Innovation Analysis of the Sector of Small and Medium Enterprises and Entrepreneurs (SMEs) in the Republic of Serbia

Innovations have become not only an important determinant of a company’s successful development but also their requirement. Today, innovative enterprises are the key driver ofcompetitiveness, increased productivity, employment and overall economic development. Research shows that Serbia belongs to the group of less developed European countries whose development is not driven by knowledge and innovation. Therefore, the main objective of this paper is to look at the current state of innovation in small and medium companies and enterprises in the Republic of Serbia and the factors that affect this situation. In terms of methodology, this work is based on the use of existing literature and available statistical data. Based on the analysis, it was concluded that the small and medium enterprise sector (SME) in Serbia has a very small number of innovative companies. By using the tool INNOVATE in a selected organization, it has been attempted to highlight the opportunities that this tool offers to improve innovativeness of an organization