Porter's Diamond Model of Osijek - Baranja County Industry

Industry in Osijek-Baranja County has suffered from multiple direct and indirect consequences from the defensive war. It is estimated 60 per cent reduction in production capacities. Difficult situation was even worse as at the same time serious reduction of business activities, closing off its largest export markets, Former Yugoslavia, privatization process, and impossibility for facing foreign competition, occurred. Old technology, indifference to technical science with young people, brain drain to more perspective counties and states, and lack of financial sources, have only increased the existing problems that industry in Osijek-Baranja County is facing. In these conditions, it was hard to keep in step with global production trends and with orientation of traditional industry into “new industry” based on development and application of scientific and research work results. Industry is changing. It is changing in the way that it is becoming based on knowledge, innovation, creativity, sustainable development and new technology application in all business spheres. Because of that, industry has an influence on developing new businesses, most common non-production ones. From the moment of signing Stabilization and Association Agreement, the Republic of Croatia has possibilities to use financial resources from the European Union pre-accession instruments and funds. Thereby, Osijek-Baranja County can use great financial resources and use them to start reindustrialization in accordance with European Union industrial policy and Lisbon strategy. By creating Porter’s Diamond model of Osijek-Baranja County industry, the goal was to detect all possible opportunities and convert it to strengths, and also to include possible environment threats into long term industry development strategy. This model was used for creating implication of all factors in SWOT terminology.