Innovation Activities in Companies in the Federation of Bosnia and Herzegovina

Abstract

This paper aims to provide information on the extent to which companies in the Federation of Bosnia and Herzegovina implement innovation activities. For this purpose, we used both qualitative and quantitative research methods. We performed qualitative analysis of legislation in the field of innovation as well as the attitude of the government towards innovation processes. In order to quantify innovation activities in Bosnia and Herzegovina companies, we conducted survey questionnaire among profit-oriented companies who employ at least 10 people. The working hypothesis of the paper is that the authorities in Bosnia and Herzegovina have a marginal role when it comes to encouraging the development and implementation of innovations and statistical monitoring of business innovation processes, which results in the lack of innovation activities in Bosnia and Herzegovina companies and has a negative impact on the business. Different parametric and non-parametric statistical tests were applied to test the stated hypothesis. Quantitative research has shown that a small number of enterprises continuously introduce new products/services which has negative impact on their performance. Conducted qualitative research has shown that the role of government in promoting and developing the acquired competitive advantages such as knowledge and innovation in Bosnia and Herzegovina is marginalized. According to the obtained results we derived some recommendations for improving operations using innovation potential.