SELECTED INDICATORS OF INNOVATION SYSTEM DEVELOPMENT IN THE REPUBLIC OF SERBIA AND ITS NEIGHBORING COUNTRIES
Abstract
The paper analysis the level of development of the innovation system of the Republic of Serbia and its neighboring countries in relation to three selected indicators: a) the amount and structure of R&D investment resources, b) the country’s capacity to attract and retain talents, and c) the degree of Internet use. Serious lagging of Serbia behind the selected countries was noted in terms of all three indicators. The situation in Serbia is characterized by insufficient private sector investment in R&D and a rather large share of investments provided by the public sector and higher education for the purpose of funding the R&D activities, which represents a serious weakness in the development of the innovation system of the country. The large share of public funds in the financing of R&D means investing in theoretical and fundamental research that cannot be usefully applied in practice, as opposed to the business sector investments, which are mainly focused on the commercialization of knowledge through innovative activities. According to its capacity to retain talent, Serbia is the lowest ranked country in the world in 2015. This all leads to the conclusion that serious insufficiencies in the development of the innovation system of Serbia, as a small country currently in the EU accession process, represent a very significant limiting factor in the creation and implementation of economic policy that ensures the efficient management of the country’s development in terms of the knowledge economy.
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