Technological Innovation of Small and Medium Enterprises in Kosovo: Challenges and Barriers

the ability to innovate, is the main challenge in the fast changing global markets, to maintain a stable economic development in the long term. The ICT can carry strategic incentives to adjust the economic structure and to modify the economic model of a country. This process can build a resource-saving and a environmentally friendly society. The technological innovation can improve the international competitiveness of the economy and the overall employment rate of young generations. The rapid development of SMEs has become a major force to support economic growth of Kosovo. However, small and medium enterprises in transitional economies are not always trusting technological innovation. Several businesses due to multiple internal and external environmental factors, show a low level of confidence over technological innovation. In fact, from an internal point of view, the management can be afraid of security issues, like leak of strategic information, or moreover company secrets. The typical example can be the reluctance to adopt cloud technology platforms to improve the management tasks and operations. Meanwhile the external threat can be an overturn of the management style that threatens positions and hierarchy within the organization. This paper aims to analyze some key factors that prevent the spread of technological enhancement in small and medium enterprises in Kosovo. Some typical case studies will be analyzed and further policy recommendations will be suggested.