Many factors affect low investments in Smederevo and among them, above all, are: high commercial and non-commercial risks, tardy economic transition and underdeveloped institutions, which guarantee in practice the rights deriving from the private property and contracts. Rural development in Smederevo requires that sources of competitiveness move toward high education, the efficient market and capability to earn on the existing technologies, i.e. the focus of agriculture should be moved from physical resources to knowledge, especially since agricultural enterprises in Smederevo have non-profitable business performances, which manifest through decline in the market share and profitability, increase in indebtedness, inadequate investments and the increased volume of new business ventures at the expense of the primary business. It is noticeable that the adequate entrepreneurial skills and the innovated managerial abilities and skills are necessary. Accordingly, exactly the development of innovation and transfer of innovative knowledge and technologies from the academic to agricultural sector are the most important form of activities, which stimulate development. In that sense, it is necessary to stimulate the common work of universities, research institutions and agriculture as well as to use the equipment and knowledge of everybody at universities and institutes by the companies and vice versa and the student projects and practice. The policies of labour market should increase the participation of additional education programmes and training in measures of an active employment policy, which comprises the different programmes of qualifications and trainings, re-trainings and additional trainings, functional primary education of adults. At the same time, the above-mentioned programmes should be directed to the most vulnerable groups in the labour market and individuals with multiple vulnerability factors, first of all, through strengthening capacities at the local level for improvement of educational development and trainings in the field of agriculture and rural development.