The project has been launched by Janko Mrsic-Floegel, the castle's owner and director of the applied technology department in the London headquarters of the BBC.
Mrsic-Floegel, who has so far invested almost one million euros in the project, told reporters that the purpose of the institute was to improve the use of information technology in Croatia and help strengthen connections between scientific institutions and the industry.
Education and Science Minister Dragan Primorac told the news conference that his ministry welcomed the project and would support the establishment of the institute, allocating some 3.5 million kuna (0.46 million euros) over the next two years for that purpose.
Primorac believes that the institute will be able to finance itself after three years.
Mrsic-Floegel said the institute should start operating in the spring of 2005 and that it would employ 50 young scientists.
Sveti Kriz Zacretje is a town some 40 kilometres north of Zagreb.