This paper describes the current economic policies in Albania, particularly in thedevelopment of innovative SMEs, identifying the key challenges to promoting innovationin the whole economy - and highlighting specific actions where the private sector hasthe opportunity and is called upon to take a more active role.The purpose of this paper is to serve as a basis for discussion, primarily withAlbanian private sector organizations, in order to agree on the key priorities for actionto support innovation in Albania and to identify initiatives where these organizations canhelp catalyze change going forward.