Regional Competitiveness Index, Croatia by Tara Bray

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Regional Competitiveness Index Croatia

2007

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

The United Nations Development Programme (UNDP) is the UN’s global development network, an organization advocating for change and connecting countries to knowledge, experience and resources to help people build a better life. We are present in 166 countries, working with them on their own solutions to global and national development challenges. As they develop local capacity, they draw on the experience of UNDP and our wide range of partners. United Nations Development Programme (UNDP) Radnička cesta 41, 10000 Zagreb Telephone: +385 1 2361 666 Fax: +385 1 2361 620 www.undp.hr

The National Competitiveness Council (NCC) is an independent advisory body of 23 members that brings together four key intrest groups - business, government, trade unions and academia - to establish a dialogue, partnerships and consensus on policies and programmes critical for the sustainable growth and development of Croatia.

The Croatian Chamber of Economy (CCE) with 155 years of experience in this region, is a reliable source of information for all Croatian businesses and their foreign partners. It offers a wide range of services, from providing information on businesses, regulations and laws to business education and training, quality assurance and environmental protection.

The Council acts as catalyst for change to increase the level of Croatian comeptitiveness. The Council’s goals in this area are focused and straightforward: act to increase the competitiveness of the Croatian economy, prepare the country for entry into the European Union and make Croatia one of the most competitive countries in the world before joining the European Union.

The Croatian Chamber of Economy Rooseveltov trg 2, 10000 Zagreb Telephone: +385 1 456 1555 Fax: +385 1 482 8380 www.hgk.hr

National Competitiveness Council Šoštarićeva 2, 10000 Zagreb Telephone: +385 1 6304 855 Fax: +385 1 6304 856 www.konkurentnost.hr

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Zagreb, 2008 The scientific and research background for this publication was provided by a group of researchers and associates from the Sense Consulting, Zagreb. Authors (alphabetically): Vedran Antoljak, Sense Consulting Tatjana Horvath, Sense Consulting Krešimir Jurlin, PhD, Institute for International Relations Marko Slunjski, MBA, Sense Consulting, research project coordinator Associates and consultants: Jasna Belošević-Matić, Croatian Chamber of Economy Barbara Bijelić, United Nations Development Programme (UNDP) Darko Buković, Privredni Vjesnik Ana Hromatko, Target Domagoj Juričić, Sense Consulting Nataša Kalauz, United Nations Development Programme (UNDP) Mira Lenardić, PhD, National Competitiveness Council Jakša Puljiz, M.Sc., Institute for International Relations Vesna Trnkop-Tanta, Croatian Chamber of Economy

ISSN 1846-9663

Editors Prof. Slavica Singer, PhD Mira Lenardić, PhD Reviewers Prof. Slavo Radošević, PhD Zlatan Fröhlich, PhD Technical preparation: Martina Hatlak Proofreading: Tara Bray Design and layout: Pseudoprodukt Print: LDK Tisak

Brief excerpts from this publication may be reproduced without the authors’ consent, provided they remain unchanged and the source is stated.

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Dear Reader, I am happy to offer you a groundbreaking study on Croatian Competitiveness, which for the first time looks at issues connected with the friendliness of the business climate at the sub-national level.

gions at the expense of others, further increasing regional disparities. The numerous barriers to business operation are also the easiest entry point for corrupt practices by officials and other sanctioning bodies.

I think it is not a secret to Croatian or international readers that low business competitiveness has been the subject of much criticism, both domestically and externally in recent years, and certainly has had a negative impact on Croatia’s economic growth, export potential and consumer prices. A lot has been done to remedy this unfortunate circumstance. Croatia has even been named the “Number 1 Reformer in Europe and second in the World” by the World Bank’s “Doing Business” rating. The exuberance of celebrating this success overshadowed the simple, but very relevant fact, that the same rating ranks the country 97th out of 176 countries reviewed for ease of doing business and is close or worse to this level in most other areas. Other ratings, such as the World Economic Forum (WEF), who’s methodology is used for this report, gave Croatia a slightly better position – 57 out of 131 – still behind many developing countries. Not encouraging!

The current analysis – far from perfect and certainly open to debate – offers perhaps a first look at business competitiveness at both the individual county and NUTS2 regional level. It also takes a look at objective statistical indicators and subjective opinions of business owners on the ground – interestingly showing how different perception can be from reality and further proof that perception creates reality!

While the economy was doing well over the past 5 years, these issues were largely overlooked amid growing prosperity, easy access to credit and perceived openness to the world. However in the economic downturn currently facing Europe and Croatia, as an integrated part of the sub-continent, these deficiencies acquire a special significance. While large firms, due to their weight, importance and special treatment find ways to adapt, develop and succeed, small and medium-sized businesses, both foreign and domestic, frequently find the “rites of passage” stifling and prohibitively expensive, especially in hard economic times. This, in turn, leads to a loss of competitiveness in entire sectors and large discrepancies between foreign and domestic investment, which flow into certain re-

It is also my sincere hope that this report – a product of genuine collaboration between the UN, the National Competitiveness Council, the Chamber of the Economy and top Croatian experts – will spark a renewed debate on the subject of business competitiveness, both in the central government and locally in the counties of Croatia and lead to further reforms, and indeed implementation of those already undertaken, so that the incredible ingenuity, drive and vibrancy of Croatian business can benefit from the freedom of operation commensurate with the country’s potential. Yours sincerely, Yuri Afanasiev UNDP Resident Representative in Croatia

United Nations Development Programme

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Dear Ladies and Gentlemen, It is our great pleasure to present the first edition of the publication “The Regional Competitiveness Index of Croatia, 2007”, which is the result of research based on the methodologies of the World Economic Forum (WEF) and the International Institute for Management Development (IMD) that the United Nations Development Program (UNDP) carried out in cooperation with the Croatian National Competitiveness Council and the Croatian Chamber of Commerce.

quantitative and qualitative data in order to ensure greater employment and prosperity. Since the private sector has the most important role in increasing competitiveness, we invite business leaders to be ambitious, to focus on improving their business operations, and to seek out and take advantage of new opportunities.

The Croatian public knows very well that the regions of Croatia are unequally developed, but it knows much less about the reasons behind those differences and what are the strong and weak points of the competitiveness of local economies. “The Regional Competitiveness Index of Croatia, 2007” for the first time provides detailed insight into the competitiveness of Croatia’s regions and counties by evaluating the competitiveness of the business environment and the business sector itself. It also provides a means of comparing the causes of the differences and the identification of the potential of and limitations on individual counties and regions.

We believe that the wealth of information contained in the document will encourage local communities, counties, and the appropriate government agencies to concentrate on stimulating specific local advantages and to remove the barriers that are restraining business activity. “The Regional Competitiveness Index of Croatia, 2007” also will stimulate an exchange of experiences: counties with weaknesses in specific areas of competitiveness can benefit from the experiences of the most successful counties, which frequently may be a neighboring county. The document offers a multitude of interesting comparative indicators and is a useful handbook for a better understanding and promotion of the competitiveness of counties and regions, and therefore, all of Croatia.

The goal of the document is to encourage all participants – the business sector, local communities, counties and government administrative organs – to implement measures and activities to increase competitiveness on the basis of the numerous

The special value of this analysis is the comparison of competitiveness within the new divisions of Croatia into three NUTS2 regions, in accordance with the principles of EUROSTAT, which for the first time is being used for research purposes,

and which will be introduced into the system of regional policy planning. In perspective, monitoring the changes of 176 indicators that comprise the basis of the regional index will be of great assistance in evaluating the effects of policy and the strategy of increasing competitiveness that local governments, counties, and central state agencies are carrying out. It will also help them to observe much more quickly whether some policy packages or measures are bringing better results, or if corrections are needed. The entire report, “The Regional Competitiveness Index of Croatia, 2007” is available on-line to everyone (see: www. undp.hr or www.konkurentnost.hr). This should facilitate its use by counties, but also the decision-making of investors, public administration and businessmen. Sincerely, Darko Marinac President

National Competitiveness Council

Abbreviations

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Abbreviations

GDP

Gross domestic product

GVA

Gross ValueAdded

EBRD

The European Bank for Reconstruction and Development

EIB

The European Investment Bank

The European Union

Eurostat

Statistical Office of the European Communities

IMD

International Institute for Management Development

LRGU

Local and Regional Government Unit

KAU

Kind of Activity Unit

SME

Small and Medium Size Enterprises

NUTS

Nomenclature of territorial units for statistics

NUTS2

A statistical territorial unit according to EUROSTAT (population: 800,000 to 3,000,000) NUTS2 regions in Croatia: Northwestern Croatia, Central and Eastern (Pannonian) Croatia and the Adriatic Croatia.

RCOP

Regional Competitiveness Operational Programme

Republic of Croatia

UNDP

United Nations Development Programme

USAID

U.S. Agency for International Development

WEF

World Economic Forum

Land Registry

Contents

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Contents Introduction

1. Purpose and Role of Regional Competitiveness Index of Croatia

1.1. Regions and Counties in the Republic of Croatia 1.2. How to read NUTS2 regions’ profiles? 1.3. How to read counties profiles?

15 16 16

2. Regional Competitiveness Index of Croatia 2007 – results of counties and regions’ measurement

3. Priorities and Recommendations

4. Competitiveness profiles of regions and counties of Croatia

HR01 NORTHWESTERN CROATIA Comparison of counties, Northwestern Croatia HR011 City of Zagreb HR012 Zagreb County HR013 Krapina-Zagorje County HR014 Varaždin County HR015 Koprivnica-Križevci County HR016 Međimurje County

32 33 36 38 40 42 44 46

HR02 CENTRAL AND EASTERN (PANNONIAN) CROATIA Comparison of counties, Central and Eastern (Pannonian) Croatia HR021 Bjelovar-Bilogora County HR022 Virovitica-Podravina County HR023 Požega-Slavonia County HR024 Brod-Posavina County HR025 Osijek-Baranja County HR026 Vukovar-Srijem County HR027 Karlovac County HR028 Sisak-Moslavina County

50 51 54 56 58 60 62 64 66 68

HR03 ADRIATIC CROATIA Comparison of counties, Adriatic Croatia HR031 Primorje-Gorski Kotar County HR032 Lika-Senj County HR033 Zadar County HR034 Šibenik-Knin County HR035 Split-Dalmatia County HR036 Istria County HR037 Dubrovnik-Neretva County

72 73 76 78 80 82 84 86 88

Research Methodology

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Introduction

INTRODUCTION

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Introduction Balanced regional development is at the core of efficient economic policies in every country, for several reasons: the right of people to a high quality of life in all parts of the country, the efficient use of resources (human, natural and technological), and the principle of subsidiarity – the right of every community to manage its own development based on the principles of cooperation and competition. The experience gained from finding ways to accelerate regional growth in certain Member States is continually improving the EU’s policies and economic instruments. The key priority of the EU’s regional policy is stimulating growth, employment and innovation, along with demographic consolidation, efficient property management, balanced utilization of infrastructure and improved social cohesion. The importance of such a proactive regional policy increases dramatically in Croatia, where a portion of the national territory was devastated during the war of the early 1990’s. At the same time, today’s pre-accession funds, soon to be replaced by the European Union’s cohesion funds, offer significant opportunities to raise the quality of the business sector and the business environment, not only in war-damaged areas but throughout the country. The extent of progress of individual regions or counties in Croatia and their ability to “catch up” with more developed ones in both Croatia and the EU, is best examined through competitiveness analysis. Competitiveness in Croatia is based on the competitiveness of businesses in all parts of

the country, i.e. on a well-developed business environment and business sector. Therefore, to boost the competitiveness of Croatia, it is necessary to develop not only the least developed regions, but also transform all the regions into “development drivers”, identifying potential sources of growth in individual regions and eliminating the obstacles to their competitiveness. The first step on that road is to realistically determine the initial position of competitiveness in Croatia. This study aims to contribute to this baseline. In recent years, Croatian competitiveness benefited from a relatively stable macroeconomic framework, investments in infrastructure and education, as well as the launch of institutional reforms. Achieving these prerequisites improves the quality of the business environment, which in turn reflects on the quality of the business sector. Croatia’s improved ranking in the World Economic Forum Global Competitiveness Index1 is a sign of progress, as well as of the continuation of major institutional and structural reforms. Most indicators of the competitiveness of the Croatian economy – from productivity and public sector debt reduction, to GDP growth rate and foreign investments – show that Croatia is on the right path, but that the changes are not occurring fast enough. Restrictions still persist and continue to hinder the faster development of competitive capacities, primarily in the so-called soft indicator areas, such as the judiciary, corruption, public administration, management competencies, and capacity to absorb new knowledge, technologies and innovations. The fact that some institutional reforms have not been fully implemented (e.g. the

HITROREZ project falling short of the actual guillotine – elimination of excess regulations) significantly reduces the effects of the completed reforms – it hinders the swift development of a simpler and more transparent regulatory framework for the business environment, as well as the creation of the positive energy necessary for changes throughout society. The competitiveness of the Croatian national economy is only a reflection of the combined competitive capacities, potential and restrictions at regional and local levels, which positions balanced regional and local development in the forefront. This leads to the conclusion that national and regional development policies must be identical and as close as possible to the strategy and competitiveness of the European Union. Problems regarding competitiveness in Croatia are similar to those in the EU, but have a different intensity. Croatia’s attractiveness for investments and employment is still relatively low. Although Croatian investment in research and development is above the average of new EU Member States, Croatian competitiveness is not based on innovations, knowledge and an educated workforce, but on relatively lower labour competitiveness caused by relatively low productivity2 and the limited technological content of products and components. Similar to the European Union, Croatia wants to increase employment, modernize itself to become a social state, improve human resources through better training and education, and increase investment in innovations, research and development. Only a more competitive Croatia will man-

1 In 2007 Croatia was ranked 57th in the World Economic Forum Global Competitiveness Index, while according to the business competitiveness index, Croatia has moved to 60th position on the list (of a total of 131 countries). 2 E.g., labour productivity in Croatia is 59.2% compared to the average of EU 25 (2006), but still below the average of EU 15 (106%). (“Path to Quick Convergence: Challenges and Cooperation Review”, World Bank, Zagreb, January 2008, p.18.)

INTRODUCTION

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

age the successful transformation to a country with a knowledge and innovation based economy that will best contribute to the achievement of the Lisbon Strategy3. This study aims to encourage the adoption of the “Regional Development Strategy of the Republic of Croatia”4. This Strategy emphasizes the need for a functioning regional development policy, which contributes to the sustainable development and competitiveness of the country. The development of counties and wider regions capable of effectively participating in the process should result in the reduction of social and economic gaps and the establishment of an efficient regional development management system. These are the strategic objectives of the framework for managing regional development in Croatia until 20135. This document sets up a framework for regional policy adoption and implementation, which will strengthen the potential for improved competitiveness and increase the capacity for the absorption of EU funds in the regions. It will also strengthen the regions’ institutional and legal capacities enabling them to conduct proactive economic development policies within their domains.This is also a core prerequisite for improving the country’s absorption capacities, in order to make use of the EU accession process to transform Croatia’s economy into one that is knowledge and innovation-based, thus ensuring sustainable long-term growth and an improved standard of living for Croatian citizens.

3 New 2007 Lisbon Strategy cycle defines 4 priority areas of action: investment in human capital and labour market modernization, opening of new business potential especially of SMEs, investment in knowledge and innovations, and energy and climate change. The priority areas that are part of the revised Lisbon Strategy reflect both basic weaknesses, but also areas that are a priority of the European Union. 4 According to the plan of alignment of Croatian legislation with the EU Acquis Communautaire for 2008, Regional Development Act and Regional Development Strategy should be adopted in the 3rd quarter of 2008. 5 Regional Development Strategy of the Republic of Croatia (draft), Zagreb, September 2005, p. 20

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

The Purpose and Role of the Regional Competitiveness Index of Croatia

1. The Purpose and Role of the Regional Competitiveness Index of Croatia

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

1. The Purpose and Role of the Regional Competitiveness Index of Croatia Starting from a competitiveness perspective6 this research outlines the factual situation in the main areas of competitiveness in Croatian counties and regions7. It identifies the opportunities and limitations of competitive capacities and their causes, in order to enable balanced and sustainable long-term regional development policies. The 2007 Regional Competitiveness Index (RCI) monitors and evaluates the competitiveness of three NUTS2 level regions, as well as the competitiveness of the counties (NUTS3) within these three regions: Northwestern region, Central and Eastern (Pannonian) region and the Adriatic region. The analytical approach is based on eight factors (commonly known as pillars of competitiveness) which are divided into two main groups: business environment and business sector (see box 1.) Box 1. A. Business environment Demographics, health and culture Education Basic infrastructure and public sector Business infrastructure

B. Business sector Investments and entrepreneurial trends Level of entrepreneurship development Economic results – level Economic results – trends

The methodological approach used for data aggregation and analysis is based on the methods and research of the World Economic Forum and Institute for Management Development8, taking into consideration the availability of information at the regional and county levels in Croatia. A more detailed description of the methodological approach is provided in Annex 1. The advantage of this research is that it not only ranks the regions and counties, but also provides a better understanding of the factors that affect their strengths and weaknesses. Comparing these factors with those in other regions and counties should improve policy makers’ understanding of why an individual county/region has a higher or lower competitiveness rank within Croatia and externally. All Croatian regions and counties show very strong interest in improving and making better use of their own existing potential. Entrepreneurs, especially potential investors, need detailed information on individual county development and on the advantages and disadvantages that the population and enterprises in those counties face. Government officials at all levels also need systematic information on county/region development level and competitiveness, which should then be used as a basis for drafting development programmes, and the development and implementation of reforms. The Regional Competitiveness Index (RCI) should assist all the above stakeholders in identifying weaknesses and development potential. The Regional Competitiveness Index can also be used to facilitate monitoring and regulatory impact analysis and to influence business decisions. Members of the business community can use the Regional Competitiveness Index when making investment decisions or assessing po-

tential locations for new business ventures, while local politicians can compare their policies with other counties’ policies to improve them. Until now, the competitiveness of Croatian regions was usually assessed using indicators for gross domestic product per capita or the unemployment rate. However, the Regional Competitiveness Index of Croatia is based on 176 indicators derived from numerous statistical and survey data, which enables a more comprehensive comparison of regions and counties. This Index also provides the basis for the continuous monitoring of regional and county competitiveness, which contributes to increased national competitiveness. In that sense, the RCI should become a regular, standardized, annual study used to monitor the development of Croatian regions and counties.

1.1. Regions and Counties in the Republic of Croatia The Republic of Croatia is administratively divided into 20 counties and the City of Zagreb. During Croatia’s negotiations and preparations for full EU membership, Eurostat, the Statistical Office of the European Communities, adopted the model of dividing Croatia into the following spatial units for statistical purposes: the existing administrative division of Croatia into NUTS1 (Croatia as a whole), NUTS3 (current counties), and NUTS2, consisting of the following 3 spatial units, not yet in administrative use:

6 Competitiveness is a range of factors, development policies and institutions which determine the level of productivity (definition by World Economic Forum). 7 It includes 20 counties and the city of Zagreb, and three regions according to EUROSTAT classification. 8 For more information please see “The Global Comeptitiveness Report 2007-2008”, World Economic Forum and “IMD World Competitiveness Yearbook 2008” Institute for Management Development, Lausanne

1. The Purpose and Role of the Regional Competitiveness Index of Croatia

Table1. Statistical regional division of Croatia

HR01

Northwestern Croatia

HR011

City of Zagreb

HR012

Zagreb County

HR013

Krapina-Zagorje County

HR014

Varaždin County

HR015

Koprivnica-Križevci County

HR016

Međimurje County

HR02

Central and Eesatern (Pannonian) Croatia

HR021

Bjelovar-Bilogora County

HR022

Virovitica-Podravina County

HR023

Požega-Slavonia County

HR024

Brod-Posavina County

HR025

Osijek-Baranja County

HR026

Vukovar-Srijem County

HR027

Karlovac County

HR028

Sisak-Moslavina County

HR03

Adriatiac Croatia

HR031

Primorje-Gorski Kotar County

HR032

Lika-Senj County

HR033

Zadar County

HR034

Šibenik-Knin County

HR035

Split-Dalmatia County

HR036

Istria County

HR037

Dubrovnik-Neretva County

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

1. Northwestern region 2. Central and Eastern (Pannonia) region 3. Adriatic region This model of statistical regional division aligns Croatian regional development planning with the EU cohesion policy. It also creates the possibility of an allocation of development funds through EU structural funds and proposes the basis for this to occur.9

1.2. How to read the NUTS2 regions’ profiles? The document presents each of the three NUTS2 regions (Northwestern Croatia, Central and Eastern Croatia and Adriatic Croatia) on four pages and includes comparisons with the other two regions and a comparison of the counties within each region, as well as a table of indicators’ values, i.e. values ranking. 1. The first page explains the location of each region (on the map of Croatia) along with four indicators (size, popula tion, unemployment and gross domestic product).

The network diagram depicts the competitive profile of each region separately, determined by 8 sub-indexes of statistical (hard) indicators. The table shows the strengths and weaknesses of the counties within a region, by the values of the 8 pillars of competitiveness. Strengths are marked by + (if the county is among the seven best ranked), weaknesses by – (counties ranked 15th – 21st), while areas that are

neither very good nor very bad (ranking 8th - 14th) are marked by 0. 2. The second page provides a graphical overview of the counties rankings within regions, based on the values of the 8 competitiveness pillars. The comparison shows discrepancies, i.e. strengths and weaknesses of the competitive profile of each county as compared to other counties. 3. The third and fourth pages of the NUTS2 region’s profiles provide tables showing statistical and perceptive analyses indicators, their values, the Croatian average and the rank of the region for each specific indicator.

1.3. How to read county profiles? Information on each county is presented on two pages: 1. The first page explains the location of each county (on the map of Croatia) along with four indicators (size, population, unemployment, gross domestic product).

The network diagram provides a comparison of the county competitiveness profile with the competitiveness profile of the region that the county belongs to. The competitiveness profile is developed based on 8 sub-indexes of statistical (hard) indicators.

2. The second page shows the strengths and weaknesses in the county’s competitiveness by emphasizing those indicators where the county is ranked among the first 5 (strengths) or the last 5 (weaknesses).

9 Advantages of the adopted solutions: the whole country will be able to absorb funds from EU structural and cohesion funds, even after reaching GDP per capita at 75% of EU average, which projections date to 2020. At the NUTS2 level, individual NUTS2 strategies would be developed (for structural funds purposes) in the so-called second financial perspective period from 2014-2020, and they would envisage the possibility of establishing development institutions to manage those strategies.

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Regional Competitiveness Index of Croatia 2007 Counties and Regionsâ&#x20AC;&#x2122; Measurement Results

2. Regional Competitiveness Index of Croatia 2007 – Counties and Regions’ Measurement Results

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

2. Regional Competitiveness Index of Croatia 2007 Counties and Regions’ Measurement Results10 1. The regions and counties found at the top of the competitiveness list are as expected and this relates to the assessment that the most developed counties are also the most competitive ones. The ranking of the 3 regions and the 21 counties (table 2) shows that Northwestern Croatia is ranked 1st. It is followed by the Adriatic Croatia; while Central and Eastern Croatia is ranked 3rd. The top 5 counties are the City of Zagreb, Međimurje County, Istria County, Varaždin County and Zagreb County, which are also the top 5 in terms of the total Regional Competitiveness Index. The counties ranked as least competitive are Vukovar-Srijem County, Požega-Slavonia County and Lika-Senj County, i.e. counties that suffered most in the Homeland War. Eight out of ten counties with the lowest competitiveness rank have more than 50% of their territory categorised as Areas of Special State concern. This coincidence shows that the cause of their poor development is, for the most part, also the cause of their poor competitiveness. 10 The research allows us insight into competitiveness profiles at the sub-national

level, i.e. at the level of three regions (defined as NUTS2 regions) and at the level of existing counties (future NUTS3 statistical territorial units of Croatia). Results’ analysis allows us three levels of comparison: - Discrepancies in the competitiveness of the regions and the counties; - Differences between statistical values of the competitiveness index (business environment and business sector) and their perceptive values, at the level of both regions and counties; - Differences between statistical values of competitiveness index’ components (business environment and business sector) at the level of both regions and counties.

Table 2. Regions and counties ranked according to their competitiveness in 2007. Overall competitiveness rank

Region / County

Statistical rank

Perceptive rank

Business environment rank

Business sector rank

Overall

Business sector rank

Business environment rank

Overall

Business sector rank

Business environment rank

NUTS II – regions 1

HR01 Northwestern Croatia

HR03 Adriatic Croatia

HR02 Central and Eastern (Pannonian) Croatia

NUTS III – counties 1

City of Zagreb

Međimurje

Istria

Varaždin

Zagreb

Primorje-Gorski Kotar

Koprivnica-Križevci

Split-Dalmatia

Zadar

Dubrovnik-Neretva

Bjelovar-Bilogora

Karlovac

Šibenik-Knin

Osijek-Baranja

Krapina-Zagorje

Sisak-Moslavina

Virovitica-Podravina

Brod-Posavina

Lika-Senj

Požega-Slavonia

Vukovar-Srijem

2. Regional Competitiveness Index of Croatia 2007 – Counties and Regions’ Measurement Results

Many counties have a similarly ranking for competitiveness and GDP (Figure 1), which suggests that their competitiveness level is compatible with their level of development11. The biggest gaps between competitiveness and development level are identified in Lika-Senj County, which is ranked at the bottom of the competitiveness list, but 3rd for income per capita. Such a discrepancy is not sustainable in the longterm and points to the need to re-think the development direction of that county. Međimurje County, as well as Zagreb County to some extent, has a much better competitiveness

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

rank than level of GDP per capita, which suggests positive indications for the long-term growth of these counties. To conduct efficient regional development policies, in addition to the region/county ranking information of the Regional Competitiveness Index, it is also important to know to what extent this ranking is a result of “aggregated values”: a wider scale of RCI values suggests significant differences in competitiveness, while a reduced scale indicates balanced regional competitiveness.

While the differences in the competitiveness of the regions are as expected, the differences between the statistical and perceived rankings are not (Table 2). Survey participants perceive Adriatic Croatia’s competitiveness as poor, which contradicts the values of statistical indicators measuring the quality of the business environment and business sector. The situation in the Northwestern region is reversed: competitiveness perception is much better than the real situation. There are no doubts about ranking Central and Eastern Croatia 3rd - last when measuring competitiveness.

Figure 1. Counties ranked by competitiveness and GDP per capita

City of Zagreb

Međimurje

3 Istria

Varaždin

Zagreb Primorje-Gorski Kotar Koprivnica-Križevci

Split-Dalmatia Zadar

Dubrovnik-Neretva

Bjelovar-Bilogora

Karlovac Šibenik-Knin

13 Osijek-Baranja

15 17 19

Krapina-Zagorje

Sisak-Moslavina Virovitica-Podravina

Lika-Senj

Požega-Slavonia 21

Brod-Posavina

Vukovar-Srijem

GDP rank per capita

GDP per capita rank

Regional competitiveness

Competitveness

2. The difference between the perceived and statistical ranking of the competitiveness of counties implies the importance of the regional and county institutional infrastructure and social ‘atmosphere’ in the creation of a positive motivational climate and leadership.

In some counties the differences between competitiveness assessments, based on statistical and perceptive indicators, are significant, but their statistical significance for all counties is low12. In Varaždin County, Bjelovar-Bilogora County and Karlovac County perceptive competitiveness assessments are much better than assessments based on statistical indicators. Throughout the counties of the Adriatic region, assessments based on statistical indicators are better than perceptive assessments – survey participants in Istra and Split-Dalmatia counties are more pessimistic (or critical) in their competitiveness assessments. The differences between the perceived and objective situation emphasise the importance of motivation and leadership in creating an environment receptive to change, which then

11 GDP per capita is an indicator of the current level of development, while competitiveness also suggests potential for further growth. A less favourable level of competitiveness indicates the risk to sustainability of a higher level of GDP per capita in the long run.

When this difference is significant, it usually suggests that GDP includes either subsidies or investments, i.e. inflow of value from outside the region. 12 Correlation coefficient between statistical and perceptive rank is modest and is only 0.54.

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

allows numerous coordination issues to be solved easily. Therefore, it should be noted that objective elements are not necessarily conclusive of a regional/county situation.

3. Indicators suggest that the quality of the factors affecting the business environment at the county level is more balanced, while that affecting business sector efficiency in counties is less balanced. In most counties the ranking for the quality of the business sector and the business environment is balanced. Split-Dalmatia County is the exception, where business sector quality has a higher ranking than business environment quality. The above-mentioned difference in ranking between the business sector and the business environment, although small, points to the good perception of their interdependence (Table 2). However, the differences in the subjective (perceptive rank) and objective (statistical rank) analyses of business sector and business environment values are similar to the differences in the perceptive and statistical measurements of the counties’ total competitiveness. Contrary to statistical indicators, survey participants perceive business sector quality as very good in the counties of Virovitica-Podravina, Bjelovar-Bilogora, Karlovac, Koprivnica-Križevci and Varaždin. In all the counties of the Adriatic Region business sector quality is perceived as poor, which is contrary to the statistical indicator analysis. The same

2. Regional Competitiveness Index of Croatia 2007 – Counties and Regions’ Measurement Results

situation occurs when comparing the perceived and the statistical ranking of the business environment. The biggest discrepancy is in Istria County, which ranks the quality of its business environment as 11th, while the statistical indicators’ criteria rank it 1st! The most promising county is Varaždin, where the ranking for business environment is 1st, even though statistical indicators place it as low as 13th. Besides information on ranking, it is also important to consider the extent of the ranking differential. As the business environment differential is less than the business sector differential, it implies a more balanced quality of the factors affecting the business environment when compared to those affecting business sector efficiency.

4. Competitive strengths and weaknesses of regions and counties – a basis for shaping regional development policy Aside from ranking counties and regions according to their total competitiveness, as well as the competitiveness of their business environments and business sectors, it is also important to have information on the quality of the factors determining the business environment and business sector, to be able to determine a regional development policy. The Central and Eastern region is, on average, the least competitive among the regions and will require significant

investment to achieve the level of competitiveness of the other two regions. This is especially true for entrepreneurship and the business infrastructure, as well as investment promotion. One advantage of the region is a relatively favourable education level, although business schools are insufficiently developed. The Adriatic region is more competitive than an examination of the region’s GDP per capita would suggest. This is a result of very good business environment, demographics and education indicators. However, the region faces problems related to the quality of its infrastructure and entrepreneurship. In this region, the least favourable competitiveness factors are identified in Lika-Senj County. The Northwestern region is more competitive than the other two, despite the poorer quality of its education. The largest advantage of this region is the level of entrepreneurship development, along with favourable demographic, health and culture indicators. There are deeper development problems in Krapina-Zagorje County, illustrated by poor demographic, investments and entrepreneurial trends indicators. Considering the similarities and differences in the competitive strengths and weaknesses profile, disregarding individual counties specificities, in Croatia we can identify 3 groups or clusters of counties and one group of atypical counties (Table 3). The number of strengths, weaknesses and average values of factors affecting competitiveness in the business environment and business sector have been used as the criterion for grouping the counties.

2. Regional Competitiveness Index of Croatia 2007 – Counties and Regions’ Measurement Results

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Table 3: Groups of counties in Croatia according to the similarity of the factors affecting their competitiveness Kvaliteta poslovnog okruženja Demographics, health and culture

Education

Basic infrastructure and public sector

Kvaliteta poslovnog sektora Business infrastructure

Investments Level of and entrepreneurship entrepreneurial development trends

Northwestern First group SZ City of Zagreb J Primorje-Gorski Kotar J Istria Second group SZ Međimurje SZ Koprivnica-Križevci SZ Varaždin Third group J Dubrovnik-Neretva J Zadar J Šibenik-Knin Fourth group J Split-Dalmatia SI Osijek-Baranja SI Karlovac Fifth group SI Vukovar-Srijem SI Brod-Posavina SI Požega-Slavonia Atypical SI Bjelovar-Bilogora SI Virovitica-Podravina SI Sisak-Moslavina J Lika-Senj SZ Krapina-Zagorje SZ Zagreb

Legend:

competitive strengths (if the county is among the seven best ranked counties) competitive weaknesses (counties ranked between 15th and 21st position) fields in which the county is neither very good nor very bad (between 8th and 14th position)

Economic results – level

Economic results – trends

The first group contains the City of Zagreb, Primorje-Gorski Kotar County and Istra County. In this group, almost all the competitiveness factors are strengths – from the quality of basic infrastructure, the public sector and education, to investments and entrepreneurial vitality and lastly to economic results. The second group includes the Northwestern counties (Međimurje County, Koprivnica-Križevci County and Varaždin County) which all have poorer education indicators, despite the proximity of the biggest university centre - Zagreb. Basic infrastructure and the public sector, entrepreneurship dynamics and development, investments and the level of economic results are the strengths of this group of counties. The third group includes three coastal counties (DubrovnikNeretva County, Zadar County and Šibenik-Knin County) which all have significant weaknesses in the quality of basic infrastructure and the public sector, while their predominant strengths are investments and entrepreneurial dynamics. The fourth group includes three counties, located in different parts of the country (Split-Dalmatia County, Osijek-Baranja County and Karlovac County). These counties are connected by a similar, average value of almost all their competitiveness indicators, especially those relating to the business sector. The fifth group includes the counties in which almost all the competitiveness indicators are weak (Vukovar-Srijem County has only two indicators at the level of the Croatian average, Požega-Slavonia County has only one, while all the competitiveness indicators in Brod-Posavina County are below the Croatian average). The remaining six counties (Bjelovar-Bilogora County, Virovitica-Podravina County, Sisačko-moslovačka County, Likasenj County, Krapina-Zagorje County and Zagreb County) have no typical characteristics in common, although the quality of competitiveness indicators for their business environments and business sectors can be characterized as weak and average.

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Priorities and Recommendations

3. Priorities and Recommendations

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

3. Priorities and Recommendations The research on the competitiveness of regions and counties has indicated the differences in competitiveness resulting from differences in the quality of the factors affecting the business environment and business sector. Therefore the results of this research can be used in the development of a comprehensive regional development strategy and consistent policies and instruments aimed at increasing the competitive capacities of regions and counties. It is very important to point out that the following priorities and recommendations for strengthening Croatia’s regional competitiveness must be compatible with the current European Union guidelines on achieving regional policy objectives: (a) convergence, (b) regional competitiveness and employment and (c) European territorial cooperation13. 1. Cooperation in solving development problems. The territorial division of Croatia into counties and regions requires decentralization and adequate institutional capacity to enable cooperation at all organizational levels and with all responsible stakeholders fully participating in the regional development process. Regional development planning should be based on the principles of a partnership for sustainable regional development. Instruments: - Establish a regional development agency with the capacity to assess the sustainability of the regional development strategies. - Identify regional locations for different Government agencies or parts of Government agencies.

- Develop mechanisms of cooperation among the regions and within the regions, as a foundation for the more efficient use of existing resources and strengthening of innovative capacities. - Develop mechanisms for stakeholder consultations as a tool for solving local development problems. 2. Develop knowledge-based regions. Knowledge should be the focus of regional activity, as well as a carefully managed resource. Knowledge transformed into new value-added products and services should become the core of the sustainable competitive progress of counties that are part of individual regions. Instruments: - Strengthen leadership capacity for managing regional competitiveness development at regional and local levels. - Provide training in the key skills necessary for managing local economic development. - Strengthen inter-county cooperation in providing the educational programmes (from secondary to the tertiary level) necessary for local development. - Establish innovation centres in the regions, to make innovations more accessible to the market. - Start mechanisms of development of the “Triple Helix” model of cooperation among universities, the business sector and regions/counties.

3. Use both financial and non-financial instruments to restructure the business sector in counties and regions. To restructure the business sector in counties and regions, the private sector must receive adequate market incentives. Instruments: - Support the development of new industries and clusterization in the counties and regions. - Support innovative activities which add value to traditional industries (including, amongst others, the food production, wood processing, metal-processing and textile industries). 4. Strengthen county and regional entrepreneurial capacity. Entrepreneurship and innovative businesses have to become the primary agents of economic growth, especially through promoting SME competitiveness and enabling their access to international markets. Instruments: - Support programmes which contribute to the integration of small and medium enterprises into the EU common market (for example: quality certification and development of absorption capacity for innovations). - Strengthen the network of support institutions (entrepreneurial centres, incubators, technological centres) and the development of business services focused on the transfer of know-how to SMEs.

13 Documents: Working for the regions: EU Regional Policy 2007-2013, 2008; Regions for economic change: Fostering Competitiveness through Innovative Technologies, Products and Healthy Communities, March 2007; European Regions and Cities – Partners

for the Jobs and Growth Strategy, Committee of the Regions, 2007.

3. Priorities and Recommendations

- Endorse the development of financial instruments focused on small innovative businesses (e.g. development of the Business Angels Association). 5. Strengthen investments in regions and counties. Improving the level of investments in general, and especially of foreign direct investments, should be supported by the establishment of venture capital funds and public-private partnership models.

IInstruments: - Strengthen the capacities of local government units for public-private partnerships. - Promote national and international investments in regional industry. - Strengthen the export capacities of businesses throughout Croatia.

6. Strengthen regional infrastructure. The key parameter for increasing the competitiveness of a county/region and their capacity for global co-operation is the increased availability and quality of the infrastructure that affects the quality and diversity of operations and attractiveness of the location for business and investment. Instruments: - Provide broadband Internet throughout Croatia. Improve ICT connections between regions and counties. - Ensure flight connections among the three regions. - Improve the quality of physical infrastructure. 26

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

7. Improve the quality of life in regions and counties. Improving the quality and availability of education, health services, housing and possibilities for leisure and recreation, should increase the quality of life for Croatian citizens. Instruments: - Polycentric development policy in Croatia should always be linked to policies ensuring a higher quality of life (for example availability of educational programmes, heath services and elderly care services). - Ensure housing opportunities that are attractive and affordable for young people of all professions, especially those that are in demand in individual counties/regions. - Identify and support the development of the cultural identity of counties within each region.

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Competitiveness profiles of regions and counties in Croatia

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

4. Competitiveness profiles of regions and counties in Croatia

Competitiveness rank

Statistical rank

Perceptive rank

Northwestern Croatia

Adriatic Croatia

Central and Eastern Croatia

A1 Demographics, health and culture B4 Economic results – trends

B3 Economic results – level

The extremely low values of the quality of competitiveness factors (business environment and business sector) found in Central and Eastern Croatia make this region the least competitive, a fact which the research participants (perceptive rank) are well aware of. However, the difference between the statistical and perceptive rank between Northwestern and Adriatic Croatia demonstrates the increased perception of the quality of competitiveness factors in Northwestern Croatia and the poor recognition of the competitiveness strengths of Adriatic Croatia. The significantly higher value of the “entrepreneurship development” factor in Northwestern Croatia cannot be explained exclusively by the significantly higher values of other competitiveness factors, as these, to a large extent, are similar to the values of factors in Adriatic Croatia. The regional imbalance in competitiveness capacity is affected by the imbalance in the competitiveness capacity of individual counties. This presents a strong argument for defining a regional development strategy for Croatia, with the primary aim of achieving more homogenous regional development.

5 6 7 8 9 10 11 12 13 14 15

B2 Level of entrepreneurship development

A2 Education

A3 Basic infrastructure and public sector

A4 Business infrastructure B1 Investments and entrepreneurial trends

Northwestern Central and Eastern Adriatic

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

NORTHWESTERN CROATIA City of Zagreb Zagreb County Krapina-Zagorje County Varaždin County Koprivnica-Križevci County Međimurje County

HR01 NORTHWESTERN CROATIA

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR01 NORTHWESTERN CROATIA Area (km²)

2006.

8.669

Population

2006.

1.670.423

Unemployment (%)

2006.

10,82

GDP (mil kn)

2004.

101.884

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

Competitiveness profile of Northwestern Croatia

In addition to being the most competitive, Northwestern Croatia is significantly homogenous, with five of its six counties being ranked in the top seven for county competitiveness, while Krapina-Zagorje County ranks 15th. Although the city of Zagreb is the largest education centre in Croatia, three counties from this region (Međimurje, Koprivnica-Križevci and Varaždin), have an education factor ranked behind all other counties in Croatia, thus not contributing to the competitiveness of these counties. Northwestern Croatia needs to take this observation into account in the development of its regional policy, not only to achieve a more homogeous competitivenes capacity, but also to make better use of existing business environment factors.

A1 Demographics, health and culture B4 Economic results – trends

B3 Economic results – level

5 6 7 8 9 10 11 12 13 14 15

B2 Level of entrepreneurship development

A3 Basic infrastructure and public sector

A4 Business infrastructure B1 Investments and entrepreneurial trends

A2 Education

HR01 NORTHWESTERN CROATIA

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Comparison of counties Northwestern Croatia Demographics, health and culture

Education

Basic infrastructure and public sector

Business infrastructure

Level of Investments and entrepreneur entrepreneurial ship development trends

Economic results level

Demographics, health and culture

Economic results trends

Education

Basic infrastructure and public sector

Business infrastructure

City of Zagreb 0 1 2 3 4 5 6

1 3

4 5

0 1 2 3 4 5 6

1 2 3

4 5 6

2 3 4

0 1 2 3 4 5 6

1 2 4 5

5 6

Zagreb

2 3

3 5

Strengths and weaknesses

Demographics, health and culture

Krapina-Zagorje 0 1 2 3 4 5 6

Economic results trends

Varaždin

Economic results level

Međimurje 1

Koprivnica-Križevci 0 1 2 3 4 5 6

Investments and Level of entrepreneurial entrepreneur trends ship development

Education

Basic infrastructure and public sector

0 1 2 3 4 5 6

Business infrastructure

1 2

2 3

Investments and entrepreneurial trends

Level of entrepreneurship development

Economic results - level

Economic results trends

City of Zagreb Zagreb Međimurje Koprivnica-Križevci Varaždin Krapina-Zagorje first 7 counties

last 7 counties

middle range

HR01 NORTHWESTERN CROATIA

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Value

Croatian average

Rank

Demographics, health and culture 1.670.423

211.135

Share of population aged 25-64 in total population (%)

54,4

53,3

Share of population aged 0-25 in total population (%)

30,2

30,6

Net migration rate in the total population (%)

13,8

10,0

Vital index (birth/death ratio)

87,2

80,5

Number of cinema goers per capita (per 100 inhabitants)

92,1

49,1

Number of public library users per capita (per 100 inhabitants)

142,9

97,7

Number of active members of various associations per capita (per 1000 inhabitants)

76,3

Number of physicians per capita (per 100,000 inhabitants)

296,8

Number of dentists per capita (per 100,000 inhabitants)

83,7

72,8

Number of pharmacists per capita (per 100.000 inhabitants)

72,4

57,5

Population estimate

Croatian average

Rank

Number of entrepreneurial zones per capita (per 100,000 inhabitants)

1,6

2,4

Size of entrepreneurial zones per capita (m² per inhabitant)

13,9

10,8

Croatian average

Rank

Environmental protection investments per capita (kn)

1.082,3

619,2

Current environmental protection expenditure per capita (kn)

1.130,8

676,3

Property tax per capita (000 kn)

159,2

187,3

Property tax trends 2006 / 2004

120,4

131,7

Quality of scientific institutes

4,2

3,4

Share of aid in LGUs total revenue (%)

3,4

6,3

Cooperation between industry and universities

3,4

3,1

Unsubsidized revenues of local and county budgets / GDP (%)

6,5

ICT availability in LGUs

6,0

5,7

Financial market development level

3,9

3,4

Average surtax rate (%)

11,1

7,8

Ease of access to finance

3,2

Number of indicted adult criminal offenders per capita (per 100,000 inhabitants)

747,3

768,0

Venture capital availability

2,4

4,6

11,3

4,5

70,0

Number of judges and advisors in county courts per capita (per 100,000 inhabitants)

Tariff barriers Local market competition

5,4

5,1

323,0

318,0

3,3

253,7

3,5

Number of solved cases per judge

Customer requirements

Number of unsolved cases in land register per capita (per 100,000 inhabitants)

3.892

3.053

Availability of local suppliers

4,9

4,5

Quality of local suppliers

4,7

4,4

Local availability of machines and equipment

3,3

Availability of research and development services

4,9

4,2

Education 2

10,2

Number of days necessary for registration in the land register in the county seat

78,6

Total infrastructure quality

4,7

3,8

Quality of railways

4,0

3,3

Quality of ports and water transport

3,6

3,7

Level of development of air transport

4,8

4,3

Overseas air traffic

5,2

4,5

Quality of power supply

5,6

5,3

Availability of new telephone lines

6,3

6,2

Rigidity of ecological legislation

3,7

Implementation of ecological legislation

3,5

3,4

Survey based shadow economy estimate

3,5

3,4

54,4

Share of population aged 25-64 with high school education (%)

22,0

Share of population aged 25-64 withwith 2-year college education (%)

5,4

Share of population aged 25-64 withwith university education (%)

13,5

10,7

Pre-school education attendance / population aged 0-4 (%)

44,5

37,7

Pre-school education attendance - trends 2006 / 2004

93,5

100,4

Quality of legal framework

3,4

Share of enrolled students in population aged 20-24 (%)

45,5

42,4

Neutrality of Government decisions

3,3

Enrolled students - trends 2006 / 2004

112,0

110,2

Economic policy centralization

2,7

6,4

5,8

Protection of property rights

3,8

3,6

Protection of intellectual property rights

3,5

3,3

Police protection reliability

4,5

4,3

Innovative and technological influence of public procurement

3,3

3,0

Strict application of quality standards

4,2

4,0

Anti-trust policy efficiency

3,8

3,7

Independence of the judiciary

3,2

3,0

Corruption intensity

3,9

4,0

Registered personal vehicles per capita (per 100 inhabitants)

34,8

32,4

Share of graduated students in population aged 20-24 (%)

20,8 5,2

Graduated students - trends 2006 / 2004

111,4

115,7

Number of graduated students per 100 enrolled students

14,1

13,7

Ratio of graduated and enrolled students - trends 2006 / 2004

99,5

105,0

Quality of public schools

4,8

4,6

Quality of mathematics and natural sciences education

5,2

5,0

Quality of business schools

3,7

3,1

Availability of scientists and engineers

4,6

3,9

Business infrastructure

Basic infrastructure and public sector

Value

A. BUSINESS ENVIRONMENT

State roads - density (length per 100km²)

14,1

13,9

County roads - density (length per 100km²)

30,8

18,6

3,6

29,5

18,3

Registered cargo and working vehicles per capita (per 100 inhabitants)

4,2

Local roads - density (length per 100km²) Total waste per capita (kg)

1.601

1.627

Price of water and sewage (kn/m³)

16,8

14,5

3,2

5,9

Number of people per 1 telephone line

2,8

Recovered waste / total waste (%)

HR01 NORTHWESTERN CROATIA

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

B. BUSINESS SECTOR Value

Croatian average

Rank

Total SME revenue per capita (000 kn) Share of SME total profit/loss in total SME revenue (%)

Value

Croatian average

Rank

102,2

70,7

3,5

2,7

Unemployed for 12 or more months / total unemployment - situation (%)

Value

Croatian average

Rank

56,8

2.394,7

1.861,9

993,3

544,0

1.329,9

1.310,1

Investments and entrepreneurial trends

Total SME revenue per person employed in SME (000 kn)

628,6

545,2

Income tax per capita

Number of local KAUs - trends 2005 / 2003

99,0

72,8

67,7

Profit tax per capita

Active legal entities - trends 2005 / 2003

104,6

106,6

Costs of SME employees per person employed in SME (000 kn)

Active companies - trends 2005 / 2003

111,9

110,0

Total SME revenue / total SME assets (%)

87,2

82,1

Store turnover per capita

98,4

52,1

Active undertakings and cooperatives - trends 2005 / 2003

52,1

49,9

Number of SME per capita (per 1000 inhabitants)

21,6

16,9

Tourist overnights per capita

0,9

12,0

Number of local KAUs per capita (per 100.000 inhabitants)

104,4

84,8

Exports (000 kn) per capita

16,6

11,7

Revenues from sales in local KAUs per capita (000 kn)

34,5

27,3

Exports/imports ratio (%)

35,3

47,8

KAU Gross salaries and wages per employee (000 kn)

73,4

65,5

Sales results in Croatia

5,3

4,7

GVA per industry employee (000 kn)

202,5

170,9

Export results

3,4

3,3

Share of industry in GVA (%)

27,5

23,5

Efficiency of use of intellectual capital

2,3

Economic results - trends

Company participation in design and marketing

4,7

4,3

IGDP Index 2004 / 2001

130,0

129,8

Marketing development level

4,6

4,1

Employment in legal entities - trends 2005 / 2003

107,3

108,6

Customer orientation

5,3

5,2

Number of employed in local KAUs - trends 2005 / 2003

95,5

97,6

Control of export distribution and marketing by the company itself

4,8

4,6

Sales revenues in local KAUs - trends 2005 / 2003

110,1

113,0

Delegation of authority to lower management

3,8

3,6

KAU gross salaries and wages per employee - trends 2005 / 2003

99,3

99,5

Results-based management motivation schemes

4,6

4,1

Index of gross salary per employee - trends 2006/ 2004

111,5

110,5

Management nepotism

4,3

3,6

Total employment - trends 2006 / 2004

104,7

104,3

Employer - employees relations

4,6

4,5

Unemployment - trends 2006 / 2004

95,0

94,1

Number of registered unemployed who found employment / newly recorded unemployed - trends 2006 / 2004

118,0

113,6

Number of registered unemployed who found employment - trend 2006 / 2004

106,9

107,9

101,9

102,5

Trades, crafts and freelance professions - trends 2005 / 2003

105,5

107,1

Owners and employees in trade, crafts and freelance professions - trends 2005 / 2003

50,0

26,1

Total investments per investorâ&#x20AC;&#x2122;s seat (000 kn) per capita

40,8

33,5

Total investments per facility location (000 kn) per capita Share of investments in equipment in total investments per facility location (%)

49,3

40,6

Share of investments in processing industry in total investments per facility location (%)

13,5

12,4

Housing construction per capita (m2 per 1000 inhabitants)

406,3

368,5

Share of investments in long-term assets in total SME revenue (%)

8,2

9,2

Share of equity and reserves in SME sources of capital (%)

56,1

55,7

4.692,4

2.188,4

Number of SME per capita (per 1000 inhabitants)

108,5

110,0

Licences as new technology acquisition method

4,9

4,3

Company investments in research and development

3,8

3,2

Level of company technological development

3,9

3,5

Innovation capacity

3,7

Use of modern technologies

3,8

Management supervision by foreign investors and executive boards

4,1

Company investments in education

3,7

Foreign direct equity investments per capita (â&#x201A;Ź)

Other LGUs revenues per capita

Economic results - level GDP per capita (000 kn)

61,1

48,5

Employment in legal entities per capita (per 100 inhabitants)

30,2

24,8

Labor in demand - trends 2006/ 2004

124,7

111,8

6,8

5,6

Unemployed for 12 or more months / total unemployment - trends 2006 / 2004

95,3

93,9

Number of employed in local KAUs per capita (per 100 inhabitants)

3,6

Gross salaries per employee (000 kn)

57,1

50,1

Income tax - trends 2006 / 2004

115,8

114,8

3,6

Number of employed per capita (per 100 inhabitants)

39,3

36,1

Profit tax - trends 2006 / 2004

164,3

165,6

Other LGU revenue - trends 2006 / 2004

128,2

136,5

126,4

127,4

3,3

Level of entrepreneurship development

Unemployed/population aged 25-64 (%)

8,8

12,3

Share of population with 2-year college education that are unemployed (%)

3,4

3,2

Index of unsubsidized local and county budget revenues per capita 2006 / 2004

Share of population with university education that are unemployed (%)

5,7

4,2

Tourist overnights - trends 2005 / 2003

121,7

110,9

Exports - trends 2005 / 2003

134,3

126,5

Share of population aged 15 - 24 that are unemployed (%)

20,6

20,2

Exports/imports ratio - trends 2005 / 2003

112,6

108,1

Share of population aged 50+ that are unemployed (%)

28,0

25,0

27,7

22,8

Active legal entities per capita (per 1000 inhabitants)

27,6

22,0

Active companies per capita (per 1000 inhabitants)

21,0

16,6

Active undertakings and cooperatives per capita (per 1000 inhabitants)

2,8

1,7

Trades, crafts and freelance professions per capita (per 1000 inhabitants)

22,5

22,0

Share of unemployment benefit users in total number of unemployed (%)

Active legal entities in processing industry per capita (per 1000 inhabitants)

3,4

2,5

Number of registered unemployed who found employment / newly recorded unemployed - situation (%)

66,7

64,1

Share of processing industry in total employment (%)

22,9

22,1

54,0

51,3

Number of employed in SME per capita (per 100 inhabitants)

16,2

13,0

Number of registered unemployed who found employment / total unemployment - situation (%) Labour in demand/ unemployed (%)

62,5

44,8

HR011 CITY OF ZAGREB

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR011 CITY OF ZAGREB

Competitiveness profile of City of Zagreb

A1 Demographics, health and culture B4 Economic results – trends

A2 Education

6 11 16 B3 Economic results – level

Area (km²)

2006.

641

Population

2006.

783.518

Unemployment rate (%)

2006.

10,23

GDP (mil kn)

2004.

68.315

B2 Level of entrepreneurship development

A4 Business infrastructure B1 Investments and entrepreneurial trends

City of Zagreb Northwestern

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

A3 Basic infrastructure and public sector

HR011 CITY OF ZAGREB

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

STRENGTH

A. BUSINESS ENVIRONMENT Croatian average

Rank

Demographics, health and culture 783.518,00 181,39 241,29 458,45 124,06 102,49 55,57

211.134,90 49,07 97,71 253,73 72,85 57,49 53,31

1 1 1 1 1 1 2

27,11

20,80

Education Share of persons with high school education in population aged 25-64 (%) Share of persons with university education in population aged 25-64 (%) Pre-school education attendance / population aged 0-4 (%) Share of enrolled students in population aged 20-24 (%) Share of graduated students in population aged 20-24 (%) Quality of business schools Availability of scientists and engineers Share of persons with 2-year college education in population aged 25-64 (%) Quality of public schools Quality of mathematics and natural sciences education

21,52

10,67

57,83 58,35 8,54 4,47 5,33 7,02

37,71 42,37 5,81 3,07 3,95 5,17

1 1 1 1 1 2

4,91 5,49

4,55 5,02

2 3

47,58 58,50 1.981,28 2.037,88 0,11 15,32

18,63 18,33 619,22 676,29 6,34 10,22

1 1 1 1 1 1

6,19 5,00 4,33 6,51 3,93 3,67 3,44 6,71 5,07 5,49 4,26

5,27 3,76 3,26 6,20 3,60 3,27 2,98 5,86 4,28 4,50 4,04

1 3 3 3 3 3 3 4 4 4 4

5,16 5,19 5,42 4,55

3,36 4,46 4,24 3,59

1 1 1 2

3,53 6,16 4,02 37,75 5,67 3,56 4,74 3,44

3,13 5,73 3,36 32,38 5,06 3,28 4,37 3,31

2 2 2 3 3 4 4 5

Basic infrastructure and public sector County roads - density (length per 100km²) Local roads - density (length per 100km²) Environment protection investments per capita (kn) Current environment protection expenditure per capita (kn) Share of aid in LGUs total revenues (%) Number of judges and advisors in county courts per capita (per 100,000 inhabitants) Quality of power supply Total infrastructure quality Quality of railways Availability of new telephone lines Protection of property rights Protection of intellectual property rights Innovative and technological influence of public procurement Recovered waste / total waste (%) Level of development of air transport Overseas air traffic Strict application of quality standards Business infrastructure Quality of scientific institutes Availability of local suppliers Availability of research and development services Registered cargo and working vehicles per capita (per 100 inhabitants) Cooperation between industry and universities ICT availability in LGUs Financial market development level Registered personal vehicles per capita (per 100 inhabitants) Local market competition Customer requirements Quality of local suppliers Local availability of machines and equipment

Croatian average

Rank

91,52 54,89

26 41

1 1

9.400,57 5,30 4,42

2.188 4 4

1 1 1

62,44 115,40 3,84 3,91 483,55

34 110 3 3 368

2 3 3 3 4

40,69 31,88 4,09

22 17 2

1 1 1

4,46

20,93 149,36 712,23 81,29 90,46 258,73 5,05 5,00 4,77 32,31 4,79 4,84

13 71 545 68 66 171 4 4 4 17 4 5

1 1 1 1 1 1 1 1 1 2 2 2

3,79 41,35 26,27

3 27 22

3 3 4

2,30 4,00 107,03

2 4 85

4 4 5

Value Value

Population estimate Number of cinema goers per capita (per 100 inhabitants) Number of public library users per capita (per 100 inhabitants) Number of physicians per capita (per 100,000 inhabitants) Number of dentists per capita (per 100,000 inhabitants) Number of pharmacists per capita (per 100.000 inhabitants) Share of population aged 25-64 in total population (%)

WEAKNESS

B. BUSINESS SECTOR

A. BUSINESS ENVIRONMENT

Investments and entrepreneurial trends Total investments per investor’s seat (000 kn) per capita Share of investments in equipment in total investments per facility location (%) Foreign direct equity investments per capita (€) Licenses as new technology acquisition method Management supervision by foreign investors and executive boards Total investments per facility location (000 kn) per capita Active companies - trends 2005 / 2003 Company investments in research and development Company investments in education Housing construction per capita (m2 per 1000 inhabitants) Level of entrepreneurship development Active legal entities per capita (per 1000 inhabitants) Active companies per capita (per 1000 inhabitants) Active undertakings and cooperatives per capita (per 1000 inhabitants) Active legal entities in processing industry per capita (per 1000 inhabitants) Number of employed in SME per capita (per 100 inhabitants) Total SME revenue per capita (000 kn) Total SME revenue per person employed in SME (000 kn) Costs of SME employees per person employed in SME (000 kn) KAU Gross salaries and wages per employee (000 kn) GVA per industry employee (000 kn) Company participation in design and marketing Results-based management motivation schemes Management nepotism Number of SME per capita (per 1000 inhabitants) Marketing development level Control of export distribution and marketing by the company itself Share of SME total profit/loss in total SME revenue (%) Revenues from sales in local KAUs per capita (000 kn) Trades, crafts and freelance professions per capita (per 1000 inhabitants) Efficiency of use of intellectual capital Delegation of authority to lower management Number of local KAUs per capita (per 100.000 inhabitants)

Croatian average

Rank

109,17 100,22 81,90

115,68 104,96 100,40

17 17 21

18,00 10,61 6.727,35

7,79 13,90 3.052,96

21 20 20

140,00

54,38

2,95 110,86 6,99 3,28 3,07

3,34 131,74 6,47 3,68 3,37

20 18 18 18 18

0,00 0,00 19,30 2,10 4,28

2,41 10,79 14,50 2,77 4,64

21 21 20 20 19

Value

Croatian average

Rank

102,86

107

16,34

9,48

30,37 4,40

48 3

19 17

92,79

Education Graduated students - trends 2006 / 2004 Ratio of graduated and enrolled students - trends 2006 / 2004 Pre-school education attendance - trends 2006 / 2004 Basic infrastructure and public sector Average surtax rate (%) State roads - density (length per 100km²) Number of unsolved cases in Land Register per capita (per 100,000 inhabitants) Number of days necessary for registration in the land register in the county seat Neutrality of Government decisions Property tax trends 2006 / 2004 Unsubsidized revenues of local and county budgets /GDP (%) Rigidity of ecological legislation Implementation of ecological legislation Business infrastructure Number of entrepreneurial zones per capita (per 100,000 inhabitants) Surface of entrepreneurial zones per capita (m² per inhabitant) Price of water and sewage (kn/m³) Number of people per 1 telephone line Tariff barriers

B. BUSINESS SECTOR Investments and entrepreneurial trends Owners and employees in trade, crafts and freelance professions - trends 2005 / 2003 Level of entrepreneurship development

Economic results - level GDP per capita (000 kn) Employment in legal entities per capita (per 100 inhabitants) Gross salaries per employee (000 kn) Income tax per capita Profit tax per capita Store turnover per capita Exports (000 kn) per capita Sales results in Croatia Number of employed per capita (per 100 inhabitants) Other LGUs revenues per capita Unemployed/population aged 25-64 (%)

Value

87,39 41,32 68,27 3.567,14 1.832,07 168,42 24,63 5,49 41,83 1.947,32 8,63

49 25 50 1.862 544 52 12 5 36 1.310 12

1 1 1 1 1 1 2 2 3 3 4

112,56 130,41

110 112

2 3

Share of processing industry in total employment (%) Economic results - level Share of unemployed with university education in total unemployment (%) Exports/imports ratio (%) Share of unemployed with 2-year college education in total unemployment (%) Economic results - trends Number of employed in local KAUs - trends 2005 / 2003

Economic results - trends Index of gross salary per employee - trends 2006/ 2004 Labor in demand - trends 2006/ 2004

HR012 ZAGREB COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR012 ZAGREB COUNTY

Competitiveness profile of the City of Zagreb

A1 Demographics, health and culture B4 Economic results – trends

A2 Education

6 11 16 B3 Economic results – level

Area (km²)

2006.

3.060

Population

2006.

321.605

Unemployment rate (%)

2006.

9,41

GDP (mil kn)

2004.

11.532

B2 Level of entrepreneurship development

A4 Business infrastructure B1 Investments and entrepreneurial trends

Zagreb County Northwestern

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

A3 Basic infrastructure and public sector

HR012 ZAGREB COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

STRENGTH

KAU Gross salaries and wages per employee (000 kn) Marketing development level Total SMEs revenues per capita (000 kn) GVA per industry employee (000 kn)

A. BUSINESS ENVIRONMENT Value

Croatian average

Rank

43,69 321.605 54,07

10,03 211.135 53,31

2 4 4

Education Availability of scientists and engineers Quality of business schools Enrolled students - trends 2006 / 2004

4,53 3,79 118,90

3,95 3,07 110,21

2 3 5

164,31 5,51 5,07 26,11 348,00

131,74 4,50 4,28 18,63 318,00

1 3 4 5 5

3,90 4,55

2,77 3,59

1 2

47,67 4,37 3,74 4,95 37,75 3,86 4,93 4,95 5,93

10,79 3,36 3,28 4,37 32,38 3,36 4,24 4,46 5,73

2 2 2 2 3 3 3 4 5

Value

Croatian average

Rank

4,09 43,28

4 41

2 3

492,34 4,47 3,70

368 4 3

3 4 4

113,20 2,61 621,41 4,60 2,45

82 2 545 4 2

1 1 2 2 3

34,22 4,81 2,91

24 5 3

3 3 4

3,28

Business infrastructure Number of people per 1 telephone line Registered cargo and working vehicles per capita (per 100 inhabitants) Surface of entrepreneurial zones per capita (mÂ˛ per inhabitant) Quality of scientific institutes Customer requirements Quality of local suppliers Registered personal vehicles per capita (per 100 inhabitants) Financial market development level Availability of research and development services Availability of local suppliers ICT availability in LGUs

B. BUSINESS SECTOR

Level of entrepreneurship development Total SMEs revenues / total SMEs assets (%) Efficiency of use of intellectual capital Total SMEs revenues per person employed in SME (000 kn) Company participation in design and marketing Active undertakings and cooperatives per capita (per 1000 inhabitants) Share of industry in GVA (%) Control of export distribution and marketing by the company itself Active legal entities in processing industry per capita (per 1000 inhabitants) Share of SMEs total profit/loss in total SMEs revenues (%)

Gross salaries per employee (000 kn) Store turnover per capita Unemployed/population aged 25-64 (%) Number of employed per capita (per 100 inhabitants)

51,14 57,76 7,79 39,06

50 52 12 36

2 2 3 4

Labor in demand - trends 2006/ 2004 Employment in legal entities - trends 2005 / 2003 Total employment - trends 2006 / 2004 GDP Index 2004 / 2001 Number of employed in local KAUs - trends 2005 / 2003 Income tax - trends 2006 / 2004 Index of gross salary per employee - trends 2006/ 2004 Sales revenues in local KAUs - trends 2005 / 2003

139,63 119,09 107,00 146,66 103,64 123,20 111,30 117,21

112 109 104 130 98 115 110 113

1 2 2 3 3 3 4 5

WEAKNESS

A. BUSINESS ENVIRONMENT Value

Croatian average

Rank

83,02

253,73

95,45

104,96

12,98

13,72

4.025,83 6,22

1.627,24 10,22

21 20

3,81 3,70 2.587,65

4,34 4,03 3.052,96

20 20 18

3,35 3,16

3,68 3,44

17 17

1,24 2,88

2,41 3,19

19 17

Value

Croatian average

Rank

5,26 98,78 16,58

9 107 34

21 19 18

4,09

16,73 2,67 33,15

48 3 23

21 20 19

0,22 17,30 3,72 30,14

12 25 12 25

19 18 18 17

97,05

Demographics, health and culture Number of physicians per capita (per 100,000 inhabitants) Education Ratio of graduated and enrolled students - trends 2006 / 2004 Number of graduated students per 100 enrolled students Basic infrastructure and public sector Total waste per capita (kg) Number of judges and advisors in county courts per capita (per 100,000 inhabitants) Police protection reliability Corruption intensity Number of unsolved cases in Land Register per capita (per 100,000 inhabitants) Rigidity of ecological legislation Quality of legal framework Business infrastructure Number of entrepreneurial zones per capita (per 100,000 inhabitants) Ease of access to finance

B. BUSINESS SECTOR Investments and entrepreneurial trends Share of investments in long-term assets in total SMEs revenues (%) Active legal entities - trends 2005 / 2003 Total investments per facility location (000 kn) per capita Level of entrepreneurship development

Investments and entrepreneurial trends Level of company technological development Share of investments in equipment in total investments per facility location (%) Housing construction per capita (m2 per 1000 inhabitants) Licenses as new technology acquisition method Company investments in research and development

4 4 5 5

Economic results - trends

Basic infrastructure and public sector Property tax trends 2006 / 2004 Overseas air traffic Level of development of air transport County roads - density (length per 100kmÂ˛) Number of solved cases per judge

66 4 71 171

Economic results - level

Demographics, health and culture Net migration rate in the total population (%) Population estimate Share of population aged 25-64 in total population (%)

68,80 4,58 67,23 158,96

Employer - employees relations Economic results - level Exports/imports ratio (%) Export results Share of unemployment benefit users in total number of unemployed (%) Tourist overnights per capita Employment in legal entities per capita (per 100 inhabitants) Exports (000 kn) per capita Share of unemployed aged 50+ in total number of unemployed (%) Economic results - trends KAU gross salaries and wages per employee - trends 2005 / 2003

HR013 KRAPINA-ZAGORJE COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR013 KRAPINA-ZAGORJE COUNTY

Competitiveness profile of Krapina-Zagorje County

A1 Demographics, health and culture B4 Economic results – trends

A2 Education

6 11 16 B3 Economic results – level

Area (km²)

2006.

1.229

Population

2006.

139.398

Unemployment rate (%)

2006.

10,10

GDP (mil kn)

2004.

4.639

B2 Level of entrepreneurship development

A4 Business infrastructure B1 Investments and entrepreneurial trends

Krapina-Zagorje County Northwestern

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

A3 Basic infrastructure and public sector

HR013 KRAPINA-ZAGORJE COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

STRENGTH

WEAKNESS

A. BUSINESS ENVIRONMENT

A. BUSINESS ENVIRONMENT Value

Croatian average

Rank

Education Pre-school education attendance - trends 2006 / 2004 Ratio of graduated and enrolled students - trends 2006 / 2004 Graduated students - trends 2006 / 2004 Number of graduated students per 100 enrolled students

B. BUSINESS SECTOR Value

Croatian average

Rank

Demographics, health and culture 195,23 122,59 134,77 15,34

100,40 104,96 115,68 13,72

1 2 4 5

Cinema frequenters per capita (per 100 inhabitants) Vital index (birth/death ratio) Number of pharmacists per capita (per 100.000 inhabitants)

0,87 61,93 44,48

49,07 80,47 57,49

20 17 17

Education Basic infrastructure and public sector Total waste per capita (kg) County roads - density (length per 100km²) Average surtax rate (%) Survey based shadow economy estimate State roads - density (length per 100km²) Number of solved cases per judge Recovered waste / total waste (%)

230,95 37,67 1,48 3,77 18,55 375,00 3,88

1.627,24 18,63 7,79 3,41 13,90 318,00 5,86

1 2 2 2 3 3 5

24,10

10,79

Business infrastructure Surface of entrepreneurial zones per capita (m² per inhabitant)

Share of persons with university education in population aged 25-64 (%) Share of persons with high school education in population aged 25-64 (%) Share of persons with 2-year college education in population aged 25-64 (%) Share of enrolled students in population aged 20-24 (%) Availability of scientists and engineers Quality of public schools Quality of mathematics and natural sciences education Quality of business schools

4,55

10,67

14,72

20,80

3,29

5,17

30,51 2,54 4,15 4,46 2,00

42,37 3,95 4,55 5,02 3,07

20 20 19 18 18

3,35 4,42 2,35 16,44 3,19 2,73 3,02 3,81

4,03 5,27 2,68 6,34 3,60 3,01 3,71 4,04

21 19 19 18 18 18 17 17

1,56 3,15 5,08 3,67 2,67 2,83 2,17 4,02

3,36 4,24 5,73 4,46 3,13 3,19 2,43 4,37

21 21 20 20 19 19 19 17

Basic infrastructure and public sector

B. BUSINESS SECTOR Value

Croatian average

Rank

21,68 14,64

26 9

3 3

37,14 31,33 2,13

22 24 2

4 4 5

7,52

290,98 106,09 125,69

166 99 114

1 4 5

114,30

108

Investments and entrepreneurial trends Total investments per investor’s seat (000 kn) per capita Share of investments in long-term assets in total SMEs revenues (%)

Economic results - level Unemployed/population aged 25-64 (%) Economic results - trends Profit tax - trends 2006 / 2004 KAU gross salaries and wages per employee - trends 2005 / 2003 Number of registered unemployed who found employment / newly recorded unemployed - trends 2006 / 2004 Number of registered unemployed who found employment - trend 2006 / 2004

Croatian average

Rank

20,21

177,28 43,33 100,63

368 56 103

20 19 18

99,33 2,73

107 3

17 17

32,40

40,50

427,98 33,14 18,21

1.310 49 25

20 19 17

90,32 110,61 109,76 102,90 103,92 98,59

98 130 136 127 109 94

20 19 19 19 18 17

112,32

115

Investments and entrepreneurial trends Share of investments in equipment in total investments per facility location (%) Housing construction per capita (m2 per 1000 inhabitants) Share of equity and reserves in SMEs sources of capital (%) Trades, crafts and freelance professions - trends 2005 / 2003 Active legal entities - trends 2005 / 2003 Company investments in education Economic results - level Share of unemployed aged 50+ in total number of unemployed (%) Share of unemployment benefit users in total number of unemployed (%) Other LGUs revenues per capita GDP per capita (000 kn) Employment in legal entities per capita (per 100 inhabitants) Economic results - trends Number of employed in local KAUs - trends 2005 / 2003 GDP Index 2004 / 2001 Other LGUs revenues - trends 2006 / 2004 Exports - trends 2005 / 2003 Employment in legal entities - trends 2005 / 2003 Unemployed for 12 or more months / total unemployment trends 2006 / 2004 Income tax - trends 2006 / 2004

Business infrastructure

Level of entrepreneurship development Share of processing industry in total employment (%) Share of industry in GVA (%) Efficiency of use of intellectual capital

Corruption intensity Quality of power supply Economic policy centralization Share of aid in LGUs total revenues (%) Protection of property rights Independence of the judiciary Quality of ports and water transport Strict application of quality standards

Value

Quality of scientific institutes Availability of research and development services ICT availability in LGUs Availability of local suppliers Cooperation between industry and universities Ease of access to finance Venture capital availability Quality of local suppliers

HR014 VARAŽDIN COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR014 VARAŽDIN COUNTY

Competitiveness profile of Varaždin County

A1 Demographics, health and culture B4 Economic results – trends

A2 Education

6 11 16 B3 Economic results – level

Area (km²)

2006.

1.262

Population

2006.

186.693

Unemployment rate (%)

2006.

11,72

GDP (mil kn)

2004.

7.568

B2 Level of entrepreneurship development

A4 Business infrastructure B1 Investments and entrepreneurial trends

Varaždin County Northwestern

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

A3 Basic infrastructure and public sector

HR014 VARAŽDIN COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

STRENGTH

A. BUSINESS ENVIRONMENT Value

Croatian average

Rank

132,35

80,47

5,20 5,60 4,53 3,58

4,55 5,02 3,95 3,07

1 1 3 4

Demographics, health and culture Vital index (birth/death ratio) Education Quality of public schools Quality of mathematics and natural sciences education Availability of scientists and engineers Quality of business schools Basic infrastructure and public sector Total infrastructure quality Strict application of quality standards State roads - density (length per 100km²) Local roads - density (length per 100km²) Number of indicted adult criminal offenders per capita (per 100,000 inhabitants) Quality of power supply Innovative and technological influence of public procurement Rigidity of ecological legislation County roads - density (length per 100km²) Quality of railways Implementation of ecological legislation Quality of legal framework Protection of property rights Police protection reliability Independence of the judiciary Availability of new telephone lines Protection of intellectual property rights

WEAKNESS

Level of entrepreneurship development

5,51 4,71 19,41 38,99 609,02

3,76 4,04 13,90 18,33 768,03

1 1 2 2 2

5,98 3,60 4,82 33,99 4,07 4,04 4,09 3,87 4,98 3,62 6,40 3,62

5,27 2,98 3,68 18,63 3,26 3,37 3,44 3,60 4,34 3,01 6,20 3,27

2 2 3 4 4 4 4 4 4 4 5 5

Share of processing industry in total employment (%) Share of SMEs total profit/loss in total SMEs revenues (%) Results-based management motivation schemes Number of local KAUs per capita (per 100.000 inhabitants) Total SMEs revenues / total SMEs assets (%) Company participation in design and marketing Control of export distribution and marketing by the company itself

39,14 4,16 4,62 107,97 97,54 4,36 4,73

22 3 4 85 82 4 5

2 2 3 4 5 5 5

10,22 79,80

6 64

1 1

5,84 72,48

5 51

1 2

77,59 17,13 4,11 25,16 37,21 9,37 31,74

45 12 3 25 36 12 52

3 3 3 4 5 5 5

Economic results - level Number of employed in local KAUs per capita (per 100 inhabitants) Number of registered unemployed who found employment / newly recorded unemployed - situation (%) Sales results in Croatia Number of registered unemployed who found employment / total unemployment - situation (%) Labor in demand/ unemployed (%) Exports (000 kn) per capita Export results Employment in legal entities per capita (per 100 inhabitants) Number of employed per capita (per 100 inhabitants) Unemployed/population aged 25-64 (%) Store turnover per capita

A. BUSINESS ENVIRONMENT

88,53 121,75

94 115

2 4

Croatian average

Rank

102,30 86,97 3,80 11,58

115,68 104,96 5,81 13,72

21 20 19 18

2.254,49 3,91 7,47

1.627,24 4,03 7,79

17 17 18

16,55 4,51

14,50 4,64

18 17

Value

Croatian average

Rank

37,28 3,49

50 4

18 17

46,53 94,08

66 171

20 17

33,08

108,71 98,90

136 108

21 19

132,09 119,51

166 127

17 17

108,50

111

Education Graduated students - trends 2006 / 2004 Ratio of graduated and enrolled students - trends 2006 / 2004 Share of graduated students in population aged 20-24 (%) Number of graduated students per 100 enrolled students Basic infrastructure and public sector Total waste per capita (kg) Corruption intensity Average surtax rate (%) Business infrastructure Price of water and sewage (kn/m³) Tariff barriers

B. BUSINESS SECTOR

Economic results - trends Unemployment - trends 2006 / 2004 Income tax - trends 2006 / 2004

Value

Investments and entrepreneurial trends Active undertakings and cooperatives - trends 2005 / 2003 Innovation capacity Level of entrepreneurship development KAU Gross salaries and wages per employee (000 kn) GVA per industry employee (000 kn) Economic results - level

Business infrastructure Cooperation between industry and universities Financial market development level Quality of local suppliers Availability of research and development services ICT availability in LGUs Availability of local suppliers Quality of scientific institutes Local market competition

4,02 4,29 5,04 5,27 6,13 5,02 3,51 5,36

3,13 3,36 4,37 4,24 5,73 4,46 3,36 5,06

1 1 1 2 3 3 4 4

B. BUSINESS SECTOR Value

Croatian average

Rank

4,40 4,31 5,07 25,92

3 3 4 12

1 1 2 3

4,07 4,04

4 4

3 3

69,41

Share of unemployment benefit users in total number of unemployed (%) Economic results - trends Other LGUs revenues - trends 2006 / 2004 Number of registered unemployed who found employment trend 2006 / 2004 Profit tax - trends 2006 / 2004 Index of unsubisidized local and county budget revenues per capita 2006 / 2004 Tourist overnights - trends 2005 / 2003

Investments and entrepreneurial trends Company investments in research and development Company investments in education Licenses as new technology acquisition method Share of investments in processing industry in total investments per facility location (%) Level of company technological development Management supervision by foreign investors and executive boards Share of equity and reserves in SMEs sources of capital (%)

HR015 KOPRIVNICA-KRIŽEVCI COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR015 KOPRIVNICA-KRIŽEVCI COUNTY

Competitiveness profile of Koprivnica-Križevci County

A1 Demographics, health and culture B4 Economic results – trends

A2 Education

6 11 16 B3 Economic results – level

Area (km²)

2006.

1.748

Population

2006.

121.231

Unemployment rate (%)

2006.

15,80

GDP (mil kn)

2004.

5.373

B2 Level of entrepreneurship development

A4 Business infrastructure B1 Investments and entrepreneurial trends

Koprivnica-Križevci County Northwestern

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

A3 Basic infrastructure and public sector

HR015 KOPRIVNICA-KRIŽEVCI COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

STRENGTH

A. BUSINESS ENVIRONMENT Value

Croatian average

Rank

126,94

97,71

600,51

768,03

4,00 3,70 155,44 4,07 5,15 4,13 3,93 31,01 4,77 1,79 4,37 4,37 729,85 345,62

3,27 2,98 131,74 3,34 4,34 3,70 3,01 18,33 6,47 7,79 3,37 4,04 1.627,24 3.052,96

1 1 2 2 2 2 2 3 3 3 3 3 4 5

4,09 4,00 4,24 3,61 3,85

3,76 3,26 3,68 3,41 3,60

5 5 5 5 5

5,78 3,48 6,00 3,54 15,43 2,74

5,06 3,13 5,73 3,19 10,79 2,43

1 3 4 4 5 5

Demographics, health and culture Number of public library users per capita (per 100 inhabitants) Basic infrastructure and public sector Number of indicted adult criminal offenders per capita (per 100,000 inhabitants) Protection of intellectual property rights Innovative and technological influence of public procurement Property tax trends 2006 / 2004 Neutrality of Government decisions Police protection reliability Anti-trust policy efficiency Independence of the judiciary Local roads - density (length per 100km²) Unsubsidized revenues of local and county budgets /GDP (%) Average surtax rate (%) Implementation of ecological legislation Strict application of quality standards Total waste per capita (kg) Number of unsolved cases in Land Register per capita (per 100,000 inhabitants) Total infrastructure quality Quality of railways Rigidity of ecological legislation Survey based shadow economy estimate Protection of property rights Business infrastructure Local market competition Cooperation between industry and universities ICT availability in LGUs Ease of access to finance Surface of entrepreneurial zones per capita (m² per inhabitant) Venture capital availability

B. BUSINESS SECTOR

Share of industry in GVA (%) Total SMEs revenues / total SMEs assets (%) Delegation of authority to lower management Employer - employees relations Share of processing industry in total employment (%) Marketing development level Management nepotism Revenues from sales in local KAUs per capita (000 kn) GVA per industry employee (000 kn) Company participation in design and marketing KAU Gross salaries and wages per employee (000 kn) Customer orientation

47,02 99,39 4,17 5,13 38,35 4,65 4,20 38,75 165,48 4,50 65,72 5,50

24 82 4 4 22 4 4 27 171 4 66 5

1 2 2 2 3 3 3 4 4 4 5 5

71,58

5,43 6,83 1,65

5 6 4

3 5 5

68,53

135,20

114

115,93

108

105,62

Value

Croatian average

Rank

37,94 163,32

72,85 253,73

20 19

14,78

20,80

5,76 59,48 3,87

6,20 619,22 4,03

20 19 18

3,76 2,85 3,83

4,37 3,31 4,46

20 20 19

Value

Croatian average

Rank

92,01 -28,01 205,20

110 2.188 368

20 20 18

0,07

24,82 59,53

20 57

19 18

0,26

102,18 111,91 105,81 92,96

109 130 127 98

20 18 18 17

Demographics, health and culture Number of dentists per capita (per 100,000 inhabitants) Number of physicians per capita (per 100,000 inhabitants) Education Share of persons with high school education in population aged 25-64 (%) Basic infrastructure and public sector

Economic results - level Number of registered unemployed who found employment / newly recorded unemployed - situation (%) Sales results in Croatia Number of employed in local KAUs per capita (per 100 inhabitants) Share of unemployed with university education in total unemployment (%) Labor in demand/ unemployed (%)

A. BUSINESS ENVIRONMENT

Availability of new telephone lines Environment protection investments per capita (kn) Corruption intensity Business infrastructure Quality of local suppliers Local availability of machines and equipment Availability of local suppliers

B. BUSINESS SECTOR Investments and entrepreneurial trends Active companies - trends 2005 / 2003 Foreign direct equity investments per capita (€) Housing construction per capita (m2 per 1000 inhabitants) Level of entrepreneurship development Share of SMEs total profit/loss in total SMEs revenues (%) Economic results - level Share of unemployed aged 15 - 24 in total number of unemployed (%) Unemployed for 12 or more months / total unemployment - situation (%) Tourist overnights per capita Economic results - trends

Value

Croatian average

Rank

107,69 27,80

50 12

1 2

3,98 4,20 107,27 3,89 4,04

3 4 99 4 4

2 3 4 4 4

3,87 109,43

3 107

4 5

Investments and entrepreneurial trends Active undertakings and cooperatives - trends 2005 / 2003 Share of investments in processing industry in total investments per facility location (%) Company investments in research and development Use of modern technologies Number of local KAUs - trends 2005 / 2003 Level of company technological development Management supervision by foreign investors and executive boards Company investments in education Owners and employees in trade, crafts and freelance professions - trends 2005 / 2003

WEAKNESS

Level of entrepreneurship development

Employment in legal entities - trends 2005 / 2003 GDP Index 2004 / 2001 Exports - trends 2005 / 2003 Number of employed in local KAUs - trends 2005 / 2003

HR016 MEĐIMURJE COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR016 MEĐIMURJE COUNTY

Competitiveness profile of Međimurje County

A1 Demographics, health and culture B4 Economic results – trends

A2 Education

6 11 16 B3 Economic results – level

Area (km²)

2006.

729

Population

2006.

117.978

Unemployment rate (%)

2006.

13,70

GDP (mil kn)

2004.

4.457

B2 Level of entrepreneurship development

A4 Business infrastructure B1 Investments and entrepreneurial trends

Međimurje County Northwestern

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

A3 Basic infrastructure and public sector

HR016 MEĐIMURJE COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

STRENGTH

A. BUSINESS ENVIRONMENT Value

Croatian average

Rank

124,24

69,97

33,41 96,50

30,62 80,47

3 5

Demographics, health and culture Number of active members of various associations per capita (per 1000 inhabitants) Share of population aged 0-25 in total population (%) Vital index (birth/death ratio) Education Enrolled students - trends 2006 / 2004 Quality of public schools

121,03 4,82

110,21 4,55

4 4

4,68 4,93 4,91 4,43 910,69 4,30 5,39 4,48 35,67 611,98

3,26 3,68 3,37 3,70 619,22 6,47 3,76 4,04 18,63 768,03

1 1 1 1 2 2 2 2 3 3

5,66 3,14 27,30 4,00

5,27 2,68 18,33 54,38

3 3 4 4

3,23 2,60

2,98 7,79

4 5

Basic infrastructure and public sector Quality of railways Rigidity of ecological legislation Implementation of ecological legislation Anti-trust policy efficiency Environment protection investments per capita (kn) Unsubsidized revenues of local and county budgets /GDP (%) Total infrastructure quality Strict application of quality standards County roads - density (length per 100km²) Number of indicted adult criminal offenders per capita (per 100,000 inhabitants) Quality of power supply Economic policy centralization Local roads - density (length per 100km²) Number of days necessary for registration in the land register in the county seat Innovative and technological influence of public procurement Average surtax rate (%) Business infrastructure Number of entrepreneurial zones per capita (per 100,000 inhabitants) Local market competition Availability of local suppliers Number of people per 1 telephone line Quality of local suppliers Financial market development level

WEAKNESS

Level of entrepreneurship development

7,63

2,41

5,77 5,02 3,30 4,75 3,59

5,06 4,46 2,77 4,37 3,36

2 2 3 3 5

Share of processing industry in total employment (%) Number of local KAUs per capita (per 100.000 inhabitants) Marketing development level Customer orientation Delegation of authority to lower management Employer - employees relations Active undertakings and cooperatives per capita (per 1000 inhabitants) Number of employed in SMEs per capita (per 100 inhabitants) Share of industry in GVA (%) Results-based management motivation schemes Management nepotism Active legal entities in processing industry per capita (per 1000 inhabitants) Company participation in design and marketing Total SMEs revenues per capita (000 kn) Total SMEs revenues / total SMEs assets (%)

40,67 132,00 4,93 6,09 4,18 5,30 2,78 17,96 34,23 4,80 4,20 3,41

22 85 4 5 4 4 2 13 24 4 4 3

1 1 1 1 1 1 2 2 2 2 2 3

4,55 68,89 97,68

4 71 82

3 4 4

9,49 4,23 70,26

6 3 64

2 2 4

74,70 5,39 21,32 11,29

45 5 25 12

4 4 5 5

259,82 104,27 106,49 176,09 126,88 134,78

111 98 104 136 112 127

1 2 3 3 4 4

Economic results - level Number of employed in local KAUs per capita (per 100 inhabitants) Export results Number of registered unemployed who found employment / newly recorded unemployed - situation (%) Labor in demand/ unemployed (%) Sales results in Croatia Share of unemployed aged 50+ in total number of unemployed (%) Exports (000 kn) per capita

A. BUSINESS ENVIRONMENT Value

Croatian average

Rank

9,74 117.978,00 44,92

97,71 211.134,90 72,85

18 17 17

Demographics, health and culture Number of public library users per capita (per 100 inhabitants) Population estimate Number of dentists per capita (per 100,000 inhabitants) Education Share of persons with university education in population aged 25-64 (%) Share of enrolled students in population aged 20-24 (%) Share of persons with high school education in population aged 25-64 (%) Ratio of graduated and enrolled students - trends 2006 / 2004

5,21

10,67

30,73 15,20

42,37 20,80

19 18

97,27

104,96

188,00 102,06 3,75 6,78

318,00 131,74 4,03 10,22

21 19 19 18

2,73

3,13

Value

Croatian average

Rank

98,69 103,98

103 107

21 19

384,22 48,27

545 66

18 18

26,36 38,78 1.066,00

20 50 1.862

20 19 19

100,99 99,95

109 108

21 17

Basic infrastructure and public sector Number of solved cases per judge Property tax trends 2006 / 2004 Corruption intensity Number of judges and advisors in county courts per capita (per 100,000 inhabitants) Business infrastructure Cooperation between industry and universities

Economic results - trends Tourist overnights - trends 2005 / 2003 Number of employed in local KAUs - trends 2005 / 2003 Total employment - trends 2006 / 2004 Other LGUs revenues - trends 2006 / 2004 Labor in demand - trends 2006/ 2004 Index of unsubisidized local and county budget revenues per capita 2006 / 2004

B. BUSINESS SECTOR Investments and entrepreneurial trends Trades, crafts and freelance professions - trends 2005 / 2003 Owners and employees in trade, crafts and freelance professions - trends 2005 / 2003 Level of entrepreneurship development Total SMEs revenues per person employed in SME (000 kn) KAU Gross salaries and wages per employee (000 kn) Economic results - level

B. BUSINESS SECTOR Value

Croatian average

Rank

4,11 4,20 4,23

4 4 4

1 2 2

4,23 107,59 4,70 25,90

3 99 4 12

2 3 3 4

3,57 3,86

3 4

5 5

Economic results - trends

Investments and entrepreneurial trends Innovation capacity Use of modern technologies Management supervision by foreign investors and executive boards Company investments in education Number of local KAUs - trends 2005 / 2003 Licenses as new technology acquisition method Share of investments in processing industry in total investments per facility location (%) Company investments in research and development Level of company technological development

Share of unemployed aged 15 - 24 in total number of unemployed (%) Gross salaries per employee (000 kn) Income tax per capita

Employment in legal entities - trends 2005 / 2003 Number of registered unemployed who found employment trend 2006 / 2004

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

CENTRAL AND EASTERN (PANNONIAN) CROATIA Bjelovar-Bilogora County Virovitica-Podravina County Po탑ega-Slavonia County Brod-Posavina County Osijek-Baranja County Vukovar-Srijem County Karlovac County Sisak-Moslavina County

HR02 CENTRAL AND EASTERN (PANNONIAN) CROATIA

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR02 CENTRAL AND EASTERN (PANNONIAN) CROATIA Area (km²)

2006.

23.220

Population

2006.

1.315.131

Unemployment rate (%)

2006.

22,86

GDP (mil kn)

2004.

44.945

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

Central and Eastern (Pannonian) Croatia has the lowest values in all factors of competitiveness (business environment and business sector), which makes this region the most homogenous in terms of having a low level of competitiveness. Most of the counties in this region are ranked behind all other counties in Croatia, and only three are positioned in the middle. This homogeny should be an incentive and an impetus for local level cooperation aimed at balancing the level of development in this region and for starting projects/programmes to improve the business environment.

Competitiveness profile of the Central and Eastern Croatia (Pannonian) region A1 Demographics, health and culture B4 Economic results – trends

B3 Economic results – level

5 6 7 8 9 10 11 12 13 14 15

B2 Level of entrepreneurship development

A3 Basic infrastructure and public sector

A4 Business infrastructure B1 Investments and entrepreneurial trends

A2 Education

HR02 CENTRAL AND EASTERN (PANNONIAN) CROATIA

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Comparison of counties Central and Eastern (Pannonian) Croatia Demographics, health and culture

0 1 2 3 4 5 6 7 8

Education

Basic infrastructure and public sector

Business infrastructure

Investments and Level of entrepreneurial entrepreneur trends ship development

Economic results level

Bjelovar-Bilogora 1 3

4 6

Demographics, health and culture

Economic results trends

0 1 2 3 4 5 6 7 8

Education

Basic infrastructure and public sector

Business infrastructure

5 7

0 1 2 3 4 5 6 7 8

4 6

Virovitica-Podravina 2

6 8

Strengths and weaknesses

Demographics, health and culture

5 8

2 3

Sisak-Moslavina

5 8

Po탑ega-Slavonia 0 1 2 3 4 5 6 7 8

Economic results trends

Osijek-Baranja

1 3

Economic results level

Brod-Posavina

Karlovac 0 1 2 3 4 5 6 7 8

Investments and Level of entrepreneurial entrepreneur trends ship development

Education

5 7

Basic infrastructure and public sector

0 1 2 3 4 5 6 7 8 0 1 2 3 4 5 6 7 8

Business infrastructure

1 4

Vukovar-Srijem 2 3

Investments and entrepreneurial trends

3 6 8

Level of entrepreneurship development

Economic results - level

Economic results trends

Osijek-Baranja Karlovac Sisak-Moslavina Bjelovar-Bilogora Virovitica-Podravina Vukovar-Srijem Brod-Posavina Po탑ega-Slavonia first 7 counties

last 7 counties

middle range

HR02 CENTRAL AND EASTERN (PANNONIAN) CROATIA

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Croatian average

Rank

Number of entrepreneurial zones per capita (per 100,000 inhabitants)

3,35

2,41

Size of entrepreneurial zones per capita (m² per inhabitant)

6,33

10,79

Quality of scientific institutes

2,57

3,36

Cooperation between industry and universities

2,96

3,13

ICT availability in LGUs

5,41

5,73

Financial market development level

2,89

3,36

Ease of access to finance

3,20

3,19

Venture capital availability

2,40

2,43

Tariff barriers

4,84

4,64

Local market competition

4,79

5,06

Customer requirements

2,94

3,28

Availability of local suppliers

4,05

4,46

Quality of local suppliers

4,01

4,37

Local availability of machines and equipment

3,27

3,31

Availability of research and development services

3,83

4,24

Croatian average

Rank

Environmental protection investments per capita (kn)

207,96

619,22

309,56

676,29

Demographics, health and culture

Current environmental protection expenditure per capita (kn)

Population estimate

Property tax per capita (000 kn)

57,65

187,30

Property tax trends 2006 / 2004

123,11

131,74

Share of aid in LGUs total revenue (%)

11,81

6,34

Unsubsidized revenues of local and county budgets / GDP (%)

5,43

6,47

Average surtax rate (%)

6,05

7,79

743,80

768,03

9,12

Value

Croatian average

Rank

1.315.131

211.135

Share of population aged 25-64 in total population (%)

52,06

53,31

Share of population aged 0-25 in total population (%)

31,31

30,62

Net migration rate in the total population (%)

-7,66

10,03

Vital index (birth/death ratio)

67,43

80,47

Number of cinema goers per capita (per 100 inhabitants)

10,05

49,07

Number of public library users per capita (per 100 inhabitants)

77,11

97,71

Number of indicted adult criminal offenders per capita (per 100,000 inhabitants)

Number of active members of various associations per capita (per 1000 inhabitants)

69,23

69,97

Number of judges and advisors in county courts per capita (per 100,000 inhabitants)

Number of physicians per capita (per 100,000 inhabitants)

208,19

253,73

Number of dentists per capita (per 100,000 inhabitants)

46,08

72,85

Number of pharmacists per capita (per 100.000 inhabitants)

42,13

57,49

Share of population aged 25-64 with high school education (%)

17,67

Share of population aged 25-64 withwith 2-year college education (%)

3,74

20,80 5,17

10,22

Number of solved cases per judge

284,00

318,00

Number of unsolved cases in land register per capita (per 100,000 inhabitants)

661,61

3.052,96

Number of days necessary for registration in the land register in the county seat

11,93

54,38

Total infrastructure quality

3,13

3,76

Quality of railways

3,21

3,26

Quality of ports and water transport

3,10

3,71

Level of development of air transport

3,21

4,28

Overseas air traffic

3,38

4,50

Quality of power supply

5,02

5,27

Availability of new telephone lines

6,13

6,20

Rigidity of ecological legislation

3,67

3,68

Implementation of ecological legislation

3,52

3,37

Survey based shadow economy estimate

3,23

3,41

Education 3 3

Share of population aged 25-64 withwith university education (%)

6,75

Pre-school education attendance / population aged 0-4 (%)

24,79

Pre-school education attendance - trends 2006 / 2004

131,52

100,40

Quality of legal framework

3,66

3,44

Share of enrolled students in population aged 20-24 (%)

35,07

42,37

Neutrality of Government decisions

3,43

3,34

Enrolled students - trends 2006 / 2004

117,03

110,21

Economic policy centralization

2,80

2,68

4,40

5,81

Protection of property rights

3,53

3,60

Protection of intellectual property rights

3,23

3,27

Police protection reliability

4,55

4,34

Innovative and technological influence of public procurement

2,76

2,98

Strict application of quality standards

3,99

4,04

Anti-trust policy efficiency

3,48

3,70

Independence of the judiciary

3,02

3,01

Corruption intensity

4,14

4,03

Registered personal vehicles per capita (per 100 inhabitants)

25,65

32,38

Share of graduated students in population aged 20-24 (%)

10,67 37,71

Graduated students - trends 2006 / 2004

129,10

115,68

Number of graduated students per 100 enrolled students

12,54

13,72

Ratio of graduated and enrolled students - trends 2006 / 2004

110,32

104,96

Quality of public schools

4,35

4,55

Quality of mathematics and natural sciences education

4,62

5,02

Quality of business schools

2,27

3,07

Availability of scientists and engineers

3,33

3,95

Business infrastructure

Basic infrastructure and public sector

Value

A. BUSINESS ENVIRONMENT

State roads - density (length per 100km²)

11,36

13,90

County roads - density (length per 100km²)

17,53

18,63

3,59

15,92

18,33

Registered cargo and working vehicles per capita (per 100 inhabitants)

2,49

Local roads - density (length per 100km²)

1.405,20

1.627,24

Price of water and sewage (kn/m³)

13,25

14,50

3,24

5,86

Number of people per 1 telephone line

3,16

2,77

Total waste per capita (kg) Recovered waste / total waste (%)

HR02 CENTRAL AND EASTERN (PANNONIAN) CROATIA

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

B. BUSINESS SECTOR Value

Croatian average

Rank

Value

Croatian average

Rank

Total SME revenue per capita (000 kn)

37,59

Share of SME total profit/loss in total SME revenue (%)

1,38

Unemployed for 12 or more months / total unemployment - situation (%)

Value

Croatian average

Rank

60,05

Investments and entrepreneurial trends

Total SME revenue per person employed in SME (000 kn)

416,44

545

Income tax per capita

1.282,39

1.862

Number of local KAUs - trends 2005 / 2003

96,63

55,42

Profit tax per capita

162,52

544

Active legal entities - trends 2005 / 2003

103,58

107

Costs of SME employees per person employed in SME (000 kn)

Other LGUs revenues per capita

874,39

1.310

Active companies - trends 2005 / 2003

95,65

110

Total SME revenue / total SME assets (%)

84,91

Store turnover per capita

16,60

Active undertakings and cooperatives - trends 2005 / 2003

52,07

Number of SME per capita (per 1000 inhabitants)

7,89

Tourist overnights per capita

0,54

Number of local KAUs per capita (per 100.000 inhabitants)

73,93

Exports (000 kn) per capita

7,94

Trades, crafts and freelance professions - trends 2005 / 2003

102,32

103

Revenues from sales in local KAUs per capita (000 kn)

21,31

Exports/imports ratio (%)

111,36

KAU Gross salaries and wages per employee (000 kn)

55,23

Sales results in Croatia

4,30

Owners and employees in trade, crafts and freelance professions - trends 2005 / 2003

107,15

GVA per industry employee (000 kn)

117,19

171

Export results

3,23

Share of industry in GVA (%)

22,26

Efficiency of use of intellectual capital

1,87

Economic results - trends

Company participation in design and marketing

3,93

IGDP Index 2004 / 2001

119,69

130

Marketing development level

3,64

Employment in legal entities - trends 2005 / 2003

109,42

109

Customer orientation

5,12

Number of employed in local KAUs - trends 2005 / 2003

98,82

Control of export distribution and marketing by the company itself

4,52

Sales revenues in local KAUs - trends 2005 / 2003

114,83

113

Delegation of authority to lower management

3,58

KAU gross salaries and wages per employee - trends 2005 / 2003

99,42

Results-based management motivation schemes

3,82

Index of gross salary per employee - trends 2006/ 2004

109,00

110

Management nepotism

3,19

Total employment - trends 2006 / 2004

104,28

104

Employer - employees relations

4,39

Unemployment - trends 2006 / 2004

95,55

Number of registered unemployed who found employment / newly recorded unemployed - trends 2006 / 2004

115,20

114

Number of registered unemployed who found employment - trend 2006 / 2004

108,41

108

107

Total investments per investorâ&#x20AC;&#x2122;s seat (000 kn) per capita

7,33

Total investments per facility location (000 kn) per capita

18,38

Share of investments in equipment in total investments per facility location (%)

37,36

Share of investments in processing industry in total investments per facility location (%)

16,43

Housing construction per capita (m2 per 1000 inhabitants)

243,04

368

Share of investments in long-term assets in total SME revenue (%)

7,44

Share of equity and reserves in SME sources of capital (%)

61,46

Foreign direct equity investments per capita (â&#x201A;Ź)

91,86

2.188

Number of SME per capita (per 1000 inhabitants)

103,46

110

Licences as new technology acquisition method

3,85

Company investments in research and development

2,85

Level of company technological development

3,11

Innovation capacity

3,75

Use of modern technologies

3,50

Management supervision by foreign investors and executive boards

3,35

Company investments in education

3,09

Economic results - level GDP per capita (000 kn)

33,91

Employment in legal entities per capita (per 100 inhabitants)

18,85

Labor in demand - trends 2006/ 2004

104,28

112

5,09

Unemployed for 12 or more months / total unemployment - trends 2006 / 2004

96,11

Number of employed in local KAUs per capita (per 100 inhabitants)

Gross salaries per employee (000 kn)

41,76

Income tax - trends 2006 / 2004

114,50

115

Number of employed per capita (per 100 inhabitants)

31,13

Profit tax - trends 2006 / 2004

153,96

166

Other LGU revenue - trends 2006 / 2004

164,57

136

132,16

127

Level of entrepreneurship development

Unemployed/population aged 25-64 (%)

17,24

Share of population with 2-year college education that are unemployed (%)

1,97

Index of unsubsidized local and county budget revenues per capita 2006 / 2004

Share of population with university education that are unemployed (%)

1,90

Tourist overnights - trends 2005 / 2003

119,38

111

Exports - trends 2005 / 2003

119,85

127

Share of population aged 15 - 24 that are unemployed (%)

21,10

Exports/imports ratio - trends 2005 / 2003

111,67

108

Share of population aged 50+ that are unemployed (%)

22,47

17,62

Active legal entities per capita (per 1000 inhabitants)

12,02

Active companies per capita (per 1000 inhabitants)

7,98

Active undertakings and cooperatives per capita (per 1000 inhabitants)

0,68

Trades, crafts and freelance professions per capita (per 1000 inhabitants)

15,87

Share of unemployment benefit users in total number of unemployed (%)

Active legal entities in processing industry per capita (per 1000 inhabitants)

1,50

Number of registered unemployed who found employment / newly recorded unemployed - situation (%)

66,67

Share of processing industry in total employment (%)

26,13

46,90

Number of employed in SME per capita (per 100 inhabitants)

9,04

Number of registered unemployed who found employment / total unemployment - situation (%) Labour in demand/ unemployed (%)

28,32

HR021 BJELOVAR-BILOGORA COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR021 BJELOVAR-BILOGORA COUNTY

Competitiveness profile of Bjelovar-Bilogora County

A1 Demographics, health and culture B4 Economic results – trends

A2 Education

6 11 16 B3 Economic results – level

Area (km²)

2006.

2.640

Population

2006.

127.844

Unemployment rate (%)

2006.

22,58

GDP (mil kn)

2004.

4.652

B2 Level of entrepreneurship development

A4 Business infrastructure B1 Investments and entrepreneurial trends

Bjelovar-Bilogora County Central and Eastern (Pannonian)

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

A3 Basic infrastructure and public sector

HR021 BJELOVAR-BILOGORA COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

STRENGTH

Economic results - level

A. BUSINESS ENVIRONMENT Value

Croatian average

Rank

97,71 69,97

3 5

Demographics, health and culture Number of public library users per capita (per 100 inhabitants) Number of active members of various associations per capita (per 1000 inhabitants)

167,95 87,24

Education Ratio of graduated and enrolled students - trends 2006 / 2004

119,80

104,96

0,00

54,38

6,59 5,59 4,18 508,66 13,30

6,20 4,34 3,01 1.627,24 10,22

1 1 1 2 2

51,63

3.052,96

4,89 4,64 3,68 4,39 4,05 4,93 5,11 3,05 4,25

3,68 3,37 3,27 4,03 3,34 6,47 4,50 2,68 4,04

2 2 2 2 3 5 5 5 5

6,20 4,11 5,43 3,86 2,80 3,77 5,48 4,16

5,73 3,19 4,64 3,28 2,43 3,31 2,41 4,24

1 1 1 1 2 2 4 5

Business infrastructure ICT availability in LGUs Ease of access to finance Tariff barriers Customer requirements Venture capital availability Local availability of machines and equipment Number of entrepreneurial zones per capita (per 100,000 inhabitants) Availability of research and development services

Croatian average

Rank

45,48

89,55 4,05

50 4

3 5

5,82 4,75

5 4

2 5

Value Investments and entrepreneurial trends

Level of entrepreneurship development Customer orientation Employer - employees relations

2,00

5,25

Economic results - trends Number of registered unemployed who found employment trend 2006 / 2004 Tourist overnights - trends 2005 / 2003

119,71

108

147,82

111

Active undertakings and cooperatives per capita (per 1000 inhabitants) Total SMEs revenues per person employed in SME (000 kn) Trades, crafts and freelance professions per capita (per 1000 inhabitants) GVA per industry employee (000 kn) Share of SMEs total profit/loss in total SMEs revenues (%) KAU Gross salaries and wages per employee (000 kn) Efficiency of use of intellectual capital Delegation of authority to lower management

0,47

371,30 14,92

545 22

20 19

92,91 0,55 50,49 1,86 3,32

171 3 66 2 4

18 17 17 17 17

24,65

28,26 0,26

45 12

18 17

103,95 105,40

94 94

20 20

94,61

99,97 107,39 103,96 115,41

113 110 109 136

18 18 17 17

Economic results - level Share of unemployed aged 15 - 24 in total number of unemployed (%) Labor in demand/ unemployed (%) Tourist overnights per capita

WEAKNESS

A. BUSINESS ENVIRONMENT

Economic results - trends

Value

Croatian average

-13,79

10,03

30,02 3,43

42,37 5,17

21 19

4,21 107,37 3,11

5,81 110,21 3,95

18 17 17

2,48 3,11 10,76 61,55 246,00

3,71 3,41 13,90 619,22 318,00

21 19 18 18 17

4,44 2,16

10,79 3,36

17 17

Value

Croatian average

88,53 5,64

110 9

21 20

5,96 14,17 98,95 104,81

26 34 107 107

19 19 18 17

57,93

2.188

Rank

Demographics, health and culture Net migration rate in the total population (%) Education Share of enrolled students in population aged 20-24 (%) Share of persons with 2-year college education in population aged 25-64 (%) Share of graduated students in population aged 20-24 (%) Enrolled students - trends 2006 / 2004 Availability of scientists and engineers

Unemployment - trends 2006 / 2004 Unemployed for 12 or more months / total unemployment trends 2006 / 2004 KAU gross salaries and wages per employee - trends 2005 / 2003 Sales revenues in local KAUs - trends 2005 / 2003 Index of gross salary per employee - trends 2006/ 2004 Employment in legal entities - trends 2005 / 2003 Other LGUs revenues - trends 2006 / 2004

Basic infrastructure and public sector Quality of ports and water transport Survey based shadow economy estimate State roads - density (length per 100km²) Environment protection investments per capita (kn) Number of solved cases per judge Business infrastructure Surface of entrepreneurial zones per capita (m² per inhabitant) Quality of scientific institutes

B. BUSINESS SECTOR

Share of investments in equipment in total investments per facility location (%) Active undertakings and cooperatives - trends 2005 / 2003 Use of modern technologies

Level of entrepreneurship development 1,34

Basic infrastructure and public sector Number of days necessary for registration in the land register in the county seat Availability of new telephone lines Police protection reliability Independence of the judiciary Total waste per capita (kg) Number of judges and advisors in county courts per capita (per 100,000 inhabitants) Number of unsolved cases in Land Register per capita (per 100,000 inhabitants) Rigidity of ecological legislation Implementation of ecological legislation Protection of intellectual property rights Corruption intensity Neutrality of Government decisions Unsubsidized revenues of local and county budgets /GDP (%) Overseas air traffic Economic policy centralization Strict application of quality standards

Share of unemployed with university education in total unemployment (%) Share of unemployed with 2-year college education in total unemployment (%) Sales results in Croatia

Rank

Investments and entrepreneurial trends Active companies - trends 2005 / 2003 Share of investments in long-term assets in total SMEs revenues (%) Total investments per investor’s seat (000 kn) per capita Total investments per facility location (000 kn) per capita Active legal entities - trends 2005 / 2003 Owners and employees in trade, crafts and freelance professions - trends 2005 / 2003 Foreign direct equity investments per capita (€)

HR022 VIROVITICA-PODRAVINA COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR022 VIROVITICA-PODRAVINA COUNTY

Competitiveness profile of Virovitica-Podravina County

A1 Demographics, health and culture B4 Economic results – trends

A2 Education

6 11 16 B3 Economic results – level

Area (km²)

2006.

2.024

Population

2006.

89.757

Unemployment rate (%)

2006.

25,45

GDP (mil kn)

2004.

3.214

B2 Level of entrepreneurship development

A4 Business infrastructure B1 Investments and entrepreneurial trends

Virovitica-Podravina County Central and Eastern (Pannonian)

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

A3 Basic infrastructure and public sector

HR022 VIROVITICA-PODRAVINA COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

STRENGTH

B. BUSINESS SECTOR

Economic results - trends

A. BUSINESS ENVIRONMENT Value

Croatian average

Rank

101,58

69,97

130,68 136,13

110,21 100,40

1 5

Income tax - trends 2006 / 2004 Index of unsubisidized local and county budget revenues per capita 2006 / 2004 Tourist overnights - trends 2005 / 2003

165,79 150,04

115 127

1 2 2

205,10

111

Value

Croatian average

-19,11 89.757,00 42,34 51,36 173,80

10,03 211.134,90 72,85 53,31 253,73

20 19 18 17 17

14,68

20,80

2,98

5,17

2,81 9,02 81,13 5,17

5,81 13,72 104,96 10,67

21 21 21 20

106,02 23,95 31,14 2,07

115,68 37,71 42,37 3,07

19 18 18 17

9,14 20,68 3,04 2,91 21,86 231,00 2,62 51,65 3,02 3,40 133,06 2,98

13,90 619,22 3,41 3,60 6,34 318,00 3,71 187,30 3,27 3,70 676,29 4,28

21 21 21 21 20 20 20 18 18 18 17 17

2,47 24,53 1,76 4,56 3,56

3,13 32,38 3,36 5,06 4,24

20 19 18 17 17

Demographics, health and culture Number of active members of various associations per capita (per 1000 inhabitants) Education Enrolled students - trends 2006 / 2004 Pre-school education attendance - trends 2006 / 2004

WEAKNESS

A. BUSINESS ENVIRONMENT

Basic infrastructure and public sector Unsubsidized revenues of local and county budgets /GDP (%) Number of unsolved cases in Land Register per capita (per 100,000 inhabitants) Recovered waste / total waste (%) Number of days necessary for registration in the land register in the county seat Quality of legal framework Average surtax rate (%) Quality of power supply Availability of new telephone lines Implementation of ecological legislation

3,67 15,60

6,47 3.052,96

1 1

21,82 2,00

5,86 54,38

2 3

4,20 2,42 5,51 6,44 3,91

3,44 7,79 5,27 6,20 3,37

3 4 4 4 5

Business infrastructure Price of water and sewage (kn/m³) Number of entrepreneurial zones per capita (per 100,000 inhabitants) Tariff barriers Ease of access to finance Venture capital availability Number of people per 1 telephone line

10,26 6,68 5,38 3,78 2,78 3,20

14,50 2,41 4,64 3,19 2,43 2,77

2 2 2 3 3 5

Value

Croatian average

Rank

113,84

107

4,09 70,83 104,07

4 50 103

4 5 5

4,84 4,07

5 4

1 3

1,41

1,20

155,63 4,42 20,15

48 3 25

1 1 2

15,84

B. BUSINESS SECTOR Investments and entrepreneurial trends Owners and employees in trade, crafts and freelance professions - trends 2005 / 2003 Innovation capacity Active undertakings and cooperatives - trends 2005 / 2003 Trades, crafts and freelance professions - trends 2005 / 2003 Level of entrepreneurship development Control of export distribution and marketing by the company itself Delegation of authority to lower management Economic results - level Share of unemployed with 2-year college education in total unemployment (%) Share of unemployed with university education in total unemployment (%) Exports/imports ratio (%) Export results Share of unemployed aged 50+ in total number of unemployed (%) Share of unemployment benefit users in total number of unemployed (%)

Rank

Education Share of persons with high school education in population aged 25-64 (%) Share of persons with 2-year college education in population aged 25-64 (%) Share of graduated students in population aged 20-24 (%) Number of graduated students per 100 enrolled students Ratio of graduated and enrolled students - trends 2006 / 2004 Share of persons with university education in population aged 25-64 (%) Graduated students - trends 2006 / 2004 Pre-school education attendance / population aged 0-4 (%) Share of enrolled students in population aged 20-24 (%) Quality of business schools Basic infrastructure and public sector State roads - density (length per 100km²) Environment protection investments per capita (kn) Survey based shadow economy estimate Protection of property rights Share of aid in LGUs total revenues (%) Number of solved cases per judge Quality of ports and water transport Property tax per capita (000 kn) Protection of intellectual property rights Anti-trust policy efficiency Current environment protection expenditure per capita (kn) Level of development of air transport

Croatian average

Rank

11,32 89,87 8,87 92,34 6,85 211,69 7,23

34 99 2.188 110 26 368 9

21 19 19 18 17 17 17

6,80 -1,11 45,51 1,31

13 3 66 3

21 21 21 20

1,69 29,70 51,48 3,13 11,44 7,19 0,56

2 71 68 4 22 17 2

20 19 19 19 18 17 17

6,93

36,73 19,77 10,07 73,08 16,89 30,94 1.101,29 23,06

50 12 52 544 25 36 1.862 20

21 21 21 20 19 18 18 17

87,22 85,91 69,43 94,45

113 127 108 99

21 21 21 20

104,49 103,61

166 114

19 18

91,69 115,49

112 130

18 17

Investments and entrepreneurial trends Total investments per facility location (000 kn) per capita Number of local KAUs - trends 2005 / 2003 Foreign direct equity investments per capita (€) Active companies - trends 2005 / 2003 Total investments per investor’s seat (000 kn) per capita Housing construction per capita (m2 per 1000 inhabitants) Share of investments in long-term assets in total SME revenues (%) Level of entrepreneurship development

Demographics, health and culture Net migration rate in the total population (%) Population estimate Number of dentists per capita (per 100,000 inhabitants) Share of population aged 25-64 in total population (%) Number of physicians per capita (per 100,000 inhabitants)

Value

Number of employed in SME per capita (per 100 inhabitants) Share of SME total profit/loss in total SME revenue (%) KAU Gross salaries and wages per employee (000 kn) Active legal entities in processing industry per capita (per 1000 inhabitants) Efficiency of use of intellectual capital Total SME revenue per capita (000 kn) Costs of SME employees per person employed in SME (000 kn) Management nepotism Active legal entities per capita (per 1000 inhabitants) Active companies per capita (per 1000 inhabitants) Active undertakings and cooperatives per capita (per 1000 inhabitants) Number of SME per capita (per 1000 inhabitants) Economic results - level Gross salaries per employee (000 kn) Unemployed/population aged 25-64 (%) Store turnover per capita Profit tax per capita Employment in legal entities per capita (per 100 inhabitants) Number of employed per capita (per 100 inhabitants) Income tax per capita Share of unemployed aged 15 - 24 in total number of unemployed (%) Economic results - trends Sales revenues in local KAUs - trends 2005 / 2003 Exports - trends 2005 / 2003 Exports/imports ratio - trends 2005 / 2003 KAU gross salaries and wages per employee - trends 2005 / 2003 Profit tax - trends 2006 / 2004 Number of registered unemployed who found employment / newly recorded unemployed - trends 2006 / 2004 Labor in demand - trends 2006/ 2004 GDP Index 2004 / 2001

Business infrastructure Cooperation between industry and universities Registered personal vehicles per capita (per 100 inhabitants) Quality of scientific institutes Local market competition Availability of research and development services

HR023 POŽEGA-SLAVONIA COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR023 POŽEGA-SLAVONIA COUNTY

Competitiveness profile of Požega-Slavonia County

A1 Demographics, health and culture B4 Economic results – trends

A2 Education

6 11 16 B3 Economic results – level

Area (km²)

2006.

1.823

Population

2006.

83.412

Unemployment rate (%)

2006.

17,13

GDP (mil kn)

2004.

2.923

B2 Level of entrepreneurship development

A4 Business infrastructure B1 Investments and entrepreneurial trends

Požega-Slavonia County Central and Eastern (Pannonian)

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

A3 Basic infrastructure and public sector

HR023 POŽEGA-SLAVONIA COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

STRENGTH

WEAKNESS

A. BUSINESS ENVIRONMENT

A. BUSINESS ENVIRONMENT Value

Croatian average

Rank

33,50 233,78

30,62 253,73

2 5

148,48 15,65

100,40 13,72

3 4

Demographics, health and culture Share of population aged 0-25 in total population (%) Number of physicians per capita (per 100,000 inhabitants)

Croatian average

Rank

0,53 83.412,00 50,32 -17,46 8,90

49,07 211.134,90 53,31 10,03 97,71

21 20 20 19 19

2,33 1,72 21,46 3,51

3,95 3,07 37,71 5,17

21 20 19 18

4,17 15,50

4,55 20,80

18 17

Demographics, health and culture

Education Pre-school education attendance - trends 2006 / 2004 Number of graduated students per 100 enrolled students

Value

Cinema frequenters per capita (per 100 inhabitants) Population estimate Share of population aged 25-64 in total population (%) Net migration rate in the total population (%) Number of public library users per capita (per 100 inhabitants) Education

Basic infrastructure and public sector Total waste per capita (kg) Number of judges and advisors in county courts per capita (per 100,000 inhabitants) Quality of power supply

538,65 11,99

1.627,24 10,22

3 4

5,50

5,27

Business infrastructure Number of people per 1 telephone line Tariff barriers Number of entrepreneurial zones per capita (per 100,000 inhabitants)

3,30 5,11 4,80

2,77 4,64 2,41

3 4 5

B. BUSINESS SECTOR Value

Croatian average

Rank

4,09

50,06

145,88 59,94

48 51

2 5

Investments and entrepreneurial trends Innovation capacity Economic results - level Unemployed for 12 or more months / total unemployment situation (%) Exports/imports ratio (%) Number of registered unemployed who found employment / total unemployment - situation (%) Economic results - trends Employment in legal entities - trends 2005 / 2003

112,94

109

Availability of scientists and engineers Quality of business schools Pre-school education attendance / population aged 0-4 (%) Share of persons with 2-year college education in population aged 25-64 (%) Quality of public schools Share of persons with high school education in population aged 25-64 (%) Basic infrastructure and public sector Property tax per capita (000 kn) Property tax trends 2006 / 2004 Total infrastructure quality County roads - density (length per 100km²) Current environment protection expenditure per capita (kn) Overseas air traffic Quality of legal framework Quality of railways Innovative and technological influence of public procurement Share of aid in LGUs total revenues (%) Protection of property rights

27,60 70,12 2,26 11,85 43,37 3,11 3,02 2,54 2,78 15,08 3,20

187,30 131,74 3,76 18,63 676,29 4,50 3,44 3,26 2,98 6,34 3,60

21 21 21 20 20 19 19 18 18 17 17

2,54 2,38 1,63 2,15 5,15 2,52 25,63 2,76

3,28 3,59 3,36 2,43 5,73 3,36 32,38 3,13

21 20 20 20 19 18 17 17

Business infrastructure Customer requirements Registered cargo and working vehicles per capita (per 100 inhabitants) Quality of scientific institutes Venture capital availability ICT availability in LGUs Financial market development level Registered personal vehicles per capita (per 100 inhabitants) Cooperation between industry and universities

B. BUSINESS SECTOR Value

Croatian average

Rank

93,61 88,89 97,03 2,41 3,00 2,93 2,41 92,33

110 99 107 3 4 4 3 110

21 20 20 20 20 20 20 19

Licenses as new technology acquisition method Total investments per investor’s seat (000 kn) per capita Share of investments in long-term assets in total SMEs revenues (%) Level of company technological development Total investments per facility location (000 kn) per capita Share of equity and reserves in SMEs sources of capital (%)

3,26 6,74 6,58

4 26 9

19 18 18

2,89 18,29 45,68

4 34 56

18 17 17

14,22

336,29 83,09 26,45 -0,55 5,83 10,51 6,45 46,96 51,62 1,43

545 171 71 3 17 22 17 66 68 3

21 21 20 20 20 19 19 19 18 17

7,92 3,72 3,48 3,17

13 4 4 4

17 17 17 17

26,80

931,84 65,25 0,17 30,92 495,95 34,59 39,17 2,83 60,00

1.862 544 12 36 1.310 49 50 3 64

21 21 21 19 19 18 18 18 17

77,83 65,61 88,99

115 166 127

21 21 21

93,05 99,73 79,79 95,39

113 104 112 99

20 20 20 18

99,68 97,91

108 94

18 17

Level of entrepreneurship development Trades, crafts and freelance professions per capita (per 1000 inhabitants) Total SMEs revenues per person employed in SME (000 kn) GVA per industry employee (000 kn) Total SMEs revenues per capita (000 kn) Share of SMEs total profit/loss in total SMEs revenues (%) Number of SMEs per capita (per 1000 inhabitants) Active legal entities per capita (per 1000 inhabitants) Active companies per capita (per 1000 inhabitants) KAU Gross salaries and wages per employee (000 kn) Costs of SMEs employees per person employed in SME (000 kn) Active legal entities in processing industry per capita (per 1000 inhabitants) Number of employed in SMEs per capita (per 100 inhabitants) Company participation in design and marketing Marketing development level Management nepotism Economic results - level Share of unemployed aged 15 - 24 in total number of unemployed (%) Income tax per capita Profit tax per capita Tourist overnights per capita Number of employed per capita (per 100 inhabitants) Other LGUs revenues per capita GDP per capita (000 kn) Gross salaries per employee (000 kn) Export results Number of registered unemployed who found employment / newly recorded unemployed - situation (%) Economic results - trends Income tax - trends 2006 / 2004 Profit tax - trends 2006 / 2004 Index of unsubisidized local and county budget revenues per capita 2006 / 2004 Sales revenues in local KAUs - trends 2005 / 2003 Total employment - trends 2006 / 2004 Labor in demand - trends 2006/ 2004 KAU gross salaries and wages per employee - trends 2005 / 2003 Exports/imports ratio - trends 2005 / 2003 Unemployment - trends 2006 / 2004

Investments and entrepreneurial trends Number of SMEs per capita (per 1000 inhabitants) Number of local KAUs - trends 2005 / 2003 Active legal entities - trends 2005 / 2003 Company investments in research and development Use of modern technologies Management supervision by foreign investors and executive boards Company investments in education Active companies - trends 2005 / 2003

HR024 BROD-POSAVINA COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR024 BROD-POSAVINA ŽUPANIJA

Competitiveness profile of Brod-Posavina County

A1 Demographics, health and culture B4 Economic results – trends

A2 Education

6 11 16 B3 Economic results – level

Area (km²)

2006.

2.030

Population

2006.

173.905

Unemployment rate (%)

2006.

24,19

GDP (mil kn)

2004.

4.942

B2 Level of entrepreneurship development

A4 Business infrastructure B1 Investments and entrepreneurial trends

Brod-Posavina County Central and Eastern (Pannonian)

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

A3 Basic infrastructure and public sector

HR024 BROD-POSAVINA COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

STRENGTH

WEAKNESS

A. BUSINESS ENVIRONMENT

A. BUSINESS ENVIRONMENT Value

Croatian average

Rank

33,84

30,62

188,35 117,34

100,40 104,96

2 4

Demographics, health and culture Share of population aged 0-25 in total population (%)

Basic infrastructure and public sector Quality of railways Unsubsidized revenues of local and county budgets /GDP (%) Total waste per capita (kg) Police protection reliability

4,56 4,85 797,80 4,78

3,26 6,47 1.627,24 4,34

2 4 5 5

Business infrastructure Price of water and sewage (kn/m³) Number of people per 1 telephone line

10,63 3,20

14,50 2,77

3 5

B. BUSINESS SECTOR Value

Croatian average

Rank

97,73

1,83

21,00 17,05

25 23

4 5

Level of entrepreneurship development Total SMEs revenues / total SMEs assets (%)

Value

Croatian average

Rank

50,46 33,93 4,19

53,31 57,49 49,07

19 19 17

19,80 4,44 3,52

37,71 5,02 5,17

20 19 17

4,26

5,81

Demographics, health and culture

Education Pre-school education attendance - trends 2006 / 2004 Ratio of graduated and enrolled students - trends 2006 / 2004

Level of entrepreneurship development

Share of population aged 25-64 in total population (%) Number of pharmacists per capita (per 100.000 inhabitants) Cinema frequenters per capita (per 100 inhabitants) Education Pre-school education attendance / population aged 0-4 (%) Quality of mathematics and natural sciences education Share of persons with 2-year college education in population aged 25-64 (%) Share of graduated students in population aged 20-24 (%) Basic infrastructure and public sector Current environment protection expenditure per capita (kn) Number of judges and advisors in county courts per capita (per 100,000 inhabitants) Environment protection investments per capita (kn) Strict application of quality standards Anti-trust policy efficiency Local roads - density (length per 100km²) Total infrastructure quality Availability of new telephone lines Survey based shadow economy estimate Property tax per capita (000 kn) Level of development of air transport Implementation of ecological legislation Economic policy centralization

42,56 5,75

676,29 10,22

21 21

28,07 3,64 3,29 10,25 2,58 5,80 3,16 58,64 2,98 3,16 2,40

619,22 4,04 3,70 18,33 3,76 6,20 3,41 187,30 4,28 3,37 2,68

20 20 20 19 19 19 18 17 17 17 17

5,00 2,82 23,73 2,40

5,73 3,31 32,38 3,59

21 21 20 18

4,47 3,87 1,73

5,06 4,46 2,41

18 18 17

2,69

3,36

Value

Croatian average

Rank

87,61 102,48

99 107

21 21

4,52 2,73 12,96 99,95 3,31 2,44 3,04 3,13

26 4 34 110 4 3 4 4

21 21 20 20 20 19 19 17

Economic results - level Share of unemployed with 2-year college education in total unemployment (%) Share of unemployed aged 50+ in total number of unemployed (%) Share of unemployment benefit users in total number of unemployed (%) Economic results - trends Exports/imports ratio - trends 2005 / 2003 Total employment - trends 2006 / 2004 Exports - trends 2005 / 2003

158,12 105,97 144,78

108 104 127

2 5 5

Business infrastructure ICT availability in LGUs Local availability of machines and equipment Registered personal vehicles per capita (per 100 inhabitants) Registered cargo and working vehicles per capita (per 100 inhabitants) Local market competition Availability of local suppliers Number of entrepreneurial zones per capita (per 100,000 inhabitants) Financial market development level

Active legal entities per capita (per 1000 inhabitants) Costs of SMEs employees per person employed in SME (000 kn) Company participation in design and marketing Control of export distribution and marketing by the company itself Active legal entities in processing industry per capita (per 1000 inhabitants) Number of SMEs per capita (per 1000 inhabitants) Efficiency of use of intellectual capital Active companies per capita (per 1000 inhabitants) Number of local KAUs per capita (per 100.000 inhabitants) Delegation of authority to lower management Revenues from sales in local KAUs per capita (000 kn) Customer orientation

9,40 51,03 3,44 4,22 1,35

22 68 4 5 3

20 20 20 20 19

6,43 1,77 6,65 56,73 3,31 12,58 4,98

17 2 17 85 4 27 5

19 19 18 18 18 17 17

38,50

18,46 367,02 28,26 14,99 38,48 27,65 55,26

45 1.310 49 25 50 36 64

21 21 20 20 20 20 20

981,37 0,22 60,23

1.862 12 57

20 20 19

97,21 3,50 11,05 3,79 17,20

544 12 52 6 12

19 19 18 17 17

113,28

127

108,23 114,28 107,63

115 136 110

19 18 17

Economic results - level Number of registered unemployed who found employment / total unemployment - situation (%) Labor in demand/ unemployed (%) Other LGUs revenues per capita GDP per capita (000 kn) Employment in legal entities per capita (per 100 inhabitants) Gross salaries per employee (000 kn) Number of employed per capita (per 100 inhabitants) Number of registered unemployed who found employment / newly recorded unemployed - situation (%) Income tax per capita Tourist overnights per capita Unemployed for 12 or more months / total unemployment situation (%) Profit tax per capita Exports (000 kn) per capita Store turnover per capita Number of employed in local KAUs per capita (per 100 inhabitants) Unemployed/population aged 25-64 (%) Economic results - trends Index of unsubisidized local and county budget revenues per capita 2006 / 2004 Income tax - trends 2006 / 2004 Other LGUs revenues - trends 2006 / 2004 Index of gross salary per employee - trends 2006/ 2004

B. BUSINESS SECTOR Investments and entrepreneurial trends Number of local KAUs - trends 2005 / 2003 Owners and employees in trade, crafts and freelance professions - trends 2005 / 2003 Total investments per investor’s seat (000 kn) per capita Management supervision by foreign investors and executive boards Total investments per facility location (000 kn) per capita Number of SMEs per capita (per 1000 inhabitants) Innovation capacity Company investments in research and development Use of modern technologies Level of company technological development

HR025 OSIJEK-BARANJA COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR025 OSIJEK-BARANJA COUNTY

Competitiveness profile of Osijek-Baranja County

A1 Demographics, health and culture B4 Economic results – trends

A2 Education

6 11 16 B3 Economic results – level

Area (km²)

2006.

4.155

Population

2006.

327.040

Unemployment rate (%)

2006.

22,01

GDP (mil kn)

2004.

12.198

B2 Level of entrepreneurship development

A4 Business infrastructure B1 Investments and entrepreneurial trends

Osijek-Baranja County Central and Eastern (Pannonian)

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

A3 Basic infrastructure and public sector

HR025 OSIJEK-BARANJA COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

STRENGTH

WEAKNESS

A. BUSINESS ENVIRONMENT

A. BUSINESS ENVIRONMENT Value

Croatian average

Rank

327.040,00 53,34

211.134,90 53,31

3 5

Vital index (birth/death ratio) Number of dentists per capita (per 100,000 inhabitants) Number of pharmacists per capita (per 100.000 inhabitants)

140,69 123,95

115,68 110,21

2 3

Education

680,73 7,06 4,00

676,29 6,34 54,38

4 4 4

Basic infrastructure and public sector

5,30

5,06

Value

Croatian average

Rank

86,96 105,69 40,60

50 103 41

4 4 5

Demographics, health and culture Population estimate Share of population aged 25-64 in total population (%)

Share of SME total profit/loss in total SME revenue (%) Employer - employees relations

0,25 4,25

3 4

18 17

3,64 2,93

5 3

19 17

90,21 94,51

108 112

19 17

Economic results - level

Value

Croatian average

Rank

56,69 41,89 41,28

80,47 72,85 57,49

19 19 18

11,12 4,50

13,72 5,02

19 17

2,09 1,86 3,20 2,86 3,27 0,24 3,91 2,55 2,43 12,52 237,00 11,31 15,02 117,28 3,02

4,28 4,50 3,68 3,34 3,70 5,86 4,34 2,98 3,01 18,33 318,00 13,90 18,63 131,74 3,27

21 21 21 21 21 20 19 19 19 18 18 17 17 17 17

2,80 25,49 2,41

3,19 32,38 3,59

20 18 17

5,25 2,20 2,82

5,73 2,43 3,28

17 17 17

Value

Croatian average

Rank

2,82 102,42

4 110

20 19

4,80 2,80 0,50

5 4 2

20 20 19

3,20 15,11

4 22

19 18

1,37

Sales results in Croatia Export results

Demographics, health and culture Economic results - trends Exports/imports ratio - trends 2005 / 2003 Labor in demand - trends 2006/ 2004

Education Graduated students - trends 2006 / 2004 Enrolled students - trends 2006 / 2004

Number of graduated students per 100 enrolled students Quality of mathematics and natural sciences education

Basic infrastructure and public sector Current environment protection expenditure per capita (kn) Share of aid in LGUs total revenues (%) Number of days necessary for registration in the land register in the county seat Business infrastructure Local market competition

B. BUSINESS SECTOR Investments and entrepreneurial trends Active undertakings and cooperatives - trends 2005 / 2003 Trades, crafts and freelance professions - trends 2005 / 2003 Share of investments in equipment in total investments per facility location (%) Level of entrepreneurship development Delegation of authority to lower management

3,91

1,67

123,10 1.710,62

48 1.310

4 5

262,46 164,79

136 127

1 1

147,25

111

Economic results - level Share of unemployed with 2-year college education in total unemployment (%) Exports/imports ratio (%) Other LGUs revenues per capita Economic results - trends Other LGUs revenues - trends 2006 / 2004 Index of unsubisidized local and county budget revenues per capita 2006 / 2004 Tourist overnights - trends 2005 / 2003

Level of development of air transport Overseas air traffic Rigidity of ecological legislation Neutrality of Government decisions Anti-trust policy efficiency Recovered waste / total waste (%) Police protection reliability Innovative and technological influence of public procurement Independence of the judiciary Local roads - density (length per 100km²) Number of solved cases per judge State roads - density (length per 100km²) County roads - density (length per 100km²) Property tax trends 2006 / 2004 Protection of intellectual property rights Business infrastructure Ease of access to finance Registered personal vehicles per capita (per 100 inhabitants) Registered cargo and working vehicles per capita (per 100 inhabitants) ICT availability in LGUs Venture capital availability Customer requirements

B. BUSINESS SECTOR Investments and entrepreneurial trends Level of company technological development Number of SME per capita (per 1000 inhabitants) Level of entrepreneurship development Customer orientation Management nepotism Active undertakings and cooperatives per capita (per 1000 inhabitants) Marketing development level Trades, crafts and freelance professions per capita (per 1000 inhabitants) Active legal entities in processing industry per capita (per 1000 inhabitants)

HR026 VUKOVAR-SRIJEM COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR026 VUKOVAR-SRIJEM COUNTY

Competitiveness profile of Vukovar-Srijem County

A1 Demographics, health and culture B4 Economic results – trends

A2 Education

6 11 16 B3 Economic results – level

Area (km²)

2006.

2.454

Population

2006.

199.321

Unemployment rate (%)

2006.

25,67

GDP (mil kn)

2004.

5.532

B2 Level of entrepreneurship development

A4 Business infrastructure B1 Investments and entrepreneurial trends

Vukovar-Srijem County Central and Eastern (Pannonian)

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

A3 Basic infrastructure and public sector

HR026 VUKOVAR-SRIJEM COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

STRENGTH

WEAKNESS

A. BUSINESS ENVIRONMENT

A. BUSINESS ENVIRONMENT Value

Croatian average

Rank

Demographics, health and culture Share of population aged 0-25 in total population (%)

33,28

30,62

127,41 140,26

110,21 115,68

2 3

433,00 3,23 4,32 10,15 153,05 218,24

318,00 2,68 3,60 5,86 131,74 3.052,96

1 1 1 3 3 4

Basic infrastructure and public sector Number of solved cases per judge Economic policy centralization Protection of property rights Recovered waste / total waste (%) Property tax trends 2006 / 2004 Number of unsolved cases in Land Register per capita (per 100,000 inhabitants) Business infrastructure Number of people per 1 telephone line

Value

Croatian average

Rank

-20,13 36,12 30,60 0,96 168,57 57,46

10,03 72,85 57,49 49,07 253,73 69,97

21 21 21 19 18 17

16,52 3,07 9,78 1,77 5,61

37,71 5,81 13,72 3,07 10,67

21 20 20 19 18

3,00 31,36

3,95 42,37

18 17

9,78 41,66 2,30 2,52 61,15 19,62 6,52

18,33 187,30 4,28 4,50 676,29 6,34 10,22

20 20 20 20 19 19 19

921,63

768,03

2,66 5,91 3,11

3,76 6,20 3,34

18 17 17

Demographics, health and culture

Education Enrolled students - trends 2006 / 2004 Graduated students - trends 2006 / 2004

B. BUSINESS SECTOR

3,50

2,77

Net migration rate in the total population (%) Number of dentists per capita (per 100,000 inhabitants) Number of pharmacists per capita (per 100.000 inhabitants) Cinema frequenters per capita (per 100 inhabitants) Number of physicians per capita (per 100,000 inhabitants) Number of active members of various associations per capita (per 1000 inhabitants) Education Pre-school education attendance / population aged 0-4 (%) Share of graduated students in population aged 20-24 (%) Number of graduated students per 100 enrolled students Quality of business schools Share of persons with university education in population aged 25-64 (%) Availability of scientists and engineers Share of enrolled students in population aged 20-24 (%) Basic infrastructure and public sector

B. BUSINESS SECTOR Value

Croatian average

Rank

109,91 95,00 114,97

56 50 107

1 2 3

Investments and entrepreneurial trends Share of equity and reserves in SMEs sources of capital (%) Active undertakings and cooperatives - trends 2005 / 2003 Active legal entities - trends 2005 / 2003 Level of entrepreneurship development Share of SMEs total profit/loss in total SMEs revenues (%) Marketing development level

5,05

4,27

Business infrastructure

Economic results - level Share of unemployed aged 50+ in total number of unemployed (%) Share of unemployed with 2-year college education in total unemployment (%) Share of unemployment benefit users in total number of unemployed (%) Share of unemployed with university education in total unemployment (%) Number of registered unemployed who found employment / newly recorded unemployed - situation (%)

19,88 1,65

25 3

1 2

16,64

1,45

70,22

115,54 111,85 153,83

109 110 111

3 3 3

Economic results - trends Employment in legal entities - trends 2005 / 2003 Index of gross salary per employee - trends 2006/ 2004 Tourist overnights - trends 2005 / 2003

Local roads - density (length per 100km²) Property tax per capita (000 kn) Level of development of air transport Overseas air traffic Current environment protection expenditure per capita (kn) Share of aid in LGUs total revenues (%) Number of judges and advisors in county courts per capita (per 100,000 inhabitants) Number of indicted adult criminal offenders per capita (per 100,000 inhabitants) Total infrastructure quality Availability of new telephone lines Neutrality of Government decisions

Registered personal vehicles per capita (per 100 inhabitants) Registered cargo and working vehicles per capita (per 100 inhabitants) Ease of access to finance Venture capital availability Tariff barriers Number of entrepreneurial zones per capita (per 100,000 inhabitants) Surface of entrepreneurial zones per capita (m² per inhabitant) Financial market development level Local market competition Customer requirements Quality of local suppliers Availability of research and development services

22,50 2,03

32,38 3,59

21 21

2,61 1,91 4,09 1,00

3,19 2,43 4,64 2,41

21 21 21 20

0,85 2,45 4,27 2,64 3,84 3,23

10,79 3,36 5,06 3,28 4,37 4,24

20 20 20 19 19 19

Value

Croatian average

Rank

3,11 5,01 2,84 24,93

4 26 4 41

21 20 19 18

6,51

2,45 2,59 93,10 94,67 3,16

3 3 99 110 4

18 18 17 17 17

9,01 5,59 0,97

22 17 3

21 21 21

50,37 5,72 40,44 4,57 0,47

68 17 85 5 2

21 21 21 21 20

9,31 7,17 15,44 3,61 15,33

27 13 22 4 22

20 19 18 18 17

34,80 4,25

71 4

17 17

27,48 14,78 26,84 2,82 2,74 17,42 525,39 40,19 59,26 1.162,18 102,96 4,04

49 25 36 3 6 12 1.310 50 57 1.862 544 12

21 21 21 19 18 18 18 17 17 17 17 17

Investments and entrepreneurial trends Innovation capacity Total investments per investor’s seat (000 kn) per capita Level of company technological development Share of investments in equipment in total investments per facility location (%) Share of investments in processing industry in total investments per facility location (%) Company investments in research and development Company investments in education Number of local KAUs - trends 2005 / 2003 Active companies - trends 2005 / 2003 Management supervision by foreign investors and executive boards Level of entrepreneurship development Active legal entities per capita (per 1000 inhabitants) Active companies per capita (per 1000 inhabitants) Active legal entities in processing industry per capita (per 1000 inhabitants) Costs of SMEs employees per person employed in SME (000 kn) Number of SMEs per capita (per 1000 inhabitants) Number of local KAUs per capita (per 100.000 inhabitants) Customer orientation Active undertakings and cooperatives per capita (per 1000 inhabitants) Revenues from sales in local KAUs per capita (000 kn) Number of employed in SMEs per capita (per 100 inhabitants) Share of processing industry in total employment (%) Company participation in design and marketing Trades, crafts and freelance professions per capita (per 1000 inhabitants) Total SMEs revenues per capita (000 kn) Employer - employees relations Economic results - level GDP per capita (000 kn) Employment in legal entities per capita (per 100 inhabitants) Number of employed per capita (per 100 inhabitants) Export results Number of employed in local KAUs per capita (per 100 inhabitants) Unemployed/population aged 25-64 (%) Other LGUs revenues per capita Gross salaries per employee (000 kn) Unemployed for 12 or more months / total unemployment - situation (%) Income tax per capita Profit tax per capita Exports (000 kn) per capita

HR027 KARLOVAC COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR027 KARLOVAC COUNTY

Competitiveness profile of Karlovac County

A1 Demographics, health and culture B4 Economic results – trends

A2 Education

6 11 16 B3 Economic results – level

Area (km²)

2006.

3.626

Population

2006.

135.838

Unemployment rate (%)

2006.

21,81

GDP (mil kn)

2004.

4.940

B2 Level of entrepreneurship development

A4 Business infrastructure B1 Investments and entrepreneurial trends

Karlovac County Central and Eastern (Pannonian)

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

A3 Basic infrastructure and public sector

HR027 KARLOVAC COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

STRENGTH

WEAKNESS

A. BUSINESS ENVIRONMENT

A. BUSINESS ENVIRONMENT Value

Croatian average

Rank

240,73 59,63

253,73 57,49

3 4

4,78 5,33

4,55 5,02

5 5

4,52 4,98 3,74 3,67 4,26 4,00

3,34 4,34 3,01 3,41 4,03 3,44

1 3 3 4 4 5

Demographics, health and culture Number of physicians per capita (per 100,000 inhabitants) Number of cinema goers per capita (per 100 inhabitants)

Share of population aged 0-25 in total population (%) Vital index (birth/death ratio) Number of active members of various associations per capita (per 1000 inhabitants) Number of public library users per capita (per 100 inhabitants)

Croatian average

Rank

27,19 51,93 56,29

30,62 80,47 69,97

20 20 18

14,40

97,71

25,97

37,71

2,93 2,39

3,71 2,68

18 18

15,20

14,50

Value

Croatian average

Rank

143,14 -679,81 36,59 6,31 103,11

368 2.188 50 9 110

21 21 20 19 18

0,55

4,39

68,27

39,57

17,51 26,14 568,54 11,97

12 45 1.310 52

19 19 17 17

Index of gross salary per employee - trends 2006/ 2004 GDP Index 2004 / 2001 Other LGUs revenues - trends 2006 / 2004 Unemployed for 12 or more months / total unemployment trends 2006 / 2004 Tourist overnights - trends 2005 / 2003 Total employment - trends 2006 / 2004 Unemployment - trends 2006 / 2004

106,87 110,12 109,74 103,42

110 130 136 94

21 20 20 19

105,14 102,39 98,99

111 104 94

19 18 18

Education Pre-school education attendance / population aged 0-4 (%)

Basic infrastructure and public sector Neutrality of Government decisions Police protection reliability Independence of the judiciary Survey based shadow economy estimate Corruption intensity Quality of legal framework

Value Demographics, health and culture

Education Quality of public schools Quality of mathematics and natural sciences education

Economic results - trends

Basic infrastructure and public sector Quality of ports and water transport Economic policy centralization Business infrastructure Price of water and sewage (kn/mÂł)

Business infrastructure Ease of access to finance Tariff barriers Availability of research and development services Cooperation between industry and universities

3,89 5,33 4,30 3,26

3,19 4,64 4,24 3,13

2 3 4 5

Investments and entrepreneurial trends

B. BUSINESS SECTOR Value

Croatian average

Rank

86,66 4,11 4,13 25,43

56 4 4 12

2 3 4 5

3,96 3,74

4 3

5 5

115,29 5,74 4,76 4,07

85 5 4 4

3 3 4 5

15,61 75,10

20 64

1 2

422,29 3,89 1.721,40

544 3 1.862

4 4 5

128,23

114

156,15 148,95 113,43

127 108 109

3 3 4

Investments and entrepreneurial trends Share of equity and reserves in SME sources of capital (%) Innovation capacity Use of modern technologies Share of investments in processing industry in total investments per facility location (%) Management supervision by foreign investors and executive boards Company investments in education Level of entrepreneurship development Number of local KAUs per capita (per 100.000 inhabitants) Customer orientation Employer - employees relations Management nepotism Economic results - level Share of unemployed aged 15 - 24 in total number of unemployed (%) Number of registered unemployed who found employment / newly recorded unemployed - situation (%) Profit tax per capita Export results Income tax per capita

B. BUSINESS SECTOR

Housing construction per capita (m2 per 1000 inhabitants) Foreign direct equity investments per capita (â&#x201A;Ź) Active undertakings and cooperatives - trends 2005 / 2003 Share of investments in long-term assets in total SME revenues (%) Number of SME per capita (per 1000 inhabitants) Level of entrepreneurship development Active undertakings and cooperatives per capita (per 1000 inhabitants) Control of export distribution and marketing by the company itself Economic results - level Unemployed for 12 or more months / total unemployment situation (%) Number of registered unemployed who found employment / total unemployment - situation (%) Unemployed/population aged 25-64 (%) Labor in demand/ unemployed (%) Other LGUs revenues per capita Store turnover per capita

Economic results - trends Number of registered unemployed who found employment / newly recorded unemployed - trends 2006 / 2004 Exports - trends 2005 / 2003 Exports/imports ratio - trends 2005 / 2003 Employment in legal entities - trends 2005 / 2003

HR028 SISAK-MOSLAVINA COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR028 SISAK-MOSLAVINA COUNTY

Competitiveness profile of Sisak-Moslavina County

A1 Demographics, health and culture B4 Economic results – trends

A2 Education

6 11 16 B3 Economic results – level

Area (km²)

2006.

4.468

Population

2006.

178.014

Unemployment rate (%)

2006.

22,73

GDP (mil kn)

2004.

6.544

B2 Level of entrepreneurship development

A4 Business infrastructure B1 Investments and entrepreneurial trends

Sisak-Moslavina County Central and Eastern (Pannonian)

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

A3 Basic infrastructure and public sector

HR028 SISAK-MOSLAVINA COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

STRENGTH

WEAKNESS

A. BUSINESS ENVIRONMENT

A. BUSINESS ENVIRONMENT Value

Croatian average

Rank

208,21

97,71

Demographics, health and culture Number of public library users per capita (per 100 inhabitants)

16,51 137,73 129,96 114,40

13,72 100,40 115,68 104,96

2 4 5 5

3,76

3,34

Basic infrastructure and public sector Neutrality of Government decisions

Vital index (birth/death ratio) Share of population aged 0-25 in total population (%) Net migration rate in the total population (%)

59,81 28,92 -12,19

80,47 30,62 10,03

18 17 17

Education Quality of public schools Quality of mathematics and natural sciences education

Innovative and technological influence of public procurement Quality of power supply Survey based shadow economy estimate Protection of property rights State roads - density (length per 100km²) Property tax per capita (000 kn) Quality of ports and water transport Total waste per capita (kg) Recovered waste / total waste (%)

2,89 3,54 3,20

2,43 3,31 2,77

1 3 5

Value

Croatian average

Rank

31,14

42,17

103,96

Availability of local suppliers Quality of local suppliers Registered cargo and working vehicles per capita (per 100 inhabitants) Price of water and sewage (kn/m³) ICT availability in LGUs Financial market development level

48,60 32,85

27 22

1 5

B. BUSINESS SECTOR

B. BUSINESS SECTOR Investments and entrepreneurial trends Share of investments in processing industry in total investments per facility location (%) Share of investments in equipment in total investments per facility location (%) Number of local KAUs - trends 2005 / 2003

Rank

4,09 4,24

4,55 5,02

21 20

2,28 4,07 3,09 3,07 10,65 48,59 2,83 2.408,38 0,37

2,98 5,27 3,41 3,60 13,90 187,30 3,71 1.627,24 5,86

21 20 20 20 19 19 19 18 18

3,30 3,50 2,39

4,46 4,37 3,59

21 21 19

16,98 5,24 2,52

14,50 5,73 3,36

19 18 18

Value

Croatian average

Rank

96,90 100,00 193,05 19,08 3,46 3,09 38,93 104,86

107 103 368 2.188 4 4 50 110

21 19 19 18 18 18 17 17

1,63 6,07 14,50

2 17 22

21 20 20

3,07 88,08 3,30 4,17

4 171 4 4

20 19 19 19

Basic infrastructure and public sector

Business infrastructure Venture capital availability Local availability of machines and equipment Number of people per 1 telephone line

Croatian average

7,86 30,12 6,77 3,41 11,49 386,88

13 71 17 4 22 545

18 18 18 18 17 17

18,13 62,52

12 57

20 20

10,08 42,53

52 51

20 18

28,73 4,04

45 5

17 17

109,12 92,81

130 111

21 21

Demographics, health and culture

Education Number of graduated students per 100 enrolled students Pre-school education attendance - trends 2006 / 2004 Graduated students - trends 2006 / 2004 Ratio of graduated and enrolled students - trends 2006 / 2004

Value

Number of employed in SMEs per capita (per 100 inhabitants) Total SMEs revenues per capita (000 kn) Number of SMEs per capita (per 1000 inhabitants) Results-based management motivation schemes Active legal entities per capita (per 1000 inhabitants) Total SMEs revenues per person employed in SME (000 kn) Economic results - level Unemployed/population aged 25-64 (%) Unemployed for 12 or more months / total unemployment situation (%) Store turnover per capita Number of registered unemployed who found employment / total unemployment - situation (%) Labor in demand/ unemployed (%) Sales results in Croatia Economic results - trends GDP Index 2004 / 2001 Tourist overnights - trends 2005 / 2003

Business infrastructure

Level of entrepreneurship development Revenues from sales in local KAUs per capita (000 kn) Share of processing industry in total employment (%) Economic results - level Share of unemployment benefit users in total number of unemployed (%) Share of unemployed with university education in total unemployment (%) Number of employed in local KAUs per capita (per 100 inhabitants) Share of unemployed aged 15 - 24 in total number of unemployed (%) Exports (000 kn) per capita Exports/imports ratio (%)

14,06

1,37

6,92 17,50 16,48 116,21

6 20 12 48

4 4 4 5

140,38 120,94

113 108

2 2

106,06 128,06

104 114

4 4

101,95 126,42 93,35

98 112 94

5 5 5

Economic results - trends Sales revenues in local KAUs - trends 2005 / 2003 Number of registered unemployed who found employment - trend 2006 / 2004 Total employment - trends 2006 / 2004 Number of registered unemployed who found employment / newly recorded unemployed - trends 2006 / 2004 Number of employed in local KAUs - trends 2005 / 2003 Labor in demand - trends 2006/ 2004 Unemployed for 12 or more months / total unemployment - trends 2006 / 2004

Investments and entrepreneurial trends Active legal entities - trends 2005 / 2003 Trades, crafts and freelance professions - trends 2005 / 2003 Housing construction per capita (m2 per 1000 inhabitants) Foreign direct equity investments per capita (€) Licenses as new technology acquisition method Use of modern technologies Active undertakings and cooperatives - trends 2005 / 2003 Number of SMEs per capita (per 1000 inhabitants) Level of entrepreneurship development Efficiency of use of intellectual capital Active companies per capita (per 1000 inhabitants) Trades, crafts and freelance professions per capita (per 1000 inhabitants) Marketing development level GVA per industry employee (000 kn) Delegation of authority to lower management Employer - employees relations

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

ADRIATIC CROATIA Primorje-Gorski Kotar County Lika-Senj County Zadar County Ĺ ibenik-Knin County Split-Dalmatia County Istria County Dubrovnik-Neretva County

HR03 ADRIATIC CROATIA

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR03 ADRIATIC CROATIA

Area (km²)

2006.

24.705

Population

2006.

1.448.279

Unemployment rate (%)

2006.

14,54

GDP (mil kn)

2004.

68.154

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

Competitiveness profile of Adriatic Croatia region

Adriatic Croatia is improving, according to the statistical data value of the competitiveness factors (business environment and business sector) rather than the perception data. This region has significant differences between the competitiveness levels of its counties, from Istria County (3rd) to Lika-Senj County (19th). It is therefore important to determine common interests for this region, as well as establish a better perception of the quality of the competitiveness factors that this region has at its disposal.

A1 Demographics, health and culture B4 Economic results – trends

B3 Economic results – level

5 6 7 8 9 10 11 12 13 14 15

B2 Level of entrepreneurship development

A3 Basic infrastructure and public sector

A4 Business infrastructure B1 Investments and entrepreneurial trends

A2 Education

HR03 ADRIATIC CROATIA

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Comparison of counties Adriatic Croatia Demographics, health and culture

Education

Basic infrastructure and public sector

Business infrastructure

Investments and Level of entrepreneurial entrepreneur trends ship development

Economic results level

Dubrovnik-Neretva

0 1 2 3 4 5 6 7

2 3

4 6

Demographics, health and culture

Economic results trends

0 1 2 3 4 5 6 7

Education

Basic infrastructure and public sector

5 7

Economic results trends

0 1 2 3 4 5 6 7

2 3

Ĺ ibenik-Knin

1 3

3 4 5 7

Split-Dalmatia 0 1 2 3 4 5 6 7

Economic results level

Primorje-Gorski Kotar

Investments and Level of entrepreneurial entrepreneur trends ship development

Istria 1

Lika-Senj 0 1 2 3 4 5 6 7

Business infrastructure

0 1 2 3 4 5 6 7

1 3 4 5

Zadar

0 1 2 3 4 5 6 7

2 3 4 5

5 7

Strengths and weaknesses

Demographics, health and culture

Education

Basic infrastructure and public sector

Business infrastructure

Investments and entrepreneurial trends

Level of entrepreneurship development

Economic results - level

Economic results trends

Primorje-Gorski Kotar Istria Dubrovnik-Neretva Zadar Split-Dalmatia Ĺ ibenik-Knin Lika-Senj first 7 counties

last 7 counties

middle range

HR03 ADRIATIC CROATIA

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Value

Croatian average

Rank

Demographics, health and culture 1.448.279

211.135

Share of population aged 25-64 in total population (%)

53,19

53,31

Share of population aged 0-25 in total population (%)

30,41

30,62

Net migration rate in the total population (%)

21,81

10,03

Vital index (birth/death ratio)

86,35

80,47

Number of cinema goers per capita (per 100 inhabitants)

34,98

49,07

Number of public library users per capita (per 100 inhabitants)

64,22

97,71

Number of active members of various associations per capita (per 1000 inhabitants)

63,31

Number of physicians per capita (per 100,000 inhabitants)

245,39

Number of dentists per capita (per 100,000 inhabitants)

84,65

72,85

Number of pharmacists per capita (per 100.000 inhabitants)

54,27

57,49

Population estimate

Croatian average

Rank

Number of entrepreneurial zones per capita (per 100,000 inhabitants)

2,49

2,41

Size of entrepreneurial zones per capita (m² per inhabitant)

11,25

10,79

Croatian average

Rank

Environmental protection investments per capita (kn)

461,27

619,22

Current environmental protection expenditure per capita (kn)

487,30

676,29

Property tax per capita (000 kn)

337,44

187,30

Property tax trends 2006 / 2004

140,46

131,74

Quality of scientific institutes

3,14

3,36

Share of aid in LGUs total revenue (%)

7,16

6,34

Cooperation between industry and universities

2,97

3,13

Unsubsidized revenues of local and county budgets / GDP (%)

7,18

6,47

ICT availability in LGUs

5,73

Financial market development level

3,21

3,36

Average surtax rate (%)

5,53

7,79

Ease of access to finance

3,19

Number of indicted adult criminal offenders per capita (per 100,000 inhabitants)

813,93

768,03

Venture capital availability

2,47

2,43

4,64

9,94

4,63

69,97

Number of judges and advisors in county courts per capita (per 100,000 inhabitants)

Tariff barriers Local market competition

4,87

5,06

Customer requirements

3,31

3,28

253,73

Availability of local suppliers

4,35

4,46

Quality of local suppliers

4,32

4,37

Local availability of machines and equipment

3,30

3,31

Availability of research and development services

3,85

4,24

Education 1

Number of solved cases per judge Number of unsolved cases in land register per capita (per 100,000 inhabitants)

10,22

342,00

318,00

4.256,64

3.052,96

3 2

Number of days necessary for registration in the land register in the county seat

64,97

Total infrastructure quality

3,30

3,76

Quality of railways

2,49

3,26

Quality of ports and water transport

4,44

3,71

Level of development of air transport

4,64

4,28

Overseas air traffic

4,72

4,50

Quality of power supply

5,07

5,27

Availability of new telephone lines

6,16

6,20

Rigidity of ecological legislation

3,71

3,68

Implementation of ecological legislation

3,13

3,37

Survey based shadow economy estimate

3,47

3,41

54,38

Share of population aged 25-64 with high school education (%)

22,31

Share of population aged 25-64 withwith 2-year college education (%)

6,26

Share of population aged 25-64 withwith university education (%)

10,94

10,67

Pre-school education attendance / population aged 0-4 (%)

42,81

37,71

Pre-school education attendance - trends 2006 / 2004

95,70

100,40

Quality of legal framework

3,27

3,44

Share of enrolled students in population aged 20-24 (%)

45,39

42,37

Neutrality of Government decisions

3,30

3,34

Enrolled students - trends 2006 / 2004

104,08

110,21

Economic policy centralization

2,50

2,68

6,40

5,81

Protection of property rights

3,46

3,60

Protection of intellectual property rights

3,00

3,27

Police protection reliability

4,01

4,34

Innovative and technological influence of public procurement

2,78

2,98

Strict application of quality standards

3,88

4,04

Anti-trust policy efficiency

3,82

3,70

Independence of the judiciary

2,81

3,01

Corruption intensity

4,14

4,03

Registered personal vehicles per capita (per 100 inhabitants)

35,65

32,38

Share of graduated students in population aged 20-24 (%)

20,80 5,17

Graduated students - trends 2006 / 2004

113,41

115,68

Number of graduated students per 100 enrolled students

14,09

13,72

Ratio of graduated and enrolled students - trends 2006 / 2004

108,97

104,96

Quality of public schools

4,45

4,55

Quality of mathematics and natural sciences education

5,14

5,02

Quality of business schools

3,01

3,07

Availability of scientists and engineers

3,81

3,95

Business infrastructure

Basic infrastructure and public sector

Value

A. BUSINESS ENVIRONMENT

State roads - density (length per 100km²)

16,22

13,90

County roads - density (length per 100km²)

15,41

18,63

3,59

16,68

18,33

Registered cargo and working vehicles per capita (per 100 inhabitants)

3,93

Local roads - density (length per 100km²)

1.862,53

1.627,24

Price of water and sewage (kn/m³)

13,02

14,50

10,35

5,86

Number of people per 1 telephone line

2,39

2,77

Total waste per capita (kg) Recovered waste / total waste (%)

HR03 ADRIATIC CROATIA

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

B. BUSINESS SECTOR Value

Croatian average

Rank

Value

Croatian average

Rank

Total SME revenue per capita (000 kn)

64,48

Share of SME total profit/loss in total SME revenue (%)

2,00

Unemployed for 12 or more months / total unemployment - situation (%)

Value

Croatian average

Rank

52,44

1.773,54

1.862

372,27

544

1.682,98

1.310

Investments and entrepreneurial trends

Total SME revenue per person employed in SME (000 kn)

505,58

545

Income tax per capita

Number of local KAUs - trends 2005 / 2003

101,26

68,00

Profit tax per capita

Active legal entities - trends 2005 / 2003

110,80

107

Costs of SME employees per person employed in SME (000 kn)

Active companies - trends 2005 / 2003

113,89

110

Total SME revenue / total SME assets (%)

72,93

Store turnover per capita

30,83

Active undertakings and cooperatives - trends 2005 / 2003

44,34

Number of SME per capita (per 1000 inhabitants)

19,68

Tourist overnights per capita

35,09

Number of local KAUs per capita (per 100.000 inhabitants)

72,14

Exports (000 kn) per capita

9,38

Trades, crafts and freelance professions - trends 2005 / 2003

103,16

103

Revenues from sales in local KAUs per capita (000 kn)

24,25

Exports/imports ratio (%)

66,68

KAU Gross salaries and wages per employee (000 kn)

65,75

Sales results in Croatia

4,45

Owners and employees in trade, crafts and freelance professions - trends 2005 / 2003

108,84

GVA per industry employee (000 kn)

151,56

171

Export results

3,28

Total investments per investorâ&#x20AC;&#x2122;s seat (000 kn) per capita

15,71

Share of industry in GVA (%)

18,38

Total investments per facility location (000 kn) per capita

38,99

Efficiency of use of intellectual capital

2,06

Economic results - trends

Share of investments in equipment in total investments per facility location (%)

31,63

Company participation in design and marketing

4,03

IGDP Index 2004 / 2001

137,08

130

Marketing development level

3,86

Employment in legal entities - trends 2005 / 2003

109,81

109

Share of investments in processing industry in total investments per facility location (%)

9,96

Customer orientation

5,10

Number of employed in local KAUs - trends 2005 / 2003

100,04

Control of export distribution and marketing by the company itself

4,47

Sales revenues in local KAUs - trends 2005 / 2003

116,46

113

Delegation of authority to lower management

3,46

KAU gross salaries and wages per employee - trends 2005 / 2003

99,84

Results-based management motivation schemes

3,84

Index of gross salary per employee - trends 2006/ 2004

109,87

110

Management nepotism

3,31

Total employment - trends 2006 / 2004

103,72

104

Employer - employees relations

4,42

Unemployment - trends 2006 / 2004

91,47

Number of registered unemployed who found employment / newly recorded unemployed - trends 2006 / 2004

108,61

114

Number of registered unemployed who found employment - trend 2006 / 2004

108,02

108

107

Housing construction per capita (m2 per 1000 inhabitants)

439,20

368

Share of investments in long-term assets in total SME revenue (%)

12,00

Share of equity and reserves in SME sources of capital (%)

52,69

1.204,12

2.188

Number of SME per capita (per 1000 inhabitants)

114,20

110

Licences as new technology acquisition method

3,89

Company investments in research and development

2,87

Level of company technological development

3,53

Innovation capacity

3,74

Use of modern technologies

3,57

Management supervision by foreign investors and executive boards

3,34

Company investments in education

3,01

Foreign direct equity investments per capita (â&#x201A;Ź)

Other LGUs revenues per capita

Economic results - level GDP per capita (000 kn)

47,41

Employment in legal entities per capita (per 100 inhabitants)

24,04

Labor in demand - trends 2006/ 2004

105,75

112

4,54

Unemployed for 12 or more months / total unemployment - trends 2006 / 2004

89,44

Number of employed in local KAUs per capita (per 100 inhabitants)

Gross salaries per employee (000 kn)

47,86

Income tax - trends 2006 / 2004

113,60

115

Number of employed per capita (per 100 inhabitants)

36,79

Profit tax - trends 2006 / 2004

174,78

166

Other LGU revenue - trends 2006 / 2004

133,63

136

125,87

127

Level of entrepreneurship development

Unemployed/population aged 25-64 (%)

11,94

Share of population with 2-year college education that are unemployed (%)

4,51

Index of unsubsidized local and county budget revenues per capita 2006 / 2004

Share of population with university education that are unemployed (%)

5,88

Tourist overnights - trends 2005 / 2003

110,51

111

Exports - trends 2005 / 2003

117,63

127

Share of population aged 15 - 24 that are unemployed (%)

18,67

Exports/imports ratio - trends 2005 / 2003

103,45

108

Share of population aged 50+ that are unemployed (%)

25,60

25,36

Active legal entities per capita (per 1000 inhabitants)

24,76

Active companies per capita (per 1000 inhabitants)

19,33

Active undertakings and cooperatives per capita (per 1000 inhabitants)

1,27

Trades, crafts and freelance professions per capita (per 1000 inhabitants)

27,02

Share of unemployment benefit users in total number of unemployed (%)

Active legal entities in processing industry per capita (per 1000 inhabitants)

2,35

Number of registered unemployed who found employment / newly recorded unemployed - situation (%)

59,47

Share of processing industry in total employment (%)

18,10

54,70

Number of employed in SME per capita (per 100 inhabitants)

12,71

Number of registered unemployed who found employment / total unemployment - situation (%) Labour in demand/ unemployed (%)

51,18

HR031 PRIMORJE-GORSKI KOTAR COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR031 PRIMORJE-GORSKI KOTAR COUNTY

Competitiveness profile of Primorje-Gorski Kotar County

A1 Demographics, health and culture B4 Economic results – trends

1 A2 Education 6 11 16

B3 Economic results – level

Area (km²)

2006.

3.588

Population

2006.

298.531

Unemployment rate (%)

2006.

11,42

GDP (mil kn)

2004.

16.808

B2 Level of entrepreneurship development

A4 Business infrastructure B1 Investments and entrepreneurial trends

Primorje-Gorski Kotar County Adriatic

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

A3 Basic infrastructure and public sector

HR031 PRIMORJE-GORSKI KOTAR COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

STRENGTH

A. BUSINESS ENVIRONMENT Croatian average

Rank

55,71 61,20 327,27 112,55 298.531,00 54,94

53,31 49,07 253,73 72,85 211.134,90 57,49

1 2 2 2 5 5

24,53

20,80

13,30

10,67

Value Demographics, health and culture Share of population aged 25-64 in total population (%) Number of cinema goers per capita (per 100 inhabitants) Number of physicians per capita (per 100,000 inhabitants) Number of dentists per capita (per 100,000 inhabitants) Population estimate Number of pharmacists per capita (per 100.000 inhabitants) Education Share of persons with high school education in population aged 25-64 (%) Share of persons with university education in population aged 25-64 (%) Quality of mathematics and natural sciences education Pre-school education attendance / population aged 0-4 (%) Quality of public schools Share of persons with 2-year college education in population aged 25-64 (%) Share of enrolled students in population aged 20-24 (%) Share of graduated students in population aged 20-24 (%) Quality of business schools Availability of scientists and engineers

5,51 46,81 4,89 6,54

5,02 37,71 4,55 5,17

2 3 3 4

46,09 6,49 3,40 3,98

42,37 5,81 3,07 3,95

5 5 5 5

917,09 393,76 382,00 4,42 3,69 4,36 629,20 4,33 3,64 4,24 3,91 3,53

676,29 187,30 318,00 6,34 3,41 4,03 619,22 3,68 3,27 3,71 3,70 3,01

2 2 2 3 3 3 4 4 4 5 5 5

Business infrastructure Local availability of machines and equipment Registered personal vehicles per capita (per 100 inhabitants) Registered cargo and working vehicles per capita (per 100 inhabitants)

Trades, crafts and freelance professions per capita (per 1000 inhabitants) Revenues from sales in local KAUs per capita (000 kn) Active legal entities per capita (per 1000 inhabitants) Active companies per capita (per 1000 inhabitants) Total SME revenues per capita (000 kn) Costs of SME employees per person employed in SME (000 kn) Number of SME per capita (per 1000 inhabitants) Active undertakings and cooperatives per capita (per 1000 inhabitants) Number of employed in SME per capita (per 100 inhabitants) Results-based management motivation schemes Active legal entities in processing industry per capita (per 1000 inhabitants) Share of SME total profit/loss in total SME revenue (%) Total SME revenue per person employed in SME (000 kn)

3,87 41,03 4,06

3,31 32,38 3,59

1 2 4

46,79 29,48 23,21 81,49 71,99 23,70 1,86

27 22 17 71 68 17 2

2 3 3 3 3 3 4

15,69 4,53 2,90

13 4 3

4 4 5

2,87 519,46

3 545

5 5

Other LGUs revenues per capita Employment in legal entities per capita (per 100 inhabitants) Number of employed per capita (per 100 inhabitants) Tourist overnights per capita Gross salaries per employee (000 kn) Unemployed for 12 or more months / total unemployment situation (%) Income tax per capita Profit tax per capita Store turnover per capita GDP per capita (000 kn) Number of registered unemployed who found employment / total unemployment - situation (%) Share of unemployed aged 15 - 24 in total number of unemployed (%)

Value

Croatian average

Rank

44,92 19,28 1.331,54 111,61 473,17

34 26 2.188 110 368

3 4 4 5 5

Local roads - density (length per 100km²) Unsubsidized revenues of local and county budgets /GDP (%) Availability of new telephone lines Level of development of air transport Number of indicted adult criminal offenders per capita (per 100,000 inhabitants) Number of unsolved cases in Land Register per capita (per 100,000 inhabitants) Overseas air traffic

Number of people per 1 telephone line Tariff barriers Surface of entrepreneurial zones per capita (m² per inhabitant) Ease of access to finance

2.126,76 503,59 46,66 56,28 62,34

1.862 544 52 49 51

3 3 3 4 4

Investments and entrepreneurial trends

17,79

Level of entrepreneurship development

136,30

108

253,36 88,99

166 94

2 3

122,19 152,77 138,81

113 127 108

4 4 4

18 18 17

9,20 7,94 5,67 2,82 909,12

18,33 6,47 6,20 4,28 768,03

21 21 21 19 17

2.430,90

3.052,96

3,42

4,50

2,10 4,22 2,91 2,84

2,77 4,64 10,79 3,19

20 20 18 18

Value

Croatian average

Rank

104,62

107

1,84 14,28

2 24

18 17

7,69

4,75

30,95 51,57 28,30

25 48 23

19 18 17

102,05 110,96 105,86

104 115 111

19 18 18

B. BUSINESS SECTOR

Owners and employees in trade, crafts and freelance professions - trends 2005 / 2003

Efficiency of use of intellectual capital Share of industry in GVA (%) 114

110,21 115,68 100,40

Business infrastructure

1 2 2 2 3 3

136,50

104,74 106,83 92,65

Basic infrastructure and public sector

1.310 25 36 12 50 57

Economic results - trends Number of registered unemployed who found employment / newly recorded unemployed - trends 2006 / 2004 Number of registered unemployed who found employment trend 2006 / 2004 Profit tax - trends 2006 / 2004 Unemployed for 12 or more months / total unemployment trends 2006 / 2004 Sales revenues in local KAUs - trends 2005 / 2003 Exports - trends 2005 / 2003 Exports/imports ratio - trends 2005 / 2003

Enrolled students - trends 2006 / 2004 Graduated students - trends 2006 / 2004 Pre-school education attendance - trends 2006 / 2004

2.477,78 29,90 42,13 35,98 50,92 50,72

Economic results - level Share of unemployed with university education in total unemployment (%) Share of unemployed with 2-year college education in total unemployment (%) Share of unemployed aged 50+ in total number of unemployed (%) Exports/imports ratio (%) Share of unemployment benefit users in total number of unemployed (%) Economic results - trends Total employment - trends 2006 / 2004 Income tax - trends 2006 / 2004 Tourist overnights - trends 2005 / 2003

WEAKNESS

B. BUSINESS SECTOR

A. BUSINESS ENVIRONMENT

Investments and entrepreneurial trends Total investments per facility location (000 kn) per capita Total investments per investor’s seat (000 kn) per capita Foreign direct equity investments per capita (€) Active companies - trends 2005 / 2003 Housing construction per capita (m2 per 1000 inhabitants)

31,19

Economic results - level

Basic infrastructure and public sector Current environment protection expenditure per capita (kn) Property tax per capita (000 kn) Number of solved cases per judge Share of aid in LGUs total revenues (%) Survey based shadow economy estimate Corruption intensity Environment protection investments per capita (kn) Rigidity of ecological legislation Protection of intellectual property rights Quality of ports and water transport Anti-trust policy efficiency Independence of the judiciary

Education

Level of entrepreneurship development

Value

Croatian average

27,55 55,46

30,62 69,97

Rank

Demographics, health and culture Share of population aged 0-25 in total population (%) Number of active members of various associations per capita (per 1000 inhabitants)

19 19

HR032 LIKA-SENJ COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR032 LIKA-SENJ COUNTY

Competitiveness profile of Lika-Senj County

A1 Demographics, health and culture B4 Economic results – trends

1 A2 Education 6 11 16

B3 Economic results – level

Area (km²)

2006.

5.353

Population

2006.

51.722

Unemployment rate (%)

2006.

18,41

GDP (mil kn)

2004.

3.235

B2 Level of entrepreneurship development

A4 Business infrastructure B1 Investments and entrepreneurial trends

Lika-Senj County Adriatic

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

A3 Basic infrastructure and public sector

HR032 LIKA-SENJ COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

STRENGTH

WEAKNESS

A. BUSINESS ENVIRONMENT

A. BUSINESS ENVIRONMENT Value

Croatian average

Rank

Demographics, health and culture Number of active members of various associations per capita (per 1000 inhabitants)

Value

Croatian average

Rank

51.722,00 50,30 26,52 50,14 6,10 146,94 30,93 3,33

211.134,90 53,31 30,62 80,47 97,71 253,73 57,49 49,07

21 21 21 21 20 20 20 18

Demographics, health and culture 97,28

69,97

Education Graduated students - trends 2006 / 2004 Number of graduated students per 100 enrolled students Ratio of graduated and enrolled students - trends 2006 / 2004

B. BUSINESS SECTOR

141,18 17,36 130,38

115,68 13,72 104,96

1 1 1

4,21 3,16 3,95 3,21 4,26

3,44 2,68 3,34 2,98 4,03

2 2 4 5 5

5,80

2,41

Population estimate Share of population aged 25-64 in total population (%) Share of population aged 0-25 in total population (%) Vital index (birth/death ratio) Number of public library users per capita (per 100 inhabitants) Number of physicians per capita (per 100,000 inhabitants) Number of pharmacists per capita (per 100.000 inhabitants) Cinema frequenters per capita (per 100 inhabitants)

Basic infrastructure and public sector Quality of legal framework Economic policy centralization Neutrality of Government decisions Innovative and technological influence of public procurement Corruption intensity Business infrastructure Number of entrepreneurial zones per capita (per 100,000 inhabitants)

B. BUSINESS SECTOR Value

Croatian average

Rank

107,91 152,43 116,56

103 34 107

1 1 2

15,37 80,26

9 56

2 3

Investments and entrepreneurial trends Trades, crafts and freelance professions - trends 2005 / 2003 Total investments per facility location (000 kn) per capita Owners and employees in trade, crafts and freelance professions - trends 2005 / 2003 Share of investments in long-term assets in total SMEs revenues (%) Share of equity and reserves in SMEs sources of capital (%) Economic results - level GDP per capita (000 kn) Exports/imports ratio (%) Other LGUs revenues per capita

61,37 135,88 1.779,13

49 48 1.310

3 3 4

201,43 113,59 193,54 177,96

130 99 108 136

1 1 1 2

Economic results - trends GDP Index 2004 / 2001 KAU gross salaries and wages per employee - trends 2005 / 2003 Exports/imports ratio - trends 2005 / 2003 Other LGUs revenues - trends 2006 / 2004

4,21 1,67 4,12 2,88 5,64

5,02 3,07 4,55 3,95 10,67

21 21 20 19 17

9,68 0,01 22,29 1.179,38

18,63 5,86 6,34 768,03

21 21 21 21

3,23 99,42 140,00

4,04 131,74 54,38

21 20 20

2,70 2,98 3,19 237,00 3,37 4,42 5,91 2,56

3,27 3,37 3,60 318,00 4,50 5,27 6,20 3,26

20 19 19 18 18 18 18 17

2,33 2,05 4,19 2,56 3,21 1,67 2,93 3,86 2,40 3,88

3,13 3,36 5,06 3,28 4,24 3,36 3,31 4,37 2,77 4,46

21 21 21 20 20 19 19 18 17 17

Basic infrastructure and public sector County roads - density (length per 100kmÂ˛) Recovered waste / total waste (%) Share of aid in LGUs total revenues (%) Number of indicted adult criminal offenders per capita (per 100,000 inhabitants) Strict application of quality standards Property tax trends 2006 / 2004 Number of days necessary for registration in the land register in the county seat Protection of intellectual property rights Implementation of ecological legislation Protection of property rights Number of solved cases per judge Overseas air traffic Quality of power supply Availability of new telephone lines Quality of railways Business infrastructure Cooperation between industry and universities Financial market development level Local market competition Customer requirements Availability of research and development services Quality of scientific institutes Local availability of machines and equipment Quality of local suppliers Number of people per 1 telephone line Availability of local suppliers

Croatian average

Rank

17,61

0,43

2,91 2,00 2,65 2,58 2,37 91,89

4 3 4 4 3 99

21 21 21 21 21 18

25,79 7,85 3,16 2,81 8,83 7,00 87,03 372,51 64,95 3,37 10,78 4,93 53,28

71 24 4 4 22 13 171 545 82 4 27 5 68

21 21 21 21 20 20 20 19 19 19 18 18 17

0,75 3,47 2,53 2,58

12 5 3 6

21 21 21 19

10,50 97,94

52 544

19 18

94,00 105,30 52,43 115,39

104 94 112 94

21 21 21 21

106,96 97,84

110 108

20 20

87,15 73,11 103,86 90,47 99,55 117,85

115 166 109 98 113 127

20 20 19 19 19 19

105,86

127

Investments and entrepreneurial trends Share of investments in equipment in total investments per facility location (%) Share of investments in processing industry in total investments per facility location (%) Licenses as new technology acquisition method Company investments in research and development Level of company technological development Use of modern technologies Company investments in education Number of local KAUs - trends 2005 / 2003 Level of entrepreneurship development

Education Quality of mathematics and natural sciences education Quality of business schools Quality of public schools Availability of scientists and engineers Share of persons with university education in population aged 25-64 (%)

Value

Total SMEs revenues per capita (000 kn) Share of industry in GVA (%) Company participation in design and marketing Marketing development level Share of processing industry in total employment (%) Number of employed in SMEs per capita (per 100 inhabitants) GVA per industry employee (000 kn) Total SMEs revenues per person employed in SME (000 kn) Total SMEs revenues / total SMEs assets (%) Results-based management motivation schemes Revenues from sales in local KAUs per capita (000 kn) Customer orientation Costs of SMEs employees per person employed in SME (000 kn) Economic results - level Exports (000 kn) per capita Sales results in Croatia Export results Number of employed in local KAUs per capita (per 100 inhabitants) Store turnover per capita Profit tax per capita Economic results - trends Total employment - trends 2006 / 2004 Unemployment - trends 2006 / 2004 Labor in demand - trends 2006/ 2004 Unemployed for 12 or more months / total unemployment trends 2006 / 2004 Index of gross salary per employee - trends 2006/ 2004 Number of registered unemployed who found employment trend 2006 / 2004 Income tax - trends 2006 / 2004 Profit tax - trends 2006 / 2004 Employment in legal entities - trends 2005 / 2003 Number of employed in local KAUs - trends 2005 / 2003 Sales revenues in local KAUs - trends 2005 / 2003 Index of unsubisidized local and county budget revenues per capita 2006 / 2004 Exports - trends 2005 / 2003

R033 ZADAR COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR033 ZADAR COUNTY

Competitiveness profile of Zadar County

A1 Demographics, health and culture B4 Economic results – trends

A2 Education

6 11 16

B3 Economic results – level

Area (km²)

2006.

3.646

Population

2006.

170.796

Unemployment rate (%)

2006.

16,09

GDP (mil kn)

2004.

6.361

B2 Level of entrepreneurship development

A4 Business infrastructure B1 Investments and entrepreneurial trends

Zadar County Adriatic

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

A3 Basic infrastructure and public sector

R033 ZADAR COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

STRENGTH

Economic results - trends

A. BUSINESS ENVIRONMENT Croatian average

Rank

52,39 66,16 39,98 97,62

10,03 57,49 49,07 80,47

1 2 3 4

0,30 4,86 3,77 372,01 5,09 18,13 4,61

7,79 3,71 3,41 187,30 4,28 13,90 3,76

1 1 1 3 3 4 4

21,25 3,77 3,91

10,79 3,36 3,59

4 4 5

Value

Croatian average

Rank

4,25 110,59 510,47 2.131,28 116,11 105,98 111,05 113,66 111,63

4 99 368 2.188 110 103 107 110 107

1 2 2 2 2 3 4 4 4

39,41 12,53

34 9

5 5

4,45

Value Demographics, health and culture Net migration rate in the total population (%) Number of pharmacists per capita (per 100.000 inhabitants) Number of cinema goers per capita (per 100 inhabitants) Vital index (birth/death ratio)

Employment in legal entities - trends 2005 / 2003 Unemployment - trends 2006 / 2004 GDP Index 2004 / 2001 Number of employed in local KAUs - trends 2005 / 2003 Unemployed for 12 or more months / total unemployment trends 2006 / 2004 Other LGUs revenues - trends 2006 / 2004 Index of unsubisidized local and county budget revenues per capita 2006 / 2004

Economic results - level 120,31 89,64 145,49 103,54 93,31

109 94 130 98 94

1 3 4 4 4

153,70 130,01

136 127

5 5

Business infrastructure Surface of entrepreneurial zones per capita (m² per inhabitant) Financial market development level Registered cargo and working vehicles per capita (per 100 inhabitants)

B. BUSINESS SECTOR Investments and entrepreneurial trends Use of modern technologies Number of local KAUs - trends 2005 / 2003 Housing construction per capita (m2 per 1000 inhabitants) Foreign direct equity investments per capita (€) Number of SME per capita (per 1000 inhabitants) Trades, crafts and freelance professions - trends 2005 / 2003 Active legal entities - trends 2005 / 2003 Active companies - trends 2005 / 2003 Owners and employees in trade, crafts and freelance professions - trends 2005 / 2003 Total investments per facility location (000 kn) per capita Share of investments in long-term assets in total SME revenue (%) Licenses as new technology acquisition method

44,68

2,56

41,12

30,34 4,83

25 4

18 17

96,73

108

100,46

114

Economic results - trends Number of registered unemployed who found employment trend 2006 / 2004 Number of registered unemployed who found employment / newly recorded unemployed - trends 2006 / 2004

Basic infrastructure and public sector Average surtax rate (%) Quality of ports and water transport Survey based shadow economy estimate Property tax per capita (000 kn) Level of development of air transport State roads - density (length per 100km²) Total infrastructure quality

Number of registered unemployed who found employment / newly recorded unemployed - situation (%) Number of employed in local KAUs per capita (per 100 inhabitants) Number of registered unemployed who found employment / total unemployment - situation (%) Share of unemployed aged 50+ in total number of unemployed (%) Share of unemployed with university education in total unemployment (%)

WEAKNESS

A. BUSINESS ENVIRONMENT Value

Croatian average

43,91

69,97

2,30 2,98 13,55 7,21 5.407,62

3,01 3,44 18,63 6,47 3.052,96

21 20 19 19 19

2,30 76,07 3,05 4,02 3,70

3,26 676,29 3,34 4,34 4,04

19 18 18 18 18

2,18 2,98 2,40

2,43 3,31 2,77

18 18 17

Value

Croatian average

40,37 22,30

56 41

21 19

3,93

3,34

69,17 13,92 11,68 55,72 9,77 4,23

82 24 22 85 27 5

18 18 19 19 19 19

Rank

Demographics, health and culture Number of active members of various associations per capita (per 1000 inhabitants) Basic infrastructure and public sector Independence of the judiciary Quality of legal framework County roads - density (length per 100km²) Unsubsidized revenues of local and county budgets /GDP (%) Number of unsolved cases in Land Register per capita (per 100,000 inhabitants) Quality of railways Current environment protection expenditure per capita (kn) Neutrality of Government decisions Police protection reliability Strict application of quality standards Business infrastructure Venture capital availability Local availability of machines and equipment Number of people per 1 telephone line

B. BUSINESS SECTOR Rank

Investments and entrepreneurial trends Level of entrepreneurship development Efficiency of use of intellectual capital Trades, crafts and freelance professions per capita (per 1000 inhabitants) GVA per industry employee (000 kn) Total SME revenue per person employed in SME (000 kn) Costs of SME employees per person employed in SME (000 kn)

2,43 26,79

2 22

2 3

174,03 525,16 65,43

171 545 68

3 4 5

Share of equity and reserves in SME sources of capital (%) Share of investments in equipment in total investments per facility location (%) Share of investments in processing industry in total investments per facility location (%) Innovation capacity Level of entrepreneurship development

Economic results - level Share of unemployed aged 15 - 24 in total number of unemployed (%) Tourist overnights per capita

17,19

31,90

Total SME revenue / total SME assets (%) Share of industry in GVA (%) Share of processing industry in total employment (%) Number of local KAUs per capita (per 100.000 inhabitants) Revenues from sales in local KAUs per capita (000 kn) Control of export distribution and marketing by the company itself

HR034 ŠIBENIK-KNIN COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR034 ŠIBENIK-KNIN COUNTY

Competitiveness profile of Šibenik-Knin County

A1 Demographics, health and culture B4 Economic results – trends

A2 Education

6 11 16

B3 Economic results – level

Area (km²)

2006.

2.984

Population

2006.

113.972

Unemployment rate (%)

2006.

19,89

GDP (mil kn)

2004.

3.956

B2 Level of entrepreneurship development

A4 Business infrastructure B1 Investments and entrepreneurial trends

Šibenik-Knin County Adriatic

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

A3 Basic infrastructure and public sector

HR034 ŠIBENIK-KNIN COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

STRENGTH

WEAKNESS

A. BUSINESS ENVIRONMENT

A. BUSINESS ENVIRONMENT Value

Croatian average

Rank

32,37

10,03

Demographics, health and culture Net migration rate in the total population (%)

48,34 6,82

42,37 5,81

4 4

4,69 13,16

3,71 10,22

2 3

336,62 4,02 506,62 581,45

187,30 3,70 619,22 676,29

4 4 5 5

50,28 11,90

10,79 14,50

1 4

Value

Croatian average

Rank

114,04 119,66

99 107

1 1

106,61 115,43 108,63

103 110 107

2 3 5

5,02 22,84

4 22

3 5

2,13

16,78 32,90 16,91 53,69

20 12 23 57

2 4 4 5

172,95 107,35 81,39 75,70

113 104 94 94

1 1 1 1

266,53 147,23 112,40 207,04 120,00 138,66

127 130 99 166 115 108

1 2 2 4 5 5

Business infrastructure Surface of entrepreneurial zones per capita (m² per inhabitant) Price of water and sewage (kn/m³)

B. BUSINESS SECTOR

Economic results - level Share of unemployed aged 15 - 24 in total number of unemployed (%) Tourist overnights per capita Share of unemployment benefit users in total number of unemployed (%) Unemployed for 12 or more months / total unemployment - situation (%)

4,98 113.972,00 50,68

97,71 211.134,90 53,31

21 18 18

90,69 4,20

100,40 4,55

19 17

3.717,71 1.035,34

1.627,24 768,03

20 20

2,44 2,87 108,00

3,76 3,27 54,38

20 19 18

13,34 7,37 4,69 4,04 2,80 2,80

18,33 7,79 5,27 4,34 2,98 3,01

17 17 17 17 17 17

4,36 2,69 3,53

5,06 3,28 4,24

19 18 18

Value

Croatian average

Rank

42,95 37,01 3,33 2,49 3,16

56 50 4 3 4

20 19 19 19 18

8,85

4,18

62,12 11,83 3,60 3,27 3,16 57,21 3,47

82 24 4 4 4 85 4

20 19 19 18 18 17 17

18 18

34,87 31,13

49 36

17 17

89,16 107,02

98 110

21 19

Economic results - trends Number of employed in local KAUs - trends 2005 / 2003 Index of gross salary per employee - trends 2006/ 2004

Basic infrastructure and public sector Total waste per capita (kg) Number of indicted adult criminal offenders per capita (per 100,000 inhabitants) Total infrastructure quality Protection of intellectual property rights Number of days necessary for registration in the land register in the county seat Local roads - density (length per 100km²) Average surtax rate (%) Quality of power supply Police protection reliability Innovative and technological influence of public procurement Independence of the judiciary

Local market competition Customer requirements Availability of research and development services

B. BUSINESS SECTOR Investments and entrepreneurial trends Share of equity and reserves in SMEs sources of capital (%) Active undertakings and cooperatives - trends 2005 / 2003 Innovation capacity Company investments in education Management supervision by foreign investors and executive boards Share of investments in processing industry in total investments per facility location (%) Level of entrepreneurship development

Economic results - trends Sales revenues in local KAUs - trends 2005 / 2003 Total employment - trends 2006 / 2004 Unemployment - trends 2006 / 2004 Unemployed for 12 or more months / total unemployment - trends 2006 / 2004 Exports - trends 2005 / 2003 GDP Index 2004 / 2001 KAU gross salaries and wages per employee - trends 2005 / 2003 Profit tax - trends 2006 / 2004 Income tax - trends 2006 / 2004 Exports/imports ratio - trends 2005 / 2003

Rank

5 64

Education

Level of entrepreneurship development Employer - employees relations Trades, crafts and freelance professions per capita (per 1000 inhabitants) Efficiency of use of intellectual capital

Croatian average

4,02 59,37

Business infrastructure

Investments and entrepreneurial trends Number of local KAUs - trends 2005 / 2003 Owners and employees in trade, crafts and freelance professions trends 2005 / 2003 Trades, crafts and freelance professions - trends 2005 / 2003 Number of SMEs per capita (per 1000 inhabitants) Active legal entities - trends 2005 / 2003

Number of public library users per capita (per 100 inhabitants) Population estimate Share of population aged 25-64 in total population (%)

Pre-school education attendance - trends 2006 / 2004 Quality of public schools

Basic infrastructure and public sector Quality of ports and water transport Number of judges and advisors in county courts per capita (per 100,000 inhabitants) Property tax per capita (000 kn) Anti-trust policy efficiency Environment protection investments per capita (kn) Current environment protection expenditure per capita (kn)

Value

Sales results in Croatia Number of registered unemployed who found employment / newly recorded unemployed - situation (%) GDP per capita (000 kn) Number of employed per capita (per 100 inhabitants)

Demographics, health and culture

Education Share of enrolled students in population aged 20-24 (%) Share of graduated students in population aged 20-24 (%)

Economic results - level

Control of export distribution and marketing by the company itself Total SMEs revenues / total SMEs assets (%) Share of industry in GVA (%) Company participation in design and marketing Marketing development level Management nepotism Number of local KAUs per capita (per 100.000 inhabitants) Results-based management motivation schemes

HR035 SPLIT-DALMATIA COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR035 SPLIT-DALMATIA COUNTY

Competitiveness profile of Split-Dalmatia County

A1 Demographics, health and culture B4 Economic results – trends

A2 Education

6 11 16

B3 Economic results – level

Area (km²)

2006.

4.540

Population

2006.

476.596

Unemployment rate (%)

2006.

18,79

GDP (mil kn)

2004.

18.213

B2 Level of entrepreneurship development

A4 Business infrastructure B1 Investments and entrepreneurial trends

Split-Dalmatia County Adriatic

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

A3 Basic infrastructure and public sector

HR035 SPLIT-DALMATIA COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

STRENGTH

Economic results - level Share of unemployed aged 50+ in total number of unemployed (%) Store turnover per capita

A. BUSINESS ENVIRONMENT Value

Croatian average

Rank

Demographics, health and culture Population estimate Vital index (birth/death ratio) Number of cinema goers per capita (per 100 inhabitants) Number of dentists per capita (per 100,000 inhabitants) Share of population aged 0-25 in total population (%) Net migration rate in the total population (%)

476.596 110,72 36,78 79,52 32,65 22,20

211.135 80,47 49,07 72,85 30,62 10,03

2 2 4 4 5 5

49,72 23,21

42,37 20,80

2 3

11,57

10,67

6,91 45,17 5,35 6,35

5,81 37,71 5,02 5,17

3 4 4 5

29,37 5,77 5,67 6,52 375,00 4,69 4,13 17,60 147,43 7,41 626,74

5,86 4,28 4,50 6,20 318,00 3,71 3,70 13,90 131,74 6,34 768,03

1 1 2 2 3 3 3 5 5 5 5

10,11 3,54 3,38 4,56

14,50 3,36 3,19 4,46

1 3 5 5

Business infrastructure Price of water and sewage (kn/m³) Quality of scientific institutes Ease of access to finance Availability of local suppliers

B. BUSINESS SECTOR Croatian average

Rank

Investments and entrepreneurial trends 113,48 1.148,70

110 2.188

4 5

68,81 21,78 17,41 17,19

66 22 17 17

3 5 5 5

87,88

138,54 190,86

130 166

5 5

3,25 2,60 4,04 51,38 3,17 4,90 4,40

4 4 4 85 4 5 5

21 21 21 20 20 19 17

5,18

24,69 57,26

45 64

20 19

6,20

47,21

63,45

102,77 101,05

127 114

20 19

83,93 103,52

112 108

19 17

Economic results - level

A. BUSINESS ENVIRONMENT Value

Croatian average

Rank

69,97

Economic results - trends Exports - trends 2005 / 2003 Number of registered unemployed who found employment / newly recorded unemployed - trends 2006 / 2004 Labor in demand - trends 2006/ 2004 Exports/imports ratio - trends 2005 / 2003

Demographics, health and culture Number of active members of various associations per capita (per 1000 inhabitants)

51,58

Share of unemployed with 2-year college education in total unemployment (%) Labor in demand/ unemployed (%) Number of registered unemployed who found employment / newly recorded unemployed - situation (%) Share of unemployed with university education in total unemployment (%) Number of registered unemployed who found employment / total unemployment - situation (%) Exports/imports ratio (%)

Education 103,28 96,21

110,21 100,40

20 16

8.336,62

3.052,96

2,81 2,56 3,48 7,30 3,21 2,79 2,25 2,54 2,38 7,78 7,76

3,44 3,27 4,34 6,47 3,68 3,37 2,68 2,98 3,01 7,79 10,22

21 21 21 20 20 20 20 20 20 19 17

107,00

54,38

2,69

3,76

1,26

2,41

Value

Croatian average

Rank

33,19 3,04

50 4

21 19

45,02 100,90 2,52

56 103 3

18 17 17

Basic infrastructure and public sector Number of unsolved cases in Land Register per capita (per 100,000 inhabitants) Quality of legal framework Protection of intellectual property rights Police protection reliability Unsubsidized revenues of local and county budgets /GDP (%) Rigidity of ecological legislation Implementation of ecological legislation Economic policy centralization Innovative and technological influence of public procurement Independence of the judiciary Average surtax rate (%) Number of judges and advisors in county courts per capita (per 100,000 inhabitants) Number of days necessary for registration in the land register in the county seat Total infrastructure quality

Number of entrepreneurial zones per capita (per 100,000 inhabitants)

B. BUSINESS SECTOR Investments and entrepreneurial trends

Level of entrepreneurship development KAU Gross salaries and wages per employee (000 kn) Active legal entities per capita (per 1000 inhabitants) Active companies per capita (per 1000 inhabitants) Number of SME per capita (per 1000 inhabitants)

Unemployed for 12 or more months / total unemployment trends 2006 / 2004 GDP Index 2004 / 2001 Profit tax - trends 2006 / 2004

Results-based management motivation schemes Management nepotism Employer - employees relations Number of local KAUs per capita (per 100.000 inhabitants) Delegation of authority to lower management Customer orientation Control of export distribution and marketing by the company itself

Business infrastructure

Value

Number of SME per capita (per 1000 inhabitants) Foreign direct equity investments per capita (€)

3 4

Economic results - trends

Enrolled students - trends 2006 / 2004 Pre-school education attendance - trends 2006 / 2004

Basic infrastructure and public sector Recovered waste / total waste (%) Level of development of air transport Overseas air traffic Availability of new telephone lines Number of solved cases per judge Quality of ports and water transport Anti-trust policy efficiency State roads - density (length per 100km²) Property tax trends 2006 / 2004 Share of aid in LGUs total revenues (%) Number of indicted adult criminal offenders per capita (per 100,000 inhabitants)

25 52

WEAKNESS

Education Share of enrolled students in population aged 20-24 (%) Share of persons with high school education in population aged 25-64 (%) Share of persons with university education in population aged 25-64 (%) Share of graduated students in population aged 20-24 (%) Pre-school education attendance / population aged 0-4 (%) Quality of mathematics and natural sciences education Share of persons with 2-year college education in population aged 25-64 (%)

Level of entrepreneurship development 20,31 34,61

Active undertakings and cooperatives - trends 2005 / 2003 Management supervision by foreign investors and executive boards Share of equity and reserves in SME sources of capital (%) Trades, crafts and freelance professions - trends 2005 / 2003 Company investments in research and development

HR036 ISTRIA COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR036 ISTRIA COUNTY

Competitiveness profile of Istria County

A1 Demographics, health and culture B4 Economic results – trends

A2 Education

6 11 16

B3 Economic results – level

Area (km²)

2006.

2.813

Population

2006.

211.632

Unemployment rate (%)

2006.

6,45

GDP (mil kn)

2004.

13.901

B2 Level of entrepreneurship development

A4 Business infrastructure B1 Investments and entrepreneurial trends

Istria County Adriatic

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

A3 Basic infrastructure and public sector

HR036 ISTRIA COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

STRENGTH

A. BUSINESS ENVIRONMENT Value

Croatian average

Rank

55,11 36,37 87,89 131,91 92,70

53,31 10,03 72,85 97,71 69,97

3 3 3 4 4

233,90

253,73

50,65 6,76

37,71 5,17

2 3

20,76

20,80

9,81

10,67

Demographics, health and culture Share of population aged 25-64 in total population (%) Net migration rate in the total population (%) Number of dentists per capita (per 100,000 inhabitants) Number of public library users per capita (per 100 inhabitants) Number of active members of various associations per capita (per 1000 inhabitants) Number of physicians per capita (per 100,000 inhabitants) Education Pre-school education attendance / population aged 0-4 (%) Share of persons with 2-year college education in population aged 25-64 (%) Share of persons with high school education in population aged 25-64 (%) Share of persons with university education in population aged 25-64 (%)

498,68 3,88 1,00

187,30 6,34 54,38

1 2 2

637,67 816,40 99,70

619,22 676,29 3.052,96

3 3 3

149,11 26,20 11,81

131,74 18,33 10,22

4 5 5

Business infrastructure Registered personal vehicles per capita (per 100 inhabitants) Registered cargo and working vehicles per capita (per 100 inhabitants) Cooperation between industry and universities Venture capital availability Local market competition Customer requirements Quality of local suppliers

46,33 5,07

32,38 3,59

1 1

3,45 2,77 5,30 3,50 4,73

3,13 2,43 5,06 3,28 4,37

4 4 5 5 5

Value

Croatian average

Rank

623,87 118,26 4,23 4,11 118,45 124,44 28,51 40,26 13,42

368 110 4 4 107 110 26 34 9

1 1 1 1 2 2 2 4 4

B. BUSINESS SECTOR Investments and entrepreneurial trends Housing construction per capita (m2 per 1000 inhabitants) Number of SMEs per capita (per 1000 inhabitants) Level of company technological development Innovation capacity Active legal entities - trends 2005 / 2003 Active companies - trends 2005 / 2003 Total investments per investor’s seat (000 kn) per capita Total investments per facility location (000 kn) per capita Share of investments in long-term assets in total SMEs revenues (%)

Trades, crafts and freelance professions per capita (per 1000 inhabitants) Number of SMEs per capita (per 1000 inhabitants) Active legal entities per capita (per 1000 inhabitants) Active companies per capita (per 1000 inhabitants) Active legal entities in processing industry per capita (per 1000 inhabitants) Total SMEs revenues per capita (000 kn) Costs of SMEs employees per person employed in SME (000 kn) Number of local KAUs per capita (per 100.000 inhabitants) KAU Gross salaries and wages per employee (000 kn) GVA per industry employee (000 kn) Number of employed in SMEs per capita (per 100 inhabitants) Total SMEs revenues per person employed in SME (000 kn) Efficiency of use of intellectual capital Active undertakings and cooperatives per capita (per 1000 inhabitants) Revenues from sales in local KAUs per capita (000 kn) Share of industry in GVA (%) Marketing development level Results-based management motivation schemes

39,58

32,32 38,23 31,00 3,83

17 22 17 3

1 2 2 2

91,78 73,28 116,36 70,32 258,20 16,31 560,00 2,37 1,78

71 68 85 66 171 13 545 2 2

2 2 2 2 2 3 3 3 5

38,51 30,47 4,27 4,48

27 24 4 4

5 5 5 5

Number of employed per capita (per 100 inhabitants) Unemployed/population aged 25-64 (%) Number of registered unemployed who found employment / total unemployment - situation (%) Labor in demand/ unemployed (%) Unemployed for 12 or more months / total unemployment situation (%) Tourist overnights per capita Exports (000 kn) per capita GDP per capita (000 kn) Profit tax per capita Other LGUs revenues per capita Employment in legal entities per capita (per 100 inhabitants) Number of employed in local KAUs per capita (per 100 inhabitants) Gross salaries per employee (000 kn) Income tax per capita Export results

43,29 5,55 96,20

36 12 51

1 1 1

154,90 40,45

45 57

1 1

80,18 25,16 66,34 583,34 2.170,59 28,63 6,94

12 12 49 544 1.310 25 6

1 1 2 2 2 3 3

49,81 1.955,71 3,64

50 1.862 3

4 4 5

106,59 111,28

98 110

1 5

Economic results - trends Number of employed in local KAUs - trends 2005 / 2003 Index of gross salary per employee - trends 2006/ 2004

Economic policy centralization Quality of railways Total waste per capita (kg) Recovered waste / total waste (%) Number of indicted adult criminal offenders per capita (per 100,000 inhabitants) Neutrality of Government decisions Anti-trust policy efficiency Quality of legal framework Survey based shadow economy estimate

2,20 1,73 3.500,95 0,32 997,49

2,68 3,26 1.627,24 5,86 768,03

21 20 19 19 19

2,98 3,39 3,05 3,20

3,34 3,70 3,44 3,41

19 19 18 17

21,86 2,20 4,50

14,50 2,77 4,64

21 19 18

Value

Croatian average

Rank

71,16

82,07

35,11 50,88

25 23

21 21

4,51

88,82 98,15

99 114

21 21

102,64 85,11 102,18 99,18

111 108 94 108

20 20 19 18

102,61

111,51 119,38

166 127

18 18

100,73 102,60

113 104

17 17

Business infrastructure Price of water and sewage (kn/m³) Number of people per 1 telephone line Tariff barriers

B. BUSINESS SECTOR Level of entrepreneurship development

Economic results - level

Basic infrastructure and public sector Property tax per capita (000 kn) Share of aid in LGUs total revenues (%) Number of days necessary for registration in the land register in the county seat Environment protection investments per capita (kn) Current environment protection expenditure per capita (kn) Number of unsolved cases in Land Register per capita (per 100,000 inhabitants) Property tax trends 2006 / 2004 Local roads - density (length per 100km²) Number of judges and advisors in county courts per capita (per 100,000 inhabitants)

Basic infrastructure and public sector

Level of entrepreneurship development

Total SME revenue / total SME assets (%) Economic results - level Share of unemployed aged 50+ in total number of unemployed (%) Share of unemployment benefit users in total number of unemployed (%) Share of unemployed with 2-year college education in total unemployment (%) Economic results - trends KAU gross salaries and wages per employee - trends 2005 / 2003 Number of registered unemployed who found employment / newly recorded unemployed - trends 2006 / 2004 Tourist overnights - trends 2005 / 2003 Exports/imports ratio - trends 2005 / 2003 Unemployment - trends 2006 / 2004 Number of registered unemployed who found employment trend 2006 / 2004 Unemployed for 12 or more months / total unemployment trends 2006 / 2004 Profit tax - trends 2006 / 2004 Index of unsubisidized local and county budget revenues per capita 2006 / 2004 Sales revenues in local KAUs - trends 2005 / 2003 Total employment - trends 2006 / 2004

WEAKNESS

A. BUSINESS ENVIRONMENT Value

Croatian average

28,88

30,62

86,81 103,40

100,40 110,21

20 19

Rank

Demographics, health and culture Share of population aged 0-25 in total population (%) Education Pre-school education attendance - trends 2006 / 2004 Enrolled students - trends 2006 / 2004

HR037 DUBROVNIK-NERETVA COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

HR037 DUBROVNIK-NERETVA COUNTY

Competitiveness profile of Dubrovnik-Neretva County

A1 Demographics, health and culture B4 Economic results – trends

A2 Education

6 11 16

B3 Economic results – level

Area (km²)

2006.

1.781

Population

2006.

125.030

Unemployment rate (%)

2006.

13,97

GDP (mil kn)

2004.

5.680

B2 Level of entrepreneurship development

A4 Business infrastructure B1 Investments and entrepreneurial trends

Dubrovnik-Neretva County Adriatic

Competitiveness rank

Rank of quality of business environment

Rank of quality of business sector

A3 Basic infrastructure and public sector

HR037 DUBROVNIK-NERETVA COUNTY

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

STRENGTH

Level of entrepreneurship development

A. BUSINESS ENVIRONMENT Value

Croatian average

Rank

99,58 64,78 29,85 75,98

80,47 57,49 49,07 72,85

3 3 5 5

Demographics, health and culture Vital index (birth/death ratio) Number of pharmacists per capita (per 100.000 inhabitants) Number of cinema goers per capita (per 100 inhabitants) Number of dentists per capita (per 100,000 inhabitants)

7,49

5,17

7,79 3,81 48,66 16,01 22,40

5,81 3,07 42,37 13,72 20,80

2 2 3 3 4

11,28

10,67

4,07 38,61

3,95 37,71

4 5

Basic infrastructure and public sector State roads - density (length per 100km²) Overseas air traffic Quality of legal framework Corruption intensity Level of development of air transport Protection of property rights Number of indicted adult criminal offenders per capita (per 100,000 inhabitants) Quality of ports and water transport Economic policy centralization Property tax per capita (000 kn)

4,81 24,93 19,52 70,16 20,74 5,65 4,12 14,16 2,13

5 22 17 68 17 5 4 13 2

3 4 4 4 4 4 4 5 5

80,54 2.234,83 65,80

45 1.862 51

2 2 3

22,29 5,67 4,28 4,49 5,58 4,00 614,25

13,90 4,50 3,44 4,03 4,28 3,60 768,03

1 1 1 1 2 2 4

4,37 3,05 263,43

3,71 2,68 187,30

4 4 5

3,63 3,53 32,57 11,99 3,35 5,07

3,28 3,31 32,38 14,50 3,36 4,64

3 4 5 5 5 5

Labor in demand/ unemployed (%) Income tax per capita Number of registered unemployed who found employment / total unemployment - situation (%) Tourist overnights per capita Unemployed for 12 or more months / total unemployment situation (%) GDP per capita (000 kn) Employment in legal entities per capita (per 100 inhabitants) Gross salaries per employee (000 kn) Profit tax per capita

35,07 53,06

12 57

3 4

45,86 23,53 47,34 411,19

49 25 50 544

5 5 5 5

4,04 18,63 5,86 619,22 6,47

19 18 17 17 17

2,06

10,79

Value

Croatian average

Rank

99,53 1,66

103 12

20 20

2,98 31,11

4 41

20 17

3,12

6,99 51,93 7,69 3,09 9,37 3,26

22 82 27 4 24 4

21 21 21 21 20 20

2,10 5,45

6 3

21 21

1,59 27,87 3,63 6,99

12 48 5 4

20 20 20 19

104,99

114

Business infrastructure Surface of entrepreneurial zones per capita (m² per inhabitant)

Investments and entrepreneurial trends Trades, crafts and freelance professions - trends 2005 / 2003 Share of investments in processing industry in total investments per facility location (%) Licenses as new technology acquisition method Share of investments in equipment in total investments per facility location (%) Use of modern technologies

Index of gross salary per employee - trends 2006/ 2004 Labor in demand - trends 2006/ 2004 Income tax - trends 2006 / 2004 Exports - trends 2005 / 2003 Sales revenues in local KAUs - trends 2005 / 2003 KAU gross salaries and wages per employee - trends 2005 / 2003 Profit tax - trends 2006 / 2004 Index of unsubisidized local and county budget revenues per capita 2006 / 2004 Unemployment - trends 2006 / 2004 Other LGUs revenues - trends 2006 / 2004

113,10 130,48 124,15 177,48 134,41 111,55

110 112 115 127 113 99

1 2 2 2 3 3

235,76 139,15

166 127

3 3

91,38 159,81

94 136

4 4

Share of processing industry in total employment (%) Total SME revenue / total SME assets (%) Revenues from sales in local KAUs per capita (000 kn) Delegation of authority to lower management Share of industry in GVA (%) Results-based management motivation schemes Economic results - level

WEAKNESS

Number of employed in local KAUs per capita (per 100 inhabitants) Share of unemployed with 2-year college education in total unemployment (%) Exports (000 kn) per capita Exports/imports ratio (%) Sales results in Croatia Share of unemployed with university education in total unemployment (%) Economic results - trends Number of registered unemployed who found employment / newly recorded unemployed - trends 2006 / 2004

A. BUSINESS ENVIRONMENT Value

Croatian average

96,85 105,80 91,44

110,21 115,68 100,40

21 20 18

1,63 3,65 2,77 8,77 116,00

3,26 5,27 3,37 7,79 54,38

21 21 21 20 19

3,23

3,68

Rank

Education

B. BUSINESS SECTOR Value

Croatian average

Rank

128,21 127,74 16,44 1.634,53 15,45 69,09 112,82

107 110 9 2.188 26 56 110

1 1 1 3 5 5 5

Investments and entrepreneurial trends Active legal entities - trends 2005 / 2003 Active companies - trends 2005 / 2003 Share of investments in long-term assets in total SME revenue (%) Foreign direct equity investments per capita (€) Total investments per investor’s seat (000 kn) per capita Share of equity and reserves in SME sources of capital (%) Number of SME per capita (per 1000 inhabitants)

3,67 14,60 0,46 80,92 6,96

Level of entrepreneurship development Economic results - trends

Business infrastructure Customer requirements Local availability of machines and equipment Registered personal vehicles per capita (per 100 inhabitants) Price of water and sewage (kn/m³) Quality of scientific institutes Tariff barriers

Strict application of quality standards County roads - density (length per 100km²) Recovered waste / total waste (%) Environment protection investments per capita (kn) Unsubsidized revenues of local and county budgets /GDP (%)

B. BUSINESS SECTOR

Economic results - level

Education Share of persons with 2-year college education in population aged 25-64 (%) Share of graduated students in population aged 20-24 (%) Quality of business schools Share of enrolled students in population aged 20-24 (%) Number of graduated students per 100 enrolled students Share of persons with high school education in population aged 25-64 (%) Share of persons with university education in population aged 25-64 (%) Availability of scientists and engineers Pre-school education attendance / population aged 0-4 (%)

Control of export distribution and marketing by the company itself Active legal entities per capita (per 1000 inhabitants) Active companies per capita (per 1000 inhabitants) Costs of SME employees per person employed in SME (000 kn) Number of SME per capita (per 1000 inhabitants) Customer orientation Management nepotism Number of employed in SME per capita (per 100 inhabitants) Efficiency of use of intellectual capital

Enrolled students - trends 2006 / 2004 Graduated students - trends 2006 / 2004 Pre-school education attendance - trends 2006 / 2004 Basic infrastructure and public sector Quality of railways Quality of power supply Implementation of ecological legislation Average surtax rate (%) Number of days necessary for registration in the land register in the county seat Rigidity of ecological legislation

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Research Methodology

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Research Methodology The research undertaken on the competitiveness of Croatian regions and counties analysed quantitative (statistical) and qualitative (survey) data, in two areas – the quality of the business sector (businesses) and the quality of the business environment. The results obtained by applying this methodology constitute the final competitiveness indexes. The methodology used in the analysis is largely based on the methods used by the two leading country competitiveness reviews: the World Economic Forum (WEF) and the International Institute for Management Development (IMD). Survey data was analysed based on the Business Competitiveness Index, while IMD’s methodology for calculating the World Competitiveness Index was primarily used to analyse statistical indicators. Both methods share the opinion that wealth is primarily generated at the enterprise level, and that enterprises operate in an environment that can either support or hinder their ability to compete.

14 Proportion of survey data is around one third, and statistical data around two thirds.

WEF’s Business Competitiveness Index uses a microeconomic approach, relying almost completely on survey data and consisting of two sub-indexes: the quality of the business sector and the quality of the business environment. The methodology used for this index has not significantly changed, unlike the Global Competitiveness Index, which over the past several years has been developed as WEF’s main competitiveness index. For more details see: www.weforum.org IMD’s World Competitiveness Index is a list ranking an elite club of the most influential countries in the world economy, as well as developed countries, containing internationally comparable statistical data. It is derived from statistical indicators, representing a weight of 2/3 in the overall ranking, and survey data, comprising 20 sub-factors, each with a weight of 5%, grouped into 4 main competitiveness factors: economic performance, government efficiency, business efficiency and infrastructure. For more details see: www.imd.ch/wcc

Analytical approach to the Regional Competitiveness Index calculation is based on recognition of 8 factors, e.g “pillars” of competitiveness, divided into two groups: A. Business environment, and B. Business sector. A. Business environment Demographics, health and culture Education Basic infrastructure and public sector Business infrastructure B. Business sector Investment and entrepreneurship dynamics Entrepreneurship development level Economic results - level Economic results - dynamics Value of these 8 factors have been obtained through collection of statistical and survey data14.

Research Methodology

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Indicators, sub-indicators and indexes that allow for ranking of each county and region in the framework of statistical analysis (SA) are calculated on the basis of statistical data for each county.

345 statistical data

136 indicators

8 sub-indexes

2 indexes

Rank SA

Survey on private and public sector is the basis for the analysis and evaluation of the perception of the current condition. Based on the evaluation of the perception for each county, indicators, sub-indexes and indexes are created, which allow for ranking of each of the counties and regions in the framework of perceptive analysis (PA).

55 survey questions

2 indexes

Rank PA

Regional Competitiveness Index and the competitiveness rank is defined by weighting the statistical and perceptive rank. The applied weight values, based on research on regression of individual competitiveness factors, have been transferred from the World Economic Forum methodology15.

Rank SA

Rank PA

Regional competitiveness index

15 The Global Competitiveness Report 2006-2007, World Economic Forum, Geneva, p. 65. Adjusted R2 = 0,805, No. of observations 370

Research Methodology

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Perceptive (qualitative) analysis

9. Industry – medium-size enterprises

The use of qualitative analysis, i.e. of data obtained from surveying entrepreneurs’ opinions, is continually increasing in economic analyses for several reasons. It facilitates the acquisition of unique data, not available as statistical data, concurrently providing assessments by those with relevant insights into the important elements of competitiveness, not measurable by statistical means.

The sample also met the requirement that at least one third of the questionnaires be completed by entities not located in the county administrative centre. Accordingly, the survey results are structured by county (for enterprises, the county where they currently operate) and by category.

A survey of enterprises in Croatian counties was conducted in accordance with WEF’s methodology for the Business Competitiveness index, and the same method was applied to calculate the competitiveness index. The original questionnaire was adapted to meet the requirements of a county level survey, as opposed to a national economy survey. However, some statistical indicators used by WEF (patent applications, number of mobile telephone subscribers and internet users) were not used, as they were not available. A relatively large number of questionnaires were completed using telephone surveys and 1,035 questionnaires were completed in total. The survey sample was formulated to ensure that 10% (3 questionnaires) of the total number of questionnaires (at least 30 per county) would be completed for each of the following categories: 1. Department for Economy, Chamber of Economy or the Croatian Employment Service 2. Health service, social service or education 3. Crafts – production crafts 4. Trade 5. Business services (tourism, banking, research) 6. Agriculture, fishery or food industry 7. Infrastructure and construction industry 8. Industry – small enterprises

10. Industry – large enterprises

The questionnaire was divided into three main groups of questions. The first group contained general background questions on the enterprise, in order to facilitate an analysis of the results by category. The second and the third parts were formulated so that the respondent provided opinions on certain aspects of the enterprise’s competitiveness (15 questions) and of the business environment (40 questions). The answers were ranked from 1 (worst) to 7 (best). Unreliable survey responses were eliminated using the modified WEF criterion, i.e. the analysis did not include respondents whose frequency of the best or the worst answers or the average ranking deviated by more than 2 standard deviations from the Croatian average. This was followed by a calculation of the sub-indexes for the business sector and the business environment, by using the exact weights for individual questions, as recommended in the WEF methodology.

Statistical (quantitative) analysis The quantitative analysis was based on IMD’s methodology using over 300 competitiveness criteria structured into four main factors, which were each divided into five sub-factors. All criteria divided among 20 sub-factors were given equal weights, and each sub-factor had the same weight in the creation of the overall index.

The same method was used in the calculation of the County Competitiveness Indexes, i.e. indicators were used to calculate the sub-indexes, which were subsequently used in the calculation of the two main indexes. The indicator values were transferred to the sub-index level using their ranking values. More than 340 elements of statistical data were collected in each county from the databases of the Central Bureau of Statistics; the Croatian Employment Service; the Financial Agency; the Ministry of Economy, Labour and Entrepreneurship; the Ministry of Finance; the Ministry of Science, Education and Sports; and the Croatian National Bank, etc. The basic criteria used to select data included availability, reliability, relevance, and their previous use in international methodologies. The statistical data was then used to create indicators, some of which were static (annual), and some which showed trends over several years. Most indicators were presented in relation to estimated population numbers, which is a much more reliable divisor than GDP. Due to variations in the availability of data, some of the indicators comprised the latest numbers (for 2007), with the oldest dating from 2001. One should keep in mind the fact that county level data is significantly less available than national level data. A total of 116 indicators were defined and divided into 8 main groups (sub-indexes). Four sub-indexes together make one of the two main indexes: quality of the business sector and quality of the business environment.

Research Methodology

Business environment indicators “Business Environment” is divided into four sub-groups: - - - -

Demographics, health and culture Education Basic infrastructure and public sector Business infrastructure

Demographics, health and culture Ten indicators were used to present basic information on population (estimated population size in 2006, share of population between ages 25 and 64, share of population under age 25, net migration between 2002 and 2006, and vital index), on health conditions (number of medical doctors, pharmacists and dentists per person) and on the cultural conditions of a certain county (cinema visitors, public library users and active association members). Education The quality of education was measured by the number of citizens, aged 25 to 64, that had completed a certain level of education, the number of children included in preschool education and the ratio between the number of students enrolled in university programmes and actual university graduates. It is important to note that the data was collected over several years and that the trends of the indicators were measured (relevant years for the data vary from 2001 to 2006). Basic infrastructure and public sector

Apart from the data on the density of state, local and country road networks, the quality of the infrastructure was also rated by the efforts invested into environmental protection (total amount of waste, recycled waste, investment into and current expenditures on environmental protection). The

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

public sector was analysed based on all the revenues of local and regional governments (taxes and surtaxes), on the number of judges, number of cases closed per judge, number of open land-registry cases, number of days needed for land register entries. The number of criminal offenders was also considered. Business infrastructure Business infrastructure was analysed based on the number of registered personal, freight and work vehicles, and the number and area of business zones. A number of indicators related to IT infrastructure and energy were also created, but the relevant data was not collected.

Business sector indicators “Quality of the Business Sector” also consists of indicators divided into four sub-groups: - - - -

Investments and entrepreneurial trends Level of entrepreneurship development Economic results – level Economic results – trends

Investments and entrepreneurial trends As is suggested in the name, investments and entrepreneurial trends were compared to previous years. Additionally, aggregate data covering several years was taken into consideration to avoid the effect of unrealistic results in a specific year as much as possible. The data used included the number of active legal entities, companies, enterprises and cooperatives, craft businesses and freelancers (as well as the number of owners and employees), total investments, investments into the processing industry, investments into equipment, construction of residential buildings, direct equity investments, and data on the performance of SMEs.

Level of entrepreneurship development This indicator also explored some of the data used to rank investments and entrepreneurial trends. In this case, however, the data was presented as static, as indicators of the current state of entrepreneurship, expressed either per capita or as fractions. The data used here also dated from 2004, 2005, and 2006, and refers to the processing industry, the activities of units per type of economic activity and SMEs (expenditures on employees, gross income and profit, etc.) Economic results – level and trends The counties were compared over the period 2001-2006 based on employment/unemployment data, (number of unemployed by age and by level of education, number claiming unemployment benefits), export, import, retail turnover, number of tourist visits, taxes, salaries (in units per type of economic activity) and local and county revenues. All survey and statistical indicators were calculated for the purpose of comparison as a Croatian average and an average of the three statistical regions. The two main economic areas presented here - the business environment and the quality of the business sector - are actually the result of 135 indicators structured into eight sub-groups. Most of the indicators were expressed in numbers per person, as an activity trend (index) over several years, or as a percentage.

REGIONAL COMPETITIVENESS INDEX CROATIA 2007

Research Methodology

Calculation of competitiveness indexes and rankings Based on the above methodology, each county and region received 4 scores: two survey and two statistical scores for the level of business sector development and for business environment. From this, 2 basic indexes were calculated (survey and statistical), as weighed averages of two subindexes, whereby the business environment was given a greater weight (0.844), and the quality of the business sector a smaller weight (0.166). The weights were taken from WEF and were estimated through their research into the regression of some factors on the differences in GDP growth rates, conducted on a large cross-country sample. The counties were therefore ranked based on the average of the two main indexes: survey and statistical. Finally, the overall County Competitiveness Index was calculated as an average of the standardization of the above variables, since they are of different types. The survey competitiveness index calculated here corresponds, to the extent possible, to the WEF Business Competitiveness Index, which ensures its methodological reliability. It was therefore combined with the second main index â&#x20AC;&#x201C; statistical, based on hard data â&#x20AC;&#x201C; only at the final Regional Competitiveness Index calculation stage. It should also be noted that the final Regional Competitiveness Index is for informational purposes only and should be used together with the survey and statistical indexes and sub-indexes, as well as the source indicators, to obtain a complete and relevant picture of the strengths and weaknesses at the county level and the NUTS2 regional level. 97

Bilješke