The overall goal of the Horizon 2020 activities relates to enhancing scientific research and innovative capacity of companies and research institutions in EU (as well as participating countries, such as Bosnia and Herzegovina). Activities in this program were focusing on innovation assessment of the local SMEs, with the objective to improve their performance. Geographically, the Federation of BiH was covered, manly focusing on largest cities, such as Sarajevo, Mostar and Tuzla. By identifying innovative SMEs, consultants are able to provide them support tailored made for their activities. Mainly the AT Kearney methodology for innovation management as defined by IMP3rove was used. Promising SMEs with innovation potential and/or innovation activities were target group. As a first activity towards promising SMEs (taking in consideration that companies have limited innovation management capacity) is to identify identified ones with real potential for international growth through the innovative product, process, service, or a business model, but with limited knowledge and skills to exploit their innovation.
Expected impacts achieved are improved competitiveness of SMEs and/or their sustainability by:
· having their innovation/innovative technology/process in place or
· improving their innovation strategy or
· improvement of innovation (management) capacity.
In 2020 the force major unexpectedly occurred as World Health Organization declared pandemic in the world, which was followed with Decision to declare the state of disaster caused by the appearance of coronaviruses (COVID-19) in BiH from 19.03.2020. Since than a lot of crafts and SMEs were forbidden to work. Meetings were canceled and all activities were forwarded for 2021. As the COVID 19 pandemic marked the 2020, and severely disrupted investment plans for innovation projects of SMEs, all SMEs were forced to direct their resources on preserving daily operations, liquidity and jobs. Resolving funding issues for projects that were supposed to be funded through profit generated through core business activities was another important aspect of this situation, hence there was not great interest in innovation management services, but for access to finance and financial management – to maintain minimum possible pace of current innovation projects in SMEs and avoid stopping these operations completely.
At the end of the reporting period, consortium completed all assessments and reached thir targets. Enhancing Innovation Management Capacity for innovating SMEs were conducted in full capacity as planned in 2021, meaning the target was 100% achieved, or total of 10 companies were assessed. In 2020. consortium focused on access to finance and thus helped 17 innovative companies to maintain their activities and/or use the pandemics as leverage to introduce innovation.
Since the companies that were assessed come in a variety of industries and sizes, their innovations differ greatly. Overall, radical innovations are rare, while the companies relay on the incremental innovation strategies. The companies also polarize, from those who base their strategy on innovations and trying to innovate in every possible manner, up to those who understand the importance of the innovation, but they are extremely cautious about it. As the pandemics broaden the financial hardship, and labor market was already difficult in BiH, there are entrepreneurs more than ever, who are trying to innovate and thus remain self-employed as the final outcome and source of family income. This challenging situation can be a good incubator for the further innovations.
