INNOVATION AS A DETERMINANT OF COMPETITIVENESS AND DEVELOPMENT OF SMALL AND MEDIUM-SIZED ENTERPRISES IN THE REPUBLIC OF SERBIA
INNOVATION AS A DETERMINANT OF COMPETITIVENESS AND DEVELOPMENT OF SMALL AND MEDIUM-SIZED ENTERPRISES IN THE REPUBLIC OF SERBIA

Summary/Abstract: The backbone of the competitive advantage of a contemporary enterprise is its ability to innovate. Innovations are indispensable for every enterprise, regardless of its size. However, smaller business entities, i.e. small and medium-sized enterprises (SME) have a greater innovative capability in comparison to big systems, since they are more willing and more prepared to apply innovations (raw materials, products, services, processes, production organization) and new technologies quickly and instantaneously, as well as to employ highly qualified personnel. Moreover, they are more adaptable to market changes and to new technologies, which is, again, the direct result of the development of their innovative capacities and activities. Taking into consideration the tendencies in the development of SMEs in the Republic of Serbia, which indicate that the number of these enterprises is increasing, as well as their topicality and importance for the development of the national economy, the aim of this paper is to examine whether and to what extent an increase in the number of SMEs in the Republic of Serbia is followed by an increase in their innovativeness. This research question is of great importance as SMEs can attain a sustainable competitive edge and generate conditions for their further development only by means of innovativeness.

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