World Bank support to Croatia for digital transformation and green transition

The World Bank Board has approved funding for the Digital, Innovative and Green Technology (DIGIT) project for Croatia in the amount of 116.4 million US dollars, which aims to improve research and innovation, the World Bank reported on Friday.

“The project will facilitate the digital transformation and green transition of the economy, increase resources for applied research and experimental development, and support the efforts that the Croatian government invests in strengthening its institutional capacity to create research and development policies,” the press release stated.

The DIGIT project will finance, through various grants, digital and green research and innovation, and it will further increase and improve the efficiency of investments and build the capacities of institutions for the implementation of this program. Within the framework of the project, the reforms envisaged by the National Recovery and Resilience Plan and the Smart Specialization Strategy (S3), as well as activities important for Croatia's accession to the Organization for Economic Cooperation and Development (OECD), will be supported, the World Bank reported, adding that the project will be implemented in close cooperation with the Ministry of Science and Education.

“This project will increase the capacity of public administration bodies and state bodies to provide more effective support to the innovation system and finance interventions with a possible transformational effect on research excellence,” said Jehan Arulpragasam, Director of the World Bank for Croatia.

“Various grants for new research infrastructure will directly benefit research institutions and researchers, which will improve the management of existing infrastructure and establish new cooperation with the private sector. Anticipated investments in technologies for digital and green research can lead to a significant increase in the productivity of companies and be a great opportunity for the growth of the Croatian economy, which is focused on services,” is the statement of Arulpragasam, which is conveyed in the press release.

The World Bank assessed that Croatia's results so far in digital and green research and development were modest, and that the research community faced difficulties in implementing high-quality research and establishing real connections with the business sector, often due to a lack of funding, outdated infrastructure and equipment, and insufficient good public management and institutional framework.

Also, they stated, participation in international competitions in the field of research and development was at a low level, and Croatian research institutions and companies had difficulty obtaining competitive and prestigious funds from Horizon 2020, the European Union's research and innovation program that was available in the period from 2014 to 2020. Digital and green research and innovation were very limited, with only a few patents in the field of industrial digital technologies and only 9.5 percent of patents in technologies related to environmental protection.

The bank pointed out that companies will also benefit directly, as they will receive support for identifying research needs, harmonizing research capacities, establishing cooperation, implementing research and development projects in the field of digital and green technologies, and implementing projects with a seal of excellence.

“The project will also benefit the entire economy of the Republic of Croatia because it will improve the systemic prospects and conditions for research and development, business growth, productivity and, consequently, the creation of jobs,” they wrote.

In the past thirty years, the World Bank Group in Croatia has supported more than 100 projects in the amount of 6.5 billion US dollars and provided knowledge and technical assistance for strengthening institutions and support in the creation of public policies by producing more than 330 reports and studies.

Source: HRT