Digital Serbia: Economic context adjustments for double GDP

Abstract

specific measures to be taken today. In our previous papers we have already advocated for heterodox approach giving the framework with concrete hard macroeconomic policy regime as well as the architecture of industrial policies, both horizontal and vertical. This paper explores how policy makers can facilitate transition toward digital economy and what choices they can make to prepare for the impending wave of change. In a digital transformation, Serbia must concentrate on structural reforms based on broader adoption of ICT products and solutions in advanced manufacturing that will reconfigure value chains of industry leaders and boost productivity in tradable sectors from the real economy (manufacturing, agriculture, physical infrastructure, transport and logistics, waste management, etc.). Also, it must concentrate of high value added services (science, education, health care, programming, etc.) due to their catalyst role in dynamic economic growth. Previous logic is a base for structuring the following sections. The paper is organized in seven sections, apart from Introduction and Conclusion. We start with two main realities, the fourth industrial revolution and demising orthodox approach in economics and economic policy formulation, continue with new global normalities and heterodox approach as an antidote to crawling jobless growth around the world, and finish with fiscal balance and the role of industrial policies in the new growth model as well as with the role of digitalization in tradable sectors. Special attention is dedicated to industrial policy in ICT and its role in Serbia's economic recovery.

The impact of innovation indicators on increasing exports of high technology products

“…In addition, it influences the growth model, economic policy platform and behavior (business model and strategy) of basic economic entities. Technology is an ambivalent phenomenon, a factor shaping opportunities (inclusive innovations) and threats (disruptive innovations), or both (structural changes) [11]. The most concrete link between innovation and competitiveness is found in Porter [24] that innovation is actually the basis for starting a competitive game on the market.…”

Attractiveness of the domicile economy through tax incentives

“…In order to improve competitiveness, economic policy includes, inter alia, the policy of stimulating foreign direct investment [1]. Policy makers should first examine current position of the national economy and competitiveness of certain industries within it [11].…”