The project has a maturity of 15 years, including a five-year grace period.
The World Bank said that the project would a positive return for Croatia's economy in the long run by reducing the burden of research and development institutions on the state budget. Local private companies will benefit from increased incomes, improved competitiveness, raised market share and positive impact on exports, the banks said.
"The project is comprised of three main components - restructure research and development institutions to increase the focus on applied research while maintaining scientific excellence; upgrade technological capabilities of private enterprises by providing financing support for technology startups technology based companies; and engage the Croatian scientific diaspora in joint projects and other initiatives. to transfer their knowledge and skills for the benefit of Croatian society as well as to encourage the scientists to return to Croatia," the statement said
"The Project will build on the great depth of scientific knowledge un Croatian research and development institutions and will help bring more innovation into the market. It will also help to reduce 'brain drain' as well as use the knowledge and resources accumulated by the Croatian Diaspora to national advantages," said Anand K. Seth, World Bank Country Director for Bulgaria, Romania and Croatia.
The World Bank also said Croatia had made significant progress in its transition towards a market economy, The Croatian Government, however, recognises that more remains to be done to improve the competitiveness of the Croatian economy and propel it forward on a path to sustained economic growth, the bank said.
"An increased productivity and technological base and strengthened linkages among research and development institutions, the scientific community, and industry will help enterprise compete more effectively and facilitate Croatia's economic integration with global markets," the statement said.
In addition, upgrading the technological capabilities of firms is an important step in Croatia's future accession to the European Union, the bank said.
The project was prepared in cooperation with the Croatian Science, Education and Sports Ministry, the Brodarski Institute, the Business Innovation Centre for Croatia and the Rudjer Boskovic Institute.
Croatia joined the World Bank in 1993. Since then, commitments to the country total approximately US$1.2 billion for 32 operations.