Title: Innovations and entrepreneurship in the Macedonian business sector

Authors: Taki Fiti; Vladimir Filipovski; Marica Antovska; Biljana Tashevska

Addresses: Ss. Cyril and Methodius University of Skopje, Faculty of Economics – Skopje, Blvd. Goce Delcev 9V, 1000 Skopje, Republic of Macedonia ' Ss. Cyril and Methodius University of Skopje, Faculty of Economics – Skopje, Blvd. Goce Delcev 9V, 1000 Skopje, Republic of Macedonia ' Centre for Strategic Research, Macedonian Academy of Arts and Sciences, Blvd. Krste Misirkov 2, 1000 Skopje, Republic of Macedonia ' Ss. Cyril and Methodius University of Skopje, Faculty of Economics – Skopje, Blvd. Goce Delcev 9V, 1000 Skopje, Republic of Macedonia

Abstract: The paper starts by stressing the central role of entrepreneurship as a driving force for the dynamism and growth of modern economies. Then, the common factors contributing to low level of innovation activity in the Western Balkans are analysed. We then focus on how those factors limit the level and quality of innovation activity in the case of the Republic of Macedonia. It is pointed out that the following factors constrain the innovation activity in the Macedonian economy: the low level of R&D investments, the small share of the business sector in such investments, and a business climate which creates insufficient competitive pressure on firms to innovate and leaves room for political involvement in the business sector. Policy prescriptions include improvements in the coordination among relevant ministries/agencies supporting the SME sector and the cooperation between the business sector and the scientific community and educational system.

Keywords: business innovation; R&D investment; research and development; entrepreneurship; Macedonia; political involvement; SMEs; small and medium-sized enterprises; cooperation.

DOI: 10.1504/WREMSD.2017.083021

World Review of Entrepreneurship, Management and Sustainable Development, 2017 Vol.13 No.2/3, pp.194 - 210

Received: 23 Dec 2015
Accepted: 07 Jan 2016
Published online: 18 Mar 2017 *

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