WESTERN BALKANS REGIONAL COMPETITIVENESS INITIATIVE
RCI brochure [8] Layout 1 03/10/2013 12:42 Page cWESTERN ng innovation and skillsin South East EuropeOECD EURASIA COMPETITIVENESS
RCI brochure [8] Layout 1 03/10/2013 12:42 Page dThe Organisation for Economic Development and Co-operation (OECD) is a unique forum where 34 membergovernments work together to address the economic, social and environmental challenges of globalisation. TheOECD is also at the forefront of efforts to understand and help governments address emerging policy issuessuch as finding new sources of growth, building skills, and restoring public trust in government and business.The OECD provides a setting where governments can compare policy experiences, seek answers to commonproblems, identify good practice and work to co-ordinate domestic and international policies. It increasinglyengages with a number of non-members who have become important actors in today’s global economy.www.oecd.orgOECDINVESTMENT COMPACT FORSOUTH EAST EUROPELaunched in 2000, the OECD Investment Compact for South East Europe supports governments of the region toimprove their investment climate and foster private sector development. Its members include Albania, Bosniaand Herzegovina, Bulgaria, Croatia, the Former Yugoslav Republic of Macedonia, the Republic of Moldova,Montenegro, Romania and Serbia, with Kosovo* as an observer. The Compact brings together representativesfrom South East Europe (SEE) governments to exchange on good practices and on how SEE economies canmove closer to internationally recognised standards using OECD tools and instruments.www.investmentcompact.org* This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on theKosovo declaration of independence. Hereafter referred to as Kosovo.
RCI brochure [8] Layout 1 03/10/2013 12:42 Page 1WESTERN BALKANSREGIONAL COMPETITIVENESSINITIATIVEThe Potential of Innovation and Human Capitalfor the Western Balkans2The Regional Competitiveness Initiative3ALBANIA: launching a business plan competition4BOSNIA AND HERZEGOVINA: implementing triple helix partnerships5CROATIA: creating a national innovation strategy6KOSOVO: developing an action plan for innovation7FYR MACEDONIA: strengthening the national innovation system8MONTENEGRO: introducing an SME voucher scheme9SERBIA: developing a competence technology centre10Bridging the skills gap across the Western Balkans region11Key Publications12OECD WESTERN BALKANS REGIONAL COMPETITIVENESS INITIATIVE . 1
RCI brochure [8] Layout 1 03/10/2013 12:42 Page 2THE POTENTIAL OF INNOVATIONAND HUMAN CAPITAL FOR THEWESTERN BALKANSSince 2000, the economies of the Western Balkans (Albania, Bosnia andHerzegovina, Croatia, the Former Yugoslav Republic of Macedonia, Kosovo,Montenegro and Serbia) have undertaken significant reforms to improve theirbusiness environments. These reforms led to the doubling of GDP per capitafrom 2000-2010 and a tenfold increase in inflows of foreign direct investmentbetween 2000 and 2008. The economies of the region also signed an ambitioustrade agreement, CEFTA 2006, which has facilitated greater intra-regionalinvestment and trade flows.However, the global economic crisis in 2009 threw most of the region into arecession. Faced with tightening public budgets and mounting social pressures,governments of the region realised that they could no longer rely on domesticconsumption and credit expansion alone to generate growth and jobs.With increasing global competition, the region’s future lies in creating andexporting higher value products and services. Human capital and innovationlie at the heart of this new growth model for the Western BalkansWestern Balkan economies need new sources of growthReal GDP Growth Rate (2003-2010 021.002 . OECD WESTERN BALKANS REGIONAL COMPETITIVENESS ia andHerzegovnia-4-1.60Albania-2FYR Macedonia0MontenegroReal Growth %62009–2010.
RCI brochure [8] Layout 1 03/10/2013 12:42 Page 3THE REGIONALCOMPETITIVENESS INITIATIVEThe Regional Competitiveness Initiative (RCI) aims to help Western Balkaneconomies unlock new sources of growth and competitiveness by tappingtheir innovation potential and developing the skills of their workforce.Financed by the EU and led by the OECD Investment Compact for South EastEurope, the RCI partnered with governments over a three year period to testtargeted innovation and human capital initiatives in their national contexts.Over 2010-2013, each country selected and implemented an innovationrelated pilot project with the support of national and OECD experts. Projectsincluded assessments of current country performance based on businesssurveys, study trips to learn about good practices in OECD membercountries, and a detailed action plan. Regional working groups on innovationand human capital development supported peer learning and good practiceby sharing knowledge gained through the pilot projects.This brochure reports on each of these projects, which enabled governmentsto tailor their innovation policies, launch effective policy reforms andaccelerate co-operation between policy makers, businesses and researchers.The RCI project's impact, effective partnership with the region, andinnovative approach was recognised by a first place award from theEuropean Projects Association*.RCI BENEFICIARY ECONOMIESlALBANIAlFYR MACEDONIAlBOSNIA & HERZEGOVINAlMONTENEGROlCROATIAlSERBIAlKOSOVO* In the category for concluded projects financed by the European Union’s Instrument for Pre-Accession.OECD WESTERN BALKANS REGIONAL COMPETITIVENESS INITIATIVE . 3
RCI brochure [8] Layout 1 03/10/2013 12:42 Page 4ALBANIA: launchinga business plan competitionALBANIA KEY FIGURES:GDP (CURRENT US ): 13.1 bnANNUAL GDP GROWTH: 0.8%NET FDI INFLOWS (% GDP): 9.6%UNEMPLOYMENT (% OF LABOUR FORCE): 13.3%Source: World Bank Development Indicators for 2012 and IMF (for unemployment) for 2011Albania wanted to organise its first business plancompetition with the support of the OECD. The purposeof the competition was to connect promising businessideas with sources of financing, inspire potentialentrepreneurs and promote innovation in the privatesector.KEY ACHIEVEMENTSlAlbania organised its first nation-wide businessplan competition involving 18 teams of youngentrepreneurs.lThe OECD supported the top three winners of thebusiness plan competition with additionaladvisory services in the form of market researchto help improve their products and services.lThe involvement of officials from the Ministry ofEconomy, Trade and Energy throughout theproject also ensured the transfer of know-how. Asa result, a second and more ambitious businessplan competition is planned for November 2013 inTirana.PROJECT ACTIONS:lPublished call for applications on the website of theAlbanian Investment Development AgencylMatched each application team with a voluntarymentor to help them develop their business planlOrganised a workshop to train entrepreneurs on how todevelop a successful business planlSelected the top 8 business plans for the finalcompetition and held a workshop on how to create‘elevator’ pitches for their business planlHeld the final competition in Tirana on 8 November2012, with a jury including representatives from theMinistry of Economy, Trade and Energy, AlbanianInvestment Development Agency, the EuropeanCommission, an Albanian entrepreneur, and the OECDLeft to right: Mr Milan Konopek, OECD; Mr Enno Bozdo, DeputyMinister, Albanian Ministry for Economy, Trade and Energy;Ms Arianita Toci; Mr Erjon Curraj; Mr Lorenc Gjoni (HandmadeAlbania).4 . OECD WESTERN BALKANS REGIONAL COMPETITIVENESS INITIATIVE
RCI brochure [8] Layout 1 03/10/2013 12:42 Page 5BOSNIA AND HERZEGOVINA:implementing triple helixpartnershipsBOSNIA AND HERZEGOVINA KEY FIGURES:GDP (CURRENT US ): 17.0 bnANNUAL GDP GROWTH: -0.7%NET FDI INFLOWS (% GDP): 4.7%UNEMPLOYMENT (% OF LABOUR FORCE): 27.6%Source: World Bank Development Indicators for 2012, except unemployment data for 2011KEY ACHIEVEMENTSlIdentified the innovation potential of the agri-foodsector of Bosnia and HerzegovinalEstablished a network of 350 agri-food sectorstakeholderslCreated three concrete innovation partnershipsbetween research, business and government:– Processing field peas into ethanol, animal feed andproteins– Creating Omega-3 enriched products– Developing an ecological disinfection productlIntroduced a new product – Omega3 enrichedeggs – in the Bosnian marketlThe project involved officials from both the Stateand entity levels, making it possible for them to“learn by doing”A study visit of a Bosnian-Herzogovinian delegation hosted by theFlemish government to share best practices in triple helix partnerships.The OECD worked with Bosnia and Herzegovina tostrengthen linkages between academia, business andlocal governments through triple helix partnerships.PROJECT ACTIONS:lShowcased good international practice in triple helixpartnerships during seminarslAn expert jury selected the top three triple helixpartnership proposalslProvided tailor-made technical assistance to theselected projects in developing their products andconducting market researchTRIPLE HELIX PARTNERSHIPSlPresented the results of the triple helix partnershipsprojects at the final conference “InnoBiH” in Sarajevoon 3 May 2013Through coordinated efforts, Triple Helix Partnerships acceleratevalue creation in innovation and ensure effective communicationbetween these three important communities:lBusinesses have first-hand access to new technologieslScientists receive feedback from entrepreneurs about thecommercial viability of their researchlGovernments gain insight into the types of policyinterventions that spur industry-research co-operationOECD WESTERN BALKANS REGIONAL COMPETITIVENESS INITIATIVE . 5
RCI brochure [8] Layout 1 03/10/2013 12:42 Page 6CROATIA: creating anational innovationstrategyTo help tap the innovation potential of the country, thegovernment asked the OECD to develop an innovationstrategy for Croatia.CROATIA KEY FIGURES:GDP (CURRENT US ): 56.4 bnANNUAL GDP GROWTH: -2.0%NET FDI INFLOWS (% GDP): 2.3%UNEMPLOYMENT (% OF LABOUR FORCE): 15.9%Source: World Bank Development and Eurostat (for unemployment)PROJECT RECOMMENDATIONSlEnhance the innovation potential of the businesssector– Support the development of R&D-intensivecompanies– Attract foreign direct investments toward activitieswith high added valuelIncrease knowledge flows and interactionsbetween industry and academic institutions– Strengthen institutions and programmes promotingscience-industry co-operation– Allocate structural funds to applied researchlStrengthen human resources by developing skillsfor innovation and research throughout theeducational systemlImprove the governance of the nationalinnovation system– Establish consistent and continuous monitoringprocedures– Evaluate effectiveness of existing programmesKEY BARRIERS TO INNOVATION:lLow national and international mobility of researcherslObsolete research infrastructure and equipmentlLow firm capacity to absorb new technologieslLimited science-industry collaborationlInsufficient co-operation within governmentKEY ACHIEVEMENTSlCroatia for the first time participated in an OECDpeer review of its innovation system.lThe results of the peer review are being used todevelop a National Innovation Strategy.lThe assessment of the innovation system and thedevelopment of the strategy involved consultationswith over 600 representatives of the business andresearch communities in various forms, fromcompleting surveys to participation in focus groupsand workshops.lFour ministries were actively involved in thedrafting process and benefited from a transfer ofgood practices from the OECD.6 . OECD WESTERN BALKANS
RCI brochure [8] Layout 1 03/10/2013 12:42 Page 7KOSOVO: developingan action plan forinnovationKOSOVO KEY FIGURES:GDP (CURRENT US ): 6.2 bnANNUAL GDP GROWTH: 3.8%NET FDI INFLOWS (% GDP): 4.7%UNEMPLOYMENT (% OF LABOUR FORCE): 45.4%Source: World Bank Development Indicators for 2012, except unemployment data for 2009PROJECT RECOMMENDATIONSlImprove inter-ministerial co-ordination in thedesign and implementation of innovation policieslDevelop measures to promote business innovationlBuild stronger and more market-relevant researchinstitutions– Improve linkages with the international researchcommunity and sources of funding– Foster collaborative innovation between researchinstitutions and private companieslStrengthen human resources and skills developmentKEY ACHIEVEMENTSThe government of Kosovo wanted to assess itsinnovation framework and asked for OECD support indeveloping an action plan.lKosovo carried out the first assessment of itsinnovation system and developed a comprehensiveInnovation Strategy.KEY BARRIERS TO INNOVATION:lInvolved over 150 companies and researchers inthe project to define the strengths and weaknessesof Kosovo’s innovation system.lThe Innovation Strategy will provide theframework for closer cooperation betweenindustry and research and lead to more targetedsupport to raise the business community’s abilityto innovate.lAbsence of co-ordination between ministries weakenswider innovation policy reformslLack of reliable datalOver-dependence on donor initiatives and remittanceslLow research capacity of universities and instituteslBrain drain – loss of skilled labour abroadOECD WESTERN BALKANS REGIONAL COMPETITIVENESS INITIATIVE . 7
RCI brochure [8] Layout 1 03/10/2013 12:42 Page 8FYR MACEDONIA:strengthening the nationalinnovation systemWith the support of the OECD, the government of TheFormer Yugoslav Republic of Macedonia developed aninnovation strategy and an action plan.FYR MACEDONIA KEY FIGURES:GDP (CURRENT US ): 9.7 bnANNUAL GDP GROWTH: -0.3%NET FDI INFLOWS (% GDP): 3.4%UNEMPLOYMENT (% OF LABOUR FORCE): 31.4%Source: World Bank Development Indicators for 2012, except unemployment data for 2011PROJECT RECOMMENDATIONSlFoster innovation in the private sector throughinformation campaigns, events, competitions andawardslAdapt education policy to develop skills needed forinnovation– Increase the quality of vocational training– Promote lifelong learninglCreate a regulatory environment that supportsinnovation– Provide an effective regulatory environment foracademics and research institutions– Generate a competitive business environment throughan effective competition policylIncrease knowledge flows– Strengthen linkages with the diaspora– Foster business networks and clustersKEY BARRIERS TO INNOVATION:lWeak capacities of research institutionslLow propensity to innovate in the business sectorlPoor framework for knowledge transferlLack of co-ordination at the policy-making levelKEY ACHIEVEMENTSlFYR Macedonia carried out the first comprehensive assessment of its innovation system.lThe assessment involved the contribution of over500 businesses through surveys and focus groups.Based on the results of this assessment, FYRMacedonia developed and adopted its firstInnovation Strategy and Action Plan.lA new Innovation Law was passed and theimplementation of the Strategy, supported by a 20M loan from the World Bank, is being led by theOffice of the Deputy Prime Minister in charge ofeconomic affairs.lThe 20-member inter-ministerial team involved inthe project gained valuable experience in thedesign of innovation policies.8 . OECD WESTERN BALKANS REGIONAL COMPETITIVENESS INITIATIVE
RCI brochure [8] Layout 1 03/10/2013 12:42 Page 9MONTENEGRO:introducing an SMEvoucher schemeMONTENEGRO KEY FIGURES:GDP (CURRENT US ): 4.2 bnANNUAL GDP GROWTH: 0.5%NET FDI INFLOWS (% GDP): 12.4%UNEMPLOYMENT (% OF LABOUR FORCE): 19.7%Source: World Bank Development Indicators, GDP data for 2012, unemployment data for 2011PROJECT RECOMMENDATIONSlImplement SME voucher scheme in two phaseslPilot phase with a focus on government capacitybuilding in the first phaselFull scale implementation if the results of the pilotphase prove successfullDesign schemes drawing upon OECDrecommendations on value of vouchers, cofinancing structures, eligibility criteria for SMEsand service providers, and fraud-preventionmeasuresKEY ACHIEVEMENTSMontenegro wanted to promote innovation in SMEsthrough the creation of a national voucher scheme. TheOECD supported this initiative by performing a feasibilitystudy and designing a proposed scheme.PROJECT ACTIONS:lUndertook a needs assessment of export-orientedSMEs in MontenegrolConducted a study visit to Slovenia to learn aboutspecific technical and administrative aspects inimplementing a voucher schemelDelivered an analysis of the potential benefits of avoucher schemelLaunched a pilot SME voucher scheme in July 2012lEstablished 16 partnerships between local SMEsand local business development service providerslConfirmed benefit of the pilot scheme for SMEs:increased revenue, raised awareness of innovationand fostered new partnershipslThe pilot scheme built capacity in the SMEDirectorate to design and implement future SMEsupport schemes. The implementation of anothervoucher scheme was included in the 2013 ActionPlan of the SME Strategy.OECD WESTERN BALKANS REGIONAL COMPETITIVENESS INITIATIVE . 9
RCI brochure [8] Layout 1 03/10/2013 12:42 Page 10SERBIA: developing acompetence technologycentreSERBIA KEY FIGURES:GDP (CURRENT US ): 37.5 bnANNUAL GDP GROWTH: -1.7%NET FDI INFLOWS (% GDP): 6.2%UNEMPLOYMENT (% OF LABOUR FORCE): 23.1%Source: World Bank Development Indicators, GDP data for 2012, FDI data for 2011, IMF data2012 for unemploymentPROJECT RECOMMENDATIONSSerbia’s priority was to focus on the development of acompetence technology centre in either the agri-food orbiomedicine sectors. Such a centre aims to accelerateinnovation and economic growth by facilitatinginteractions between industry, researcher and the publicsector.lOrient centres toward firms and researchers in theagri-food or biomedicine sectorslEstablish centres as autonomous, non-profitorganisations linked to a universitylExpand their scope of work in two phases (nomodifications needed to sub-bullets)lEnsure a stable source of fundinglLocate close to centres’ business/research usersKEY ACHIEVEMENTlA feasibility study and an implementation planwere developed for the establishment of acompetence technology centre in Serbia.lOver 300 members of the Serbian business andresearch community were consulted through acombination of surveys, focus groups andworkshops.PROJECT ACTIONS:lReviewed practices of existing competence centresand technology institutes in OECD countrieslPresented excellence and competence centres toSerbian officials during a study visit to SlovenialSurveyed businesses and research institutions in theagrifood and biomed sectorslThe Ministry of Economy is using the results of thepilot project to support the biomedicine sector.lConsulted with experts in the agri-food and biomedsectorsllAssessed the feasibility of a competence technologycentre in SerbiaThe project strengthened the capacity of publicofficials to design new innovation-supportmeasures such as technology brokers andinnovation vouchers.10 . OECD WESTERN BALKANS REGIONAL COMPETITIVENESS INITIATIVE
RCI brochure [8] Layout 1 03/10/2013 12:42 Page 11BRIDGING THE SKILLS GAPACROSS THE WESTERNBALKANS REGIONThe Western Balkan economies suffer from agrowing gap between the skills of its labour forceand the needs of a fast-evolving market. Skilling upthe workforce is critical if the region is to createhigher value and more globally competitiveproducts and services.To support the region in bridging the skills gap, theRCI created a Working Group on Human Capitalcomprising policymakers, business representativesand members of the research community. TheWorking Group came together between 2011-2012to:lIncorporate human capital building activities intothe seven pilot projectslRaise awareness of various methods and tools tomeasure skills gaps; e.g. the skills sector appr
OECD EURASIA COMPETITIVENESS Accelerating innovation and skills in South East Europe WESTERN BALKANS REGIONAL COMPETITIVENESS INITIATIVE RCI brochure [8]_Layout 1 03/10/2013 12:42 Page c. The Organisation for Economic Development
the Western Balkans and Croatia, accompanied by members of their governments and business leaders from the region, as well as foreign investors and many others interested in the economic development and potential of this dynamic region. The Western Balkans have been an important area of EBRD engagement since the early 1990s, when the
Therefore, this paper is focusing on the analysis of competitiveness of state (territory), not business or market competitiveness. For analysing the factors of competitiveness this paper evaluates main sources of competitiveness according to M. Porter's Diamond Model, two the most important competitiveness researches -
Competitiveness in context - Essay Competitiveness and disparities The analysis of the relationship between competitiveness and inequalities adds an additional level of complexity to the debate. The ambiguity in defining competitiveness in sections of the literature, for example, makes it difficult to shed light on the linkages. In the European .
The World Competitiveness Center . conducts its mission in cooperation with a network of 56 Partner Institutes worldwide to provide the government, business and academic communities with the following services: Competitiveness Special Reports Competitiveness Prognostic Reports Workshops/Mega Dives on competitiveness
The National Competitiveness Council's mandated focus is on competitiveness and productivity, and through this lens the Council's earlier publication, Ireland's Competitiveness Scorecard 2020, identified four broad challenges that need to be addressed to put the economy on a sound footing. In this report, the Council makes Competitiveness
perceived environmental competitiveness in both the classroom and the workplace. Trait competitiveness is a dispositional construct, whereas perceived environmental competitiveness is a situation-specific construct that emerges upon encountering a particular context and the people within it. Persons bring trait competitiveness with them to each new
competitiveness of a certain number of services. Competitiveness Advisory Group 3ppointcd by President S:.mtcr The first report of the Group took a broad view of competitiveness, stressing that competitiveness implies clements of productivity, efficiency and profitability, and that it is not an end in itself.
tourism using existing information due to the subjective scope of the sector and a resultant lack of comparable data. However, a small number of studies which include aspects of outdoor activity tourism as defined for this study, as well as wider tourism research offer an insight into the market. These are discussed below. An economic impact study of adventure tourism (including gorge walking .
