This thesis describes the issue of innovation policy in the European Union with an emphasis on the "Europe 2020" strategy. Importance of the implementation of stimulative innovation policy in the Republic of Croatia is emphasized, both in theoretical and in a practical way. Innovations represent an important role in every economy and are necessary for improving the quality of life, maintaining competitiveness in the market, increasing employment and income. Innovations are not just new products, they are processes and technologies that help us find solutions in an easier and faster way. Innovation policy itself is the interface between research, technological development policy and industrial policy, and the aim is to provide a framework thanks to which ideas will be brought to market. The thesis's aims are understanding the guidelines and legal regulations issued by the European Union and to recognize their qualities for stimulating innovation both in Europe and in the Republic of Croatia. Furthermore, the importance of entrepreneurship as an accelerator of the entire economy is emphasized. Small and medium-sized enterprises stand out as innovation initiators and sources of employment, which is why the European Union emphasizes policies that encourage the development of the entrepreneurial capacity. Two successful innovators from the Republic of Croatia, Mate Rimac and Ivan Mrvoš, are mentioned as successful examples from practice. The results of the research within this thesis show that the respondents are interested in innovations. According to the examined sample, it can be concluded that the population of the Republic of Croatia is not sufficiently familiar with innovations and that the majority of respondents do not have a positive view of placing sufficient emphasis on stimulating innovations in the Republic of Croatia. Therefore, the population of the Republic of Croatia should be better acquainted with the importance of innovations and their use, both for the development of the community culture and the development of the economy itself.