REGIONAL DEVELOPMENT AND TECHNOLOGY CONVERGENCE IN CROATIAN MANUFACTURING INDUSTRY

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The purpose of this paper was to test the hypothesis of positive relationship between technology convergence in Croatian manufacturing industry and regional convergence. The evidence supported the conclusion that regional technology structure and technology level were deteriorated in analyzed period (2001-2005). The slowest growth rate, contrary to the expectations, was recorded in high technology (HT) sector. Furthermore, technology gap between Croatian regions was increasing. There is a strong evidence of further technology divergence whether measured by GDP per capita fi gures or regional technology levels. The rising technology gap could have been caused by substantial regional differences in the level of tacit and cumulative knowledge. The high capacity for technology absorption and development is at the moment present only in the city of Zagreb. The share of medium to high technology could be increased in Middle and South Dalmatia while the region of Eastern Slavonia is capable of rising the level of medium technologies. The region of Central and Northwest Croatia is very heterogeneous concerning the industry and technology structure. This region should be considered as potential destination for manufacturing industries being dislocated from the city of Zagreb.

Croatian regional development; technology; convergence; manufacturing industry