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Social innovation in Croatia was an unknown concept outside the academic community until 2011, when Social Innovation Laboratory was established and started to work in the Western Balkans. It has also been quite slow to be recognized on a policy level but progress has been made. Most innovations identified in Croatia are in the phase of implementation and are thriving and competing. While one sixth of these innovations do have potential for global value, the majority is of national or local relevance, which is a step forward for a post conflict developing country like Croatia.

High unemployment is certainly one of the biggest challenges in Croatia, with youth unemployment rates around 49% and average unemployment rates around 17% (EU's third-highest unemployment rates).

Most innovations identified in Croatia are in the phase of implementation and are thriving and competing. Key challenges being addressed include unemployment, education, renewable energy sources, and social inclusion.

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