Paper Title
Bridging the Gap: Evaluating Subsidies and Tax Incentives for Collaborative R&D in Open Innovation Ecosystems - Evidence from Bosnia and Herzegovina and Implications for Emerging Economies

Abstract
Government subsidies and tax incentives for research and development (R&D) collaboration are widely regarded as critical instruments for fostering “spillover effects” and promoting innovation-led growth. Yet, evidence on their effectiveness in transitional and emerging economies remains fragmented. This study evaluates the design, accessibility, and perceived utility of such incentives in Bosnia and Herzegovina (B&H), a post-transition small open economy with limited institutional capacity. Using a mixed-methods approach that combines focus group reports, a Delphi study, and a qualitative needs analysis, the findings reveal low awareness of existing programs among small and medium-sized enterprises (SMEs), cumbersome administrative procedures, and a lack of performance-based monitoring. Although subsidies and tax credits have been shown to stimulate innovation and collaborative R&D in countries such as China, Korea, and Poland (Yaghi & Tomaszewski, 2024; Zhao et al., 2024), their impact in B&H remains weak due to fragmented governance and insufficient absorptive capacity. The analysis reveals systemic challenges in B&H, including excessive bureaucracy, weak university–industry linkages, and limited absorptive capacity among SMEs. These constraints reflect global trends yet manifest more acutely in post-transition economies. The study contributes theoretically by extending innovation systems and triple helix models to transitional contexts, highlighting the critical role of administrative trust and institutional maturity. Policy implications call for inclusive SME-focused schemes, simplified administrative procedures, demand-driven instruments, and enhanced university–industry collaboration. Managerial implications emphasize proactive networking, capacity building, and strategic engagement in partnerships. Limitations include reliance on expert perceptions and a cross-sectional approach, suggesting that future research should integrate longitudinal analyses, quantitative assessments, and broader regional comparisons. Implications extend beyond B&H, offering lessons for other emerging economies facing similar institutional constraints. JEL Classification:O31, O32, O38, H50, H25, L26 Keywords - Open Innovation, Public Policy, R&D Incentives, Innovation Ecosystem, Institutional Capacity, Policy Evaluation