THE PENETRATION OF NEW INTERNET TECHNOLOGIES AS THE ENGINE OF ECONOMIC GROWTH IN PRIVATE AND PUBLIC SECTOR IN CROATIA

Sustained economic growth in a open economy is strongly depending on exogenous technological progress. Economic growth in Croatia in the last decade was relaying ra-ther on the “old economy”, while new technologies penetrated neither in private nor in public sector in order to be credited as an engine of growth. A research on the penetration of Internet in public sector in Croatia has been analyzed in this paper. Author conducted a research on the penetration of new technologies in banking industry and non-fi nancial sectors of Croatian national economy. The results are showing very low level of the new technology implementation. Banking sector is, due to strong investments in banking tech-nology in the past years, catching up the best practice. Analysis of these empirical resear-ches is leading to the conclusion that economic growth in Croatia, which was lower than in other transition countries, hasn’t been satisfying because of lower investments in new technologies and low penetration of Internet business models.