Abstract
The macroeconomic environment in the Western Balkans is based on the progress of the market economy and the development of the private sector. Strengthening the role of governance, education and social inclusion is crucial to improving countries' capacity for innovation, a stable financial environment, the successful implementation of broad-based reforms and the establishment of a macroeconomic environment that supports private sector activities. It is especially important to emphasize the importance of properly understanding the importance of scientific infrastructure in the field of research on the growth of "innovation capacity", so that national policies in this area can be formed. The analysis of the connection between innovation and globalization in the conditions of modern trends of economic development, showed that the reform momentum in the Western Balkans region has slowed down, which reflected that many of these economies have failed to use their potential for innovation.
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