Industry in Osijek-Baranja County has suffered from multiple direct and indirect consequences
from the defensive war. It is estimated 60 per cent reduction in production capacities. Difficult
situation was even worse as at the same time serious reduction of business activities, closing off
its largest export markets, Former Yugoslavia, privatization process, and impossibility for
facing foreign competition, occurred. Old technology, indifference to technical science with
young people, brain drain to more perspective counties and states, and lack of financial sources,
have only increased the existing problems that industry in Osijek-Baranja County is facing. In
these conditions, it was hard to keep in step with global production trends and with orientation
of traditional industry into “new industry” based on development and application of scientific
and research work results. Industry is changing. It is changing in the way that it is becoming
based on knowledge, innovation, creativity, sustainable development and new technology
application in all business spheres. Because of that, industry has an influence on developing
new businesses, most common non-production ones. From the moment of signing Stabilization
and Association Agreement, the Republic of Croatia has possibilities to use financial resources
from the European Union pre-accession instruments and funds. Thereby, Osijek-Baranja
County can use great financial resources and use them to start reindustrialization in accordance
with European Union industrial policy and Lisbon strategy.
By creating Porter’s Diamond model of Osijek-Baranja County industry, the goal was to detect
all possible opportunities and convert it to strengths, and also to include possible environment
threats into long term industry development strategy. This model was used for creating
implication of all factors in SWOT terminology.
Industry in Osijek-Baranja County has suffered from multiple direct and indirect consequencesfrom the defensive war. It is estimated 60 per cent reduction in production capacities. Difficultsituation was even worse as at the same time serious reduction of business activities, closing offits largest export markets, Former Yugoslavia, privatization process, and impossibility forfacing foreign competition, occurred. Old technology, indifference to technical science withyoung people, brain drain to more perspective counties and states, and lack of financial sources,have only increased the existing problems that industry in Osijek-Baranja County is facing. Inthese conditions, it was hard to keep in step with global production trends and with orientationof traditional industry into “new industry” based on development and application of scientificand research work results. Industry is changing. It is changing in the way that it is becomingbased on knowledge, innovation, creativity, sustainable development and new technologyapplication in all business spheres. Because of that, industry has an influence on developingnew businesses, most common non-production ones. From the moment of signing Stabilizationand Association Agreement, the Republic of Croatia has possibilities to use financial resourcesfrom the European Union pre-accession instruments and funds. Thereby, Osijek-BaranjaCounty can use great financial resources and use them to start reindustrialization in accordancewith European Union industrial policy and Lisbon strategy.By creating Porter’s Diamond model of Osijek-Baranja County industry, the goal was to detectall possible opportunities and convert it to strengths, and also to include possible environmentthreats into long term industry development strategy. This model was used for creatingimplication of all factors in SWOT terminology.
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