NORTH MACEDONIA AS AN EMERGING INNOVATOR

Abstract

Innovation plays a vital role in advancing economic growth, benefiting consumers, businesses, and the overall economy. Economically, it involves the creation of new products and/or services, the implementation of novel ideas to enhance goods and services, or the integration of new technologies into production processes. Therefore, to thrive in the business world, organizations must innovate. Their survival hinges on the ability to introduce innovations, essential for maintaining a stable and attractive position in the market. Innovations can happen in any area or level of an organization – from manufacturing a tiny electronic component, to introducing a groundbreaking product line, to creating a disruptive business model. Another significant aspect to consider is the impact of government policies on innovation. Hence, its support for businesses is crucial. The purpose of this paper is to examine North Macedonia’s innovation standing within the EU relative to other countries in the region. It aims to analyze the trends over the years, identify the factors influencing performance, assess the reasons behind the results, highlight the country’s strengths, and pinpoint areas that need improvement to align with countries with higher innovation scores, as assessed by the European Innovation Scoreboard (EIS). The EIS offers a comparative evaluation of the research and innovation performance among European countries. North Macedonia’s indicator (46.3) ranks among the lowest, although there has been a significant improvement in the last year, narrowing the difference performance and that of the EU. However, there is still much work to be done. The study’s purpose is to identify the areas on which businesses and the government should focus in the future.