ZAGREB, 28 Oct (Hina) – Croatia’s industrial sector trails the EU average in productivity due to low levels of digitalisation and automation, a shortage of skilled labour and limited investment in research and development, speakers said on Tuesday at the Croatian Chamber of Commerce (HGK) conference “It’s Time for Industry”.
Tomislav Radoš, HGK vice president for industry and sustainable development, said Croatia’s productivity gap stems largely from small-scale production, a lack of qualified workers, weak digitalisation and automation, and restricted R&D spending. He noted that gross value added per employee in Croatia amounts to just 58% of Slovenia’s level.
Economic analyst Velimir Šonje said industry employs about 17% of Croatia’s workforce and remains diverse, though overall productivity is low. He said parts of the sector still rely on outdated, low-value production, while others, such as energy, electrical equipment, beverages, non-metallic minerals and construction materials, have carved out high-value niches, generating more than €60,000 in output per employee.
Šonje said Croatia lags behind Austria, Germany, Italy and Slovenia in innovation and digitalisation, stressing that over the next five to ten years promoting innovation will be crucial for industrial transformation. With the right business climate, agile management and capital, he is confident Croatia can achieve it.
Marija Šćulac, director of the HGK’s Industry and Sustainable Development Department, said digital transformation should be seen as an investment rather than a cost. She cited the defence industry as a “bright example” of productivity, noting that more than 60% of over 140 firms participating in a mapping project with the Defence Ministry already export and a third are engaged in developing advanced technologies, from robotics to new materials.
Economy Ministry official Nera Pavić said manufacturing accounts for around 17% of Croatia’s GDP and employs over 230,000 people, rising to nearly a quarter of GDP when including energy, construction and related sectors. She said despite productivity growth in 2025, Croatia still lags the EU average due to its small share of high value-added production and heavy reliance on services.
Pavić also highlighted the defence sector as a key example of high value-added output, with exports exceeding 90%. She said the government is preparing a new national industrial development plan to help shift the structure of the economy.
Marko Čosić, CEO of Đuro Đaković Group, said European industry faces pressure from higher energy prices and competition from China, though he said the growing trend towards local production could strengthen resilience.
AITAC executive director Marijan Lorencin said digitalisation is now a competitive necessity rather than a choice, especially with the rise of artificial intelligence, adding that Croatian companies should make it a strategic priority.
