Science, technology and education are perceived in Croatia as important factors of integration with European Union and transition from industrial to knowledge economy. Since 2000 Croatia invested a substantial effort to reform science and higher education sectors and to re-define the role of science and education in the national development, economic growth and competitiveness. The main reforms are planned in the sector of public research and higher education to meet the standards of the European Union concerning autonomy of university research, financing rules, scientific excellence, etc. In addition, the special programs and policy actions towards promotion of business innovation, technology development and science-industry cooperation were also initiated. Several important strategic documents have been formulated in order to drive Croatia towards “society based on learning and knowledge” such as “Croatia in the Twenty-First Century - Science“ (OG 108/2003) and Science & Technology Policy of the Republic of Croatia 2006 − 2010 accepted by the Croatian government in May 2006.
The reforms are additionally supported by the accession negotiations of Croatia with the European Union (opened on the 4th October 2005) that brought Lisbon and Barcelona targets into the science policy agendas. The full membership into the Six Framework Program from January the 1st of 2006 confirmed the status of Croatia as an equal participant into the European Research Area and opened a new chapter for Croatian scientists in international collaboration.
The research sector of Croatia is rather complex system that consists of 6 universities, 26 public institutes, 11 research centres in industry, 3 academies, 20 colleges, 8 polytechnics, one military research centre, 5 technology centres and one business-innovation centre (MSES, 2006).
The Ministry of Science, Education and Sports (MSES) is the responsible administrative body for planning, funding and monitoring of the overall science and education system. It works closely with the National Science Council (NSC) and the National Council for Higher Education (NCHE) that are principal advisory bodies tasked with the development and quality of science and higher education in Croatia. In 2000, the Croatian Parliament passed a law establishing the National Foundation for Science, Higher Education and Technological Development (NFS). NFS presents the first government agency responsible for funding scientific and developmental projects in addition to the MSES which used to be the single financier for R&D in Croatia.
Since 2000, the total expenditure on research and development (GERD) is constantly growing reaching 1.24 % of BDP in 2004 that places Croatia rather high in terms of research intensity. Croatia is among the leading countries in the region and above the average of the new Member States regarding the number of researchers and investments in R&D.
The state sector is largely dominant sector in the Croatian R&D system, especially comparing to research potentials in a technologically weak private business sector. Although the contributions of business sector versus government in both financing and performing of R&D have evolved in Croatia in recent years, still its contribution should be reversed in order to provide sufficient business support to R&D. As reported in 2003, the business sector employed 15 % of total researchers and financed 42 % of GERD. Although this ratio is more convenient than in many new Member States, it is still unsatisfactory in comparison to more developed countries. In addition, research intensity in business sector depends on investments of a few large industrial corporations while the sector of medium and small sized business is rather underdeveloped in terms of research and innovation (National Competitiveness Council, 2003).

ERAWATCH is a joint initiative of the DG Research and the Joint Research Centres (Institute for Prospective Technological Studies, IPTS). The inventory is updated on a periodical basis in cooperation with the ERAWATCH Network. Correspondent for Croatia is Jadranka Švarc, Ivo Pilar Institute of Social Sciences, Zagreb.

Article published in eJournal winter 06/07.