FINAL REPORT - USAID Macedonia

Innovation Center
Innovation is an essential driver of
competitiveness and economic growth in
developed and emerging economies. Innovation
enables companies to improve their
competitiveness—through better products,
business processes and efficiencies—and
generates income from new ideas and
technologies. Countries that successfully
promoted the adoption, creation and
commercialization of innovation create a dynamic
private sector with direct and indirect benefits for
their wider economies.
Macedonia is yet to harness the widespread
benefits of innovation. As a country, Macedonia
spends 7.8 times less in research and development
Key Activities Results
� Supporting pipeline of
entrepreneurs with innovative
high‐potential projects
� Established the network of
Innovation Advisors (IAs)
� Strengthened innovation eco‐
system
� Established business angel
network (BAN)
� Supported development of
Innovation Finance Vehicle
� Working upon the self‐
sustainability of the Center
� Center established and
fully operational
� IC supported and
coached more than 10
innovators to
commercialize
innovation
� Innovation Development
Fund approved by USAID
and operational
� Innovation Center
operations sustained
beyond scope of MCP
relative to GDP than the EU-15, a gap that is widening. The gap with other emerging economies is also
widening. Approximately 95 percent of Macedonia’s R&D expenditures occur outside the private sector.
Approximately 60 percent of R&D expenditures are in academic institutions, which, according to a recent study
completed by MCP, only loosely meet private sector needs. Since these are not commercial initiatives, economic
returns to business and the wider economy are limited. Furthermore, many probable innovators lack the
capacity, know-how and resources to develop, package, finance and commercialize new innovations.
Furthermore, Macedonia lacks an effective environment for supporting innovators and offering the services
needed to move from concept to business.
In 2010, MCP launched the “Innovation to Business” (I2B) Center in partnership with the National Center for
Development of Innovation and Entrepreneurial Learning (NCDIEL) to link innovators and partners within
Macedonia and abroad. Innovation Center activities focused on building the capacity of Macedonian innovators
and firms to adopt, create and commercialize innovations and technologies, including guidance for innovators as
they move from concept to realization: identifying and attracting necessary early-stage financing, and training
and coaching to strengthen the capacity of entrepreneurs and innovators to enhance the success of their business.
The Center also took steps to build an innovation “ecosystem” to support innovative ventures and bring them to
market in a commercially viable way by identifying, training and mobilizing a network of innovation advisors to
support innovators and facilitating linkages with sources of innovation and early-stage financing. Details on
activities carried out by the Center are provided below:
Building the capacity of Macedonian Innovators and firms
The Innovation Center engages a pipeline of entrepreneurs with innovative projects and ideas and helps guide
them through the process to commercialization through trainings, coaching, strategic guidance, financial
facilitation and linkages with potential investors or business partners. The Innovation Center also offers services
to start-ups, entrepreneurs and companies that would like to innovate their existing business models. The IC
provides coaching and mentoring services using a methodology based on the Alex Osterwalder approach,
creating innovative models for delivering value to the customers.
At the end of MCP (the Center was spun-off as an independent NGO and is continuing operations) the
Innovation Center had a pipeline of 40 current and prospective projects. Thirty had received training and
coaching in their business concept, and at least four are approaching investors or financial institutions for
finance. Highlights of projects in the pipeline are presented in the table below:
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