The Importance of Innovation Strategy for SMEs Growth - Evidence from North Macedonia

Abstract

Nowadays, SMEs are the key driver of economic growth. They play an important role in creating employment, adding value and exports. Considering this fact, it is necessary to implement appropriate strategies that will enable SMEs growth and development. In this paper, the subject of analysis will be the innovation strategy and its importance for SMEs growth. Innovation is essential to an organization’s success.  Innovation can lead to increased organizational performance and revenue as business leaders develop and implement more efficient and effective processes for reducing costs or facilitating the development of better products. SMEs are more innovative than larger firms, due to their flexibility and their ability to quickly and efficiently integrate inventions created by the firms’ development activities. The main aim of the paper is to identify the key determinants of SMEs innovation and the innovation influence of SMEs performances. Hence a survey will be conducted on a representative sample of SMEs in North Macedonia.  At the end of the paper based on the obtained results we will purpose a measures in order to stimulate SMEs innovation.