GOVERNMENT Low costs and Wasteful budgetary Improving the ethics, Political INSTITUTIONS threat of spending, low public increasing transparency, changes. terrorism, in politicians, lack introducing informatics crime and of transparency, systems. violence. regulative burden on business freedom. INFRA- Well-developed Underdeveloped local Increasing investments in STRUCTURE highway roads roads, lack of ports, railways, airports and sustainable planning. and other transportation infrastructure. Low annual Low GDP growth rate, Decreasing accumulated Volatile external inflation rate. slow recovery from government debt, environment, ECONOMIC ENVIRONMENT global crisis. decreasing trade balance fiscal deficit. vulnerability. HIGHER Competitive Low availability of Educational reform EDUCATION AND advantages are research and training focused on flexible skills TRAINING mathematics services. based curriculum. and science education. GOODS Short business Expensive agricultural Reducing standard VAT MARKET registration policy, overregulated rate, developing business EFFICIENCY period, business environment, climate, protection relatively low weak local against monopolies and profit taxation. competition. cartels, implementing privatization. LABOR drain“. Increasing labour market Political „Brain MARKET flexibility by easy rule on changes. EFFICIENCY hiring and firing workers. FINANTIAL Low venture capital Easier loan access for External MARKETS availability. entrepreneurial activities vulnerability. AND and investments. DEVELOPMENT TECHNO- Low technology Increasing foreign direct LOGICAL absorption in firms. investment for new READINESS technologies. BUSINESS Low number of quality Cluster development, SOPHISTICATION local suppliers, low specialization, establishing production process economic diplomacy. sophistication. INNOVATION Quality of Low level of Developing closer ties scientific industry collaboration between and research in research. university. institutions. Source: elaborated by the authors. CROATIA SWOT
GOVERNMENT INSTITUTIONS Low costs and threat of terrorism, crime and violence. Wasteful budgetary spending, low public in politicians, lack of transparency, regulative burden on business freedom. Improving the ethics, increasing transparency, introducing informatics systems. Political changes. INFRA- STRUCTURE Well-developed highway roads and Underdeveloped local roads, lack of sustainable planning. Increasing investments in ports, railways, airports and other transportation infrastructure. ECONOMIC ENVIRONMENT Low annual inflation rate. Low GDP growth rate, slow recovery from global crisis. Decreasing accumulated government debt, decreasing trade balance deficit. Volatile external environment, fiscal vulnerability. HIGHER EDUCATION AND TRAINING Competitive advantages are mathematics and science education. Low availability of research and training services. Educational reform focused on flexible skills based curriculum. GOODS MARKET EFFICIENCY Short business registration period, relatively low profit taxation. Expensive agricultural policy, overregulated business environment, weak local competition. Reducing standard VAT rate, developing business climate, protection against monopolies and cartels, implementing privatization. LABOR MARKET EFFICIENCY „Brain drain“. Increasing labour market flexibility by easy rule on hiring and firing workers. Political changes. FINANTIAL MARKETS AND DEVELOPMENT Low venture capital availability. Easier loan access for entrepreneurial activities and investments. External vulnerability. TECHNO- LOGICAL READINESS Low technology absorption in firms. Increasing foreign direct investment for new technologies. BUSINESS SOPHISTICATION Low number of quality local suppliers, low production process sophistication. Cluster development, specialization, establishing economic diplomacy. INNOVATION Quality of scientific research institutions. Low level of collaboration in research. Developing closer ties between industry and university. Source: elaborated by the authors. CROATIA SWOT
Broadcasting-sector-in-Croatia-2016.docx