International Journal of Academic Research in Economics and Management Sciences May 2013, Vol. 2, No. 3 ISSN: 2226-3624 139 www.hrmars.com Innovation Adoption of Bosnian Production Firms M. Kürşad ÖZLEN Faculty of Economics, International Burch University, 71000, Sarajevo, Bosnia and Herzegovina E-mail: kozlen@ibu.edu.ba EdiŶ ŠIŠIĆ Faculty of Economics, International Burch University E-mail: edo_sile@hotmail.com Abstract In today's world, both innovations and their organization-wide adoption are two of the most important issues to be considered for globally competing firms. Innovation is the application of new and improved ideas. In this research paper, the authors aim to descriptively analyze the level of innovations which exist in Bosnian firms and their degree of adoption by conducting a survey study. The results identified what are the innovations in Bosnian production firms including firms from a variety of industries such as Automotive Industry (Long tradition in Automotive Industry), Textile and footwear industry in Bosnia and Herzegovina, Forestry and Wood Industry, and The Mineral Industry of Bosnia and Herzegovina. The paper also offers some implications for practice and research. Keywords: Bosnia and Herzegovina (BiH), Innovation, Survey, Descriptive analysis. 1 Introduction Global growth stays historically lower than before for especially large emerging economies and key advanced economies. Emerging and developing countries are growing faster than advanced economies. There is a small advantage in industrial policy. The entities implemented their policy based on action plans. Republika Srpska (a region in BiH) introduced the measurement for stimulating export and maintaining employment in sectors. However, BiH’s ĐouŶtrLJ deǀelopŵeŶt strategLJ iŶĐludiŶg the iŶdustrial poliĐLJ eleŵeŶts is ǁait ing to be adopted. The absence of harmonized statistical data does not allow creation of effective strategies for industrial policy planning. Looking at the state of Bosnia and Herzegovina in the previous season, we saw that there were many downs in the production of all sectors. So, the competition in BiH is harder than the completion around the world. In order to be competitive, being innovative and following the innovations have become quite important. This study aims to identify (1) determined barriers and drivers of innovations by considering the literature; (2) the efficacy of innovation adopter through the organization; (3) the level of organizational environment support for innovations to be adopted; (4) the motivation (organizational and individual) for innovations to be adopted; (5) the level of innovation adoption and (6) gained benefits (organizational and individual) as a result of adopting the innovations.