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S&T Country Report - Albania - WBC-INCO Net

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2 Existing Innovation Structures in BiH<br />

2.1 Key Government Players<br />

The Ministry of Foreign Trade and Economic Relations of BiH (MoFTER), MoFTER<br />

Department for Economic Development and Entrepreneurship (SME and RED<br />

Department) plays a crucial role in the SME development. There are also other BiH<br />

ministries, which are implementing SME related activities, e.g. Ministry of Finance<br />

and Treasury, Ministry of Justice, Ministry of Human Rights and Refugees and<br />

Ministry of Civil Affairs. Detailed description of each Ministries responsibility can be<br />

found in the Mapping and Analysis of Existing BiH - SME and RED Institutional<br />

Framework, issued in August 2006.<br />

There is no fully operational national SME agency (or the equivalent) responsible for<br />

implementing SME policies which enjoy full political support in Bosnia and<br />

Herzegovina. There is the Republic Agency for Development of Small and Mediumsized<br />

Enterprises, which was created in 2004 in Republic of Srpska.<br />

In Bosnia and Herzegovina, due to the complexity of the administrative structure and<br />

related governmental levels, several institutions are responsible for SME policy.<br />

Already indicated, the SME and RED Department is responsible for state level policy<br />

co-ordination with the entities and Brčko District. Co-operation is still limited, but a<br />

future agreement on the state level SME strategy and agency could lead to<br />

improvements in co-ordination. In the Republika Srpska there is a Department for<br />

SME and production craftsmanship in the framework of the Ministry of Economy,<br />

Energy and Development, which is responsible for SME policy elaboration, along with<br />

the operational Republic Agency for Development of SME, which is responsible for<br />

SME policy implementation. In the Federation of BiH (FBiH) and the Brčko District<br />

there are relevant departments for SME development within the Ministries, but no<br />

established leading institution in charge of SME policy elaboration (OECD and EC<br />

2007).<br />

As stated in the report of Pohl Consulting&Associates, published in 2004, the<br />

institutional framework to support SMEs is complex and under-developed but is<br />

improving over time mainly due to the efforts of international community. Since the<br />

situation differs dramatically, the following discussion differentiates between the BiH<br />

State (BiH), Federation of BiH (FBiH), Republic of Srpska (RS) and District of Brčko<br />

(DB) whenever possible (Pohl Consulting&Associates 2004).<br />

page 12/BIH

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