PRIVATE SECTOR DEVELOPMENT Project Insights Key contact: Key contact: Assessment of the National Mr Alan Paic Mr Alan Paic Innovation System of the Former Head of Programme Head of Programme OECD Investment Compact for OECD Investment Compact for Yugoslav Republic of Macedonia South East Europe South East Europe
[email protected] [email protected] Report in support of the formulation of a National Innovation Strategy www.investmentcompact.org www.investmentcompact.org www.investmentcompact.org This project is funded by the European Union RCI Covers [3].indd 4 RCI Covers [3].indd 4 23/05/2013 19:40 23/05/2013 19:40 Assessment of the National Innovation System of the Former Yugoslav Republic of Macedonia Report in support of the formulation of a National Innovation Strategy December 2013 This document has been produced with the financial assistance of the European Union. The views expressed herein can in no way be taken to reflect the official opinion of the European Union. The information included in this report, and in particular the denomination of territories used in this document, do not imply any judgement on the part of the OECD on the legal status of territories mentioned in this publication. FOREWORD Between 2000 and 2008, the Western Balkan economies experienced rapid growth, modest inflation, and increased macro-economic stability. The onset of the global economic crisis, however, saw a sharp drop in external trade and industrial production across the region. The crisis underscored the fact that buoyant growth prior to 2008 relied, to a large extent, on external financial flows – particularly FDI flows and international capital transfers that offset large and unsustainable trade and current account deficits.