The Analysis of Cluster Development in the Republic of Serbia

Abstract

Cluster, as a form of SMEs association that drives innovation, productivity and competitiveness through collaboration with educational research institutions and the public sector, is a tool for achieving economic growth in underdeveloped national economies. Precondition for the successful cluster development in transitional economies is the existence of infrastructure and legislation, as well as the national cluster development strategy. This paper investigates the main characteristics of clusters in the Republic of Serbia, European country which is still in transition from statism to a market economy. Transition process in the Republic of Serbia is characterized by reforms, new institutions, private companies and changed government role. An efficient and effective cluster development concept requires an analytical examination of economic and legal environment. The paper analyzes the cluster development in the Serbian economy, and its growth, despite the lack of national policy on cluster development. The special interest of the paper is focused on the size and nature of the clusters, industrial activities performed in the clusters and tendencies in cluster development. The purpose of this research is to emphasize the importance of clusters as a tool for achieving sustainable local economic development in the Republic of Serbia.