The subject of this final paper is Regional Development of Croatia. Regional development is a long-term process that stimulates and manages the potential of an area and promotes economic and social development. The beginning of the paper explains what regional policy is and how it works in Croatia and how it works in the European union. The European union's regional policy serves to reduce the economic and social disparities between the regions of the Member States. Through various funds, it allocates funds thatenable their regional development. In order to more easily measure the competitiveness of an area in Croatia, the Regional Competitiveness Index and the Development Index, which arepresented in two ways. These indicators also compared two Croatian counties, theCounty of Koprivnica-križevciand the County of Istria. According to the analyzed data, we see that the County of Istria is more competitive than the County of Koprivnica-Križevci.