The Impact of Innovation on the Growth of Real Wages in the Western Balkan Countries

Abstract

The high degree of innovation of a country's economy has a stimulating effect on the growth of its productivity levels, which are vital for the profitability of its companies. In this way, ampler innovation backs the organic growth of companies and outlines their long-term competitiveness, including competitiveness at the macro level. Furthermore, having a higher profit level, companies could pay higher net salaries to their employees. It plainly indicates the connection between the innovative processes in the companies themselves and their employees' income levels. This paper aims to test whether this relationship has a proper stronghold in the business practice of The Western Balkans countries: Bosnia and Herzegovina, Serbia, Montenegro, North Macedonia and Albania. Various benchmarks taken from relevant international reports are used as analysis tools. The obtained results will serve as a starting point for considering and conceiving a future efficient platform of public policies supporting the expansion of innovation and technological capacities of companies in the economies of the countries included in this analysis.

The Effect of Innovation, Entrepreneurship and Business Development on the Economic Independence of Muslims

“…Moreover, innovation in business strategy significantly impacts competitive advantage, with product innovation leading to substantial improvements in competitive advantage [16]. Countries with high levels of innovation experience increased levels of productivity, which in turn contributes to company profitability and higher levels of income for employees [17]. In addition, technological progress is critical to national economic transformation and competitiveness, with innovation competence reflected in the number of patents generated and its role in driving diffusion activities [18].…”