Innovations. Product. Process. Goods Services Technological Organisational 1. INTRODUCTION Basics of innovations

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2 1. INTRODUCTION 1.1. Basics of innovations Innovation is development and application of new ideas or skills for the purpose of commercialisation of new or improved products, processes and services which enhance economic and social prosperity. Innovations can be categorise into the following innovation types: Innovations Product Process Goods Services Technological Organisational Innovation are engines for: economic growth, competitiveness, income creation and firm profit, employment creation, especially in rural areas, changes towards environmental improvement and sustainable development, meeting changing consumer needs and demographics The Innovation Process in an Organisation The process of innovation in an organisation can be categorised in the following model of stages in the innovation decision process (Rogers 1995): 1. Prior conditions - Previous practice - Felt needs / problems - Innovativeness - Norms of the social system 2. Knowledge the characteristics of the decision making unit are - Socio-economic characteristics (education, social status, economic orientation,...) - Personality variables (attitude towards education, fatalism, achievement motivation, ) - Communication behavior (interconnectedness, active information seeking, change agent contact)

3 3. Persuasion related to the perceived characteristics of the innovation - Relative advantage - Compatibility - Complexity - Trialability - Observability 4. Decision (adoption or rejection) 5. Implementation 6. Confirmation 1.3. External factors determining innovation the institutional environment The type and degree of innovation on company level are the result of internal and external factors. The external factors concern characteristics of the market and the sector specific environment, such as the level and type of competition or given technological conditions. They concern regional conditions or the local milieu, such as the knowledge and information level and the availability of qualified workers, research and education institutions, and the quality of transport and communication infrastructure. A further external factor constitutes the relevant legal and political system and its policies. For inducing product innovation, the following external or regional factors have been found to play, in general, a major role (Davelaar 1987): - highly qualified workforce - technical and economic universities and research institutions (knowledge centres) - company level services (economic and technical consultancy, market research, legal services) - sufficiently many potential suppliers and subcontractors - sufficiently big markets and good market access - transport infrastructure, especially to enable personal communication - access to capital, especially risk capital For the adoption of process innovation, the following factors have been found, in general, to be important (Maier and Tödtling, 1996): - density of companies of the same or similar branches - sales and service nets of new technologies that enable the process innovation - access to public consulting and transfer service - availability of specifically educated workforce

4 2. Serbia and Montenegro forestry Elementary Information 2.1. Present Status of the Forestry Sector in Republic of Serbia The Republic of Serbia and Montenegro is a country with total area of km 2, out of which to Serbia belong km 2, and to Montenegro km 2. It spreads in southern Europe, in Balkan region In Serbia s forestry, the two main categories of ownership are state and private forests. According to the data in the Programme of forest protection and enhancement in the period , of the total area of forests and other wooded land (2,654,572 ha), 56.7% is in the state and public ownership (SE Srbijašume and SE "Vojvodinašume" 51.7%, SE National Parks 3.2%, SE Beli izvor Vrnjačka Banja 0.3%, water management and agricultural organisations 1.3% and Teaching Base of the Faculty of Forestry in Belgrade 0.2%), and 43.3% are private forests (Republican Fund of Forests R Serbia, Belgrade, 1996). The highest percentage of state forests is in Vojvodina (95.5%), in Kosovo the percentage is somewhat lower accounting for 62.1%, and in Serbia without Provinces private forests prevail with 56.3%. The area of forests and woodland of the Republic of Serbia is ha accounting for 26.7% of the land area. The area covered by forests is ha, or 88.9% of the total area of forests and woodlands; treeless area is ha. Deciduous forests represent 90.7% of the total forest area, coniferous forests 6.0%, and mixed forests of broadleaves and conifers 3.3%. Serbia has three geographical regions: lowland (Vojvodina), mountains (a large part of Serbia) and valleys (Kosovo and Metohija). 3. Enterprise 3.1. Description of the enterprise and the business area Short history Forest Estate Sremska Mitrovica manage with forests in Srem, administrative patr of Province Vojvodina. Vojvodina in geografical means is flat part of Republic of Serbia. Forestry in this region has tradition of over 100 years. Taking care about forests in this region date of XIX centuries. In 1814, was brought first law about forestry.

5 The first environmental measurement on this region made in And from that time there was 10 environmental measurements. Two last measurements were made by typological base. In founded 4 forest administrations. F.E. Sremska Mitrovica was found in as an independent company for forests development and management. Since F.E. Sremska Mitrovica. is the forest district of the State forest enterprise Srbijašume with headquarters in Belgrade. In 2002, Government of Republic of Serbia founded State Enterprise Vojvodinašume, divided into 4 forest-economic regions. One of these regions is Srem s forest-economic region. Whit this region manages F.E. Sremska Mitrovica Business area: Forest Estate Sremska Mitrovica governs whit forest on hectares, whit m 3 volume of wood and m 3 current volume increment. Srem s forest economic region is a plane on the left side of the river Sava. Altitude of this region is between 72 and 80 meters height above sea level. Common species are Common oak, Euroamerican popular, Narrow leaved ash, common hornbeam, Biter oak, Acacia, On the territory of F.E. Sremska Mitrovica exists 4 hunting districts. The common game in this hunting districts are: deer, roe, boar, pheasant, fox, hare, There are 9 special nature reserves. In the special reserves Vraticina in forest 450 years old. Special nature reserves Obedska Bara is unique safe reserve of birds in Europe Basic activities Basic activities of S.E. Vojvodinasume are following: Culture, maintaining and revival of forests Reconstruction and inundation of degraded forests and bushes Production of seeds and seedlings New forests and seedlings raising Production of forest species, using and transport of other forest products Usage of a forests for the recreation Usage of a forests for growth and hunting of game Projecting, building and maintaining forest roads, parks and recreation areas Making programs, projects and bases of ruling over the forests soil surveying for special purposes, Expertise and advising works in forests for private proprietors Trade Export-import Economic cooperation with foreign countries Improvements of forest functions

6 3.1.4 Organisation F.E. Sremska Mitrovica is organized in 6 units: Forest administration: Morović Forest mechanization, Višnjićevo, Klenak, Kupinovo and Headquaters in Sremska Mitrovica. Forest Estate Sremska Mitrovica Headquarter Sremska Mitrovica Forest administration Morovic Forest mechanisation Morovic Forest administration Visnjicevo Forest administration Klenak Forest administration Kupinovo table 1. Table of organization units in F.E.. Sremska Mitrovica Staff F.E. Sremska Mitrovica has 627 employees. There are 43 engeneers of forestry Annual turnover Annual crop is m 3 (60% common oak) Products Main products are: Wood products (Oak, Poplar), Firewood and cellulose wood Broadleaf. Other products are: Mushrooms, medicinal herb Markets and costumers Wood industry and Pulpwood industry. Companies: NOVI DOM KOMBINAT Sremska Mitrovica, DIP SAVA Hrtkovci, LIPA Sid, STRELA Jukovo, Pulpwood factory Matroz Sremska Mitrovica. 4. Innovation activities 4.1 Development and implementation of the innovation process Implementations of information system. Forest enterprise regarding to modernization of working process start with implementation GIS technology. The application and combination of modern technology. Implementation of GIS Technology and developing of information system provide more efficiency in organization process.

7 Improvement of internal organization and efficiency of a system for storing and tracking documents. Usage of information system avoids work with documentation in paper form and help in tracking documents of distant forest administration. 4.2 Detailed description of the innovation Usage of GPS and information system in forestry going through three stages: First stage - scean maps - put scean maps into GIS programme georeference - ploting border of forest units - build range - link range whit data bank - notation Secong stage - making topic maps - making charts - analyses - printing maps Third stage - establishing data base for data from first and second stage - collecting data from all forest administration - linkage server of data base with State Enterprise Vojvodinašume, S.E. Srbijašume, Forest Bureau and Ministry for Forestry. 4.3 Roles of actors The list of entities that were active in the innovation process includes Norwegian Forestry Group, Ministry of forestry, Faculty of Forestry of Belgrade. In this mutual action actors involved find that F.E. Sremska Mitrovica as one of the best enterprise in the field of forestry can carry out innovation process. Norway Government establishes the budget for process of implementation of modern information system and Faculty of Forestry provide education for employed in Forest Enterprise. Implementation GIS technologies was supported by Norway government. Education was on Faculty of forestry in Belgrade. Ideas for this project given by management of this enterprise and also from Norway government. 4.4 Analysis of the innovation process and future plans This innovation project is base for future implementation of new technologies in production process also in organization process. Early results of innovation process were twofold. Employees involved in project acquired new knowledge about new technologies, and process of collecting of information from the field become more efficient. Process of mapping becomes easier and collected data were more precise.

8 If forest specialist going to the forest with the field computers, equipped with GPS, they can find his exact position in the forest, then they will open the online connection (GPRS) with Forest Register Database - he can see the forest map and all database information: 5. Conclusions: Ownership information Detailed map with limitations (if they are applicable); Detailed information from the forest management plan, what kind of activities has been done in that stand and what is allowed to do. Introduction of new technology is close connected with a possibility that forest specialist need to get, using data bases, all information about forest plan management from internet, illegal logging can be stop using new technologies in scooping and data processing of data in terrain with mobile technologies. Main problems that the forest enterprises without innovation have are: too old equipment and mechanizations, no up date information, lack of support from expert. With introduction of these kind of technology some problems will be solve such as: High productivity Economical growth Easiest and more specific working in the field Establishing of transparent digital data base, which provides up to date data In the future efificient management of Forest Estate have to manage with a diferent goals such as: 1. Transparent and useful data 2. Increase motivation 3. Promote profitability of forestry 4. Advance the economically, ecologically, and socially sustainable management and utilisation of forests. On the end, innovations are very important because they bring economical growth for enterprises, country and region. Innovations are necessary for the competition of private sector. But, innovation is risky and prone to fail but not to innovate is risky too.