The Republic of Croatia has been approved for USD 116.4 million for the Digital, Innovative, and Green Technologies (DIGIT) Project

News 26.6.2024.

The Republic of Croatia has been approved for 106 million euros for the Digital, Innovative, and Green Technologies (DIGIT) Project by the World Bank Board on June 22, 2023. This funding is aimed at enhancing research and innovation with a focus on green and digital technologies by improving institutional infrastructure and research performance conducted by research institutions and enterprises.

The DIGIT project, valued at USD 116.4 million, will facilitate the digital transformation and green transition of the economy, increase resources for applied research and experimental development, and support the efforts the Croatian government is making to strengthen its institutional capacities for creating research and development policies. Digital transformation assists in integrating digital technologies to increase productivity and economic efficiency. The green transition also promotes the stronger application of solutions that can assist in transitioning to an economy with neutral effects on the climate and environment.

The DIGIT project will finance digital and green research and innovations through various grants, further increasing and improving the efficiency of investments and building the capacities of institutions to implement this program. The project will also support reforms outlined in the National Recovery and Resilience Plan (NPOO) and the Smart Specialization Strategy (S3), as well as activities important for Croatia’s accession to the Organization for Economic Cooperation and Development (OECD). 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 agencies to provide more effective support to the innovation system and finance interventions with a potential transformational impact on research excellence,” said Jehan Arulpragasam, World Bank Country Director for Croatia. “Research institutions and researchers will directly benefit from various grants for new research infrastructure, thereby improving the management of existing infrastructure and establishing new collaborations with the private sector. The anticipated investments in technologies for digital and green research could also lead to a significant increase in enterprise productivity and be a great opportunity for the growth of Croatia’s service-oriented economy.”

To date, Croatia’s results in digital and green research and development have been modest. The research community has faced difficulties in conducting high-quality research and establishing real links with the business sector, often due to a lack of funding, outdated infrastructure and equipment, and inadequate public governance and institutional framework. Participation in international research and development competitions has been low, and Croatian research institutions and enterprises have struggled to access competitive and prestigious funds from Horizon 2020, the European Union’s research and innovation program available from 2014 to 2020. Digital and green research and innovations have been very limited, with only a few patents in the field of industrial digital technologies and only 9.5% of patents related to environmental protection technologies.

Businesses will also directly benefit as they will receive support for identifying research needs, aligning with research capacities, establishing collaborations, 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 by improving the systematic prospects and conditions for research and development, business growth, productivity, and consequently job creation.

Source: World Bank website: https://www.worldbank.org/