The patterns of deindustrialization, industrial transition, and industrial development in Croatia

Commissioned by: Public Institution for the Development of the Međimurje County REDEA 
Project duration: April 14 -  May 5, 2026
Project manager: Zoran Aralica

Summary: 
Socio-economic transformations have affected all countries of Central and Eastern Europe and were marked by the privatization and restructuring of enterprises, including the abandonment of socialist models of enterprise organization, as well as the collapse of previously integrated common markets. All these changes occurred in parallel with deindustrialization and the construction of new market structures more suitable for integration into the EU. The aim of this project is to analyze the extent of deindustrialization and the potential for industrial transition in Međimurje County. Međimurje is a county with high employment and a strong export base, but it faces the challenge of moving from labor-intensive production of low and medium value added to smart industries and Industry 4.0. Within this project, the sustainability practice of dynamic micro enterprises will be presented. A very small number of enterprises consider sustainability crucial for their enterprise, a slightly larger number consider it an important factor. However, the majority of enterprises consider the issue of sustainability unimportant. The focus of this project will be on recommendations that can improve industrial transition, as well as on increasing the relevance of institutions that contribute to this transition.