INFLUENCE OF INNOVATION ON MICROECONOMIC COMPETITIVENESS IN BOSNIA AND HERZEGOVINA
INFLUENCE OF INNOVATION ON MICROECONOMIC COMPETITIVENESS IN BOSNIA AND HERZEGOVINA

Summary/Abstract: Today, innovation is the main factor in the development and increase in the competitiveness of companies all over the world, including Bosnia and Herzegovina. Innovation is crucial for long-term growth and survival of most businesses, especially SMEs. Global spending on research and development has continued to grow, more than doubling over the 20-year period between 1996 and 2016. In 2016, the total expenditure on research and development in the world increased by 3%. Hence, innovation was considered as an independent variable in this research. Microeconomic competitiveness was observed as a dependent variable in the research. The paper presents data from a sample of 107 companies, processed using statistical techniques and methods of inferential and descriptive statistics, where appropriate software support was used for the processing and analysis of the collected data in the form of the Microsoft Excel program and the statistical program IBM SPSS Statistics. The innovativeness of SMEs was observed in its overall form and was conceptualized through indicators of product innovation, process innovation, and organization and marketing innovation. The most important components of microeconomic competitiveness are the business design and strategy of the company, the quality of the national business environment and the state of cluster development. All these indicators were measured with a five-point Likert response scale, therefore, regression analysis was used to test the hypothesis. The coefficient of determination, which shows how much of the variance of the dependent variable is explained by the model, shows that the model explains 24.4% of the variance of microeconomic competitiveness, while the statistical significance of that indicator shown in the ANOVA table (Sig.=0.000< 0.05) shows that the model reaches statistical significance. The beta indicator, that is, its significance of less than 0.05, shows that innovation makes a significant unique contribution to the prediction of the microeconomic competitiveness of SMEs.

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