This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 5/31/2019

Smart Technologies

Overview
According to the European Union (EU) Digital Economy and Society Index (DESI) 2018, Croatia ranks 22nd out of the 28 member states.  Despite this overall low performance in Digital Economy, there are dozens of highly technologically advanced companies in Croatia.  For example, the most powerful supercomputer in the Adriatic region is located at the University of Rijeka; the fastest electric hypercar Concept Two is developed and manufactured in Croatia by Rimac Automobili; and the most used multifunctional demining robotic system is produced by the Croatian company Dok-Ing.

Over 70% of Croatia’s population uses the Internet and over 55% has at least basic digital skills, placing Croatia in 11th place in the European Union.  The use of internet services in Croatia is well above the EU average, with news, video calls, music, videos and games being the most used services. On the contrary, Croatian businesses are slow in the integration of digital technology, ranking 21st in the EU.  The use of cloud technologies, at 22%, is above the EU average, but regarding electronic information sharing, it is in the bottom five EU countries. 

Human Capital
The public perception in Croatia is that it has high-quality ICT specialists with competitive wages that are attractive for outsourcing by foreign companies.  However, the percentage of ICT specialists in Croatia (3.3%) is below the EU average, and the Croatian government intends to increase the percentage through the e-Schools project.  The project is funded by European Structural and Investment Funds to increase information technology use and integration in primary and secondary schools. The first $51 million phase of the project ran from 2015-2018, and has equipped 10% of Croatian schools with laptops, tablets, wireless networks and other ICT equipment.  The second phase is scheduled for 2019-2022, and will cover the remaining 90% of schools.  Besides the ICT equipment, this phase will include the development of curricula, teaching and learning models, and professional training for teachers and school management personnel.

Broadband Connectivity
The fixed broadband coverage of households in Croatia is 99%, which is above the EU average. Adversely, fast (67%) and ultrafast (34%) broadband coverage is among the worst in the EU, but costs the most.  The European Commission approved a $127 million infrastructure project to develop New Generation Network in rural areas and other regions in Croatia that are not economical for private operators.  The project is run by the Croatian state-owned company Odasiljaci i Veze and should provide symmetrical speeds of 100 Mbps in these areas by the end of 2023.

eGovernment Service
The eCitizen platform was launched in 2014 to unite all eGovernment services. In 2017, the platform offered 43 eServices and 66% of Internet users used it to submit forms. The eBusiness services platform has not been implemented yet.  In the eCroatia 2020 strategy adopted in May 2017, the Croatian government outlined its Action Plan to implement additional eServices for citizens and businesses to speed up communication with the public administration, and to increase transparency of the public sector.  The planned projects include the establishment of a Shared Service Center, a Government Cloud and an Information Security Management System, as well as further developments of eServices.

The best performance within eGovernment in Croatia is in the use of eHealth services.  An estimated 22% of citizens use these services, which is above the EU average of 18%. The National Healthcare Information System (CEZIH) offers ePrescription, eRefferal, eBooking, Electronic Health Record (EHR), a Patient Portal, eSickLeave, eMedicalAids, as well as eHealthcare and eWorkInjury services for employers.
 
Smart City
The development of Smart City infrastructure in Croatia is at an initial level, but is progressing fast. About 50% of Croatian cities have already started the process of implementing one or more smart solution projects. The Association of Cities promotes the development of Smart City concepts and an increase in the use of EU funds for Smart City projects.

Dubrovnik is the leading Smart City in Croatia, with a smart city strategy project called Smart City Dubrovnik 2020.  The local development agency, DURA, coordinates the strategy that suggests the use of smart technologies in mobility and infrastructure, economic development, public administration management, and quality of life.  Dubrovnik also has the first smart street in Croatia, developed in partnership with T-Com.  The street has a multifunctional sensor network installed with public lighting, wireless high-speed Internet connection, cameras that monitor traffic violations, smart parking with contactless payments, and  environmental conditions control.

Zagreb, Croatia’s capital, also has a strong Smart City initiative.  Some of the announced projects include: an LED lighting project for converting city lights into smart LED technology that should be implemented by 2020; the establishment of an open data portal to consolidate local city services with municipality and public services; and the implementation of a national ePolice project, which involves the establishment of an operations communication center in every Croatian city and equipping police officers with cameras.

Blockchain
Blockchain technologies in Croatia are in the early adoption stages with a strong focus on cryptocurrencies.  The Association for Blockchain and Cryptocurrencies is the main market developer and it provides a list of companies working with blockchain technology.  The Croatian government is participating in public discussions about implementation of blockchain technology in healthcare, urban planning, and other areas, but no specific projects have been created yet.

Cybersecurity
Croatia is in the process of transposing the EU Directive on the Security of Network and Information Systems (NIS Directive) that is expected to boost demand for cybersecurity solutions. The Ministries of Defense and Interior are developing cybersecurity capabilities with a government-wide plan to establish a cybersecurity intelligence center in Zagreb by 2020.

Web Resources
Digital Economy and Society Index 2018 – Country Report Croatia
eCroatia 2020 strategy
Croatian Academic and Research Network - CARNet
e-Schools project
Ministry of the Sea, Transport and Infrastructure
The Association of Cities
 
U.S. Embassy - U.S. Commercial Service
Nina Cerkez, Commercial Assistant
Zagreb, Croatia
Tel:  +385 (0)1 661 2090; Fax: +385 (0)1 661 2446
Email: Nina.Cekez@trade.gov
Website: export.gov/croatia

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More Information

Croatia Information and Communication Technology Trade Development and Promotion