ANALYSIS OF THE IMPACT OF INNOVATION ON EXPORT PERFORMANCE: THE CASE OF THE WESTERN BALKAN COUNTRIES

In order to improve the competitive position and export performance, and consequently, survival on the domestic and foreign markets, the Western Balkan countries have recognised the generators of success in innovation. The aim of this research is to identify the impact of innovation on the export performance of the Western Balkan countries (Republic of Serbia, North Macedonia, Albania, Montenegro and Bosnia and Herzegovina). Consequently, regression and correlation analysis were used to analysed the correlation and conditioning of export performance (export of medium-tech and high-tech products and export of knowledge-based services) and innovation (summary innovation score) of the Western Balkan countries, for the period from 2016 to 2023. Data from the European Innovation Scoreboard were used in the analysis. The results of the research showed that innovation does not affect the export of medium-tech and high-tech products of the Western Balkan countries, considering that the observed countries belong to the group of emerging innovators and that a small number of economic entities innovate, but that there is a strong influence on the export of knowledge-based services in the observed countries. Such a result is an indicator that ICT sector is a rapidly developing sector in most Western Balkan countries and has significant potential to incease value added and exports of service accross the region.