Abstract
<jats:p>Forestry faces many challenges due to global trends like climate change, economic shifts, and technological advances. Innovation and inventiveness are becoming essential for improving competitiveness and efficiency, ensuring sustainable forest resource use, and improving environmental protection. Therefore, research into forestry innovation is crucial for identifying factors that either facilitate or hinder innovation and for developing strategies to enhance the sector's innovative capacity. This paper explores the importance and role of innovation in forestry, focusing on Sarajevo Canton. The study aimed to understand the perceptions and attitudes of forestry sector employees in Sarajevo Canton towards innovation, as well as to identify existing capacities, challenges, and opportunities for implementing innovations. The findings show a strong interest and considerable potential for developing and applying innovations across all areas of forest management, despite certain barriers that need to be addressed to maximise the opportunities for improvement. These obstacles can inform the creation of a strategy and policy that promote innovation, sustainability, and sector competitiveness in Sarajevo Canton. </jats:p>