The Role of Clusters in the Development of Small and MediumSized Enterprises in the Republic of Croatia

By joining the European Union global market, the economy of the Republic of Croatia became exposed to strong pressures from competitors, which is why it needs to strengthen its competitive position. The main purpose of conducting business via clusters is to achieve a high level of productivity and innovativeness of small and medium-sized enterprises, which would eventually result in increased competitiveness of the region in which these enterprises operate. In this paper the authors have provided an outline of the economic significance and the level of development of the clusterization process in the Republic of Croatia, as the clustering model has proved to be successful in those countries which opted for a strategic support to the development of small and medium-sized enterprises. The aim of this paper is to demonstrate how the forming of clusters can strengthen Croatian small and medium-sized enterprises by restructuring large companies and forming links between enterprises and scientific institutions. The paper also represents the findings of an empirical research conducted among members of selected clusters in the Republic of Croatia.