Innovative activities of small and medium-sized enterprises in Serbia

Small and medium-sized enterprises are the backbone of innovation in developed economies. In transitional countries small and medium-sized enterprises are becoming increasingly important for economic growth and development but are significantly lagging behind in terms of their propensity to innovate. The main objective of the paper is to perceive the attitude of Serbian small and medium-sized enterprises towards innovative activities in order to determine the type, the scope and the quality of these activities. This paper also aims at analyzing institutional support for enhancing SME innovation in Serbia. A set of recommendations for strengthening the capacity of small and medium-sized enterprises for innovative activities is provided. Furthermore, few possibilities for removing the main barriers to small and medium-sized enterprises’ wider use of innovation and research are discussed in the paper