41 MARTINDALE CENTER FOR THE STUDY OF PRIVATE ENTERPRISE governance model also allows for regional autonomy “to frame regional, national and EU policy goals in a territorial and S3 context” (Rissola and Haberleithner, 2020). If Croatia mirrored that strengthened collaboration to boost institutional support while allowing for regional flexibility without creating more unnecessary bureaucratic obstacles, it could build a system comparable to those of Slovenia and other EU countries. Conclusion Croatia will struggle to achieve levels of entrepreneurship, innovation, and living standards on par with other EU member states as long as compounded reforms continue to add complexity to a system already burdened by decades of accumulated administrative layers. The country is not an outlier but rather illustrates the challenges facing post- socialist states still navigating many years of economic transition. 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