Innovation-Led Development
An effective innovation system provides rules and procedures that nurture ideas, research, and increase in knowledge, resulting in new goods/services, new production or organisational processes, or new marketing techniques, and hence is a major source of technological progress does not exist in Bosnia and Herzegovina. In order for Bosnia and Herzegovina to increase and strengthen the commercialization of research and innovativeness of companies, it is necessary to (1) increase investments in R&D at least to the norm of the African Union (1% of GDP), as the European Union norm (3% of GDP) is too high, and (2) design and implement policy measures aimed at stimulating the research and development capacities of the business sector (through tax incentives for staff and capital engagement) to strengthen the activities of commercialization of research and development and links between universities and business companies (e.g., to establish a program for the establishment of technology and innovation centres [one per region]).