The analysis of innovation in Western Balkan countries in 2012

The positive correlation between innovativeness and economic growth has been confirmed in plenty of empirical and theoretical research. Issues related to the conditions contributing to the promotion of innovation have a leading role in the development of methods for the stimulation of economic growth in the contemporary economic environment. Complex and multiple correlations between innovation and economic growth have an impact on the key economic factors, not only in economically developed and generally highly innovative countries, but also in less developed countries, such as the Western Balkan countries. This article first gives retrospective views on the importance of innovation and the applicable national innovation systems for the economic development of countries. Further, the article provides a brief insight into the metrics of the global innovation index (GII) and the global competitiveness index (GCI). The focus of analysis has been the relationship between innovation outputs and innovation inputs, as well as the relationship between the GII and the GCI of six Western Balkan countries (Albania, Bosnia and Herzegovina, Macedonia, Serbia, Croatia, and Montenegro), and a group of six selected European Union (EU) countries, five of which border this region (Bulgaria, Greece, Hungary, Romania, and Slovenia), whereas Austria, as a highly developed and highly innovative country, is geographically located very close to the Western Balkans.