The report Innovation.bg 2008: The Bulgarian Innovation Policy in the European Union analyzes the state of the national innovation system and makes recommendations for enhancing the innovation performance of the Bulgarian economy. This year the report underlines the global trends and the increasing competition on the innovation field. One of the main challenges that the report stresses on is the loss of talented people – in 2006-2007 over 20 000 students have left Bulgaria to study abroad. The authors also state that the strong investment climate and the correct distribution of resources are necessary for the achievement of maximum positive effect on the economy.