Foreign Direct Investments Induced Innovation? A Case Study − Macedonia

This paper analysis an innovation in Southeast Europe, and in particular it is a case study of Macedonia which focuses on the basic ties between foreign direct investments and innovation. Foreign direct investment is usually defined as dominant or controlling ownership of a company in one country, by an entity based in another country. The concept of industry-government-university relationships interprets the change from a dominating industry-government duo in the ‘industrial society' to a growing triadic relationship between industry-government-university in the ‘knowledge society'. As of the beginning of the transition process, foreign direct investments remain priority, as essential pillar, that moves forward the society towards developed market economy, however as influx of capital increases it is inevitable that increased innovation should fall in line. Further, we are interested in the possibility that these two indicators have positive and upward climb to facilitate this developing economy