Gordana Kovačević: It is important to recognize, motivate, and empower people with good ideas

We have reached the end of yet another very demanding year in which we have not yet managed to make significant progress in some key segments important for the competitiveness of the Croatian economy.

According to this year’s Global Competitiveness Report, Croatia remains, as it was last year, in 77th place out of a total of 140 economies worldwide covered by the research. Also, according to the latest updated data from the so-called digital index DESI, unfortunately, it is at the bottom of the rankings, holding only 24th place out of 28 European Union countries.

Strategic priorities

There are shy signs of positive trends, and this year’s export growth and good tourist season are encouraging. Analysts agree that we should finally end the year with modest, but still positive GDP growth. It is very concerning that we are lagging behind in structural reforms important for improving the economic climate and stronger investment precisely in those industries and activities that can more quickly positively stimulate the economy and employment. If we want to achieve significant economic growth and development and ensure a better life for Croatian citizens, we must catch up as soon as possible with advanced world economies that are rapidly introducing new technologies into all segments of society, digitalizing the public sector, and thus strengthening competitiveness, transparency, and their efficiency.

I would like to remind that the most important strategic priorities of ‘Europe 2020’ are research, development, and innovation, and the ICT sector is recognized as an important driver of the development of modern society dominated by knowledge and innovation. I believe that Croatia, following the EU example, must define strategic priorities and sectors on which it bases its future, focusing on growth, development, and competitiveness. It is not good that some opportunities have already been missed. I am referring to the proposal for smart specialization, where the ICT sector has unjustifiably not been included as a thematic priority area or vertical. This has made it more difficult for us to access European Union structural funds for research and development, and the state has, in a way, limited areas for innovation and development by its own assessment. Instead of giving us a tailwind, it has made the job harder for all of us working in the ICT sector, especially for those investing huge amounts in research and development and employing young people here in Croatia.

Open the doors wide to innovators

For example, we at Ericsson Nikola Tesla invest significant resources every year in research and development projects and other activities of our research and development center in Zagreb and Split. To remain at the top and be competitive in the demanding global market, our significant investments in technological development and human competencies have no alternative. If we add to this argument the fact that exports account for as much as 78 percent of the company’s total revenue and that knowledge export within research and development and other expert centers, where more than 1,300 out of a total of 1,900 employees work, generates more than 600 million kuna or about 60 percent of total annual revenue, with a tendency for constant growth, it becomes clear why this technological and developmental potential needs to be strengthened and encouraged for the benefit of us, but also the community in which we operate.
Let’s look around us and we will see that developed countries of the world are competing to provide a more encouraging environment for research and development activities. Namely, there is a concern that these most important activities for the development and market positioning of the economy can easily relocate to other countries where better conditions and various forms of incentives and support for R&D&I activities are offered. Here, I primarily think of Scandinavian countries, the United Kingdom, Canada, Germany, and Far Eastern countries such as Korea, Japan, China, and India.

The coming year will be difficult, if not more difficult, and the challenges even greater. That is why I expect understanding and a strategic approach from the state administration and additional measures to empower all, including us in the ICT sector, who have research and innovation centers of knowledge and excellence, to continue and expand their business here in Croatia. We need to open the doors wide and give space to innovative, creative professionals who know and can turn their good ideas into high-value technological products, solutions, and services and offer them to customers around the world faster and better than competitors. Why is this important? The Croatian market is small, so we must build success on quality export products. Therefore, through structural reforms and systematic measures, we should ensure a foundation for new high-value products, solutions, and services with a global rating.

It is possible to retain young people

In this way, we could also stop the increasingly mentioned exodus of young educated people who cannot find jobs and leave the homeland in search of a better life. We must and can find a way to retain these young people in Croatia, in whose education we have all invested significant resources. Their knowledge and skills are needed to adequately respond to all market and technological demands that await us in a networked society. Opportunities for skilled and capable people are great, and their competitiveness is proven in a global environment. That this is possible is shown by the fact that the Ericsson Nikola Tesla Group has employed more than four hundred mostly young professionals this year who have the same working conditions and modern equipped workplaces in Croatia as their colleagues in the most developed countries in the world. Many of them are involved in global teams, working on attractive technological projects for our numerous customers in Croatia and worldwide, and have the opportunity for continuous learning, improvement, and career development.

Ericsson Nikola Tesla will continue in 2016 with programs focused on results, business excellence, and development and innovation in all activities and business processes. We will intensively strengthen our position in the domestic Ericsson market and export markets, expand our customer base, take on new responsibilities, and expand our offering of solutions, products, and services for the needs of a networked society. We always keep in mind technological leadership, the development of new business models, strategic investment in research and innovation activities, risk management, lifelong learning, and strengthening an innovative and motivating corporate culture. It is important to recognize, motivate, and empower people with good ideas to maintain quality results, the position of the largest Croatian exporter of knowledge, and a regional ICT leader that positively impacts business, society, and the environment as the foundation for sustainable development.