Industrial Policies for Technological Upgrading in Western Balkan Countries

This book focuses on Albania, North Macedonia and Kosovo; it explores the industrial policies currently in place in these economies and compares their effects with the situation in Slovenia, which is used as a reference country. It provides a brief introduction to some new industrial policy approaches and proposes a new industrial policy framework that focuses on development of the national innovation system through technology upgrading and increased exploitation of technology to build the foundations for sustainable development. Finally, it provides an empirical analysis of the technological capabilities of the manufacturing firms operating in in Albania, North Macedonia and Kosovo. It delves into the technical-economic properties of these Western Balkans countries and identifies some strategic options for industrial policy. It emphasizes the need for a form of governance that emphasizes on industrial development and innovation capabilities, which are required for the implementation of these new industrial policies. The analysis draws on the current industrial policy literature and work on developing (catch-up) economies, technological upgrading and innovation studies, which represent current academic thinking in these fields. Fadil Sahiti is a Professor of Entrepreneurship and Management at the Rochester Institute of Technology in Kosovo. His research interests are in the area of firm capability building and technology upgrading, exploring industrial policy issues that enable or constrain the emergence of innovative firms in less developed economies.