An effective institutional and policy context for science, technology and innovation (STI) is essential to boost the knowledge economy. This chapter, along with three sub-dimensions, analyses the overall STI trends and performance in the region and the development of sustainable and impactful STI policies and processes. The first sub-dimension, the STI system, assesses the STI regulatory framework and strategies, including smart specialisation strategies and the institutional framework for STI policy. The second sub‑dimension, public research systems, analyses the governance of the public scientific research sector, funding approaches and human resource capacity to foster academic research excellence. The third sub-dimension, knowledge exchange and co-creation, assesses policies that support integration between scientific research and the private sector, which is critical for technology transfer, as well as policies and initiatives to promote European and regional collaboration in STI.
Western Balkans Competitiveness Outlook 2024: Bosnia and Herzegovina
10. Science, technology and innovation
Abstract
Key findings
Bosnia and Herzegovina has only marginally improved its performance in the area of STI and continues to lag behind the other Western Balkan economies as the lowest performer in the region (Table 10.1). The guiding strategies that were in place during the previous CO report have expired, and the economy’s complex STI system remains at an early stage of development. Some improvements have been made in the availability of STI-related statistics that could support the development of a more effective and efficient STI system going forward.
Table 10.1. Bosnia and Herzegovina’s scores for science, technology and innovation
|
Dimension |
Sub-dimension |
2018 score |
2021 score |
2024 score |
2024 WB6 average |
|---|---|---|---|---|---|
|
Science, technology and innovation |
9.1: STI system |
1.3 |
2.9 |
||
|
9.2: Public research system |
1.9 |
2.5 |
|||
|
9.3: Knowledge exchange and co-creation |
1.0 |
2.0 |
|||
|
Bosnia and Herzegovina’s overall score |
1.3 |
1.3 |
1.4 |
2.5 |
|
The key findings are:
Bosnia and Herzegovina’s STI policy framework remains outdated. The state-level Strategy for Scientific Research expired in 2022, and a successor document was not developed. While the strategic framework for scientific research in Republika Srpska (RS) was renewed in 2023 across the Federation of Bosnia and Herzegovina (FBiH), the regulation of STI activities remains scattered. Progress on developing an economy-wide Smart Specialisation Strategy (S3) is slow.
In line with Bosnia and Herzegovina’s constitutional setup, STI policy co-ordination remains fragmented, impeding the development of an effective and holistic STI policy framework that draws from economies of scale and effective co-ordination between levels of government. Implementation capacity is limited, and there are no dedicated agencies in either of the two entities that can implement targeted policy instruments. Plans to establish a Science and Innovation Fund in RS are on hold.
In 2021, Bosnia and Herzegovina participated in the European Innovation Scoreboard for the first time, showcasing sufficient improvements in STI-related data collection. However, the reliability and granularity of this data could still be substantially improved.
The level of public spending on scientific research remains chronically low, and there is no efficient funding methodology to encourage higher education institutions (HEIs) to engage in research activities. While official data on gross domestic expenditure on research and development (GERD) are unavailable, overall research and development (R&D) investment is estimated at around 0.3% of GDP.
Human resources for STI remain underdeveloped, as the scientific research sector is severely impacted by brain drain, and no targeted measures have been implemented at scale to tackle this issue. In 2021, 447 researchers per million inhabitants were active in Bosnia and Herzegovina, compared to 753 in North Macedonia and 2 230 in Serbia.
Against the background of the underdeveloped STI system, linkages between academia, the private sector and public bodies remain weak, resulting in low levels of intellectual property (IP) commercialisation. Infrastructure for business-academia collaboration also remains underdeveloped. Bosnia and Herzegovina adopted a Framework for a Research Infrastructure Roadmap in 2022, but no further progress has been made.
State of play and critical developments
While Bosnia and Herzegovina’s overall policy framework for STI remains at an early stage of development, the economy’s performance in this area shows some variation across its different entities, with RS being more advanced. In 2021, Bosnia and Herzegovina was included in the European Innovation Scoreboard (EIS) for the first time, highlighting gradual improvements in collecting STI-related statistics to monitor the state of STI progress, but the quality and reliability of data remain somewhat suboptimal (EIS, 2023[1]).
According to the EIS, Bosnia and Herzegovina is an emerging innovator. Ranked in the third-to-last position of the EIS assessed economies, Bosnia and Herzegovina’s performance stood at 36.2% of the EU average in 2023 and has been decreasing over the past years (European Commission, 2023[2]). Investments into research and development (R&D) remain chronically low, and weak business-academia linkages, coupled with significant brain drain in the research profession, have resulted in low output, quality and commercialisation of scientific research.
Sub-dimension 9.1: STI system
Bosnia and Herzegovina’s overall STI policy framework remains fragmented and outdated. Within the economy’s constitutional context, the development and implementation of the STI policy framework falls within the competencies of RS, the Brcko District and cantons, with the FBiH and the state-level government mainly providing co-ordinative support. This has resulted in a fragmented approach to STI policy design, and a diverse and sometimes incoherent policy mix.
At the state level, the Strategy for Scientific Research expired in 2022 without an accompanying action plan ever being developed. Establishing a working group to prepare a new economy-wide strategic framework to guide scientific research and intra-economy co-ordination is pending. In RS, a new strategic framework for the development of Science and Technology, Higher Education and Information Society (2023-29) was adopted in 2023, while at the same time, innovation is also addressed in RS’s 2021-27 Strategy for Small and Medium-sized Enterprise (SME) Development. In contrast, there is no strategic STI policy framework in the FBiH in place, and there have been no new developments since the previous CO assessment. Only four out of the FBiH’s ten cantons regulate research and innovation (R&I) activities to support STI development. While the FBiH 2021-27 Development Strategy identifies an increased digitalisation of the economy and human capital development as key objectives, other priority areas, such as the transition to a net-zero economy, are not prioritised in any of the relevant strategic documents.
An economy-wide S3 is under development but remains at an early stage. In 2020, a working group was established by the Council of Ministers to oversee the development of the S3 with the support of the European Commission’s Joint Research Centre (JRC). Still, due to limited budgets and capacity, progress has been slow. Both the quantitative and qualitative analyses have and been completed. Preparations to plan and finance the Entrepreneurial Discovery Process (EDP) are currently under way, with RS having already started the EDP. As part of this process, it will be essential to identify an effective governance structure of the S3 that reflects the constitutional arrangement but also considers critical mass and capacity constraints across the different levels of government.
Inherent in Bosnia and Herzegovina’s decentralised governance system, the institutional framework for STI policy remains highly fragmented across the economy, entities and cantons. At the state level, the Ministry of Civil Affairs coordinates STI policy and represents the economy in STI-related international fora. In RS, the Ministry of Scientific and Technological Development, Higher Education and Information Society oversees STI policy design. At the same time, a Council for Science and Technology advises on the implementation of policy measures in support of scientific research. In contrast, in the FBiH, each canton has its own ministry in charge of research and innovation, with the federal ministry co-ordinating STI policy within the entity. This arrangement has led to inconsistent regulations and definitions, limited co-ordination and sometimes competing priorities, which significantly restricts the development of an effective, harmonised and impactful framework for STI policy, and results in minimal implementation capacity.
Neither entity has a dedicated implementation agency responsible for developing STI-related measures and executing the overall STI policy framework. Despite several years of planning, RS has yet to establish an Innovation Fund to provide tailored financial support for innovation activities. However, the entity’s draft strategy for scientific research considers its creation a priority, and a law is currently being prepared to provide regulation for the establishment of a dedicated fund by 2026. To fill this gap, the Innovation Centre Banja Luka continues to give small-scale support to innovation and entrepreneurship more broadly. In the FBiH, no such agency exists, but its new development strategy mentions the intention to establish an FBiH Fund for Technology Development, Research and Innovation.
Sub-dimension 8.2: Public research system
Bosnia and Herzegovina’s public research system lacks a clear emphasis on fostering research excellence and suffers from insufficient funding and brain drain. The legal and institutional framework governing public scientific research, which rests at entity and canton levels, mainly focuses on higher education more generally. Compared to the previous CO assessment, co‑ordination between the state and entity level about skills accreditation has improved. However, there is still no harmonised approach to quality assurance and performance management of HEIs across Bosnia and Herzegovina, significantly undermining the credibility and transferability of qualifications across education providers and study programmes. Most HEIs and R&D institutes have endorsed the EURAXESS Code of Conduct, and seven EURAXESS centres operate across Bosnian universities to advise on intellectual property rights, mobility opportunities and EU framework programmes.1
Across the economy, public scientific research remains significantly underfunded. Amid a lack of reliable data on GERD, it is estimated that total public investments into research and innovation amount to less than 0.3% of GDP (European Commission, 2023[3]).Public funding is largely based on institutional funding, without a clear separation between teaching and scientific research, and there is no overall guidance on the strategic focus of the investment provided, which is determined by each HEI individually. Within FBiH, in particular, budgets continue to be allocated evenly across all cantons, irrespective of the number of HEIs and students, research priorities and performance.
Both entities operate small-scale grant schemes to support scientific research and technology development. In 2023, FBiH provided EUR 500 000 to co-finance targeted scientific research. In the same year, RS also launched a call for scientific research with a budget totalling EUR 150 000. Both programmes prioritise scientific research in the fields of natural sciences, healthcare, and engineering and technology, which is promising and could help navigate the economy’s green and digital transition. However, it is currently uncertain how successful these programmes have been regarding participation and outcomes.
Systemic brain drain is severely impeding the availability of human resources for research and innovation, particularly in the fields of health, medicine and information and communication technology (ICT). Still, no comprehensive measures have been introduced to address this increasingly challenging dynamic. The number of active researchers in Bosnia and Herzegovina is significantly lower than regional peers and has steadily declined in recent years. According to the latest available data from 2021, 447 researchers per million inhabitants are active in Bosnia and Herzegovina, compared to 753 in North Macedonia and 2 230 in Serbia (UNECE, 2021[4]). As an essential step towards better drawing from the skills of Bosnia and Herzegovina’s diaspora, RS established a register for scientists and innovators2 in 2023, with 62 researchers from its diaspora currently registered. Across both entities, some financial support is available to support doctoral studies, publications, participation in international research platforms and short-term study visits; however, these initiatives remain small in scale. Other efforts by RS to foster human resources for research and innovation include activities to raise awareness and promote the attractiveness of scientific research as a profession, such as the annual Festival of Science, the Night of Researchers, and regular open days at HEIs. In the FBiH, there are currently no specific measures to address the challenges related to the loss of human capital for research and innovation. Further reflecting on the low capacity of human resources for research and innovation, only 23 researchers have participated in the Marie Skłodowska-Curie Actions (Horizon Europe, 2023[5]).
Bosnia and Herzegovina has strengthened international and regional co-operation within STI, which is co-ordinated at the state level. The economy joined the Horizon Europe Programme in 2021. To date, 31 projects have been granted nearly EUR 4.5 million, indicating an improvement in the economy’s participation success compared to its performance under Horizon 2020. During the latter’s period (2014-20), 147 projects received EUR 8.6 million in EU support (Horizon Europe, 2023[5]). While some small-scale funding opportunities exist to assist with tender applications under the Horizon Europe programme, limited practical support is available. As a critical development, and under the auspices of the EU Cities Mission on climate-neutral and smart cities under Horizon Europe, Sarajevo was selected as one of 100 European cities, of only three in the WB6 region, to receive tailored advice and financial support for developing climate-neutral initiatives (Box 10.1); this further strengthens the economy’s integration into EU innovation networks (EEAS, 2022[6]). Its participation in the programme can also help Sarajevo become a regional pioneer in developing and implementing sustainable urban planning policies to curb global greenhouse gas emissions and slow down climate change.
Box 10.1. Sarajevo’s ambition to become a climate-neutral and smart city
In 2021, Sarajevo has been selected to participate in the EU-funded Cities Mission programme, which aims to establish 100 climate-neutral and smart cities by 2030. The programme will bring together local authorities, citizens, businesses and investors, and regional and national authorities to collaborate on transforming selected cities into climate-neutral, smart and innovative hubs.
Over ten years, Horizon Europe plans to invest around EUR 360 million in research and innovation activities linked to the programme, notably in mobility, energy and green urban planning. The EU Cities Mission will also create possibilities to build joint initiatives and collaborate with other EU programmes to strengthen international and regional collaboration among the cities.
Participating cities will also benefit from tailored advice and technical assistance through a dedicated Cities Mission Platform run by NetZeroCities. This provides access to additional financing opportunities and the possibility to join large-scale innovation projects and pilot initiatives. Furthermore, the programme will facilitate networking opportunities, exchange of best practices among cities, and support to engage citizens, research organisations and the private sector in the mission’s objectives.
In 2021, Bosnia and Herzegovina also became a member of the R&D cooperation platform EUREKA and actively participates in the EU’s Centre for Science and Technology (COST) platform. Moreover, the economy’s inclusion in the EIS was an important step to align and move closer to the European Research Area, as it helps the economy better monitor the impact of STI-related policies and conduct evidence-based reforms.
Sub-dimension 9.3: Knowledge exchange and co-creation
Incentives for business-academia collaboration remain limited, notably in the FBiH, resulting in a need to systematically strengthen measures that encourage knowledge exchange and technology transfer. The forthcoming strategy for scientific research of RS recognises business-academia linkages as a priority, while no such collaboration framework is in place in the FBiH.
In RS, grant support provided by the Innovation Centre Banja Luka primarily focuses on supporting innovative private sector companies without a mandatory requirement to engage R&D institutes. Since the last CO, however, the entity launched another call under its Synergy Programme with an overall budget of EUR 100 000. This programme focuses specifically on increasing technology transfer and opportunities for co-creation between businesses and academia in RS. However, no information is available regarding the programme’s results and impact, and no new activities have been reported since its last call in 2021. The establishment of a Science or Innovation Fund, if and when established, could increase the availability and scope of financial support for scientific research projects and collaboration opportunities during the next assessment phase.
The Swedish-supported Challenge to Change project3 provides financial support to Bosnia and Herzegovina's innovative businesses. Operative since 2017, the project entered a third phase in 2022, providing EUR 3 million over three years to SMEs to engage in innovative projects and activities, with co-financing of up to EUR 30 000. In previous calls, 160 enterprises had received financing, showcasing the project’s successful track record. Without any scalable cross-entity financial support, the Challenge to Change project has played an essential role in engaging SMEs in R&I activities and encouraging the development of creative solutions that address sustainable socio-economic development in Bosnia and Herzegovina. As such, the project can serve as an essential foundation for introducing more sophisticated financial programmes, such as innovation vouchers and collaborative grant programmes, to enhance incentives for business-academia collaboration in the future.
No indirect financial support schemes for business-academia collaboration available in either of Bosnia and Herzegovina’s entities. The state-level IP strategy for 2022-26 has not yet been adopted and is only partially aligned to EU acquis, including in the area of patents. It notably lacks specific provisions to support exchange with businesses and the commercialisation of intellectual property, as the division between ownership of intellectual property and the royalty split for publicly funded research is not sufficiently defined, further discouraging technology transfer and commercialisation.
The development of R&I infrastructure for business-academia collaboration remains nascent, and no advances have been made since the last CO. Although Bosnia and Herzegovina adopted a Framework for Research Infrastructure Roadmap in 2022 with the Regional Cooperation Council's (RCC) assistance, marking an important first step to map existing provisions and identify shortcomings, no concrete actions have been implemented since.
In RS, establishing a Science and Technology Park (STP) in Banja Luka has not progressed amid a lack of funding, with the design phase currently ongoing. The Innovation Centre Banja Luka continues to play an essential role in supporting innovation more broadly and operates a technology transfer office, although its uptake is unclear. In the FBiH, there are several STPs in place; however, there is no evidence that these facilities offer opportunities to strengthen linkages with academia, and in reality, they often primarily serve as incubation centres.
Lastly, Bosnia and Herzegovina’s approach to open science remains conceptual mainly, although there is a growing awareness regarding the importance of making scientific research and knowledge accessible to everyone. In RS, open access to science is embedded in the legal framework governing science and technology and is featured in the entity’s forthcoming strategy on scientific research. In addition, the University of Banja Luka, since 2020, has been a member of the European Open Science Cloud, and under the auspices of the National Initiative for Open Science in Europe project, a local science portal has been launched, consolidating access to open science journals. Bosnia and Herzegovina also participated in 2020 in the RCC Open Access Research Infrastructure in the Western Balkans Support Programme, and subsequently, six HEIs and R&D institutes adopted open access policies. However, there is limited evidence of actual implementation of open science practices.
Overview of implementation of Competitiveness Outlook 2021 recommendations
Bosnia and Herzegovina has made limited progress in addressing the Recommendations of CO 2021 (Table 10.2). The STI system at all levels of government remains inefficient, with low overall investment into R&D activities contributing to existing capacity constraints in the public research system and brain drain. No major reforms have been undertaken to strengthen the institutional infrastructure for business-academia collaboration. Once adopted, the economy’s inclusion in the EIS in 2021, the planned S3, and the new strategy for scientific research in RS may provide a more targeted approach to strengthen science, technology and innovation capacity in the medium term.
Table 10.2. Bosnia and Herzegovina’s progress on past recommendations for science, technology and innovation
|
Competitiveness Outlook 2021 recommendations |
Progress status |
Level of progress |
|---|---|---|
|
Align strategic priorities and co-ordinate implementation. |
RS has adopted a new Science strategy, but overall, the STI framework remains limited, and efforts to develop an S3 at the state level are progressing slowly. |
Limited |
|
Increase investment in the public sector research system |
Overall, investments in R&D remain below 0.3% of GDP, and the public research system needs to be more funded, resulting in limited human resource capacity for scientific research. |
Limited |
|
Integrate the private sector |
The framework for co-creation and knowledge exchange between businesses and academia remains underdeveloped. Few incentives are available to stimulate technology transfer between the private and research sectors, and the R&I infrastructure still needs to be at an early stage of development. |
Limited |
|
Strengthen the enforcement of IP legislation |
Enforcement remains low, with the state-level IP enforcement strategy (2022-26) still not implemented. There are no activities to raise awareness of the importance and benefits of IP protection. |
Limited |
|
Improve the collection of statistical data on science, technology and innovation |
In 2021, Bosnia and Herzegovina participated in the European Innovation Scoreboard for the first time. However, the overall granularity and reliability of STI data remain suboptimal. |
Moderate |
The way forward for science, technology and innovation
Given the slow pace of STI reforms in Bosnia and Herzegovina, the economy should step up efforts to strengthen the local STI system in line with respective competencies at all levels of government and strive towards a more harmonised approach. During the CO’s next cycle, it will be essential to establish the conditions for a well-funded and equipped scientific research system that can attract and nourish private sector partnerships. Going forward, Bosnia and Herzegovina should focus on the following:
Prioritise the timely development of the S3 to provide a cross-entity strategic framework for science, technology and innovation and enable a co‑ordinated approach to support the key priority areas identified in the S3 process. Following the adoption of the strategy, Bosnia and Herzegovina should involve all STI actors across various government levels to strengthen their commitment to the common goals of the S3 and enable adequate and well-funded implementation and coordination capacity across entities and cantons. This will be critical to ensure that policy measures are aligned and effective. Where relevant, existing strategic documents should be adjusted to complement and support the objectives of the S3.
Increase funding availability for public scientific research, including supporting Bosnia and Herzegovina’s green and digital transition via innovation. To underline the commitment to and credibility of the research system, investments in public R&D institutions need to increase significantly. Implementing a merit-based institutional funding scheme linked to clear and transparent performance indicators would incentivise the public research sector to prioritise those strategic research fields, including digital and emerging technologies, with more significant commercialisation potential. At the same time, performance-based funding would increase the quality and outcomes of public research while maintaining a prudent use of public finances.
Introduce targeted measures to counteract brain drain in scientific research. While a well‑funded public research sector remains a prerequisite to attract new professionals to the field, concrete and scalable measures can increase the attractiveness and perceived value of scientific research more generally, especially in under-resourced areas of research. By separating budgets for teaching and research in HEIs, a greater focus on research activities as a distinctive area separate from teaching can be achieved. Similarly, providing scalable financing instruments for doctoral and post-doctoral research can improve researchers' financial incentives and economic prospects. Soft measures, such as offering training, providing information on career opportunities, and raising awareness about the benefits of science, can further enhance the sector’s attractiveness. In this regard, RS’s new digital register for researchers marks an essential first step to tackling the brain drain. It can become an essential tool for monitoring human resources in the industry and creating linkages with the diaspora.
Create the foundation for business-academia collaboration and co-creation. The policy framework for collaboration between the private and scientific research sectors is lacking, with weak institutional infrastructure and incentive schemes in place. Close engagement and consultation among all levels of government, the private sector and research institutions – in line with the “triple helix” approach – will be essential to build solid foundations for business-academia collaboration. The engagement of business and academia representatives will also be critical when finalising the S3 and designing concrete implementation measures to ensure that the policy mix is relevant and supported by all stakeholders to maximise the impact of public resources.
Continue improving the availability of statistical data related to science, technology, and innovation. Bosnia and Herzegovina’s inclusion in the EIS is an important mechanism to monitor and evaluate the economy’s progress on STI performance and will help the economy be more agile in responding to emerging policy needs. However, efforts need to be strengthened to collect information on critical data, including notably on GERD.
References
[6] EEAS (2022), Sarajevo Part of Mission “100 Net Zero Emission Cities”: Launch of Coalition for Greener Projects“, https://www.eeas.europa.eu/delegations/bosnia-and-herzegovina/sarajevo-part-mission-%E2%80%9C100-net-zero-emission-cities%E2%80%9D-launch-coalition-greener-projects_en?s=219.
[1] EIS (2023), European Innovation Scoreboard 2023 - Country Profile Bosnia and Herzegovina, https://ec.europa.eu/assets/rtd/eis/2023/ec_rtd_eis-country-profile-ba.pdf.
[8] European Commission (2024), EU Climate Neutral and Smart Cities, https://research-and-innovation.ec.europa.eu/funding/funding-opportunities/funding-programmes-and-open-calls/horizon-europe/eu-missions-horizon-europe/climate-neutral-and-smart-cities_en (accessed on 13 June 2024).
[3] European Commission (2023), Bosnia and Herzegovina 2023 Report, https://neighbourhood-enlargement.ec.europa.eu/system/files/2023-11/SWD_2023_691%20Bosnia%20and%20Herzegovina%20report.pdf.
[2] European Commission (2023), European Innovation Scoreboard, http://op.europa.eu/en/web/eu-law-and-publications/publication-detail/-/publication/04797497-25de-11ee-a2d3-01aa75ed71a1.
[7] European Union (2023), Net Zero Cities, https://netzerocities.eu/ (accessed on 13 June 2024).
[5] Horizon Europe (2023), Horizon Europe Dashboard - R&I Country Profile, https://dashboard.tech.ec.europa.eu/qs_digit_dashboard_mt/public/sense/app/1213b8cd-3ebe-4730-b0f5-fa4e326df2e2/sheet/0c8af38b-b73c-4da2-ba41-73ea34ab7ac4/state/analysis/select/Programme/H2020/select/Country%20Code/BA.
[4] UNECE (2021), Researchers (in Full-Time Equivalent), per 1,000,000 Population, United Nations Economic Comission for Europe, https://w3.unece.org/SDG/en/Indicator?id=124 (accessed on 1 March 2024).
Notes
← 1. EURAXESS is a platform established by the European Commission, to facilitate the interaction between researchers, universities and businesses. For more information, please see: https://euraxess.ec.europa.eu/useful-information/about-euraxess .
← 2. The RS register for scientists and innovators can be accessed here: www.vladars.net/sr-SP-Cyrl/Vlada/Ministarstva/mnk/Konkursi/Ostali_Konkursi/Pages/default.aspx.
← 3. The Swedish International Development Cooperation Agency (Sida) provides financial support to businesses with innovative ideas that create employment, increase competitiveness and promote sustainable socio-economic development in Bosnia and Herzegovina (https://c2c.ba/en/project/information/1).