Innovation is crucial for economic growth, especially in countries like Croatia. A survey was conducted to study innovation in Croatian companies from 2001 to 2003. The findings show that while there are some positive outcomes in terms of innovation, there are also challenges. Companies face obstacles in innovating within their organizations and struggle to commercialize their innovations. The data suggest that Croatia still has a way to go in becoming a knowledge-driven economy. Larger firms tend to be more innovative, and new products are not necessarily dependent on firm size. Overall, there is a need for policy improvements to support innovation in Croatia.