The project will help those involved in research and innovation, including public research institutions, scientific communities, high performing scientists, and young researchers to fully from European Union (EU) accession by increasing their capacity to apply for and implement EU-funded projects.

STP II builds on the now closed Science and Technology Project designed to strengthen Croatia’s innovation potential and increase its competitiveness by supporting research and development programs managed by the Business Innovation Croatian Agency (BICRO) and the Unity through Knowledge Fund (UKF). It also assisted public research organisations to commercialise their research and improve collaboration with the business sector, the WB's press release notes.

"This loan of EUR20 million is expected to mobilise at least EUR 200 million in EU funds. The government recognises this opportunity to raise Croatia’s productivity, create jobs and promote exports. Through this loan our goal is to help research institutions to apply its capabilities in development and innovation and to make most of the EU funds,” Finance Minister Slavko Linic said at the signing ceremony.

"Experience from other EU member states shows that efficient use of EU funds for research, development and innovation has led to growth and productivity increases as well as creation of high skilled jobs, especially for youth and women. This is of particular importance in times of economic crisis when public and private investments in research and development are limited.” said World Bank Country Manager for Croatia, Hongjoo Hahm.

Since becoming a member of the World Bank in 1993, Croatia has been receiving support from global development institutions in the form of financial assistance and technical support.

The bank has so far secured support for 49 projects valued at US $3.3 billion and approved 52 grants valued at US $70 million, the WB notes on its web site.