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In a knowledge-based economy, innovation plays a key role in strengthening competitiveness, both on micro and macro-level. Modern countries compete on the basis of technological innovations and allocate significant resources for research and development. The aim of this paper is to point out the key limitations of Serbia’s innovation as a determinant of national competitiveness, applying the methodology of the World Economic Forum. The comparative analysis will show which countries in the region are positive examples from the aspect of innovation and in relation to which indicators of innovation Serbia has the worst position, considering a seven-year period. A special emphasis is put on the possibilities of overcoming the weaknesses of Serbia’s innovation.


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