Croatian economic growth is impossible without export expansion feasible
through the development of industry based on knowledge and application of
new technologies. As the chain breaks at its weakest link, so is the whole
economic growth impossible if Croatia does not balance development of all its
counties. Osijek-Baranja County has next to Vukovar-Srijem County, Sisak-
Moslavina County and Šibenik-Knin County suffered multiple direct and
indirect consequences of the defensive war. It is estimated that the overall
production capacities of the County have been reduced by about 60% and that
the direct war damage amounts to 3 billion euros (Borozan & Barković; 2003).
Mined areas, killing of cattle, destruction of production capacities, reduction of
production, loss of market, clumsy privatisation and unfavourable investment
climate resulted in unenviable economic situation. The problems of this County
are evidenced in almost every aspect of the economy. From the high unemployment rate, negative migrations, unfavourable investment climate, to
the slow industrial production growth and the production which wholly
underestimates the role of the scientific research, innovations and application of
the high technology. This kind of industrial base can not enable the
development of new competitive industries for the present global market. Long-term sustainable economic growth should be based on industry based on
knowledge – so called “new industry”, application of new technology,
innovations and production of value-added products. The opportunity for this
kind of development can be found also in applying for financial resources of
European Union pre-accession funds, and participating in national and county
programs. Furthermore, stimulation of export-oriented production, the
proximity of Josip Juraj Strossmayer University with its associated faculties,
simulative measures for retention of young population, investing in scientificresearch activities, innovations, stimulation of creation of value-added products and branding, are possible solutions to the problems of this County and a way towards the opportunity for success in the conditions of global economic scene.