An increasingly dynamic and competitive global market requires countries to innovate for their success and survival inthemarket place. Although innovations in the past were veryi mportant for the survival of countries as well as their organizations,they have only now become a necessary factor for survival. From their very beginnings at the time of the Industrial Revolution, today’s innovation shave become the foundationof a society that depends on the ability to create and apply them. There are different definitions int he literature, as well as he division of innovations, but all of them have common that innovation is something new, somethingthatdoesnotexist. In order to createinnovation, itisnecessary to invest a lotofeffort, knowledge, skillsandexperience. Thelevelofinnovationactivity must bemeasuredsomehow, depending on eachindividualcountry. Thepurposeofthisfinalpaperis to present the importance of innovations and innovationactivitiesandthewaysofmeasuringandresultso fthese activities in the Republic of Croatia.