This overview of the research sector inthe Western Balkans is a companion piece to the WesternBalkans regional research and development (R and D) strategyfor innovation. The strategy aims to strengthen theregion's research capacity, enhance intraregionalcooperation, promote collaboration with business sectors,explore possibilities for financing R and D from EuropeanUnion (EU) funding schemes and other external sources, andhelp integrate the region into the European research area(ERA) and innovation union. This overview provides thebackground and analysis that informed the development of thestrategy. The background work includes four studies on thedifferent components of the research sector, a policyquestionnaire, and seven country studies reviewing keypolicies, institutions, and performance of the nationalresearch sectors. This overview outlines the performance ofthe research and innovation sector, and describes the majordrivers of this performance. It starts by presenting aframework of the different components of research andinnovation in the Western Balkans. This leads into sectiontwo discussing the performance of the research sector, whichhas been improving, but still lags international benchmarks.This reflects a number of challenges facing the sector,including the effects of a substantial brain drain,insufficient funding and a mismatch between researchfacilities, and economic needs. Section three discusses thetechnology transfer system and its important role in theperformance of the research and innovation sector as awhole. The contribution of technology transfer in the regionis limited, as reflected for example, in the limitedinteraction between the research and enterprise sectors. Theenterprise sector is discussed in section four. Section fivedescribes the policy and institutional framework, pointingout a number of areas where this can be strengthened. Thisincludes improving the career path for researchers,providing more funding through competitive processes asopposed to block grants, and continuing to strengthen policyco-ordination. The final section concludes.