Innovation and Economic Development: The Case of FYR of Macedonia

Innovation is essential for sustainable growth and development, and it is one of the key European Union (EU) strategies. The Programme for Competition and Innovation of the EU is especially important for the economic revival and small and medium-sized enterprise (SME) development in transition countries. There are several core conditions which enable innovation and encourage economic growth and development. According to the Organisation for Economic Co-operation and Development (OECD) the most important are: strong standards and effective enforcement of intellectual property protection; dynamic competition and contestable markets; a strong and sustainable fundamental research and development infrastructure; encouraging information and communications technology developments and a strong emphasis on education at all levels. The current paper examines the most critical and interlinked conditions in the context of the FYR of Macedonia.