INNOVATION SOURCES IN THE ECONOMY OF BOSNIA AND HERZEGOVINA: AN EMPIRICAL ANALYSIS ON A SELECTED SAMPLE OF ENTERPRISES

Innovations are considered one of the key factors contributing to an organization’s success. Their importance has been recognized in the development of entrepreneurial activity, increasing market share, achieving competitive advantage, and ensuring growth and development. The aim of this paper is to present the level of innovativeness in enterprises located in Bosnia and Herzegovina and to examine whether internal or external sources of innovations are more significant for them. Additionally, the paper aims to determine whether the role of externally generated innovations increases with the enterprise size. The research included 50 enterprises of different sizes from across Bosnia and Herzegovina, and the data was collected through questionnaires. Based on the processed results, it was concluded that internally generated innovations dominate the economy of Bosnia and Herzegovina. The importance of externally generated innovations does not increase with enterprise size, as shown by the Chi-square test of independence of variables.