I nstruments for support to innovative and competitive SMEs in Serbia

1. Instruments for support toinnovative and competitive SMEsin Serbia Republic of Serbia Ministry of Economy and Regional Development Igor Brkanovic, Assistant Minister

2. SMEs – driving force of Serbian economy 99,8% of all enterprises2/3 of employees68% of turnover36% of GDP58% of GVA64% of importand50% of export51% of investments

3. SMEs Support - one of the priorities in Serbian Economic Policy: Strategy for Competitive and Innovative SMEs 2008-2013 is adopted Action Plan for 2009 The role of SME Council is enforced National Competitiveness Council is established Regulatory guillotine - creating more stimulating business environment for SMEs

4. Strategy for Competitive and Innovative SMEs 2008-2013 • Aim • Development of an Entrepreneurial Economy, based on knowledge and innovativeness, which creates a strong, competitive and export oriented SME sector • Based on • Concrete priorities of SMEs • EU approach • European Charter for small enterprises • Small Business Act • Pillars: • Promotion and support of entrepreneurship and start up • Human resources for competitive SMEs sector • Financing and Taxation for SMEs • Competitive adventages of SMEs in export markets • Legal, institutional and business environment for SMEs in Serbia

5. Expected results More start ups which survive the earliest years of business More dynamic conversion of micro into small and small into medium-sized enterprises Improve the competitiveness of SMEs and import growth More profitable business of SMEs A more balanced regional development

6. Pillar IV Module 1 Developing a Culture of Investing in Innovation by SMEs Measures: • Improve technical and non-technical innovations of SMEs • Support investments in ICT • Encourage participation of enterprises in innovation programmes of scientific research organizations and EU innovative programmes

7. Instruments • “Encouraging Enterprises to Invest in Innovation Strengthening Project”- 480.000,00 EUR • “Supporting Competitive and Innovative SMEs, Incubators and Clusters Development Programme“- 640.000,00 EUR • “Cluster Development Programme” – 320.000,00 EUR • Participation in Entrepreneurship and Innovation Programme (EIP) and Seventh Framework Programme (FP7) • “Best Technological Innovation Competition” – 130.000,00 EUR • “Law on Innovative Activity” - Innovation projects – 1.050.000,00 EUR

8. European Enterprise Network • Main goal is to enable easier and faster access to information, advices, doing business on EU market services, and searching and matchmaking with partners from EU countries • Network will provide information about: • requirements for entry and operate in EU • export possibilities • public procurements and tenders in EU • new technologies • potential new partners • possible research and technology development and EU programs

9. Innovation infrastructure • Technological and Science Parks in Serbia: • Mihajlo Pupin Institute,Belgrade - R&D institution in ICT • Innovation Centre (Faculty of Mechanical Engineering, Belgrade University) • Institute Vinča, Belgrade - Energy, Nuclear engineering, Radiation, Atomic and Molecular physics, Chemistry, Biology, Electronics, and Materials • Innovation and Technology Transfer Centre at the University of Novi Sad (NOSIC) • Science and Technology Park Niš - ICT, System Integration, Informatics for Bio, Chemical and Medical applications, Robotics and Mechatronics • Institute of Physics, Belgrade – research and projects related to physics • Industrial Technological Park Vrsac

10. Clusters Development Programme • 20 clusters supported from 2005-2008. Overall financial support to clusters was about 930.000 euros. More than 360 entreprises, with more than 15.000 emploees were included The strongest clusters in Serbia are: • AC Serbia, Automotive Components Suppliers Cluster http://www.acserbia.org.rs/ • ICT sector: the Serbian Software Cluster http://www.ssc.rs/ and Integrated Electronic Systems Cluster – Embedded http://www.embedded.rs/ • the Small Agricultural Machinery Cluster BIPOM, http://www.bipom.org.rs/ • the Sumadija Flower Cluster, regional flower production companies around the city of Kragujevac in Central Serbia http://www.sumadijskicvet.com • The Agency for Wood –Wood processing idustry and furniture suppliers cluster http://www.agencijazadrvo.rs/ .

11. Business incubators • 18 business incubators • The strongest: • Business incubator Zrenjanin • 12 enterprises • ICT Sector, legal consultancy, creative services, education... • Business incubator Subotica • 13 enterprises • Web design, furniture producing, engineering , creative services, automation services, fashion garments, diet products producing... • Business incubators policy development in Serbia • Business Incubator and Cluster Development Programme in Republic of Serbia for 2007-2010 • Means of support • Business incubator support Center within RASME • Ministry for National Investment Plan • Projects and donors

12. Cooperation suggestions: • Cooperation of clusters and cluster members in automotive industry, wood processing and furniture industry. Exchange of good practice in developing centers of excellence and innovation in clusters. Cooperation with cluster initiatives in Serbia in textile and garment industry. Support in establishment of bussines services cluster in Serbia • Cooperation of R&D institutions and technology parks – exchange practice, common projects etc. • Knowledge and technology transfer between SMEs • Exchange of experience in establishing equity and venture capital funds for SMEs financing • Joint activities for participation in calls for proposals and tenders within CIP Programme, especially for eco innovation projects

13. Republic of Serbia Ministry of Economy and Regional Development Thank you! 11000 Beograd, Bulevar kralja Aleksandra 15 +381 11 2855 138Tel +381 11 2855 157Fax E-mail: igor.brkanovic@merr.gov.rs www.merr. gov.rs