State aid for innovation clusters in the Republic of Serbia

Abstract

Purpose

The purpose of this paper is to examine conditions for and initial results of granting state aid for innovation clusters in the Republic of Serbia.

Design/methodology/approach

This paper is based on primary research data and secondary sources of scientific information. Due to interpretation of legal acts, a normative method was adopted.

Findings

There is a legal and institutional framework for granting state aid to innovation clusters in the Republic of Serbia. It is important because state aid distorts competition and may reduce economic growth if it is not controlled and moderate. Serbian state aid for innovation clusters is more than moderate so less than 1 per cent of Serbian businesses are joined within innovation clusters.

Research limitations/implications

The legality and effects of granted state aid are not explored. Requests for access to agreements signed with and reports submitted by beneficiaries remained unanswered.

Originality/value

Few studies examine the topics discussed in this paper; legal issues concerning government intervention's effect on the economy are often neglected. This paper explores legal regulations, procedures, and confinements of state aid for innovation clusters as a measure of economic policy.

Citation

Varga, S., Vujisic, D. and Zdravkovic, M. (2013), "State aid for innovation clusters in the Republic of Serbia", International Journal of Public Sector Management, Vol. 26 No. 2, pp. 102-110. https://doi.org/10.1108/09513551311317960