Investments in R&D are an important factor in a successful process not
only of transfer of new knowledge and technology, but also of creating and
developing one's own. R&D can create new knowledge and technologies that can
be further protected by an adequate form of intellectual property (primarily by
patents) if they are unique and specific products and services. In general, the EU
Transition countries do not invest much in R&D in comparison with developed
countries and, for this reason, the EU Transition countries as well as Croatia
should increase their investments in R&D in both public and private sector in the
areas in which they are able to gain competitive advantages. In order to fully
achieve a maximum effect of investment in R&D of public and private sector it is
necessary for the EU Transition countries and Croatia to make an in-depth
analysis and thus gain an insight in the fields in which they can create competitive
products and services and then focus their R&D thereon. Also, such a detailed
analysis will determine whether the EU Transition countries and Croatia should
invest more in basic or applied research