Innovations in the function of developing competitiveness and efficiency in the Republic of Serbia

According to the Report on competitiveness made by World Economic Forum for the year 2012, Serbia takes the 95th place on the list that comprises 144 countries. The leading places at the list are taken by countries which are led by innovations and which invest in innovations, because they are extremely significant factor of competitiveness, both at the national and global markets. For every entrepreneurial activity, innovations are a challenge and it is also crucial to connect technical possibilities to the needs of a market. Since SMEs are potential generator of new ideas and innovations it is very important to create possibilities for development of innovative activities in this sector. This paper shows the significance of innovations and the development of innovative activities in Serbia with the aim of improving the competitiveness and efficiency of the economic system of the Republic of Serbia.