economic and social development by balancing long-term 32% with comparative advantages growth and competitiveness with a positive economic, social and Croatia Master considering export orientation environmental impact. ducation of Electronic Engineers as an important source of (Economic Research Institute, 2019) future growth and their One of our solutions is the EVA (Ericsson Nikola Tesla Virtual ability to maintain a profitable Assistant), a voice-controlled interface designed for people with 57% position in the domestic visual impairments, including motor impairments or those with Bachelor market. difficulties in using modern technologies. The aim of the project is to enable blind persons and persons with motor difficulties to control their touchscreen devices using voice and modern 5% technologies. Associate 3% High school 3% Microblink Ltd. Doctorate Microblink is a high-tech company engaged in research and development in the field of computer vision and artificial intelligence. Their technology replaces manual data entry and Although Croatia has highly the “Entrepreneurs of the The University enables automatization of processing using a mobile camera. educated engineers in this Future” competition. The Innovation Network was Microblink software products are implemented in various mobile sector, secondary school project required modifying or web applications across industries. BlinkID is their most popular pupils also exhibit a capability and applying different models launched as a basis for product worldwide, used to digitize identity documents (IDs, driving in creating innovative products of existing road decelerators sustainable and inter- licenses, passports, etc.) with the power of AI. All products share and solutions. An example is utilised for daily generation of institutional exchanging a common improvement in user experience and considerable the project titled Electrical electricity. time and money savings in business processes, which is why their Speed Bump devised in a of experience and technology reaches more than 100 million users. secondary school which gained mutual support, and recognition from the Croatian for strengthening the Employers Association in innovation system.
mechatronics, robotics, electronic and optical products manufacturing invest in croatia 26 mechatronics, robotics, electronic and optical products manufacturing invest in croatia 27 Business zones provide complete integrated infrastructure and enable entrepreneurial activities to be carried out under standardised conditions in the one location. In Croatia, there are more than Vienna Bratislava
240 Business zone Jalžabet Budapest verified business zones. Some of Capacity: 140 ha the biggest ones considering the Available: 85 ha capacity are shown on the map Business zone Zabok below. Capacity: 191 ha Available: 87 ha Business zone Kneginec Business zone Belišće Capacity: 170 ha Capacity: 70 ha Available: 104 ha Available: 70 ha Ljubljana
Zagreb
3. Business zone Otok Capacity: 60 ha Locations Available: 55 ha Sarajevo Business zone Bakar Capacity: 483 ha ready for Available: 193 ha Business zone Podi Capacity: 549 ha investment Available: 165 ha
mechatronics, robotics, electronic and optical products manufacturing invest in croatia 28 mechatronics, robotics, electronic and optical products manufacturing invest in croatia 29 4.1 Investment incentives
To increase foreign direct investment (FDI) and economic competitiveness, Croatia is continuously pursuing activities in improving the legislative framework. Significant reforms have been implemented and administrative procedures optimised. Likewise, Croatia offers competitive investment incentives in line with the Investment Promotion Act.
Grants for the capital Minimum investment Incentives up to cost of investments up EUR 50,000 in fixed to EUR 1,000,000 assets in addition to creating at least three new jobs for microenterprises. Grants for R&D up to 45% of the investment cost EUR 500,000 EUR 150,000 in fixed assets in addition to creating at least Employment incentives five new jobs for small, medium up to EUR 18,000 for every and large enterprises. new employee, depending on unemployment rates in the area EUR 50,000 in fixed assets of investment. in addition to creating at least 10 new jobs for ICT system and Grants for training software development centres. costs covering up to 70% of employee training costs, depending on the size of 4. the business.
Tax incentives up to 100% deduction or suspension Incentives and of profit tax rates for up to 10 years. In addition to national measures, EU grants play a vital role in stimulating entrepreneurial activities as well as encouraging innovations and new product development, which will also be financing facilitated by the new EU Multiannual Financial Framework (2021 – 2027).
mechatronics, robotics, electronic and optical products manufacturing invest in croatia 30 mechatronics, robotics, electronic and optical products manufacturing invest in croatia 31 4.2 Access to financing
The Croatian Agency for SMEs, Guarantees Loans The Croatian Bank for Loans Innovations and Investments Reconstruction and (HAMAG-BICRO) supports Development (HBOR) plays the development of small and ESIF guarantees ESIF Loans the role of a development and Private sector investment medium-sized enterprises, Individual Small loans for investments export bank established with Maximum financing is up to 75% of the estimated investment value improves innovation processes Min. guarantee amount - The loan amount ranges from the objective of financing the (excluding VAT). Interest rates vary from a fixed 1.30% p.a. to a fixed and encourages investments. EUR 150,000 EUR 25,000 to EUR 50,000 with reconstruction and development 3% p.a. with a repayment period of up to 17 years. http://www.investcroatia.hr/ Max. guarantee amount - the interest rate varying from of the Croatian economy. EUR 1,000,000 (for working 0.5% to 1.5%, depending on the https://www.hbor.hr/en/ EU projects capital) or 2,000,000,00 (for place of investment. The loan amount varies from 75% to 100% of the estimated investments) Micro loans for investments investment value. Interest rates vary from a fixed 1.70% p.a. to a Max. guarantee rate - 65% of The loan amount ranges from fixed 1.90% p.a. with a repayment period of up to 17 years. the principal loan amount (for EUR 1,000 to EUR 25,000 with working capital) or 80% of the interest rate varying from the principal loan amount (for 0.5% to 1.5%, depending on the ESIF growth and expansion investments) place of investment. The loan is funded from proceeds from ESIF and commercial banks at a 50:50 ratio and can amount to EUR 3 million or, in the case of Limited Portfolio Guarantee Micro loans for working capital Max. guarantee amount - The loan amount ranges from the tourism industry, up to EUR 10 million. The interest rate is 0% on EUR 150,000 EUR 1,000 to EUR 25,000 with the loan principal amount from ESIF funds, while for loan principal Max. guarantee rate - 80% of the interest rate varying from amount from commercial bank funds, it is calculated in accordance the principal loan amount 1.5% to 3.5%, depending on the with the commercial bank’s decision. Loans are approved with a place of investment. repayment period of up to 17 years. No customary banking fees are charged. National guarantees Plus programme Max. guarantee amount - EUR Investment Programmes 1,000,000 or up to 50% of the principal of the refinancing loan. CROGIP For the purchase of business The Croatian Growth Investment Programme (CROGIP) is a EUR 70 shares, the maximum guarantee million equity investment programme launched in January 2019. EIF amount is EUR 50,000 or 80% of and HBOR have each contributed EUR 35 million to the programme, the loan principal (for micro- which is expected to provide a catalyst for additional private-sector entities) and EUR 2,000,000 investments into funds and companies. or 60% of the loan principal (for small and medium- sized entities). FRC2 FRC2 Croatia Partners SCSp is a venture capital fund financed partly from ESIF Financial Instruments through cooperation with the European Investment Fund.
mechatronics, robotics, electronic and optical products manufacturing invest in croatia 32 mechatronics, robotics, electronic and optical products manufacturing invest in croatia 33 The Ministry of Economy, Entrepreneurship and Crafts is a local Republic of Croatia point for investors in the Republic of Croatia. It offers support in Ministry of Economy, implementing investment projects in the following ways: Entrepreneurship and Crafts [email protected] Offers all necessary investcroatia.gov.hr/en/ information on investments in Croatia, such as analyses of the business climate and investment framework, investment opportunities (projects, business zones), investments incentives and the like, Professional and customised assistance throughout all stages of the investment process, Organises visits to investments sites and arranges meetings with 5. public and private bodies, Promotes Croatia as a business and investment destination through Institutional specific seminars and conferences on investment opportunities in Croatia, promotional materials and cooperation with partner institutions on the support domestic and international market.
mechatronics, robotics, electronic and optical products manufacturing invest in croatia 34 mechatronics, robotics, electronic and optical products manufacturing invest in croatia 35 Disclaimer: In compiling the information contained in this publication, the Ministry of Economy, Entrepreneurship and Crafts of the Republic of Croatia has used its best endeavours to ensure that the information is correct and current at the time of publication, but takes no responsibility for any error, omission or defect therein. Any information referenced in this publication through provided links is not subject to any influence from the Ministry of Economy, Entrepreneurship and Crafts of the Republic of Croatia, and the Ministry of Economy, Entrepreneurship and Crafts of the Republic of Croatia provides no warranty or approval whatsoever for third-party websites. The Ministry of Economy, Entrepreneurship and Crafts of the Republic of Croatia assumes no liability nor provides any guarantees whatsoever for damages of any type, including and without limitation for direct, special, indirect, or consequential damages associated with the use of this publication.
mechatronics, robotics, electronic and optical products manufacturing invest in croatia 36 Republic of Croatia Ministry of Economy, Entrepreneurship and Crafts [email protected] investcroatia.gov.hr/en/
mechatronics, robotics, electronic and optical products manufacturing invest in croatia 37