Market size as a determinant of Serbian national competitiveness

Abstract

The main aim of research presented in this paper is to determine how factors related to market size influence national competitiveness of Republic of Serbia. Additional aims of this research pertain to identification of level and scope of Serbian enterprises' activities on international market and activities related to development of innovations. The rationale is the following: activities on international market, especially export, are very important for increasing the size of the market, especially in cases of small economies as Serbian. Development of innovations is one of the best strategies for achievement of these goals. Various methods have been used in this research. In order to investigate positioning of Serbia related to its overall global competitiveness and according to determinants related to its market size, authors used desk research methods. Main sources of evidence included relevant reports of World Economic Forum and other referent international institutions. In addition to this, field research was carried out in order to gather primary data relevant for providing answers to defined research questions. Research results show that Serbia has very unfavourable position according to its global competitiveness, market size, export activities and level of innovativeness. More detailed analyses show that representatives of business organizations do not fully comprehend the importance of networking with organizations and institutions from other countries, of activities on foreign markets, of innovations related to products, services and business processes. Therefore, main recommendation refers to necessity of organizational learning as basis for innovations, export activities and collaboration with organization from international surrounding in general. Finally, that would lead to increased size of the market, and global competitiveness of Serbian national economy.

Keywords

• competitiveness
• market size
• innovation
• export