| Summary: | This paper delves into Croatia's journey towards a market-based economy post-independence, accentuating the role of higher education institutions (HEIs) in fostering innovation amidst economic constraints. Despite challenges, HEIs are pivotal in shaping Croatia's knowledge-based economy, fostering collaboration with industry and society. The OECD review underscores improvements in knowledge exchange and innovation but calls for enhanced systemic support. Recommendations advocate for increased public investment in HEIs, reforming governance structures, and mainstreaming entrepreneurship education across faculties. By aligning strategic objectives with funding and bolstering institutional support for innovation, Croatia can leverage its HEIs as catalysts for sustainable growth and societal advancement
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