The room for improvement competitiveness and innovation

Abstract

Last four years Serbian economy seems recover from the Global economic crisis, which caused a zero rate of growth in six years period (2009-2014). The economic development is mainly due to domestic demand increase, investment into infrastructure and increase in foreign direct investments. The macroeconomic stability is improved and for the first time in the medium term it is comparable to European standards. However, it is important to note that even the rate of growth achieved in the last year and projected for this year (4,4 and 3,5% respectively) is below the need to shorten the difference in development level to developed economies and countries in transition, as well. In line with overall recovery, the segment of small and medium scale companies and shops (SMEs) is improved, considering that the number of new established companies is increasing and more important, higher than number of closed legal entities. It is due to more chances for start - up and development and improved business environment. Although Serbian economy has improved business environment there is still room for improvement, especially considering the lack to European countries and some countries in the neighbourhood. European Union has already defined the strategy in which innovations became the most important factor for development. Considering the level of use of Information, Communication Technologies (ICT) and the level of competitiveness of Serbian companies, including SMEs, there is even more room for improvement. One can say that development policies has been generally defined with an aim to support fast growing and innovative companies, but these need time to achieve full effect. The room for improvement competitiveness and innovation of Serbian companies, included SMEs, should be find on all levels of decision making: national, regional, local and level of a firm itself.