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Authors summarises the research conducted for the needs of a EU‐funded project to assist the Ministry of Economy of the Republic of Macedonia to develop a strategy and programme to stimulate the development of SMEs during the period 2007‐2010. The research reviewed the current status of the National Innovation System (NIS), its key elements and inter‐relationships. It assessed the government strategies and policies that are targeting the above‐mentioned NIS elements. This paper culminates in a series of recommendations for policy intervention that can be considered for the SME development programme.

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