Investments in research and development and competitiveness of the Republic of Croatia and the western Balkans countries

Members of the project team:
Prof. Boban Stojanović – BBA, Serbia
Prof. Srdjan Redzepagić – University Nice Sophie Antipolis, France
Prof. Zoran Grubišić – University of Nis, Serbia
Prof. Alemka Šegota – EFRI
Prof. Dejan Bodul - PRAVRI
Ivan Gržeta – PhD student EFRI
Antonija Kranjec – EFRI, PhD student FELU


Abstract:
The Western Balkan countries, marked by historical mortgages, political instability and unfavourable economic and social situation, as a fundamental long-term economic and strategic goal identified the full EU membership. The achievement of the full EU membership is a long and complex process that requires the fulfilment of specified criteria and creation of the conditions for effective implementation of structural reforms in order to adapt to the EU economy. By the analysis of the economy and the identification of the key factors in the economic situation of the Western Balkan countries, it has been determined that they lag far behind the new EU member countries on the development levels. In order to overcome such adverse situation, achieve the convergence and adapt to the EU economy, the importance of investing in research and development has been identified, as a factor in achieving economic growth, competitiveness and adjustment to the EU economy. This research is aimed at quantifying the effects "elements" of investment in research and development to economic growth and competitiveness in the countries of the Western Balkan and the new EU member countries. Apart from the quantification of the effects, the great attention is dedicated to the analysis and defining of key measures and instruments needed to improve investments in research and development in the observed countries. Particular attention of this research will be focuesd on Republic of Croatia, which, although become a EU member state in 2013, still lagging behind other EU member countries. This is particulary noticeable in investments in research and development, which slowing down implementation of structural reforms and achieving economic growth and competitiveness.