SIGNIFICANCE OF INNOVATION FOR SUSTAINABLE ECONOMIC AND AGRICULTURAL DEVELOPMENT IN THE REPUBLIC OF SERBIA

Abstract

Since it is not enough just to achieve economic development, we should strive for sustainable development over a longer period and base it on innovation. It is an extremely important factor of economic and sustainable development. It is particularly important to innovate those economic activities that are crucial for sustainable development and where there are comparative advantages. Because of that, the aim of this paper is to prove that innovation is the key to success and achieving sustainable development. The cluster analysis has highlighted innovative leaders and learners. The Republic of Serbia is a country where agriculture is one of the most important economic activities. In terms of agricultural productivity, it not only lags behind innovative leaders, but also behind other countries of Southeast Europe, distinguished as innovative learners. In addition, in terms of innovation in agriculture, it significantly lags behind other economic activities at the national level, so that  special attention should be paid to this issue.