INSTITUTIONS, INNOVATION AND KNOWLEDGE TRANSFER IN BOSNIA AND HERZEGOVINA

Abstract

 The paper investigates the institutional framework supporting policies to promote knowledge transfer from universities to the business sector in Bosnia and Herzegovina. The paper surveys the institutions and system of higher education in Bosnia and Herzegovina, its research and innovation capacity, reviews policies towards knowledge transfer and innovation, including the institutional framework to support technology parks and industrial clusters, and sets out a set of policy conclusions and recommendations. Based on in-depth analysis of the institutional and policy realities of Bosnia and Herzegovina, the paper identifies three key deficiencies in the knowledge transfer system. Firstly, the level of innovative activity is highly skewed towards the public sector in research institutes and universities. Secondly, policies to support technology parks and business incubators have failed to generate substantial spin-off activity. Thirdly, Bosnia and Herzegovina has been far less successful than other countries in the region in its policies to develop technology networks and innovation clusters. The paper concludes that future success in knowledge transfer policies will depend upon improvements to the institution setting, on an increased ability of universities and the business sector to collaborate in technology networks and innovation clusters, and on a greater mobility of researchers between the two sectors. The direction that BiH science and technology policy should take is to emulate elements of the science and technology policies that have been pursued in more advanced neighbouring transition countries.

Keywords

• Institutions,Knowledge Transfer,Bosnia and Herzegovina

INSTITUTIONS, INNOVATION AND KNOWLEDGE TRANSFER IN BOSNIA AND HERZEGOVINA

Abstract

The paper investigates the institutional framework supporting policies to promote knowledge transfer from universities to the business sector in Bosnia and Herzegovina. The paper surveys the institutions and system of higher education in Bosnia and Herzegovina, its research and innovation capacity, reviews policies towards knowledge transfer and innovation, including the institutional framework to support technology parks and industrial clusters, and sets out a set of policy conclusions and recommendations. Based on in-depth analysis of the institutional and policy realities of Bosnia and Herzegovina, the paper identifies three key deficiencies in the knowledge transfer system. Firstly, the level of innovative activity is highly skewed towards the public sector in research institutes and universities. Secondly, policies to support technology parks and business incubators have failed to generate substantial spin-off activity. Thirdly, Bosnia and Herzegovina has been far less successful than other countries in the region in its policies to develop technology networks and innovation clusters. The paper concludes that future success in knowledge transfer policies will depend upon improvements to the institution setting, on an increased ability of universities and the business sector to collaborate in technology networks and innovation clusters, and on a greater mobility of researchers between the two sectors. The direction that BiH science and technology policy should take is to emulate elements of the science and technology policies that have been pursued in more advanced neighbouring transition countries.

Keywords

• Bosnia and Herzegovina

References

1. Acemoglu, D., Johnson, S. and Robinson, J. (2001), The Colonial Origins of Comparative Development: an Empirical Investigation., American Economic Review 91(5), 1369-1401.
2. Andersson, T., Schwaag Serger, S, Sörvik, J. and Hansson, E.W. (2004). The Cluster Policies Whitebook, Malmö: IKED - International Organisation for Knowledge Economy and Enterprise Development
3. Audretsch, D. (2005), “Mansfield‘s missing link: the impact of knowledge spillovers on firm growth“, Journal of Technology Transfer, 30(1/2): 207-210.
4. Arrow, K.J. (1971), “Economic welfare and the allocation of resources for invention”, in: Lamberton, D.M. (ed.), Economics of Information and Knowledge, Harmondsworth: Penguin Books, pp. 141-159.
5. Bartlett, W. (2001), “SME development policies in different stages of transition“, MOCT-MOST: Economic Policy in Transition Economies, 11: 197-204.
6. Bartlett, W. and Bukvič, V. (2001), “Barriers to SME growth in Slovenia“, MOCTMOST: Economic Policy in Transition Economies, 11; 177-195.
7. Bartlett, W. and Bukvič, V. (2003), “Financial barriers to SME growth in Slovenia“, Economic and Business Review, 5(3): 161-182.
8. Bartlett, W. and Bukvič, V. (2006), “Knowledge transfer in Slovenia: promoting innovative SMEs through spin- offs, technology parks, clusters and networks”, Economic and Business Review for Central and Eastern Europe, 8(4):

9. Bartlett, W. and Cučković N. (2006), Knowledge transfer, institution, and innovation in Croatia and Slovenia. Social Research, 15(3): 371-400, Zagreb
10. Bartlett, W. and Prašnikar, J. (1995), “Small firms and economic transformation in Slovenia“, Communist Economies and Economic Transformation, 7(1): 81-101.
11. Bartlett, W. and Rangelova, R. (1996), “Small firms and new technologies: the case of Bulgaria“ in: R. Oakey (ed.) New Technology-Based Small Firms in the 1990s, Vol. 2, London: Paul Chapman, pp 66-79.
12. Baumol, W.J. (2002), The Free Market Innovation Machine: Analyzing the Growth Miracle of Modern Capitalism, Princeton: Princeton University Press.
13. Becattini, G. (1990), “The Re-emergence of Small Enterprises in Italy”, in Sengenberger et al. (1990), The Reemergence of Small Enterprises: Industrial Restructuring in Industrialised Countries, ILO, Geneva.
14. Braczyk, H-J., P. Cooke and M. Heidenreich (eds.) (1998), Regional Innovation Systems, London: UCL Press.
15. Brusco, S. (1990), “The idea of the industrial district: Its genesis”, in Pyke, F., Sengenberger, W. and Becattini, G. (eds.), Industrial districts and inter-firm cooperation in Italy, International Labour Office, Geneva.
16. Council of Europe (1999), Education in Bosnia and Herzegovina: Governance, Finance and Administration
17. Culahovic, B. (2006), Exports of Western Balkan countries into European Union: major problems and recommendations, Ekonomski anali, Beograd, god LI, br. 168, pp 49-72.
18. Degroof, J-J. and Roberts, E.B. (2004), “Overcoming weak entrepreneurial infrastructures for academic spin-off ventures”, Journal of Technology Transfer, 29: 327-352.
19. Dyker, D.A. and Radošević, S. (2000), “Building the knowledge based economy in countries in transition œ from concepts to policies“, Journal of Interdisciplinary Economics, 12(1): 41-70.
20. Edquist, C. (2001a): Systems of Innovation for Development, UNIDO World Industrial Development Report (WIDR), May 2001
21. EC (2003a), Third European Report on Science and Technology indicators -2003 - Towards a Knowledge-based Economy, DG for Research, Brussels.
22. EC (2003b), Towards a European Research Area - Science, Technology and Innovation - Key Figures 2003- 2004, DG for Research, Brussels.
23. EC (2007), Enterprise Policy Development in the Western Balkans: Report on the Implementation of the European Charter for Small Enterprises in the Western Balkans. European Commission (EC), Directorate General for Enterprise and Industry (EC), Organisation for Economic Co-operation and Development’s Investment Compact for South East Europe (OECD), The European Training Foundation (ETF) and European Bank for Reconstruction and Development (EBRD)
24. EBRD (2007), Transition Report 2006 Update. London: European Bank for Reconstruction and Development.
25. EUA (2004), EUA institutional evaluations of seven Universities of Bosnia and Herzegovina: Cross cutting summary report, 23 September 2004, Council of Europe
26. IBF International Consulting and the British Council (2005), Functional Review of Public Administration of Education Sector in Bosnia and Herzegovina: Final Report. March 2005
27. Jaffe, A. and Learner, L. (1999), “Privatizing R&D: Patent Policy and the Commercialisation of National Laboratory Technologies”, NBER Working Paper 7064, NBER, Cambridge, MA.
28. JICA (2005), Survey on Auto Components Sector in Bosnia and Herzegovina. Sarajevo: Japan International Cooperation Agency ,September 2005.
29. Kornai, J. (1992), “The Affinity between Ownership and Coordination Mechanisms: The Common Experience of Reform in Socialist Countries”, in Poznansik, Z. (ed.), Constructing Capitalism: the Re-emergence of Civil Society and Liberal Economy in the post-Communist World, Westview Press, Boulder and Oxford, 97-116.
30. Lerner, J. (2005), “The university and the start-up: lessons from the past two decades”, Journal of Technology Transfer, 30(1/2): 49-56.
31. Matic, B. (2006), Necessity to adopt a science policy in B&H Science Policy in Bosnia and Herzegovina, International Conference and Ministerial Round Table: “Why invest in science in South Eastern Europe?”, 29 – 30 September 2006, Ljubljana
32. Morgan, K. (1997), “The learning region: institutions, innovation and regional renewal“, Regional Studies, 31(5): 491-503.
33. Mytelka, L. and Oyeyinka, B. (2003), Competence Building and Policy Impact through the Innovation Review Process: A commentary, IDRC-UNESCO, paper presented at the joint workshop on Future Directions for National Reviews of Science, Technology and Innovation in Developing Countries, UNESCO, Paris.
34. Nadvi, K. (1995), Industrial Clusters and Networks: Case Studies of SME Growth and Innovation, UNIDO Discussion Paper, Vienna. http://www.unido.org/doc/Publications.htmls
35. OECD, (2002a), Benchmarking Science-Industry Relationships, Paris.
36. OECD (2003b), Science, Technology and Industry Scoreboard, Paris.
37. Papon, P., and Pejovnik, S. (2006), Guidelines for a Science and Research Policy in Bosnia and Herzegovina, Science Policy Series n° 2, Venice: UNESCO Regional Bureau for Science and Culture in Europe.
38. Pereira, T. S. (2007), Enhancing Science Policy and Management in South Eastern Europe: Science and Technology Statistics and Indicators Systems, Science Policy Series no 4. Venice: UNESCO Regional Bureau for Science and Culture in Europe (BRESCE).
39. Porter, M. E. (1990), The competitive advantage of nations, The Free Press, New York.
40. Porter, M. E. (1998), On Competition, Harvard Business School, Boston.
41. Radošević, S. (2001), Science and technology indicators and innovation surveys in ‘catching up’ economies: their relevance, results and policy issues, Paper presented at the OECD conference, Pretoria, November.
42. Radošević, S. (2002), “Regional innovation systems in Central and Eastern Europe: organizers and alignments“,
43. Journal of Technology Transfer, 27: 87-96.
44. Radošević, S. (2004), “(Mis)match between demand and supply for technology: innovation, R&D and growth issues in countries of Central and Eastern Europe“, in: J. Svarc, et al. (eds.), Transition Countries in the Knowledge Society, Zagreb, Institute of Social Sciences, pp. 83-100.
45. Saxenian, A. (1994), Regional Advantage. Culture and Competition in Silicon Valley and Route 128, Harvard University Press, Cambridge, MA.
46. Semlinger, K. (1993), “Small Firms and Outsourcing as Flexibility Reservoirs of Large Firms”, in Grabher, G. (ed.), The Embedded Firm, Routledge, London, 161-78.
47. Sengenberger, W. and Pyke, F. (1991), “Small Firm Industrial Districts and Local Economic Regeneration: Research and Policy Issues”, Labour and Society 16(1).
48. Šlaus, I. and Pisk, K. (2006). “The future of South-Eastern Europe in 2050: R&D needs in the region.”, in (ed) Gajdusek, Mayr and Polzer, Science policy and Human Resources Development in South-Eastern Europe in the Context of European Integration, Vienna: Federal Ministry for Education, Science and Culture.
49. Smallbone, D. and Welter, F. (2001), “The Disincentives of Entrepreneurship in Transition Economies”, Small Business Economics 16(4), 249-61.
50. Tanović, L. (2005), ‘Science and Technology Status in Bosnia-Herzegovina’, in Kobal, E., and Radosevic, S. eds., Modernisation of Science Policy and Management Approaches in Central and South East Europe, IOS Press, Amsterdam.
51. Tiplić, D. and Welle-Strand, A. (2006), The Bosnia-Herzegovina's Higher Education System: Issues of Governance and Quality. European Education , Volume 38, Number 1/Spring 2006
52. Uvalić, M. (2005), Science, Technology and Economic Development in South Eastern Europe, Science Policy Series nº1, Venice Science Policy Series no 4. Venice: UNESCO Regional Bureau for Science and Culture in Europe (BRESCE).
53. Uvalić, M. (2006), Science, Technology and Economic Development in South Eastern Europe,International Conference and Ministerial Round Table: “Why invest in science in South Eastern Europe?”, 29 – 30 September 2006, Ljubljana
54. World Bank (1997), Bosnia and Herzegovina: From Recovery to Sustainable Growth, The World Bank, Washington
55. World Bank (1999), Knowledge for Development, Washington DC.
56. World Bank (2003), Doing Business in 2004: Understanding Regulation, Washington.
57. WEF (2006), The Global Competitiveness Report 2006-2007, London: Palgrave Macmillan