Every country should strive to increase regional competitiveness in order to achieve economic growth, increase employment, and obtain the prerequisites for making the economy conducive to foreign direct investment. After unfavorable war situation such policy caused a considerable “blossom“ of Croatia. The membership in the European Union paved the way for inflow of foreign investment in the country. While the annual increase in the number of foreign investors in the country is growing, the development of small and middle sized businesses in Croatia is declining, as well as human resources development, even though Croatia has a strong potential for its development. Also, there are regional differences, both in the economic terms and in the infrastructure of certain areas with bulk of investment directed toward more developed regions). The regional development of Croatia and employment is largely dependable on tourism, which in addition of a great contribution to the state budget leads to the country's macroeconomic stability. Therefore, in the future Croatia will seek to further strengthen the attractiveness of tourist destinations and to preserve the existing favorable geographical location, to reduce the social and economic differences between counties and thus attract more foreign investors to the country. In such context, greenfield investment, establishment of new facilities and branches, would be favorable to brownfield investment.