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Factsheet for measure HR-2022-27/2768 – measures in Croatia

Grants for digitalization

Bespovratne potpore za digitalizaciju

Country Croatia , applies nationwide
Time period Temporary, 01 July 2022 – 12 August 2022
Context Digital Transformation
Type Other initiatives or policies
Category Promoting the economic, labour market and social recovery
– Support for spending, stimulus packages
Author Predrag Bejakovic (IJF) and Eurofound
Measure added 23 August 2022 (updated 05 September 2022)

Background information

The Government of the Republic of Croatia (GRC) prepared a Proposal for the National Recovery and Resilience Plan, which was officially submitted for evaluation to the European Commission on 14 May 2021. In accordance with the provisions of Regulation (EU) 2021/241 on the establishment of the Recovery and Resilience Mechanism, on 8 July 2021, the European Commission adopted the Proposal on the approval of the evaluation of the Recovery and Resilience Plan of the Republic of Croatia and submitted it to the Council. Regulation (EU) 2021/241 on the establishment of the Recovery and Resilience Mechanism does not directly determine the forms of grants that the member state awards to the final recipients, i.e. beneficiaries. However, the Regulation generally states the obligation of consistency in the application of the various Union instruments. At the session held on 8 July 2021, the Government of the Republic of Croatia passed the Decision on management system and monitoring of the implementation of activities within the framework of the National Recovery and Resilience Plan 2021 - 2026 (OG 78/21). In accordance with the aforementioned Decision, the competent authority for the implementation of this Call is the Ministry of Economy and Sustainable Development (MESD).

Content of measure

Within the Framework of the National Recovery and Resilience Plan of the Republic of Croatia 2021-2026, the Ministry of Economy and Sustainable Development, through the National Recovery and Resilience Program 2021 - 2026, announces a Call for submission of project proposals "Grants for digitalization" (Call reference number: NPOO.C1.1.2.R3-I3.01). Grants are awarded through an open award procedure in the modality of a temporary Call.

The aim of the call is to enable digitalization for the purpose of digital transformation of Croatian SMEs by acquiring digital tools and equipment and strengthening digital skills for the development and application of new products, services and processes, which will ultimately result in strengthening the company's market position and increasing productivity. Acceptable activities that can be financed: creation, development or procurement of digital solutions and technologies for the purpose of digital transformation of business processes or production; implementation, adaptation or integration of digital solutions and technologies; strengthening the digital skills of employees, related to the previously mentioned activities. The available amount of funds is HRK 206 Million (€27.34 Million). The lowest amount of grants that can be awarded per applicant is HRK 150,000 (€19,908.42), while the highest amount is HRK 750,000 (€99,542.11). Eligible applicants are SMEs with at least three full-time employees (based on hours worked) in the year preceding the year in which the project proposal is submitted. The maximum intensity of support depends on development level of the unit of regional self-government in whose territory the applicant is based in accordance with the Decision on the Classification of Units of Local and Regional Self-Government (OG 132/17). For the least developed units (the I. development group) the grant can be up to 70% of eligible costs for applicants, up to 65% of eligible costs for applicants based in II. development group; up to 60% of eligible costs for applicants based in III. development group, and up to 55% of eligible costs for applicants based in IV. development group.

Use of measure

The application for grant had been opened from 1 July until 12 August 2022. The results on the approved grants will be published in September 2022.

Target groups

Workers Businesses Citizens
Does not apply to workers SMEs
Does not apply to citizens

Actors and funding

Actors Funding
National government
EU (Council, EC, EP)
European Funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement as case not in social partner domain No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A

Involvement

Due to the nature of the measure, social partners were not included in its design and implementation. However, social partners in Croatia are fully aware of the importance of digitalization on the labor market and needed upskilling and training of workers. The National Economic and Social Council (ESC) on its 241st session on 20 December 2021, discussed the situation and perspectives on the labor market and the transformation of Croatia workforce in the age of digitization. The ESC will follow with analyzing the impact of digitalization on the labor market and industrial relations.

Views and reactions

Social partners in Croatia fully support all measures directed towards the transition to green and/or digital economy fully aware how this transition is important for Croatian economy and society.

Sources

  • 24 June 2022: Bespovratne potpore za digitalizaciju (Grants for digitization) (mingor.gov.hr)
  • 24 June 2022: Poziv na bespovratne potpore za digitalizaciju (Invitation for Grants for digitization) (mingor.gov.hr)

Citation

Eurofound (2022), Grants for digitalization, measure HR-2022-27/2768 (measures in Croatia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HR-2022-27_2768.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.