SME clustering in Serbia : finding the right business partners and improving the business environment for SMEs

Relevant strategic documents have demonstrated the positive effects of clustering. Serbia, as a small transition economy, should consider clustering as a means of strengthening competitiveness of enterprises and regions, improving the structure of business activities, and strengthening cooperation and links between businesses and public and scientiic institutions. Clusters’ contribution to economic growth and development is limited by the poor implementation of relevant strategic documents. The main objective of this paper is to identify speciic government measures for the improvement of the existing business environment, the implementation of strategic documents, and the development of innovative SMEs and clusters. To promote SME innovation activities, it is necessary to introduce a national innovation system based on a feedback mechanism between science and businesses, and to raise awareness on the beneits of innovation for improved competitiveness. More dynamic cluster development also requires promotion of cluster development policy, evaluation of cluster activities, more intensive cooperation with the EU in the ield of cluster policy implementation, as well as supervision and evaluation of these policies