Institutional Support System In Istrian County As A Factor Of Regional Development Management

The activities and roles implemented by the institutions whether on local, regional, national or European level are necessary and important because they create an institutional system which generates and accelerates development, increasing thereby constantly standards of living of the entire population. In order to create conditions for development, national policies involving different sectors, such as education and science, administration system and its barriers, business support institution system and business infrastructure or regional development need to be adjusted and strengthened. Institutional framework of regional development in Croatia still hasn’t been clearly defined and regulated by law. This resulted in a lack of coordinated development planning and in insufficient connection and networking between national, regional and local stakeholders, when speaking of development initiatives, information sharing and harmonizing national, regional and local development goals and priorities with the aim of using in the most efficient way national development resources. Good leadership has to be able to identify basic changes in the internal and external environment by creating regional economic plan and has to create conditions for implementing regional development strategies through creation of its own institutional support system. In spite of all mentioned disadvantages, problems and low level of decentralization in the Republic of Croatia, Istrian County developed and created an efficient institutional business support system, mostly by founding diff erent development institutions described in this contribution; Istrian Development Agency – IDA, Agency for the Rural Development of Istria – AZRRI, Fund for the development of agriculture and agritourism, Istria Golf Design, Istrian Tourism Development Agency – IRTA, Istrian Region Energy Agency – IRENA, MIH (Made in Histria) public company. Development and implementation of new models of regional management will lead to better economic development, thus increasing employment possibilities, promoting investments, upgrading tourism and rural development. In one word, regions which apply institutional business support system will become more competitive than the regions which don’t apply it. Accordingly, this article presents systematic approach as a basis for further research activities and confirming the results in practice.