The overall objective of the RCI is to strengthen the competitiveness of the economies in the region by increasing productivity through improving the development of human capital and increasing innovation. These two pillars were identified by previous work of the OECD IC as lowering the competitiveness of the region. The specific objectives for each pillar of the RCI include:

Human Capital Development

Assisting the region to address growing skills gaps by providing effective analytical and policy management tools; stimulating social dialogue between governments and industry.

Innovation

To promote policies that foster and strengthen innovation capacities in the region through sharing of best international practice; identifying actions to improve the absorption and adaption of technology by companies; and enhancing co-operation between governments, research institutions and industry at national and regional levels.

 Pilot projects will be implemented in each of the beneficiary economies, aiming at 1) achieving concrete results by implementing actions; and 2) building capacity of officials in the beneficiary economy. In late 2010, four pilot projects were launched for implementation during 2011 under the innovation theme: In Bosnia and Herzegovina, the OECD is working with government, industry and the research community to identify and develop three partnerships between business and public researchers in the agri-food sector, following the ‘Triple Helix’ framework.

In the former Yugoslav Republic of Macedonia, the OECD is assisting in the development of a horizontal, whole-of-government, policy framework for innovation. In Montenegro, the OECD is engaged in the design of a voucher scheme to support SME innovation.

In Serbia, the OECD is working with government to develop a competence technology centre which would facilitate greater collaboration between industry and the public research community.

Albania, Croatia and Kosovo under UNSCR 1244/99 will have an opportunity to work with the OECD in 2012.

The RCI will also establish working groups on innovation and human capital development. The first meeting of the RCI Working Group on Human Capital and Innovation will take place in Split, Croatia on June 8 – 9, 2011.