The fourth section focuses on international sources of funding for innovation which has played an important role in the past decade and is set to increase further in the wake of Croatia's recent accession to the EU, with full access to Structural Funds in addition to the already established full participation in the Framework Programmes. The final section summarises some major results of the review by discussing strategic tasks of Croatia’s innovation policy from a functional assessment perspective. Particular problems arose from the combined effect of the economic downturn, the discontinuation of supplier-customer and innovation linkages, and a troublesome privatisation process, with severe consequences for the manufacturing industry (which had been a pillar of the Croatian economy) in terms of decline of incentives and capabilities for innovation.