4.25. Chapter 25: Science and research

Further progress has been made with respect to research policy, where the overall level of alignment is already high. However, further efforts are required in order to increase the level of investment in research, in particular by the private sector. The conditions for enhance cooperation between the private and public sectors need to be further encouraged.

Croatia continued to participate actively in the Seventh EU Research Framework Programme (FP7) with a good level of administrative capacity and good knowledge. Participation in the FP7 continues to increase, but the success rate in the Specific Programme 'People' remains low. The level of collaborative research with EU partners and of research to help address global challenges should be further improved.

As regards Croatia's integration into the European Research Area (ERA), alignment with the targets and actions of the ERA has made further progress. With respect to mobility of researchers, a step forward was made with the adoption of a new Action Plan for Mobility of Researchers for 2011–2012, which aims to increase the number of researchers and to ensure better rights for researchers in line with the recommendations of the European Charter for Researchers and the Code of Conduct for the recruitment of researchers. The full use of the national EURAXESS web portal also facilitates effective mobility of researchers. Some actions were also taken to stimulate innovation and prepare for the Innovation Union. However, the level of investment in research and development has stagnated at less than 1% (average of 0.91% of GDP over the last five years).

Conclusion Progress in the field of science and research has continued, the level of alignment is high, but efforts remain necessary with respect to the key EU research policy objectives related to the level of investment in research and to quality researchers and their rights. Preparations for the Innovation Union should be duly considered and the recommendations of the European Charter for Researchers and the Code of Conduct for the recruitment of researchers (Charter and Code) further implemented.

4.20. Chapter 20: Enterprise and industrial policy Some progress was made with regard to enterprise and industrial policy principles. However, the financial and economic crisis had a negative impact on the implementation of the Industrial Policy Strategy. Alignment of Croatia's definition of 'SME' with the EU-recommended definition is not yet completed. Further progress has been made in the area of business registration, especially in the form of introduction of the e-register online application, but is not yet fully functioning. Administrative and judicial weaknesses continue to adversely affect the business environment.

The Government Legislation Office (GLO) has taken steps in order to be able to conduct regulatory impact assessments with more rigour.

Industrial policy measures were taken to alleviate the effects of the crisis through the Economic Recovery Programme adopted by the government in 2010, which includes measures to improve the business environment and to create a competitive economy (see also Economic criteria).

In the area of enterprise and industrial policy instruments, Croatia has made some progress and played an active part in the EU's Competitiveness and Innovation Programme (CIP). Croatia participates in the Europe Enterprise Network.

There has been some progress in the field of sector policies, such as in the wood processing industry, with the adoption of the new four-year Operating Plan. Also, good progress has been made in the shipbuilding industry with the approval of the individual restructuring plans (see Chapter 8 – Competition policy).

Conclusion
Croatia made some progress in the field of enterprise and industrial policy. Alignment with the acquis in this chapter is very advanced. Further sustained efforts need to focus on improving the business environment, by reducing the administrative burden, and on innovation and skills. Alignment of the definition of SME with the EU recommendation needs to be completed.  Efforts to restructure the shipbuilding industry need to be further pursued.

Source: http://ec.europa.eu/enlargement/pdf/key_documents/2011/package/hr_conclusions_en.pdf

http://ec.europa.eu/enlargement/pdf/key_documents/2011/package/hr_rapport_2011_en.pdf

http://ec.europa.eu/enlargement/pdf/key_documents/2011/package/hr_opinion_2011_en.pdf

• EC Press Release: European Commission recommends moving onto next stages towards EU entry [news]