The present report by prof. Uvalic gives a general assessment of the situation in 2005 regarding Research and Development (R&D) in the five Western Balkan (WB) countries: Albania, Bosnia and Herzegovina (BiH), Croatia, FYR of Macedonia, and Serbia and Montenegro. The report was produced in the framework of the project see-era.net and draws primarily on information collected by the Slovenian Ministry for Higher Education, Science and Technology through questionnaires and interviews with government representatives and researchers of the respective WB countries in early 2005. The Report addresses six key groups of issues: national policies in R&D (including legislation, strategies, orientation, priorities), investment in R&D, R&D infrastructure, human potential in R&D, R&D output and evaluation, international cooperation.