This chapter describes the main actors in the Croatian innovation system, their linkages and the main challenges. The business sector includes a number of internationally well integrated and innovative companies. Yet, the general picture is still one of rather low absorptive and innovative capacity. Overall the Croatian economy faces challenges as regards productivity and resilience which strengthened innovation can help to address. The university sector has many successful individual research groups. Higher education institutions and public research institutes have a traditionally strong position in the system, with a high degree of devolution of powers and some experience to integrate basic and industry-oriented research. Transfer and collaboration patterns are influenced by the organisational set-up of the public research sector, including numerous dedicated transfer institutions and programmes. However, some features of public research governance and funding have been detrimental to sustained innovation capacity building.