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 oft he paper explains what regional policy is and how it works in Croatia and how it works int he 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 that enable their regional development. In order to more easily measure the competitiveness of an area in Croatia, there are the Regional Competitiveness Index and the Development Index. These indicators also compared two Croatian counties, the County of Primorje – Gorski Kotar and the County of Vukovar – Srijem. According to the analyzed dana, we see that the County of Primorje – Gorski Kotar is more competitive than the County of Vukovar – Srijem.