Algebra’s Stress Check view of 2025 gives five recommendations for the competitiveness of Croatia and the EU

The Algebra University presented a new format of socio-economic analysis in cooperation with the Edward Bernays University – STRESS CHECK: View to 2025. Ahead of the new year, relevant data related to the state of education, science and the labor market and projections for the future are presented, in relation to the broader context of Croatia and the European Union. Since the beginning of this century, the EU has been facing a permanent decline in GDP compared to the United States, primarily due to productivity stagnation. Income growth in the EU is twice as slow as in the US, while unfavorable demographic trends further worsen the situation. Falling birth rates and aging populations lead to a reduction in the labor force, forcing Europe to rely heavily on increasing its own productivity.

The focus of the analysis was on five areas:

Science

· Technology (Tech)

· Research and development (Research)

· Education

· Skills

In the introduction, he spoke about demographics and educational trends Mislav Balkovićrector of the University of Algebra, who specifically referred to the document of the adviser of the European Commission for competitiveness, Marija Draghi: The future of European competitiveness, specifically to the part related to the decline in the number of young people and children in schools, the shortage of workers and emergency measures for the recovery of society from these negative trends: “The demographic problem and the lack of students at all levels should seriously concern not only the education sector, but also and Croatian employers. In the last ten years, there have been 18.36 percent fewer children in secondary schools in our country. In Croatia, there are currently 1,846 accredited study programs attended by 151,000 students, and among them there are 1,748 foreign nationals on full-time studies,” Balkovi said. and added: “From countries like India, Nepal and Bangladesh, low-skilled workers are massively imported to the domestic labor market, while it is almost impossible for foreign students from the same countries to come and study here.”

He also agreed with him Damir Jugodean of Veleučilist Edward Bernays, who emphasizes that although more than 11,000 enrollment places remain unfilled at public faculties in 2023, less than 8% of the total number of studies are conducted in foreign languages ​​in Croatia. Jugo sees the solution in shutting down unproductive study programs, removing administrative barriers to attracting foreign students, uniting institutions, and promoting and branding Croatia as a country of knowledge and skills, not just tourism.

Zagreb: Socio-economic analysis of the University of Algebra “STRESS CHECK: View to 2025” |

Photo: Goran Stanzl/PIXSELL

Tomislav Dominkovićthe president of the Algebra Management Board, touched on the aspect of competitiveness from the perspective of technology in which the EU, but also Croatia, have the opportunity to reach the level of global development if they start to implement AI solutions in business and education in time.

When we look at the aspect of ‘AI in total’ according to the latest Eurostat statistics, Croatia has a score of 9 for the use of artificial intelligence in companies, while the EU average is 8, which means that we are above the EU average in this respect. We are located between Austria and Ireland, which is not so bad. However, when we look at the coverage of AI skills at the level of the entire country (so not only companies, but also civil services) – here we trot according to the statistics of the Report of Croatia for the Digital Decade (DESI index) and fall behind. for the EU by up to 89%.

In his report, Mario Draghi sees the potential of Europe to rise and reach the competitive advantage of the USA and China precisely in AI, because it is a relatively unexplored area where it is possible to achieve quick victories.

It is also a fact that Europe lags behind the rest of the world in the area of ​​key skills, especially if we look at the USA and China. Hrvoje Josip Balen, a member of the Algebra Management Board, focused in his speech on exactly this aspect at the level of Croatia – the growth of the number of digital professionals is one of the national goals of the strategic document Digital Decade until 2032: “Today, completely free or co-financed education through the system of vouchers resulting from the NPOO and ESF, and more than 100,000 people in Croatia can take advantage of this opportunity to 2030. I am not sure that all our citizens are familiar with this, and that is why it is necessary to increase investments in advertising the possibility of free education” – Balen points out and warns: “It would be good and there are some announcements that Individuals will be able to use the second voucher after two years. It is necessary to provide access to digital, green and deficit vouchers to certain groups of foreign workers, who in this way can relatively quickly upgrade the skills gap with which they came to our country.”

Zagreb: Socio-economic analysis of the University of Algebra “STRESS CHECK: View to 2025” |

Photo: Goran Stanzl/PIXSELL

Although it is to be expected that Europe and Croatia canter behind the rest of the world in the area of ​​innovation and productivity, what is certainly surprising is the weakened position of European academic institutions. Draghi’s report places a strong emphasis on the component of strengthening scientific productivity as one of the tools for improving the general competitiveness of the economy and society.

Leo Mršić, vice-chancellor for science and research at Algebra University, highlighted the efforts that Algebra makes in diversifying its scientific activities through projects strongly linked to the economy, such as Smart En Route, through which data is collected via Hrvatska pošta trucks. related to air quality (particles PM2.5 and PM10, NO2, CO2 and others pollutants) or AI2MED, which, along with the potential of artificial intelligence and data science, increases the accuracy of diagnosis of malignant diseases and improves clinical decision-making processes.

For the sake of further development of scientific research at the national level, it is necessary to ensure stable funding of science based on the strong strengthening of the funding model of scientific institutions that encourages responsible autonomous management through complete program contracts; a greater number of diversified national financial instruments that will, in accordance with the EU goals of the Innovation Union and the Lisbon Strategy, ensure a growing share of funds for research and development in Croatian GDP up to the level of 3%; independent (usually foreign) and transparent peer review expert evaluation and long-term predefined, transparent and stable competition deadlines with a time-to-grant time span of a maximum of six months.