Innovation Capacities as the Key to Survival – A Case Study in Serbia

Abstract

The innovation of companies is of vital importance because it allows them to penetrate markets and provides better connections with emerging markets, which can lead to greater opportunities. Measuring innovation is an important activity both for theoretical and practical tests. This paper presents research on the innovation capacities of small and medium enterprises in Serbia according to the model consisting of 21 dimensions. The observed sample consists of 106 companies, of different sizes, whose activities are grouped into production and service activities. Similarities and differences in the innovative capacities of companies concerning their activity and in relation to their size were analyzed. The results of the research indicate the main problems that small and medium-sized enterprises are facing in order to improve their innovative capacities such as the market horizon, inadequate management systems, short-term planning, and insufficient connectivity with partners and academia.