Aplications Of Penta Helix Model In Economic Development

The paper analyzes the application of Penta Helix model, where the diaspora is added to the Quad Helix model as the fifth component. Its role in economic development can be seen through partnerships and cooperation by engaging in business investments in opening new plants and facilities, the introduction of modern technology, to create new employment opportunities and stop the emigration of young people, who are increasingly looking to other countries in terms of quality of life and dignity for themselves and their families. There are various models that are recommended for use in economic development, in order to be a successful business, and use more favorable funds from domestic sources, as well as EU funds and donor funds of international monetary institutions. In the 1990s usage of the Triple Helix model was recommended for economic development, which is supposed to include the three important factors for starting businesses, namely: government, through incentives and stimulation of entrepreneurship, companies and the inclusion of the scientific sector and universities. Soon, due to the need for more competitive development of companies and export to world markets, the application of Quad Helix model was recommended for the development and prosperity of a company. That means in addition to the public sector, businesses and research institution, non-governmental organizations were introduced in stimulation of development. The fourth participant proved to be necessary to include the civil sector in the preparation of analyses of the current situation in the society, making the overall development programs, as strategic documents for development, development of business plans, investment studies, feasibility studies, cost-benefit analyses (CBA) and programs in accordance to propositions of the Project Cycle Management (PCM) methodology for development, in order to use funds of the European Union (EU) and resources of other international monetary institutions. With regard to the process of globalization, competition and access to the world unknown markets, the role of the diaspora is becoming increasingly important in the business world. Diaspora involvement in the economic development in the Penta Helix model assumes partnerships with existing companies, investment in new plants and existing companies with modern equipment in order to be competitive in an increasingly demanding global market. In addition diaspora is well organized around the world. Successful Croatian entrepreneurs recognized in the business world are members of the Croatian Fraternal Union (Hrvatska Bratska Zajednica)1,and members of a scientific organization in the Alma Matris Croatiae Alumni (AMCA)2. Through its already beaten track and achievements, their involvement through the model Penta Helix will add to faster recovery from the recession and boost Croatia’s economic development. This model is called Penta Helix which means in addition to the existing impact of the previous four components of Quad helix model, it adds a fifth component, the diaspora, as an essential element in investing and opening foreign markets to entrepreneurs, with regard to competition and the globalization process. The aim of this work is to highlight the need to involve the diaspora, with the support and stimulation of the Government, involve entrepreneurs, universities and civil society, in launching the accelerated development of the Eastern Croatia region and the whole Republic of Croatia.