Recommendations for positioning of IT sector

Recommendations for positioning of IT sector

Digitalization strongly influences the economy by boosting GDP and reducing unemployment, much like electrification transformed society in the past.

Croatia is ranked mid-range in international indices, performing well in ICT infrastructure and digital skills but lagging in legal and regulatory frameworks, business use of ICT, and digital public administration.

The Croatian IT industry has the potential to become a leading export sector, but this requires tax incentives, favorable credit lines, reduction of parafiscal charges, and stronger intellectual property protection. The government should establish a dedicated Ministry of Digital Society and appoint a Chief Information Officer (CIO) to accelerate digital transformation.

Key recommendations include:

  • strengthening IT exports and competitiveness
  • reducing tax burdens on labor and corporate income
  • investing in education, particularly STEM and digital skills
  • opening government data for innovative ICT solutions
  • increasing citizens’ use of digital services.

Despite the economic crisis, Croatia’s IT sector has recorded strong revenue and export growth and holds significant potential within the framework of “Industry 4.0.” The American Chamber of Commerce emphasizes the need for a national digital strategy and cooperation between the government, industry, and academia.