Serbia shows solid progress in innovation and IT workforce among small and medium enterprises but falls behind in importing high technology, labor productivity and skills development, according to the 2025 European Commission Innovation Report.
Serbia ranks 31st out of 39 European countries, classified as an “emerging innovator” with performance at 51.5% of the EU average. It stands above Montenegro, North Macedonia, Albania, and Bosnia and Herzegovina.
Strengths include a high share of SMEs introducing product and process innovations, growing cloud computing adoption, and increased ICT experts. However, challenges persist in importing advanced technologies, intellectual property registrations, resource productivity, carbon emissions, and trademark filings.
Despite more higher education graduates, lifelong learning and doctoral enrollment have declined, alongside a drop in digital skills.
Overall, while the Western Balkans are improving, the region still trails the EU average. The report highlights innovation leaders like Switzerland, Sweden, Denmark, and the Netherlands at the forefront.