The term region is defined as a piece of land defined by certain characteristics which make her unique and different compared to other parts of territory. Guided by these characteristics, a fitting strategy is formed for regional development, i.e. furthering regional competitiveness. European Union defines regional competitiveness as the ability to offer an attractive and sustainable environment for firms and residents to live and work, which leads to conclusion that regional development means socio-economic changes, changes that must be constantly analysed and predicted. More so, it is important to guide the development flow in order to create opportunities for the growth of every region. Croatia is a country filled with natural resources and favourable climate but it is still a country characterized by a great regional imbalance, which is clearly defined by the regional competitiveness index. It is necessary to soften the differences by investing equally in all regions to raise competitiveness, which would result in raising the competitiveness of Croatia as a whole.