Conference Paper

2020,” the Western Balkan states confronted their need for national and regional strategies for research and innovation, aiming to increase the impact of research and innovation on economic growth and employment opportunities. However, there are several key challenges which remain to be tackled such as: low business expenditures on R&D, and outdated research infrastructure. With regard to this particular context, this chapter aims to address the key inhibitors to progress of knowledge‐based economies and the economic growth in three Western Balkans countries: Macedonia, Bosnia & Herzegovina and Serbia. The comparative data of Macedonia, Serbia and Bosnia offer insights into the key challenges for fostering the progress of knowledge‐based economies such as: low company spending on R&D, poor capacity for innovation, and slow university‐industry collaboration. The data is based on the latest Global Competitiveness Report 2013‐2014 issued by the World Economic Forum and the Western Balkan regional R&D strategy for innovation. The aim of these comparative perspectives is to emphasize the importance of the need for strong governmental support towards the implementation of national, regional and supranational policy instruments and mechanisms as well as the need for good governance and a platform for developing smart, sustainable and inclusive economies, based on knowledge. In conclusion, a number of policy recommendations are offered, based on the provided comparative indicators.