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Trends in the Development of Machinery and Associated Technology ” TMT 2011 , Prague , Czech Republic , 12-18 September 2011 JOINT EFFORT FOR INNOVATIVE ENVIRONMENT

This paper presents the results of the research into innovativeness of small and medium enterprises (SMEs) and their business environment in the regions of two neighboring countries. The aim of the research was to make Posavina (Bosnia and Herzegovina) and Vukovar-Srijem Country (Croatia) the leading innovative environment in a wider area. Related to its aim, the research focused on recognizing the key factors of the improvement of SME competitiveness as well as on identifying the ways for improving long-term cooperation of entrepreneurs and institutions that provide support to innovative activities of SMEs in the regions covered by this research.