’20 Million Euro Loan Will Attract 200 Million from Funds’

Finance Minister Slavko Linić and the head of the World Bank Office in the Republic of Croatia, Hongjoo Hahm, today signed a loan agreement of 20 million euros for the Second Technology Development Project (STP II), as announced by the World Bank.

This project will assist those involved in research and innovation creation, including public scientific research institutions, scientific communities, successful scientists, and young researchers, to leverage EU accession, strengthening their capacities for applying and implementing projects funded by EU resources.

The STP II project is an upgrade of the now-closed Technology Development Project, which aimed to strengthen Croatia’s innovation potential and competitiveness by supporting research and development programs managed by the Business Innovation Agency of the Republic of Croatia (BICRO) and the Unity Through Knowledge Fund (UKF). It has also assisted public scientific research organizations in the commercialization of research and enhancing collaboration with the business sector, the statement notes.

Through the STP II Project, support and assistance will continue to be provided to selected public sector institutions in developing proposals and implementing projects funded by EU funds. By financing research and development, the project will contribute to stimulating demand for EU fund resources in business and scientific communities, particularly among small and medium-sized enterprises, successful scientists, and young researchers.

-It is expected that with the help of this World Bank loan of 20 million euros, at least 200 million euros will be drawn from EU funds. The government recognizes this opportunity to increase the country’s productivity, create new jobs, and boost exports. Through this loan, our goal is to help scientific research institutions apply the capabilities they possess in the field of research and development and innovation, and maximize the benefits of EU accession, stated Slavko Linić.

In preparing this project, which is a continuation of the project that created the prerequisites for establishing programs for more effective commercialization of innovations, we had the expert and financial assistance of the World Bank, which recognized the importance of developing this segment, and I thank them for their support. We are confident that this project will encourage entrepreneurs and scientists to engage in new activities and effectively utilize EU funds, said Željko Jovanović, Minister of Science, Education, and Sports.

-Experiences from other EU member states show that effective use of EU funds for research and development and innovation leads to increased growth and productivity and the creation of jobs for a well-educated workforce, especially for youth and women. This is particularly important during an economic crisis when public and private sector investments in research and development are limited. Therefore, it is crucial for Croatia to seize this opportunity and effectively utilize the EU funds it will soon have access to in order to strengthen its innovation potential, stated Hongjoo Hahm, head of the World Bank Office in the Republic of Croatia.

Since becoming a member of the World Bank in 1993, Croatia has received support from the global development institution in the form of financial and technical assistance, as well as policy advice in various areas and analytical services.

The Bank has so far provided support for 49 projects amounting to 3.3 billion dollars and approved 52 grants totaling 70 million dollars, the statement concludes.