Digital transformation is reshaping how SMEs compete, but requires more than access to technology. This cluster examines whether the right conditions are in place for SMEs to navigate this transition successfully. It looks at how policies are designed and implemented to support SME digitalisation and productivity, how they build the digital safety environment that underpins trust and resilience, and how they support SMEs in moving beyond basic digital tools toward more advanced and sustainable technologies; assessing in each case whether policy ambition is matched by effective delivery and measurable outcomes at firm level.
SME Policy Index for Western Balkans and Türkiye 2026 – Economy Profile for Serbia
Abstract
Digital transformation is increasingly recognised as a central driver of SME productivity, innovation and competitiveness. However, its effective diffusion depends on whether firms operate within an enabling environment that provides the necessary foundations for technology adoption and upgrading. Although digital tools can help SMEs streamline processes, reach new markets and implement more data-driven business models (OECD, 2021[1]), these gains tend to materialise only when complementary conditions are in place, such as adequate skills development, organisational capabilities, interoperable systems and access to specialised support services (Bianchini, M., Lasheras Sancho, M., 2025[2]; OECD, 2019[3]). In this context, public policy plays a dual role: it not only shapes the pace and direction of SME digitalisation but also enables broader structural transformation by strengthening the ecosystem within which firms operate (OECD, 2024[4]).
In Serbia, overall digital transformation of the economy has been formally recognised as a strategic priority, yet with policy efforts have largely centred on broad innovation and digital government objectives rather than on a dedicated, SME-focused transformation agenda. Although existing strategic frameworks acknowledge the importance of digitalisation, and digital skills development, some implementation gaps persist, particularly in relation to targeted SME instruments, coordinated delivery mechanisms and sustained investment in SME level digital capabilities. This section therefore assesses whether the foundational conditions for SME digital upgrading are in place by examining Serbia’s policy and financial support frameworks, the digital maturity of SMEs, and the availability of digital skills development opportunities.
4.1.1. Strengthening policy and financial support for SME digital transformation
SME digital transformation requires simultaneous progress in skills, infrastructure, innovation capacity and access to finance, making the coherence of the policy framework a decisive determinant of outcomes. Smaller firms face higher relative adoption costs, limited in-house expertise and greater difficulty sequencing digital investments, rendering them more dependent than large enterprises on well-designed public support to reduce risks and guide upgrading (OECD, 2021[1]). Digital transformation is therefore inherently policy-driven: progress depends not only on the presence of individual instruments, but on whether governance arrangements align incentives, reduce fragmentation and create structured pathways from initial uptake to productivity-enhancing transformation (OECD, 2019[3]).
Across Serbia’s policy landscape, digitalisation is clearly recognised as a strategic priority. However, its operationalisation remains fragmented and predominantly innovation-oriented rather than structured around a comprehensive SME digital transformation pathway.
The Strategy for the Development of Small and Medium-sized Enterprises 2023-2027 serves as the central horizontal policy document guiding SME competitiveness, innovation and digitalisation (Table 4.1). Digitalisation is recognised as a cross-cutting priority and positioned within broader objectives related to productivity, innovation and market integration. In practice, however, SME digital transformation is largely concentrated within Measure 2.3, which foresees improved access to digital tools, strengthened advisory services and innovation financing. While relevant, the measure sets relatively narrow targets, and operational details on delivery instruments, sequencing and monitoring are regulated through separate programme documentation and implementing guidelines rather than the Action Plan itself, which is however consistent with Serbia's strategic planning methodology. Although a dedicated budget is allocated, it remains modest relative to the scope of the objective, raising questions about the strategy’s capacity to drive SME digitalisation beyond incremental adoption of basic tools.
Notes: The table considers all policy frameworks that are relevant for SME digitalisation or digital transformation.
1. A strategy sets the overall vision, strategic objectives and long-term priorities for a given policy area, whereas an action plan operationalises these priorities by defining concrete measures, responsible institutions, timelines and (where available) indicative budgets. In other words, the strategy explains what the government intends to achieve, while the Action Plan details how it will be implemented. Action plans therefore serve as the main reference point for assessing the extent to which strategic commitments translate into measurable, on-the-ground interventions.
2. An indirect SME targeting approach refers to strategies that do not contain SME-specific measures, instruments or implementation mechanisms, but instead pursue economy-wide objectives from which SMEs may benefit. While such strategies may support areas relevant to SMEs (e.g. innovation, digital infrastructure or skills), they do not explicitly account for SME-specific constraints, capacities or policy needs.
Source: Information provided by the government of Serbia during the assessment period (2025).
Other strategic frameworks also address digitalisation, albeit from different angles and without a dedicated SME transformation lens. The Industrial Policy Strategy 2021-2030 articulates ambitions to modernise production structures, expand digital infrastructure and promote advanced technologies, but SME-specific digital measures remain largely indirect. The Smart Specialisation Strategy 2020-2027 prioritises ICT and advanced manufacturing as drivers of technological upgrading, aiming to strengthen innovation ecosystems and value-chain participation. Meanwhile, the Strategy for the Development of the Start-up Ecosystem 2021-2025 seeks to improve framework conditions for innovative entrepreneurship, including through digital tools and services, though its measures remain relatively high-level. Taken together, these strategies demonstrate strong political recognition of digitalisation. However, they do not translate this ambition into a dedicated, enterprise-focused digital transformation roadmap that clearly guides SMEs from basic adoption toward integrated, productivity-enhancing digital upgrading.
This gap between strategic ambition and practical delivery is reinforced by institutional arrangements. Responsibilities for SME digitalisation are distributed across several bodies, including the Ministry of Economy, the Ministry of Information and Telecommunications, the Chamber of Commerce and Industry of Serbia, and the Office for IT and eGovernment. Each institution contributes through specific initiatives, ranging from enterprise support schemes to digital infrastructure and eGovernment services. This multi-actor governance model reflects the cross-cutting nature of digital transformation, and inter-institutional collaboration is supported through the SME Strategy 2023-2027 and its accompanying Action Plan. However, no single authority is clearly mandated to lead and coordinate SME digital transformation as a distinct cross-cutting policy domain, and a dedicated overarching coordination mechanism that systematically aligns objectives, funding streams, delivery tools and monitoring frameworks across all relevant actors is not yet in place. As a result, digitalisation initiatives relevant to SMEs risk evolving in parallel rather than as part of a coherent and sequenced transformation agenda. The absence of a clearly designated lead body and an operational SME digital transformation roadmap therefore remains a structural challenge, even within a shared governance model.
Financial support instruments further reflect this structural pattern. Serbia has developed a substantial ecosystem of innovation and technology upgrading instruments delivered primarily through the Innovation Fund, the Development Fund and the Chamber of Commerce and Industry (Table 4.2). The Innovation Fund represents the most substantial public instrument in this landscape: across its overall portfolio, 2 260 beneficiaries have been supported to date, with approximately EUR 125 million provided directly by the Fund and a total project value of around EUR 242 million when including private co-financing (Innovation Fund, 2026[5]). Within this portfolio, three programmes are particularly relevant: Innovation vouchers, Mini grants (early development) and Matching grants, which together account for around EUR 60 million in Innovation Fund resources, leveraging total project investments of roughly EUR 90 million by the end of 2024 (Innovation Fund, 2025[6]).
Note: This table includes an overview of government and donor financial support for SME digital transformation.
Source: OECD compilation based on publicly available information.
While these instruments have played a visible role in strengthening Serbia’s innovation ecosystem, their orientation remains largely innovation-driven rather than explicitly geared toward broad-based SME digital transformation. Innovation Vouchers are the most widely used instrument: by the end of 2024, 1 354 vouchers had been approved for 784 SMEs, with a total value of approximately EUR 6.77 million, of which EUR 6.17 million had been disbursed (Innovation Fund, 2025[6]). The scheme supports collaboration between SMEs and research organisations and contributes to product, process and service improvements, but it is not designed as a dedicated digitalisation voucher supporting adoption of core business systems across firms at different levels of digital maturity.
Mini Grants and Matching Grants, in turn, target early-stage start-ups and more mature innovative firms investing in R&D and commercialisation. Between 2011 and 2024, 316 projects were approved under Mini Grants (EUR 25.85 million in funding), while 93 projects were supported under Matching Grants (Innovation Fund, 2026[7]; 2026[8]; 2025[6]). However, both schemes are currently in a transitional phase. Although projects approved under the 2023 call remain under implementation and are expected to conclude in 2025, no new calls were launched in 2024 or 2025. In addition, the funding envelope under the IPA 2019 Direct Grant (“Enhancing Innovation Capacity and Growth of SMEs”), totalling EUR 26 million (EUR 16 million from EU IPA funds and EUR 10 million from the national budget), of which EUR 20.6 million was allocated, has largely been exhausted (Delegation of the European Union in Serbia, 2024[9]; Innovation Fund, 2026[10]). In the absence of a confirmed continuation framework, these schemes cannot be considered fully active beyond the completion of ongoing projects. The Innovation Fund continues to implement other active support programmes, however, including the Smart Start programme for early-stage technology ventures and the Katapult Accelerator, which provides structured acceleration support for innovative start-ups - both of which represent the Fund's current operational focus alongside the completion of ongoing Mini and Matching Grant projects.
Externally financed instruments, such as the EBRD’s Go Digital in the Western Balkans programme and EU-backed credit lines delivered through commercial banks, have further broadened access to finance for technology upgrading by combining loans with technical assistance and investment incentives for digital and green technologies (EBRD, 2025[11]). These instruments have broadened access to finance for technology upgrading, particularly for firms able to meet banking and co-financing requirements. However, they remain largely credit-based, time-bound and project-driven, with limited integration into a coherent, nationally anchored SME digitalisation strategy.
Additionally, in the absence of a fully operational national SME digital transformation framework, several programme-level initiatives have emerged to support firm-level digital and organisational upgrading. The SME HUB programme, implemented by ICT Hub with funding from the Swiss Government (SDC) for the 2023-2027 period (total value approximately CHF 7 million), provides structured diagnostic assessments and step-by-step transformation plans for manufacturing SMEs, combining digitalisation measures with process optimisation and capability development (SME Hub, 2026[12]). Similarly, the StarTech programme, implemented by NALED in cooperation with the Government of Serbia and financed by Philip Morris, promotes innovation and elements of digital transition through a mix of financial and expert support; across four funding cycles it has supported 94 projects with around RSD 350 million (approximately EUR 3 million) in grants, complemented by targeted advisory assistance (StarTech, 2026[13]). The Raising Starts programme, implemented by the Science and Technology Park Belgrade, similarly supports innovative and technology-oriented SMEs through combined financial and advisory support (NT Park, 2026[14]). The Ministry of Economy has also launched a public call for the selection of accredited partner organisations to deliver advisory and mentoring support, business process diagnostics, digitalisation planning and assistance in the introduction of new technologies and advanced business solutions to SMEs, in line with the objectives of the SME Strategy 2023-2027 (Ministry of Economy, 2026[15]). The Centre for Digital Transformation further complements these efforts through a range of active programmes supporting SME digital upgrading. While these initiatives demonstrate structured approaches to firm-level transformation, they remain limited in scale and institutional anchoring. As such, they partially compensate for systemic gaps in national SME digitalisation support but do not substitute for a coordinated and comprehensive transformation framework.
4.1.2. Assessing the digital maturity of SMEs in Serbia
Evaluating digital readiness requires looking beyond simple adoption metrics to understand how strategically and extensively SMEs embed digital technologies into their business processes. Research indicates that digital uptake among smaller firms is frequently gradual and limited in scope, with many relying on basic tools that do not substantially transform business models or productivity levels. This highlights the importance of structured public support to facilitate more advanced technological upgrading (OECD, 2023[16]). International evidence further suggests that when governments implement coordinated measures - linking skills development, advisory services and accessible financing - SMEs are more likely to adopt higher-value digital solutions and integrate more effectively into digital markets (OECD, 2021[1]); (OECD, 2023[16]).
A survey conducted by the OECD among SMEs in the Western Balkans and Türkiye (see Annex for methodology) indicates that digital tool adoption among SMEs in Serbia is widespread, with nearly 97% of surveyed firms reporting the use of at least one digital tool (OECD, Forthcoming[17]). This places Serbia above the WBT regional average of 93% and suggests that basic digital engagement has become nearly universal. However, this headline figure masks considerable heterogeneity in the depth and sophistication of SME digital uptake. Adoption remains largely concentrated in basic, entry-level digital tools, notably e-invoicing, used by 79% of SMEs, company websites (69%), and social media platforms (47%) (Figure 4.1) (OECD, Forthcoming[17]). These solutions primarily support regulatory compliance or online visibility and typically require limited organisational adjustment, pointing to early-stage digitalisation rather than the integration of digital technologies into core business operations. Moreover, uptake declines sharply for more advanced, process-rewiring systems that enable data-driven decision-making. About Only around 3% of surveyed SMEs report using big data analytics (OECD, Forthcoming[17]), despite strong evidence linking such tools to innovation, improved business intelligence and efficiency gains (Kergroach, 2021[18]). This gap suggests while access to basic digital tools is largely achieved, the transition towards productivity-enhancing digital transformation remains limited.
Source: OECD (Forthcoming[17]).
Different patterns of digital adoption also emerge across firm size. While surveyed medium-sized enterprises show comparatively higher uptake of process-oriented digital tools, adoption drops to 11% among small firms and below 5% among micro-enterprises (OECD, Forthcoming[17]). This gap reflects structural differences in absorptive capacity: larger firms typically benefit from greater financial resources, broader skill bases and more formalised organisational processes, which facilitate the integration of complex digital systems (OECD, 2021[19]). By contrast, micro and small enterprises face tighter capital constraints and with more limited in-house expertise, making progression beyond basic tools substantially more difficult.
Differences are even more pronounced when considering the intensity of digital use. Around: 22% of surveyed medium-sized firms report using five or more digital tools, compared to only 6% of micro enterprises (OECD, Forthcoming[17]). This suggests that the divide extends beyond access to individual technologies to firm’s ability to combine and embed multiple solutions into integrated business processes. Evidence across OECD economies further shows that such size-related disparities are widening in advanced applications including cloud computing services, suggesting an uneven diffusion of productivity-enhancing technologies (OECD, 2024[20]; Bianchini, M., Lasheras Sancho, M., 2025[2]).
Limited awareness of public support programmes may further reinforce these gaps. Across the WBT region, only 17% of SMEs report being aware of government digitalisation initiatives, compared to 21% across the OECD sample (OECD, Forthcoming[17]; Bianchini, M., Lasheras Sancho, M., 2025[2]). In Serbia, awareness appears particularly low, with 92% of surveyed SMEs reporting no knowledge of available programmes, highest in the WBT region (OECD, Forthcoming[17]). Weak outreach and information asymmetries therefore risk constraining the uptake of financial and advisory support that could help smaller firms overcome capability and resource barriers, reinforcing existing size-based digital divides. Beyond adoption patterns, SMEs’ motivations for digitalisation provide additional insight into the level of digital maturity in Serbia. Survey results indicate that digital investments are primarily driven by operational and market-expansion objectives: nearly 60% digitalise to broaden their customer base, 48% aim to increase process automation, and 43% seek to increase domestic sales (Figure 4.2) (OECD, Forthcoming[17]). Regulatory compliance also represents an important driver, cited by almost 40% of respondents. These motivations closely mirror patterns observed across OECD economies, where SMEs tend to adopt digital tools to improve efficiency, sales performance and market reach (OECD, 2024[20]). By contrast, more transformative objectives remain less prominent. Only 29% of surveyed SMEs report using digital technologies to develop new products or services, while 26% cite access to international markets as a key motivation (OECD, Forthcoming[17]). Strategic use becomes more visible among export-oriented firms (those with more than 50% of sales abroad), 60% of which identify international sales expansion as a main driver, suggesting that exposure to foreign competition may incentivise more advanced digital deployment. Overall, these findings indicate that SMEs in Serbia predominantly use digital tools to support incremental operational improvements rather than long-term business transformation.
Note: The chart excludes respondents who cited ‘Do not use digital tools’ in the previous question. See Figure 4.1.
Source: OECD (Forthcoming[17]).
Structural characteristics of the enterprise sector help explain this pattern. Micro-enterprises accounted for nearly 90% of all MSMEs in 2023 (Statistical Office, 2025[21]), and smaller firms often lack the financial resources, managerial capacity and technical expertise required for deeper digital restructuring (OECD, 2023[16]). OECD survey data confirms these constraints. About 36% of surveyed SMEs in Serbia cite the lack of time required for training as a barrier, 35% cite the cost of acquisition or reparation of equipment, and 29% report insufficient in-house digital skills (Figure 4.3). The most frequently cited obstacles, however, appear to be the costs of maintaining (40%) and acquiring of digital tools (35%), which, according to surveyed SMEs, constrain adoption despite the existence of some subsidy schemes in Serbia.
Note: “None” refers to respondents who reported no challenges related to digital tool use (i.e. they did not cite any of the listed challenges), regardless of whether they use digital tools.
Source: OECD (Forthcoming[17]).
Taken together, these findings suggest that although digital tool adoption in Serbia compares favourably with other WBT economies, SME digital maturity remains uneven. Basic digitalisation is widespread, but the transition towards more complex, data-driven and innovation-oriented applications remains limited, particularly among micro and small enterprises.
4.1.3. Enhancing digital skills and capacities
Across OECD countries, the pace of digital transformation increasingly depends not only on firms’ access to digital technologies, but on their capacity to mobilise digital, managerial and problem-solving skills to redesign workflows, adopt data-driven decision-making and integrate emerging solutions into business operations (OECD, 2024[4]). In this context, skills have become a central determinant of effective digital adoption rather than a complementary input. This transition poses particular challenges for SMEs, which are significantly less likely than large firms to provide structured digital training while simultaneously facing higher risks of skills obsolescence as automation, artificial intelligence (AI) and platform-based business models continue to reshape production and service activities (OECD, 2021[1]).
This structural shift is particularly relevant for Serbia, where SME digital uptake remains concentrated in basic tools, while more advanced, process-oriented adoption is still limited (OECD, Forthcoming[17]). As digital technologies become embedded in core business functions, the nature of skills demand is evolving from basic IT literacy toward more complex, cross-functional competencies. Whereas firms previously focused on office software and maintaining an online presence, they are now increasingly required to manage cloud-based systems, digital marketing platforms, data protection standards, and elements of data analytics and automation (OECD, 2021[1]). Moving up the digital maturity ladder therefore requires not only technical proficiency, but also the managerial capacity to embed digital tools into business models, operational processes and strategic decision-making.
OECD survey evidence illustrates how this challenge manifests at the SME level in Serbia. Digital skill acquisition among surveyed SMEs is predominantly informal, with heavy reliance on self-learning, peer support and trial-and-error approaches rather than structured training or recognised certification (OECD, Forthcoming[17]). This limits firms’ ability to build institutionalised knowledge that supports continuous digital adaptation. Surveyed SMEs themselves recognise these constraints: 29% cite insufficient in-house digital expertise as a barrier to their digital transformation - the highest share in the WBT region (Figure 4.4), and slightly above the average recorded across the OECD country sample (27%) (OECD, Forthcoming[17]; Bianchini, M., Lasheras Sancho, M., 2025[2]). Across the OECD sample, SMEs sample tend to complement internal skills with a broader mix of structured and semi-structured learning channels, including online research (35%), e-commerce platform training (30%) and internal knowledge-sharing practices (23%) (Bianchini, M., Lasheras Sancho, M., 2025[2]). These diversified learning pathways help firms compensate for limited in-house expertise and adapt more flexibly to evolving digital requirements. By contrast, the comparatively narrower learning channels reported by SMEs in Serbia suggest more constrained access to practical, work-based upskilling opportunities. In addition, around 36% of surveyed SMEs in Serbia report insufficient time or organisational capacity to train staff as a key barrier to digitalisation (OECD, Forthcoming[17]).This suggests that constraints extend beyond awareness or access to training and reflect deeper absorptive-capacity challenges within firms. Taken together, these findings indicate that the skills gap is not only a question of technical knowledge, but also of organisational readiness to invest in continuous learning and structured capability development, limiting SMEs’ ability to translate basic digital uptake into more advanced, process-oriented transformation.
Source: OECD (Forthcoming[17]).
At the system level, Serbia combines relatively low baseline digital skills with limited lifelong learning participation. About 33% of adults possess basic or above-basic digital skills, compared to an EU average of 55% (Eurostat, 2023[22]). Moreover, participation in formal or non-formal adult learning also remains modest at 5.5% in 2024, well below the EU average of 13.5% (Eurostat, 2024[23]), and far from the EU’s 2030 Digital Compass target of 80% basic digital skills coverage (European Commission, 2021[24]). Although Serbia lags behind the EU average, its performance is broadly comparable to, and in some cases slightly stronger than, other WBT economies. At the same time, OECD survey evidence suggests that Serbian SMEs frequently report digital skills shortages. This may reflect not only objective skill deficits but also rising demand for more specialised competencies as firms adopt increasingly sophisticated digital tools and align with international standards. In other words, perceived skill constraints may intensify as digital exposure deepens, even where baseline skill levels are regionally comparable.
The skills and organisational constraints identified above are not yet fully addressed through SME-specific measures. Serbia’s policy response has instead embedded digital skills development primarily within broad, population-wide frameworks rather than through instruments tailored to firms’ absorptive-capacity needs. The Strategy for the Development of Digital Skills 2020-2024 illustrates this horizontal approach. It adopted a cross-sectoral framework aimed at strengthening digital competences through education reform, expansion of lifelong learning and awareness-raising initiatives. However, SMEs received only limited attention within the strategy, being mentioned once in connection with a proposed sub-measure on ICT-related employment instruments. This sub-measure was not carried forward into the Action Plan, and the strategy did not translate into dedicated operational instruments addressing SME workforce development. Moreover, the framework was not extended beyond 2024, and its enterprise-level outcomes have not been comprehensively assessed. As a result, while a strategic direction for digital skills was established at the national level, SME-specific upskilling pathways remain weakly institutionalised.
At the implementation level, several initiatives partially address these gaps. Education reforms have expanded IT-focused secondary and tertiary programmes (Ministry of Education Republic of Serbia, 2025[25]), and in cooperation with the Digital Serbia Initiative (DSI), the Ministry of Education launched the Master 4.0 programmes to strengthen academia-industry collaboration in advanced fields such as biotechnology, genomics and bioinformatics (WEF, 2025[26]). These measures contribute to strengthening the future pipeline of digitally skilled graduates and enhancing collaboration between universities and industry. However, their primary focus remains on students and emerging talent rather than the existing SME workforce. Similarly, labour-market instruments such as the “My First Salary” aim to facilitate youth employment and work experience but were not designed to promote ICT-specific roles or structured digital upskilling within SMEs (OPSI, 2020[27]). As a result, while these initiatives support digital skills development at the systemic level, their direct contribution to enterprise-level digital capacity upgrading remains limited. More directly relevant for SMEs, the Centre for Digital Transformation (CDT), established under the Chamber of Commerce and Industry of Serbia, has emerged as the principal provider of SME-focused digital advisory and upskilling services. Through its Digital Transformation Support Programme, CDT has provided digital maturity assessments, tailored transformation roadmaps and mentoring support, often free or subsidised (Box 4.1). Between 2018 and 2024, more than 6 000 SMEs engaged with CDT services, with over 1 000 digital solutions implemented across sectors (CDT, 2023[28]). However, no consolidated outcome data are available for 2025, as changes in the funding framework resulted in activities being carried out at a reduced scale. Without integration into a stable, systemic framework, CDT’s impact risks remaining project-based rather than structurally embedded.
Launched in 2018 by the Centre for Digital Transformation (CDT) under Serbia’s Chamber of Commerce and Industry, the Digital Transformation Support Programme was designed to address low levels of digital maturity among SMEs, particularly those with limited prior experience and outside major urban centres. The programme offers a structured pathway from awareness to implementation through digital diagnostics, tailored transformation roadmaps, expert mentoring and co-financing for selected digital solutions.
The four-phase model includes a digital maturity assessment, preparation of a customised strategy, mentoring by ISO 17024-certified consultants, and partial financial support for the adoption of digital tools. Between 2018 and 2024, CDT worked with more than 6 000 SMEs, delivered over 2 000 expert analyses and developed around 1 500 digital transformation strategies. More than 1 000 digital solutions, such as ERP, CRM, DMS and selected AI-based tools, have been implemented across sectors including manufacturing, retail and agriculture. The programme operates through a network of 68 certified consultants (including five specialised in AI) and eight trainers. Between 2021 and 2023, approximately RSD 737 million (approx. EUR 6.3 million) in subsidies were allocated to SMEs through CDT-led schemes, co-financed by the Ministry of Economy and GIZ.
Despite these notable outputs, no consolidated outcome data are available for 2024, as changes in the funding framework resulted in activities being carried out at a reduced scale compared to previous years. This raises questions about the sustainability of support and the extent to which CDT’s approach can be institutionalised as a permanent pillar of Serbia’s SME digital transformation framework.
Source: CDT (2023[28]).
The way forward
Translate strategic recognition into a dedicated SME digital transformation roadmap. While digital transformation is embedded in Serbia’s SME Strategy 2023-2027, it is not yet articulated through a comprehensive and sequenced implementation framework. Strengthening the SME dimension within the existing Strategy by operationalising Measure 2.3 into a dedicated digital transformation roadmap would improve coherence and delivery. Such a roadmap could include defining clear coverage targets (e.g. number of SMEs receiving diagnostics, advisory and finance), specifying priority digital tools by firm size and sector (e.g. ERP/CRM systems, production software, e-commerce integration, basic cybersecurity), and linking financial support with measurable productivity outcomes. Updating the Action Plan with SME-specific indicators, timelines and monitoring arrangements would improve accountability and ensure that strategic commitments translate into structured delivery without requiring a new standalone strategy.
Rebalance financial instruments toward broad-based SME digital upgrading, not only innovation support. Although the Innovation Fund and related instruments have delivered substantial support for innovative firms, digital upgrading is not their primary objective, and beneficiaries tend to be already innovation-oriented SMEs. To broaden digital transformation beyond innovation-active firms, Serbia could complement existing innovation-focused support schemes with instruments explicitly targeting digital adoption among the wider SME base, particularly micro and small enterprises operating in traditional sectors. Dedicated digitalisation vouchers could play an important entry-point role, as international evidence shows they can effectively lower adoption barriers, reduce administrative complexity and allow SMEs to select service providers adapted to their needs (Eurofound, 2025[29]). Such schemes could be linked to the implementation of core business systems and supported through simplified co-financing mechanisms for first-stage digital investments, alongside blended advisory-finance packages combining technical guidance with financial support. Particular attention should be given to firms with low digital maturity but strong upgrading potential, notably through simplified application procedures, higher support intensity and proactive outreach to SMEs in rural and less digitally developed regions. Strengthening these demand-side instruments would help accelerate broad-based digital uptake and reduce emerging productivity gaps between digitally advanced firms and the wider SME population.
Embed SME digital skills into a structured, lifecycle-oriented support framework. Rather than developing stand-alone training initiatives, Serbia could strengthen the integration of digital skills development within existing SME support programmes. Current measures remain dispersed across education and digital policy frameworks and are only weakly connected to enterprise transformation processes. Embedding skills components directly into digitalisation support instruments such as innovation grants, digital adoption schemes or investment support programmes would help link managerial training and employee upskilling to concrete business upgrades. Short, modular training for SME owners on digital strategy and organisational change could be combined with staff training tied to ongoing firm-level investments (e.g. business software deployment, e-commerce integration or cybersecurity adoption) (Box 4.2). Complementary coaching or peer-learning mechanisms could further support firms in translating training into operational change. Such an approach would shift skills policy from standalone provision towards demand-driven capability building, strengthening SME absorptive capacity while avoiding additional institutional fragmentation.
France has developed a structured and scalable approach to SME upskilling through Bpifrance, the public investment bank, notably via its “Accélération PME” programme. Rather than focusing solely on basic digital literacy, the programme targets growth-oriented SMEs and combines management training, digital transformation, and strategic leadership development.
The Accélération PME programme offers participating firms a 12–18 month support pathway, combining:
Collective and individual training modules on digital technologies, data use, and organisational transformation;
Strategic coaching for SME managers focused on growth planning, innovation and digital transition;
Peer learning and networking among SMEs facing similar scale-up challenges.
Training is delivered in partnership with business schools, universities and sector experts, ensuring strong links between applied knowledge and business needs. Public co-financing reduces costs for participating SMEs, making advanced training accessible beyond large firms.
By embedding digital skills within broader management and leadership development, the programme helps SMEs move from basic technology adoption to strategic digital transformation, supporting productivity growth and long-term competitiveness.
Source: OECD (2025[30]); BPI France (2023[31]).
Once the necessary foundations are in place, the critical question is whether digitalisation translates into productivity gains at the firm level. For SMEs, productivity growth depends on how effectively they use digital tools to expand sales channels, innovate, reorganise operations and engage with markets (OECD, 2023[16]; 2021[1]). The COVID-19 pandemic accelerated the adoption of e-commerce and digital business models, reinforcing the importance of online channels for SME resilience and performance (OECD, Forthcoming[17]). Evidence from OECD and EU countries shows that SMEs actively engaged in e-commerce and digital innovation are more likely to expand markets, diversify revenues and improve efficiency, whereas digitally inactive firms risk falling behind as competition intensifies (OECD, 2023[32]; European Commission, 2024[33]). Crucially, productivity gains arise not from digital presence alone, but from the combined effect of online sales, innovation and organisational change (OECD, 2023[16]; 2021[1]).
In Serbia, both e-commerce and firm-level innovation remain below their full productivity potential, as many SMEs use digital tools primarily for basic communication or sales functions rather than to redesign processes, expand into new markets or develop higher value-added offerings (OECD, Forthcoming[17]). At the same time, the policy and regulatory environment for e-commerce and innovation has improved in recent years, with updated legal frameworks and a growing ecosystem of support initiatives. This section will therefore shed light on how e-commerce adoption and innovation activities can contribute to SME productivity in Serbia, key conditions for enabling firms to expand markets, strengthen competitiveness and sustain growth in an increasingly digital economy.
E-commerce and online platforms represent a key channel through which digitalisation can enhance SME productivity. When online sales are embedded into core business processes rather than treated as stand-alone tools, they help reduce transaction costs, expand customer reach and support more data-driven decision-making (OECD, 2025[34]). Firms adopting hybrid models that combine physical and digital channels tend to achieve stronger productivity gains, benefiting from both market expansion and operational efficiencies (OECD, 2023[32]). As digital platforms increasingly shape trade and value-chain participation, they provide SMEs with new opportunities to access external markets (OECD, 2025[35]). For Serbia, the effective integration of digital and online sales channels will be essential for broadening market reach and the reduction of reliance on domestic demand.
At first glance, engagement with online sales channels among surveyed SMEs in Serbia appears to be relatively widespread. Survey findings show that around half of surveyed SMEs sell via their own website, while 35% use social media platforms such as their main online sales channel (Figure 4.5), (OECD, Forthcoming[17]). By contrast, only 9% of surveyed SMEs rely on third-party marketplaces. This distribution suggests that surveyed SMEs in Serbia tend to favour direct customer interaction and platform ownership over integration into larger international marketplaces. Across OECD countries, digital platforms have increasingly reshaped trade and value-chain participation, enabling SMEs to access new customers, integrate into cross-border supply chains and scale more rapidly through established marketplace ecosystems (OECD, 2025[35]). Against this backdop, the relatively low use of third-party marketplaces among surveyed SMEs in Serbia may indicate more limited integration into international digital trade networks. While reliance on own websites and social media channels reflects a degree of digital initiative, it may also indicate that SMEs in Serbia are only partially benefitting from the productivity and market-expansion gains associated with platform-based participation and cross border e-commerce.
Furthermore, the economic significance of these channels appears to be limited. More than 70% of surveyed SMEs report that less than 10% of their total income comes from online sales, while only around 11% generate more than half of their revenues using e-commerce (OECD, Forthcoming[17]). These figures indicate that, although digital sales channels are present, they remain economically marginal for most surveyed firms. This pattern mirrors evidence from other WBT economies, where headline adoption often masks shallow integration and limited revenue dependence, pointing to an early stage of e-commerce maturity rather than fully embedded hybrid business models (OECD, Forthcoming[17]).
Source: OECD (Forthcoming[17]).
At the policy and strategic level, Serbia recognises the importance of digital channels for competitiveness and SME growth. Digital transformation features prominently in broader SME, innovation and economic development strategies, where online sales and digital trade are acknowledged as enablers of market expansion and internationalisation. However, these references remain largely programmatic, and Serbia does not currently operate a comprehensive SME-focused e-commerce pillar that translates strategic ambition into measurable targets, structured export-readiness tools or dedicated e-commerce financing instruments for digital trade. OECD members’ experience shows that SME participation in digital trade is most effective when policy frameworks combine evidence suggests that the use of digitalisation for export, combining platform integration, logistics support and digital marketing capabilities within coordinated support mechanisms, particularly in small and open economies, more than traditional forms of e-commerce (OECD, 2023[36]; 2020[37]). No dedicated body has been tasked with co-ordinating SME e-commerce policy, and structured mechanisms for involving SMEs in policy design are lacking. The absence of such integrated instruments in Serbia’s policy mix limits SMEs’ ability to progress from basic online presence toward sustained participation in cross-border e-commerce.
At the legislative level, Serbia has undertaken important reforms to facilitate digital commerce. Amendments to the Law on Electronic Commerce (2019), the Law on Electronic Communications (2019), and the Law on Electronic Document, Electronic Identification and Trust Services in Electronic Business (2017) have strengthened the legal validity of e-signatures and electronic documents, enhanced consumer protection, enabled e-invoicing and clarified intermediary liability. More recent amendments have also transposed the EU Revised Payment Services Directive and further strengthened consumer protection rules, contributing to continued legal convergence with the European Union. Together, these measures provide a solid regulatory foundation for digital transactions and contribute to strengthening trust in online commerce. Nevertheless, these reforms are horizontal in nature and do not specifically address firm-level barriers faced by SMEs, such as limited digital marketing capabilities, logistics integration challenges or cross-border platform compliance requirements. Regulatory alignment alone is therefore unlikely to translate into increased SME participation in digital trade without complementary advisory, financial and capability-building instruments.
Beyond public strategies and legislation, a range of ecosystem initiatives seek to support SME engagement in e-commerce. Following the conclusion of the E-Commerce Development Programme, the Digital Serbia Initiative (DSI) has continued to provide digital marketing and platform-training workshops (Box 4.3) (DSI, 2025[38]). As a domestic, multi-stakeholder platform bringing together private-sector and institutional actors, DSI represents one of the more structured national efforts to strengthen SME capabilities in online trade, even though its activities remain project-based and not embedded in a dedicated public e-commerce scheme. An important private-sector actor in this landscape is also the E-Commerce Association of Serbia (ECEA), established in 2018 as the representative body of the online retail and digital commerce sector (ECEA, 2026[39]). Bringing together more than 100 members, including platforms, logistics providers and payment companies, ECEA plays a key role in policy dialogue and capacity building. Through its annual conferences, specialised workshops and analytical reports, it contributes to raising awareness and strengthening practical capabilities among online retailers. Yet, as with other ecosystem initiatives, its activities remain primarily informational and networking-oriented rather than part of a structured support pathway for SMEs.
Established in 2017, the Digital Serbia Initiative (DSI) is a non-governmental, non-profit organisation aimed at fostering a sustainable digital economy in Serbia. Launched in response to the limited digital entrepreneurship and fragmented innovation ecosystems, DSI brings together over 30 private and public actors, including leading firms, start-ups, universities, and ecosystem enablers, to support digital transformation across sectors. A core pillar of DSI’s mandate is to enhance SME competitiveness by promoting the uptake of digital technologies and business models.
DSI implements a broad portfolio of activities targeting SME digitalisation, including awareness campaigns, tailored training programmes, and practical workshops on e-commerce, digital marketing, online platform use, and business model innovation. In collaboration with the Development Agency of Serbia and other institutions, it has trained over 1 000 SMEs in cloud services and digital business tools. Beyond SME support, DSI works with academic institutions to modernise digital education curricula, contributing to a stronger pipeline of tech-savvy graduates and future entrepreneurs. Programmes are often co-delivered with local partners and supported by donor funding, allowing for a flexible, multi-stakeholder approach.
Moreover, DSI has played a role in raising digital awareness and building foundational skills among SMEs in Serbia, particularly those in the early stages of digital adoption. Its public-private structure facilitates rapid deployment of programmes and alignment with market needs. However, its reach remains concentrated in urban centres, and activities are currently sustained through project-based funding, raising questions about long-term scalability. Expanding DSI’s efforts to rural areas and embedding its activities within broader SME and digitalisation strategies could significantly strengthen Serbia’s broader digital ecosystem.
Source: DSI (2025[40]).
External and donor-supported initiatives complement local instruments. EU-funded projects under the Instrument for Pre-accession Assistance framework, including EU4 Independent Media, have also incorporated basic e-commerce components into institutional support and produced practical guidance for e-traders. Moreover, Serbia’s participation in CEFTA’s “E-commerce for All” platform further aims to reduce cross-border barriers related to payment systems and delivery logistics (eCommerce4All, 2026[41]). Similarly, blended finance instruments such as the EBRD’s Go Digital in the Western Balkans initiative offer technical assistance and grants that SMEs may use for digital upgrades, including e-commerce solutions (EBRD, 2025[11]). While valuable, these programmes are externally financed and project-based, with limited integration into Serbia’s core strategic frameworks for SME development.
4.3.1. Fostering innovation and collaboration for SME productivity
Digitalisation enhances productivity not only through expanded sales channels, but also through its interaction with innovation and knowledge diffusion. SMEs that adopt digital and data-driven innovations tend to achieve stronger productivity gains, greater resilience and higher growth potential, as innovation improves products, processes and efficiency (Hall, B., J. Mairesse and F. Lotti, 2012[42]; 2018[43]). However, these gains often accrue disproportionately to already more productive firms, which possess the organisational capabilities, skills and intangible assets needed to fully leverage digital technologies (Brynjolfsson, E., 2011[44]). Across OECD countries, this has contributed to widening productivity gaps between frontier and lagging firms, particularly in ICT-intensive sectors where larger and more productive firms are better positioned to capitalise on digital tools (Berlingieri, Blanchenay and Criscuolo, 2017[45]; Andrews, D., C. Criscuolo and P. Gal, 2016[46]). As a result, digitalisation risks reinforcing existing performance disparities rather than narrowing them. Similar dynamics are observed across the EU, where SMEs continue to face structural barriers, including limited access to finance, weaker technology transfer mechanisms and lower absorptive capacity (European Commission, 2024[33]).
Serbia’s strategic frameworks increasingly acknowledge the importance of digital innovation and collaboration for SME productivity, but the translation into SME-specific instruments remains partial. The Smart Specialisation Strategy 2020-2027 identifies ICT, advanced manufacturing and knowledge-intensive sectors as priority domains, signaling a commitment to technology-driven growth. Similarly, the Strategy for Scientific and Technological Development and the broader SME Strategy 2023-2027 recognise innovation, digital upgrading and stronger academia-industry linkages as key competitiveness drivers. However, these frameworks primarily set strategic directions and priorities, while the implementation of SME-targeted digital innovation support is carried out through specific programmes and initiatives delivered by different institutions, rather than through a single dedicated digital innovation pathway with clearly defined SME-level outcomes.
At the implementation level, Serbia has begun expanding operational support for SME digital innovation through a growing network of innovation centres, technology hubs and advisory initiatives aimed at facilitating digital adoption and Industry 4.0 upgrading (CCIS, 2023[47]). These efforts reflect increasing recognition of collaborative innovation infrastructures as drivers of productivity and competitiveness. A notable example is the Smart Manufacturing Innovation Centre (SMIC) in Novi Sad, operating in partnership with UNIDO, offers manufacturing SMEs access to prototyping labs, automation technology demonstrations, targeted training, and business advisory tailored to Industry 4.0 applications including robotics, digital twins and automation. By enabling SMEs to trial technologies before committing to significant investment, SMIC aims to reduce adoption risks and support the operational transformation needed for productivity gains (SMIC, 2025[48]). However, as the centre remains at an early stage of operation, its capacity to deliver sustained impact and drive broad-scale digital upgrading effects among the SMEs population is yet to be demonstrated.
These efforts are complemented by a broader ecosystem of EU- and donor-supported initiatives. Serbia’s European Digital Innovation Hub (EDIH) network, including hubs coordinated by the Science and Technology Parks in Nis, Belgrade and Novi Sad, provides SMEs with diagnostic services, test-before-invest facilities, technical piloting support, digital upskilling and assistance in accessing funding, with a focus on advanced digital technologies, high-performance computing, robotics and cybersecurity (European Commission, 2026[49]). Additional firm-level transformation support is offered through the SME Hub implemented by ICT Hub and established with Swiss funding, which combines advisory services and facilitates access to financing for manufacturing SMEs seeking to modernise operations and integrate into multinational value chains (ICT Hub, 2026[50]). At a broader ecosystem level, flagship projects such as the BIO4 Campus in Belgrade and the Centre for the Fourth Industrial Revolution in Serbia (C4IR, established with the World Economic Forum, seek to strengthen research-industry linkages and institutional capacity for advanced technologies (Bio4, 2026[51]; C4IR, 2026[52]). In parallel, the Capital Innovation Point Serbia (CIPS), established under the EU Digital Europe Programme, supports cross-sector SME digital transformation by providing digital diagnostics, test-before-invest facilities and tailored consultancy for the integration of advanced technologies such as AI, robotics and high-performance computing (Box 4.4), (NALED, 2025[53]). Together, these initiatives indicate a growing innovation and digitalisation ecosystem, but they remain largely project-based and externally supported.
As part of Serbia’s broader digitalisation agenda and its participation in the EU’s Digital Europe Programme, the Capital Innovation Point Serbia (CIPS) was established to help close the digital transformation gap among SMEs. The initiative was launched in response to low digital tool uptake, particularly among SMEs outside the high-tech sector, and aims to support digital adoption through targeted, hands-on assistance. The key objective is to provide SMEs with the resources to test and integrate advanced digital technologies, such as AI, robotics, and high-performance computing, with a focus on practical business application and scalability.
CIPS is coordinated by the Science and Technology Parks in Belgrade and Novi Sad and operates as one of Serbia’s two official European Digital Innovation Hubs. It offers a suite of integrated services, including digital diagnostics, technology "test-before-invest" facilities, tailored consultancy, and capacity-building workshops. The hub places particular emphasis on SMEs operating in AgriTech, MedTech, GreenTech, and manufacturing, providing both technical guidance and access to funding pathways for scaling digital solutions. It also facilitates collaboration between SMEs, research institutions, and technology providers, serving as a connector within Serbia’s innovation ecosystem.
While still in its early phases, CIPS contributes to a more inclusive and distributed model of digital transformation by supporting experimentation and lowering adoption risks, particularly for firms in sectors and regions traditionally underrepresented in Serbia’s tech landscape. Since August 2025, start-ups and innovative companies have gained access, through the project, to a shared network of advanced infrastructure and equipment, including high-end laboratory, prototyping and testing facilities for advanced manufacturing, electronics, mechatronics, materials testing, 3D printing and biotechnology applications. This expanded access to distributed infrastructure further strengthens CIPS’s role in reducing structural barriers to technology adoption and scaling.
Source: NALED (2025[53]).
On the demand side, SME awareness of the benefits of digital innovation appears relatively high. OECD survey findings indicate that 64% of surveyed SMEs in Serbia are already applying some form of digital innovation to improve products, services or processes and enhance overall productivity (OECD, Forthcoming[17]). Specifically, 46% of surveyed SMEs report using digital innovation at a moderate level, and 18% at a significant level, while 27% state that they intend to adopt such practices in the near future (Figure 4.6). Only 9% of surveyed SMEs report no current use of digital innovation. These findings suggest that limited awareness is not the primary barrier to digital transformation among Serbian SMEs. Rather, the concentration of firms at moderate levels of adoption indicates challenges in progressing from initial experimentation toward more advanced and productivity-enhancing integration of digital technologies. The sizeable share of firms planning future adoption also points to strong latent demand, highlighting the importance of policy instruments capable of supporting scaling, capability-building and organisational transformation rather than basic awareness-raising measures.
Despite broadly positive demand-side dynamics, adoption patterns are not uniform across SMEs. Gender-disaggregated results indicate that 77% of firms led by women CEOs report using digital innovation, compared to 59% of those led by men (OECD, Forthcoming[17]). This points to a potential leadership effect in shaping digital uptake, although further analysis would be needed to control for firm size, sector and access to external support before drawing robust conclusions.
Source: OECD (Forthcoming[17]).
The share of innovative SMEs cooperating with external partners in Serbia has increased significantly in recent years, reaching 91% of the 2025 EU average - up from substantially lower levels in previous years (European Commission, 2025[54]). This suggests that SMEs in Serbia are increasingly embedded in collaborative networks that can facilitate knowledge transfer and technology uptake, which can help them access new technologies, diversify markets, and build new capabilities through partnerships.
However, this growing collaborative engagement is not matched by comparable progress in research and development (R&D) financing (Figure 4.7). Serbia’s gross domestic expenditure on R&D increased only marginally over the past decade, from 0.81% of GDP in the period 2014-16 to 0.90% in 2020-23, well below the EU average, which stood at 2.10% and 2.22% over the same period. This persistent gap points to comparatively limited research intensity and limited investment capacity within the national innovation system. More recent data further highlight an imbalance in funding composition. In 2024, public sector R&D expenditure reached only 68.9% of the EU average, while business sector investment stood at just 26.4%, revealing a particularly pronounced shortfall in private innovation finance (Eurostat, 2023[22]; OECD, 2025[55]).
The weakness of business R&D spending is especially consequential for SMEs, whose innovation capacity depends heavily on firm-level investment and experimentation. As a result, although innovative SMEs in Serbia are increasingly connected to collaborative ecosystems, limited R&D financing constrains the extent to which these partnerships translate into sustained, productivity-enhancing innovation outcomes.
Notes: Research and development expenditure as a percentage of GDP encompasses spending by governments, higher education institutions, business enterprises and private non-profit organisations.
The 2014-2016 and 2020-2023 figures represent three-year unweighted averages of research and development expenditure as a percentage of gross domestic product.
Source: Eurostat (2024[56]).
The way forward
Shift e-commerce support from “online presence” to “online performance”. Serbia could complement existing awareness and training efforts (e.g. DSI, ECEA) with a dedicated e-commerce upgrade voucher focused on practical implementation. Such a scheme should co-finance concrete investments (e.g. integration of online payment systems, marketplace onboarding, logistics optimisation, product data management, cybersecurity for transactions) and be conditional on participation in short, hands-on advisory sessions (Box 4.5). To maximise impact, eligibility could prioritise SMEs with low current online revenue shares but clear market potential, especially in manufacturing, retail and agri-food. Embedding simple monitoring indicators, such as growth in online sales, export transactions or repeat customers, would help ensure that public support translates into measurable performance gains rather than symbolic digital presence.
Denmark complements its EU-aligned e-commerce legal framework with targeted SME implementation support through an initiative under SMEs: Digital, established in 2018 as part of the government’s Strategy for Digital Growth. The programme supports digital transformation across all sectors, with the E-Commerce Centre serving as a dedicated pillar for SME online sales. The initiative illustrates how harmonised rules can be translated into practical SME compliance:
A dedicated SME-focused delivery mechanism: The E-Commerce Centre functions as a one-stop support structure for SMEs seeking to develop or expand online sales. It is led by the Ministry of Industry, Business and Financial Affairs, with contributions from the Ministry of Foreign Affairs, particularly on export promotion and framework conditions for cross border e-commerce.
Sustained public funding and practical instruments: Public funding (DKK 10 million in 2018, DKK 20 million in 2019 and DKK 25 million in 2020-21) supports grants for private consultancy (up to DKK 100 000), personalised e-commerce strategies and workshops combining expert advice with small grants. These instruments help SMEs address concrete legal, technical and commercial barriers to online sales.
Regulatory guidance and trust building: A core function of the E-Commerce Centre is providing practical guidance on EU and national e-commerce rules, including consumer protection, platform use, export requirements and unfair competition. By translating legal obligations into operational steps, the centre reduces uncertainty and builds SME trust in online channels.
Denmark’s experience shows that harmonised e-commerce legislation needs accompanying implementation support to be effective for SMEs. By combining legal alignment with sustained funding, hands-on advisory services and a dedicated one-stop structure, Denmark has helped SMEs move from basic online presence to more structured and export-oriented e-commerce activities.
Source: The Danish Government (2018[57]); OECD (2021[1]).
Accelerate SME innovation by scaling “test-before-invest” and collaborative piloting mechanisms. Building on existing hubs (EDIHs, SMIC, STPs, CIPS), Serbia could institutionalise a standardised SME innovation pathway combining digital diagnostics, access to shared testing infrastructure and follow-up financial support for implementation. Structured pilot programmes should focus on solving concrete operational bottlenecks, such as production automation, quality control, digital supply-chain integration or cybersecurity, particularly in traditional sectors where digital maturity remains low. Public incentives could encourage joint projects between SMEs, research institutions and technology providers, reducing experimentation risk and fostering knowledge spillovers. Clear coordination between hubs and national funding instruments would prevent fragmentation and ensure that successful pilots can be scaled through mainstream SME support schemes.
Broaden support for business R&D among established SMEs. While Serbia has developed instruments for early-stage start-ups, fewer mechanisms target SMEs seeking to scale innovation beyond the start-up phase. Introducing or expanding R&D tax credits and direct subsidies tailored to established SMEs, with simplified procedures and clearer eligibility rules, could help stimulate additional private investment in applied research and technology upgrading. Complementary incentives for collaborative R&D projects between SMEs, universities and research institutes – beyond the Innovation Fund's Collaborative Grant Scheme - would strengthen knowledge transfer and reduce risk-sharing barriers. To ensure impact, these measures should be accompanied by efforts to expand the supply of skilled researchers and engineers, through industry-academia mobility schemes and incentives for STEM talent retention, so that increased funding translates into sustained innovation capacity rather than isolated projects.
As firms increase their use of cloud services, digital payments and online platforms, their exposure to data and cyber risks grows alongside potential productivity gains. SMEs are particularly vulnerable in this respect, as they often operate with limited resources, less formalised data governance frameworks and reduced capacity to manage digital risks continuously (OECD, 2021[1]; Bianchini, M., Lasheras Sancho, M., 2025[2]). At the same time, the EU’s evolving framework for digital trust has strengthened compliance obligations, making data protection and cybersecurity increasingly important for SMEs participating in digital and cross-border markets (European Commission, 2024[58]).
In Serbia, the expansion of digital business practices has increased SMEs’ exposure to cyber and data-related risks, while firm-level preparedness has not progressed at the same pace. OECD survey evidence shows that, although many SMEs report having formal data-privacy policies and at least one basic cybersecurity measure in place, significant shares remain uncertain about data storage practices, breach detection and compliance requirements (OECD, Forthcoming[17]). At the same time, institutional enforcement capacity and structured SME-focused support mechanisms remain limited, contributing to a gap between formal regulatory alignment and practical resilience. This combination of rising digital exposure and partial operational readiness underscores the need to strengthen SME-level data protection and cybersecurity capabilities as an integral component of Serbia’s digital transformation agenda. This section will therefore examine the regulatory framework, institutional arrangements and firm-level practices shaping SME data protection and cybersecurity readiness in Serbia.
4.4.1. Adapting data protection to evolving digital threats
Robust data-protection frameworks are essential for building trust in digital services and can enhance business competitiveness by clearly defining rights and obligations in increasingly data-driven markets (EDPB, 2025[59]). For EU accession candidates as Serbia, alignment with the GDPR forms an important component of the broader EU accession process and digital integration agenda, although full harmonisation and effective implementation remain ongoing (European Commission, 2025[60]). Assessing how SMEs in Serbia approach data protection and embed governance practices is therefore key to evaluating the resilience and credibility of their digital operations.
Findings from the OECD survey on SMEs in Serbia indicate that basic, formal compliance is relatively widespread, but not universal. While 77% of surveyed SMEs report having a data privacy policy in place, 23% still lack one (OECD, Forthcoming[17]), indicating that baseline compliance remains uneven across the broader SME base. More importantly, 95% of surveyed SMEs that reported having been previously hacked also report having a data privacy policy (OECD, Forthcoming[17]), highlighting a recurring gap between “paper compliance” and effective implementation in day-to-day operations. While policies are important, they do not in themselves reduce risk unless they are embedded in staff routines, technical safeguards, and monitoring practices.
Moreover, data storage practices further illustrate this challenge. About 38% of surveyed SMEs in Serbia store data both in the cloud and on-site, 36% rely solely on on-site servers or hardware, and 12% use cloud storage exclusively (Figure 4.8). Yet, nearly 14% of surveyed SMEs report being unsure about how their data is stored, signaling a need for improved engagement and digital literacy among SME employees. Additionally, survey findings show that SMEs which had experienced a breach were more likely to use hybrid storage (both cloud and on-site) (OECD, Forthcoming[17]), thereby suggesting that improvements in data privacy practices may occur reactively after incidents rather than through proactive risk management.
SME perceptions reinforce this picture of uneven data privacy patterns. About 50% of surveyed SMEs in Serbia describe data privacy and security as of “neutral” importance to their business, while 28% report them as “challenging” and 22% see them as “not challenging” (OECD, Forthcoming[17]). The high share of “neutral” responses suggests that many SMEs do not yet perceive data governance as a strategic issue, which may reduce incentives to invest proactively in compliance, risk management and secure data practices. Larger firms appear more attuned to risk: 56% of surveyed medium-sized firms find data privacy challenging, compared to lower shares among smaller surveyed SMEs (OECD, Forthcoming[17]). These patterns suggest that as firms’ digital complexity grows, awareness rises, yet SMEs tend to underestimate their exposure. This could be due to limited internal capacity, lack of in-house expertise, or other obstacles.
Source: OECD (Forthcoming[17]).
At the policy level, Serbia has adopted several strategic frameworks aimed at modernising its data-protection and information-security ecosystem. The Strategy for the Development of the Information Society and Information Security 2021-2026 and the Personal Data Protection Strategy 2023-2030 provide the overarching policy direction for strengthening institutional capacity, raising public awareness and further aligning with EU standards. The latter replaces the outdated 2010 framework and is supported by an Action Plan adopted in early 2025 which introduces measures to improve awareness among citizens and businesses, integrate data-protection topics into formal education and enhance training for civil servants in data protection and cybersecurity. Importantly, it also acknowledges weaknesses in enforcement capacity and relatively low sanction levels under the current regime, and calls for closer alignment with GDPR enforcement practices, including the possible introduction of turnover-based fines (Karanovic and Partners, 2023[61]). While this strengthened strategic framework provides clearer regulatory direction, SME-specific operational support remains limited. Existing measures primarily address compliance and awareness at a system-wide level and have yet to translate into structured implementation instruments tailored to SMEs, such as simplified compliance toolkits, sector-specific guidance or dedicated advisory services.
Concerning data protection legislation, Serbia’s Law on Personal Data Protection is largely aligned in substance with the EU’s General Data Protection Regulation (GDPR), establishing legal obligations for data controllers and processors, data subject rights (including access, correction and erasure), and provisions on consent, cross-border transfers and supervisory authority independence. However, important implementation and enforcement gaps persist (European Commission, 2024[62]). Some provisions replicate GDPR mechanisms without fully adapting them to Serbia’s legal and institutional structures, creating interpretive ambiguity and complicating practical application. In addition, the absence of detailed recitals, present in the GDPR, further limits interpretive guidance for courts and data controllers, thereby increasing legal uncertainty in enforcement and compliance (OEBS, 2019[63]; Marinkov, Vladimir, 2024[64]). Additionally, sanctioning levels are also comparatively low: the maximum administrative fine for data breaches is approximately RSD 2 million (approx. EUR 17 000), significantly below the GDPR ceiling of EUR 20 million or 4% of global annual turnover (GDPR EU, 2018[65]). The limited deterrent effect of this sanctioning framework may weaken incentives for proactive compliance, particularly in data-intensive sectors.
Moreover, amendments to the Law on Information Security (2019) introduced additional obligations for ICT operators and public institutions. However, these provisions do not explicitly take into account the resource constraints and compliance challenges faced by SMEs (Zunic Law, 2025[66]). As a result, while Serbia has in place a formal regulatory architecture that broadly reflects EU standards, its operationalisation remains limited from an SME perspective.
4.4.2. Strengthening SME cybersecurity resilience
Cyber incidents often have disproportionately severe consequences for smaller firms (OECD, 2021[1]). Beyond the immediate operational and financial damage, weak cybersecurity can also become a barrier to market participation: SMEs lacking adequate safeguards may be excluded from public procurement, cross-border value chains or partnerships with larger firms that impose stricter digital security standards (OECD, 2023[16]). Strengthening SME cybersecurity is therefore not only a matter of risk mitigation but also of safeguarding competitiveness and market access in increasingly interconnected and regulated digital ecosystems.
Serbia’s institutional progress in cybersecurity has received international recognition. In 2024, the International Telecommunication Union (ITU) ranked Serbia in the highest tier of its Global Cybersecurity Index, placing it among the leading countries globally in terms of legal, technical, organisational, capacity-development and cooperation measures (ITU, 2024[67]; The Government of the Republic of Serbia, 2024[68]). This recognition reflects significant advancements in the formal cybersecurity framework and institutional preparedness. At the same time, the domestic threat landscape has become increasingly complex. Recent ransomware attacks targeting state-owned enterprises and public systems, alongside phishing and malware campaigns affecting organisations and businesses, highlight the growing sophistication of cyber risks and the exposure created by expanding digital interconnections (Balkan Insight, 2025[69]). These developments illustrate an important tension: while Serbia’s strategic and institutional architecture is comparatively advanced, cyber resilience across the broader economy remains uneven.
This gap is reflected in the policy framework. Serbia’s National Security Strategy identifies cybersecurity as a key dimension of the economy’s resilience, while the Strategy for the Development of the Information Society and Information Security 2021-2026 sets objectives for institutional capacity-building and public-private cooperation, supported by an Action Plan for 2024-2026. Complementary measures are embedded in the Strategy for the Development of Digital Skills 2020-2024, which recognises cybersecurity as a core digital competency and calls for stronger ICT training across education systems. However, these frameworks primarily address systemic and public-sector preparedness. Structured implementation pathways aimed at strengthening enterprise-level resilience, particularly among SMEs, remain limited. Targeted financial incentives, advisory services, subsidised cybersecurity audits or modular training schemes for micro and small enterprises are largely absent. As a result, progress in cybersecurity governance has not yet translated into comprehensive support mechanisms capable of upgrading SME cyber resilience at scale.
Against this backdrop, Serbia has recently taken further steps to strengthen its cybersecurity framework through regulatory reform. A new Information Security Law, which entered into force in October 2025, seeks to align national legislation with the principles and core mechanisms of the EU’s NIS2 Directive, despite Serbia not yet being an EU member. The Law introduces a more structured framework for ICT risk management, incident reporting and institutional oversight, while significantly expanding the scope of regulated entities compared to the previous framework. Obligations now extend to a broader range of sectors, including manufacturing, food production, chemicals and healthcare, and introduce differentiated requirements for “priority” and “important” ICT operators, both subject to enhanced cybersecurity and reporting requirements (Karanovic and Partners, 2025[70]). Although the application of certain provisions remains phased pending the adoption of implementing bylaws, the reform effectively elevates cybersecurity compliance to senior management level in many firms previously outside the regulatory perimeter (Karanovic and Partners, 2025[70]). For SMEs, this creates a mixed outlook: strengthened standards may improve trust, supply-chain integration and market access over time, yet the absence of clear size-based exemptions risks increasing short-term compliance costs and administrative burdens.
Alongside these regulatory developments, implementation efforts aimed at supporting cybersecurity adoption are beginning to emerge. The recently launched CyberSEE project, which will underpin a new Cybercrime Strategy for Serbia, signals a move toward a more coordinated institutional approach (Council of Europe, 2025[71]). However, at present it remains one of the few structured initiatives with potential relevance for business cybersecurity. Most existing activities continue to focus primarily on education and awareness-raising. Programmes led by the Cybersecurity Network Foundation (e.g. “Sajber heroj” and Serbia’s Cybersecurity Challenge hackathon) aim to develop young cybersecurity talent, while RNIDS and RATEL co-host annual conferences under the European Cybersecurity Month initiative (SajberHeroj, 2026[72]). While valuable for ecosystem development and awareness-raising, these initiatives do not provide direct advisory services, structured compliance guidance or financial assistance specifically designed to help SMEs strengthen their cybersecurity posture.
At the firm level, cybersecurity uptake among SMEs in Serbia appears relatively widespread, yet important gaps persist. Survey data indicates that 14% of surveyed SMEs do not apply any form of cybersecurity measures, a share notably higher than the OECD sample average of 9% (OECD, Forthcoming[17]; Bianchini, M., Lasheras Sancho, M., 2025[2]). Among those surveyed SMEs that do adopt cyber protection tools, the most commonly used measures are relatively basic: 57% rely on strong passwords, 53% use antivirus or anti-malware software, 28% apply two-factor authentication, and 25% use a VPN or firewall system (Figure 4.9). This pattern suggests that cybersecurity practices in Serbia are largely centred on entry-level safeguards rather than layered or systemic protection.
Source: OECD (Forthcoming[17]).
Furthermore, nearly 20% of surveyed SMEs in Serbia report having experienced a cyberattack, a substantial share, though below the OECD sample of 32% (OECD, Forthcoming[17]; 2024[20]). At the same time, 43% of surveyed SMEs report no breach, while 37% are unsure whether an incident occurred. The high share of “unsure” responses suggests limited monitoring and diagnostic capacity, indicating that detection systems may be weak or absent. Moreover, risk perception also appears uneven among surveyed SMEs. Although digitalisation is expanding, SMEs often underestimate the financial and reputational costs of cyber incidents, and many lack in-house expertise (OECD, Forthcoming[17]). Preventive risk-transfer mechanisms remain largely absent: only 1% of SMEs in Serbia reported holding cyber insurance in 2021, compared to 69% for property damage and 67% for equipment loss (UNDRR, 2021[73]). Together, these findings point to a cybersecurity landscape characterised by broad but shallow adoption: while many SMEs implement basic measures, a significant minority remain entirely unprotected, and few develop comprehensive risk-management systems capable of ensuring resilience against advanced threats.
The way forward
Translate data protection rules into SME-friendly implementation tools. While Serbia’s legislative alignment with EU standards has advanced, SMEs require practical, operational guidance to move from formal compliance to effective data governance. The government should develop simplified GDPR compliance toolkits, sector-specific templates (e.g. for retail, manufacturing, health-related services), and standardised privacy-by-design checklists tailored to micro and small enterprises. These tools should be complemented by subsidised advisory support delivered through chambers of commerce or digital transformation centres, as well as awareness campaigns clarifying storage practices, breach notification procedures and record-keeping obligations. Strengthening the capacity of the supervisory authority to provide preventive guidance, not only sanctions, would further help shift SME behaviour from reactive compliance to proactive risk management.
Establish a structured SME cybersecurity resilience programme. Building on ongoing legislative alignment with the EU’s NIS2 framework, Serbia should introduce a dedicated SME-focused cybersecurity scheme that combines diagnostics, co-financed security upgrades and modular training. The programme could offer subsidised cybersecurity audits, vouchers for essential protection (e.g. intrusion detection, encrypted communication, secure backups), and access to a rapid response advisory service for incident management (Box 4.6). Priority should be given to micro-enterprises and firms integrated into international value chains, where cybersecurity standards increasingly condition market access. Linking financial support to minimum security benchmarks and follow-up assessments would ensure that adoption moves beyond basic tools toward measurable resilience improvements.
The United States provides a relevant example of how governments can strengthen SME cybersecurity through targeted financial support combined with hands-on training and counselling. In 2022, the U.S. Small Business Administration (SBA) launched the Cybersecurity for Small Business Pilot Program to help small firms improve their cyber resilience in response to rising digital threats.
The programme provides direct financial assistance to eligible small businesses to cover the costs of cybersecurity training, risk assessments, and professional advisory services. Funding can be used for practical activities such as identifying vulnerabilities, improving password and access-management practices, implementing basic cybersecurity tools, and developing incident-response plans.
A core feature of the initiative is its emphasis on hands-on counselling and guidance, delivered through certified service providers and local support networks. SMEs receive tailored advice based on their size, sector and digital maturity, helping them move from reactive responses to cyber incidents toward more preventive and structured security management. The pilot also seeks to lower cost barriers by co-financing services that would otherwise be unaffordable for many small firms.
The U.S. approach illustrates how voucher-based or small-grant schemes, combined with practical training and trusted advisory support, can significantly enhance SME cybersecurity readiness without imposing excessive compliance burdens.
Source: OECD (2025[30]); U.S. SBA Administration (2022[74]).
Beyond consolidating and scaling basic digital uptake, the next challenge is whether SMEs are equipped to adopt advanced technologies in ways that are economically and environmentally sustainable, strengthening long-term competitiveness without deepening structural divides. Emerging digital technologies are transforming how firms innovate, compete and improve productivity. Adoption has accelerated in recent years, nearly doubling among small firms and rising markedly among medium-sized enterprises between 2022 and 2024, driven in part by the rapid diffusion of accessible generative AI tools (OECD, 2024[20]). However, faster uptake does not necessarily translate into deeper transformation. SMEs continue to face structural constraints, including limited financial and human resources, skills shortages and weaker organisational capacity, that restrict their ability to deploy advanced technologies strategically compared with larger firms (OECD, 2025[34]). AI adoption remains substantially lower among SMEs than among large enterprises (OECD, 2025[75]), reflecting the importance of complementary assets such as digital skills, data infrastructure and organisational readiness, which are more prevalent in larger firms (Calvino, F.; Fontanelli, L.;, 2023[76]). Consequently, the diffusion of advanced digital technologies remains uneven across firm sizes, underscoring the importance of supportive policy frameworks to foster inclusive and productivity-enhancing digital transformation.
In Serbia, as in other WBT economies, this challenge is particularly salient. Uneven uptake of advanced technologies risks widening performance gaps between digitally capable firms and those operating mainly with basic tools, potentially constraining competitiveness and opportunities for diversification. While Serbia benefits from a comparatively dynamic digital innovation ecosystem and relatively high awareness of emerging technologies, adoption among SMEs remains uneven, often concentrated in low complexity use cases and rarely taking into account the sustainability considerations, while support instruments are fragmented and frequently oriented towards start-ups rather than less digitally mature firms. This section therefore examines how SMEs in Serbia are adopting AI and other emerging technologies, and the extent to which policy instruments support a sustainable and energy-efficient uptake, identifying both progress made and remaining bottlenecks.
4.5.1. Encouraging SME adoption of artificial intelligence and emerging technologies
Artificial intelligence and other data-driven technologies are increasingly transforming production processes, service provision and managerial decision-making, opening new avenues for efficiency gains and innovation across industries (OECD, 2022[77]). However, evidence suggests that SMEs derive considerably fewer benefits from AI than larger firms, largely because they lack the necessary data infrastructure, managerial capabilities and strategic planning capacity to embed AI into routine operations (OECD, 2021[1]). Consequently, initial adoption among SMEs often remains limited to off-the-shelf or low-complexity applications, while the organisational adjustments required to unlock sustained productivity gains tend not to occur without targeted public support. Although AI uptake is expanding, OECD evidence shows that overall adoption, particularly in core business functions, remains relatively modest, underscoring the need for differentiated policy approaches that take into account SMEs’ diverse levels of digital maturity and preparedness (OECD, 2025[75]).
At the policy level, the government has taken initial steps to mainstream AI and digital innovation (Table 4.3). The Smart Specialisation Strategy 2020-2027 identifies ICT, creative industries and advanced manufacturing as priority domains for technological upgrading, but does not establish concrete financial instruments or SME-specific measures to accelerate the uptake of advanced technologies. A more focused framework is the Strategy for the Development of Artificial Intelligence (2024-2030), which builds on the previous 2020-2025 strategy and aims to expand AI deployment across sectors. While it sets objectives related to research capacity, infrastructure development and skills enhancement, its implementation roadmap includes limited provisions directly targeting SMEs and does not include a dedicated monitoring mechanism to assess firm-level impact.
Source: Information provided by the government of Serbia during the assessment period (2025).
Complementing these strategies, Serbia adopted the Ethical Guidelines for the Development, Implementation and Use of Reliable and Responsible Artificial Intelligence in 2023. Developed under the Ministry of Science, Technological Development and Innovation, the Guidelines reflect UNESCO’s 2021 principles, promoting transparency, accountability, human oversight and non-discrimination. However, as a soft-law instrument, they are non-binding and primarily aimed at policymakers, research institutions and technology developers, rather than providing operational support to SMEs.
In parallel, Serbia has initiated the preparation of a draft Law on Artificial Intelligence aimed at aligning with the EU AI Act (Gecic Law, 2025[78]; Zunic Law, 2025[79]). The legislative process began more than a year and a half ago and was initially expected to conclude by end-March 2025, but this deadline was not met, and the draft text has not been published yet. As a result, key details regarding scope, institutional arrangements and the degree of alignment with the EU AI Act remain unclear. As currently framed, the initiative is expected to introduce a risk-based approach and governance structures for ethical and secure AI development, but concrete enforcement mechanisms and SME-specific support provisions have yet to be clarified (Gecic Law, 2025[78]). This reinforces a broader pattern in the WBT region: policy attention to AI governance is increasing, yet when frameworks exist, they still lacks clear, operational instruments tailored to SME adoption.
Taken together, Serbia’s AI policy landscape signals clear strategic recognition of the importance of AI and responsible advanced digitalisation, and it provides a forward-looking framework aligned with international principles. However, the current approach remains largely declarative and ecosystem-oriented, with limited operational instruments, SME-specific incentives or measurable targets to ensure that smaller firms can effectively translate strategic ambition into concrete productivity gains.
As for financial support for the SME uptake of AI, most funding streams relevant to emerging technologies in Serbia are concentrated in the start-up and high-tech ecosystem, rather than targeting the broader SME base. The Innovation Fund supports advanced technology development, including AI, IoT and robotics, through the implementation of its programmes (Innovation Fund, 2026[5]). However, only a limited share of supported projects has involved emerging technologies in recent years. Similarly, the S4AI Hub and Science and Technology Parks (in Belgrade, Nis, Cacak, Novi Sad) provide important infrastructure for experimentation and commercialisation, but they primarily serve start-ups and scale-ups with existing innovation capacity, rather than digitally less mature SMEs seeking first-stage adoption (S4AI, 2025[80]; AI Platform Serbia, 2026[81]).
Complementing this, Serbia’s Science Fund has strengthened the research base related to emerging technologies. Its AI Research and Development Programme 2020-2022 financed 12 projects (EUR 2.2 million total), supporting themes such as workplace safety, blockchain applications, smart agriculture and industrial automation (Science Fund, 2022[82]). The programme has since expired, and no direct continuation mechanism has yet been institutionalised. While not SME-oriented, it helped build scientific and technological capacity relevant to future AI deployment. Additionally, a new AI research scheme is expected in late 2025 under the SAIGE Project (EUR 8.4 million, supported by the World Bank and the EU), aiming to fund basic and applied research and incentivise inter-institutional collaboration across regions (The Government of the Republic of Serbia, 2025[83]).
Moreover, at the implementation level, delivery and support for SMEs appears to be limited. The Serbian European Digital Innovation Hub on AI (S4AI), coordinated by the Science and Technology Park in Nis, provides AI diagnostics, test-before-invest facilities, capacity-building workshops and investment facilitation, particularly for SMEs in less-developed regions (S4AI, 2025[80]). However, it remains one of the few structured programmes explicitly addressing SME adoption of advanced technologies. Beyond S4AI and broader innovation instruments, there is no dedicated, large-scale programme systematically supporting AI uptake among the wider SME population, especially among firms with low initial digital maturity.
Despite these constraints, Serbia shows relatively strong engagement with emerging technologies compared to other WBT economies, supported by a more developed innovation ecosystem. More precisely, almost half of surveyed SMEs report using some form of AI: about 37% of surveyed SMEs experiment with generative AI tools for content generation or information access (e.g. ChatGPT, Bard, Gemini), while 7% have integrated custom AI systems tailored to business needs and the same share uses digital tools with Ai functions such as machine learning (OECD, Forthcoming[17]), (Figure 4.10). These patterns are in line with the WBT regional average of 39% and broader OECD sample, where AI adoption has increased significantly with 39% of SMEs using AI applications in 2025, up from 26% in 2024. (Bianchini, M., Lasheras Sancho, M., 2025[2]). However, 53% of surveyed SMEs in Serbia report that they are not using any form of AI for the development of their core business products or services, reinforcing the risk of widening performance gaps between early adopters and digitally less mature firms (OECD, Forthcoming[17]).
Note: AI: artificial intelligence.
Source: OECD (Forthcoming[17]).
Additionally, awareness and capabilities appear to be key bottlenecks among surveyed SMEs in Serbia. About 36% of surveyed SMEs agree that generative AI opens new revenue streams, while 71% disagree that it allows them to operate with less staff (OECD, Forthcoming[17]). Risk awareness is also limited: 77% of surveyed SMEs disagree that AI can distribute harmful content, and 68% disagree that it can provide inaccurate information, while 45% report that they do not understand how to use such tools or the risks involved. These perceptions suggest a dual constraint: limited technical capacity on the one hand and weak risk literacy on the other. As a result, SMEs may either underuse AI, failing to capture potential efficiency and innovation gains, or misuse it, deploying tools without adequate safeguards or strategic alignment. By contrast, evidence from the broader OECD sample indicates that AI users tend to report tangible, though not necessarily transformative, benefits. Around 43% cite moderate efficiency gains and 18% report significant improvements, while only 6% experience transformational change (Bianchini, M., Lasheras Sancho, M., 2025[2]). This comparison suggests that, where AI adoption is more structured and capability-driven, productivity gains are more likely to materialise. In Serbia, however, the combination of limited understanding and cautious expectations appears to constrain the transition from experimentation to measurable business impact.
Furthermore, it is equally important to consider environmental implications which ae increasingly relevant in the context of AI adoption. The training and operation of AI models and cloud-based services are resource-intensive. For example, a single ChatGPT query is estimated to consume about five times more electricity than a web search (MIT, 2025[84]), and training large language models can require electricity comparable to that used by hundreds of households annually (WEF, 2025[85]). Image generation is even more energy-intensive, with 1 000 prompts consuming roughly the energy equivalent of a full smartphone charge (WEF, 2025[85]). AI also relies heavily on water for data-centre cooling, with global withdrawals projected to reach 6.6 billion cubic metres by 2027 (Forbes, 2024[86]). These costs are rarely reflected in SME policy debates, yet they matter for both long-term sustainability and competitiveness.
This is particularly relevant for Serbia, where the energy intensity of the economy remains structurally high and the power system remains carbon intensive. Serbia’s energy intensity is estimated to be around 3.5 times higher than the EU-27 average (or around 65% higher when GDP is adjusted for purchasing power parity), implying that additional electricity demand from data-intensive digitalisation can translate into relatively higher operating costs and emissions compared to many EU economies (MRE, 2024[87]). Moreover, Serbia’s electricity generation remains strongly reliant on lignite, with its electricity being largely lignite-based (around 62% in 2021) (European Commission, 2023[88]), which increases the carbon footprint of compute-heavy applications such as AI and cloud services. As SMEs increasingly experiment with generative AI and cloud tools, these structural conditions raise the risk that adoption decisions are made without visibility on energy and emissions implications, potentially creating future cost exposure as Serbia progressively aligns with EU climate and ESG requirements. These dynamics make it essential that digital transformation policies incorporate energy-efficiency and sustainability considerations from the outset.
4.5.2. Promoting a sustainable digital transformation
Digital transformation is becoming closely linked to environmental performance, shaping how SMEs manage energy consumption, resource use and compliance with sustainability standards. Although digital tools can enhance energy efficiency, monitoring and reporting, they may also generate additional costs and emissions if deployed without adequate environmental considerations (OECD, 2024[4]; 2023[16]). For SMEs in Serbia, operating in an economy with energy-intensive segments, the capacity to integrate digital and green upgrading is becoming essential to sustain firm performance over time. This underscores the need for coherent, SME-focused green-digital support as digital transformation continues to advance.
At the policy level, sustainable digital transformation is increasingly treated as a competitiveness issue in OECD and EU economies, reflecting the need to align technological upgrading with climate, environmental and resilience objectives. In Serbia, while SME digitalisation is advancing, its integration with sustainability goals remains at an early stage. Although several of Serbia's policy frameworks reference both sustainability and digitalisation, the two agendas largely evolve in parallel rather than being strategically integrated around SME needs. The Smart Specialisation Strategy 2020-2027 identifies sustainability as a cross-cutting theme but does not provide coordinated actions or dedicated instruments that link green and digital transitions for SMEs. Similarly, the Strategy for Circular and Green Public Procurement 2022-2026 introduces green criteria into public tenders, but it is not currently aligned with SME digital support frameworks, limiting its reach and impact on smaller firms. Overall, this points to broader challenge: green and digital objectives are present in policy design, but they are not yet translated into a coordinated SME green-digital agenda with clear delivery tools and incentives.
Moreover, financial support for the sustainable uptake of digital technologies appears to be constrained. No large-scale public programme currently focuses specifically on helping SMEs deploy energy-monitoring systems, remote-working infrastructure or circular digital business models as part of an integrated green-digital transition pathway. In particular, mainstream digitalisation grants and innovation instruments do not include green conditionalities or sustainability incentives, limiting the diffusion of environmentally oriented digital solutions across the broader SME base.
In this context, support for green-digital investments is driven primarily by donor- or IFI-backed initiatives rather than by a dedicated national scheme. For example, the EBRD’s Green Economy Financing Facility (GEFF) provides credit lines and investment incentives through local partner banks to support energy-efficient technologies, renewable energy solutions and resource-efficiency upgrades, many of which rely on digital monitoring, automation or smart-control systems (EBRD, 2026[89]). While GEFF can indirectly facilitate the adoption of digital tools with environmental benefits, its primary focus is on energy and climate outcomes rather than on building sustainable SME digital capabilities per se. In parallel, the GIZ “Green Economy in Serbia” project, implemented with the Ministry of Economy and the Chamber of Commerce and Industry of Serbia, aims to support the green transition of MSMEs by improving the regulatory framework, strengthening business-support organisations, and providing expert advice and direct financial support to selected firms for developing and implementing green business models and processes (GIZ, 2025[90]). Although not exclusively focused on digitalisation, it has the potential to serve as a bridge between digital upgrading and environmental transformation.
On the demand side, structured approaches to digital sustainability remain relatively rare. About 26% of surveyed SMEs in Serbia report having a formal plan or strategy to reduce their environmental footprint of digital tools use, while 47% report having no plan at all (Figure 4.11) (OECD, Forthcoming[17]). Planning is strongly shaped by absorptive capacity and business orientation: surveyed SMEs already offering green products are far more likely to adopt such strategies (57%) than those that do not (22%), and highly digitalised firms are significantly more likely to integrate sustainability planning than less innovative peers (OECD, Forthcoming[17]). This indicates that digitalisation can enable greener practices, such as monitoring environmental footprints but primarily where SMEs already have sufficient internal capacity to translate tools into systematic management routines.
Source: OECD (Forthcoming[17]).
The absence of structured frameworks could be a factor limiting SMEs’ ability to embed sustainability into operational systems, including through energy-management software, IoT-based resource monitoring, or paperless and remote-working practices that can reduce emissions. Adoption of such solutions typically would require not only financing, but also sector-specific guidance and longer-term advisory support. both of which remain limited.
Furthermore, survey results reveal that sustainability began influencing procurement decisions. About 61% of surveyed SMEs in Serbia report considering the environmental footprint of ICT services and equipment when purchasing, although this varies widely (65% among medium-sized firms versus only 33% among self-entrepreneurs) (OECD, Forthcoming[17]). However, end-of-life ICT management remains uneven: 52% of surveyed SMEs dispose of equipment responsibly via recycling centres or vendors, 35% keep outdated equipment for spare parts (often due to data-security concerns), and 9% are unsure what happens to unused devices, pointing to gaps in e-waste governance and awareness.
Additionally, environmental tracking practices are underdeveloped (Figure 4.12). While 41% of surveyed SMEs in Serbia monitor energy consumption and 29% track energy efficiency, only 8% measure their carbon footprint, despite growing emphasis on emissions reporting and green compliance (OECD, Forthcoming[17]). About 38% of surveyed SMEs do not track any environmental indicators, and 11% are unaware whether such tracking occurs.
Note: Tracking energy efficiency: e.g. reductions in energy waste, impact of energy-saving upgrades like LED lighting or efficient machinery; Tracking energy consumption: e.g. electricity and gas consumption by department or production line, peak vs. off-peak usage patterns, etc.
Source: OECD (Forthcoming[17]).
The way forward
Strengthen the practical diffusion of AI and emerging technologies among SMEs through sector-oriented, implementation-focused support. While Serbia has established strategic frameworks for AI and innovation, adoption among the broader SME population remains concentrated in low-complexity applications and among digitally mature firms. Policy efforts should therefore shift from primarily ecosystem-building to enabling practical deployment in priority sectors identified by the government. This could involve reinforcing applied “test-before-invest” services within existing hubs and innovation centres, developing sector-specific AI application guides tailored to common SME functions (e.g. inventory management, predictive maintenance, customer analytics), and creating curated lists of verified technology providers to reduce information and compliance costs. Introducing small, fast-track co-financing windows linked to hands-on advisory support would further help firms translate experimentation into operational integration (Box 4.7).
Germany’s AI strategy combines a strong emphasis on trustworthy, human-centred AI with a clear focus on SMEs. Since the launch of its AI Strategy in 2018, public funding has increased from EUR 3 billion to EUR 5 billion by 2025, with implementation coordinated across ministries to translate research excellence into practical SME adoption.
Germany’s approach centres on lowering technical and skills barriers for SMEs through shared infrastructure and applied support:
AI Factories and compute access: As a host of the EuroHPC AI Factories, Germany provides SMEs with access to advanced computing and expertise. The Jupiter AI Factory (JAIF), linked to Europe’s first exascale supercomputer, and HammerHAI at HLRS Stuttgart offer cloud-based access to AI tools, curated datasets, pre-trained models and hybrid AI–simulation workloads, enabling SMEs to experiment without heavy upfront investment.
AI Service Centres (since 2022): Four centres provide SMEs with advisory support and computing resources for applied AI use cases, particularly for firms lacking in-house AI capacity.
Targeted funding programmes: The KI4KMU programme supported SME-led AI innovation with grants covering up to 50% of project costs, while the “Generative AI for SMEs” programme (EUR 30 million, launched in 2025) targets concrete applications such as predictive maintenance, automated design and natural-language interfaces.
Hands-on skills and adoption support: AI Studios, funded by the Ministry of Labour, provide low-threshold, practical learning environments for employees, using fixed and mobile units to reach SMEs nationwide, with a target of 2 600 firms by 2026. These efforts are reinforced by Mittelstand-Digital Innovation Hubs and the Cybersecurity for SMEs initiative.
Germany’s model focuses on access rather than ownership: shared compute, applied testbeds, co-funded projects, and worker-centred learning environments enable SMEs to adopt AI incrementally, manage risk, and build internal capabilities without large upfront investments.
Source: OECD (2025[75]).
Systematically integrate environmental considerations into SME digital and AI support instruments. While Serbia’s strategic documents acknowledge the twin transition, environmental indicators related to the SME uptake of digital technologies are not yet operationally embedded within existing policies. Public support should therefore move beyond high-level references and introduce practical mechanisms that help SMEs assess and manage the energy, resource and lifecycle implications of digital investments (Box 4.8). This could include integrating simple sustainability checklists and energy-efficiency guidance into existing digital-support pathways (e.g. through EDIHs, S4AI or future digital transformation programmes), promoting the use of energy-efficient cloud services and hardware, and offering advisory modules on low-carbon data management. Environmental criteria could be incorporated in a proportional manner into existing grant and digital innovation schemes through bonus scoring, optional green components or light reporting requirements linked to digital projects. Stronger coordination between ministries responsible for digitalisation, economy and environmental protection would help align incentives, reduce fragmentation and ensure that SME digital upgrading contributes to both competitiveness and climate objectives.
The Digital & Sustainability Maturity Assessment (DMA) was developed in 2023 by GIZ’s Digital Transformation Center Mexico in partnership with the German-Mexican Chamber of Commerce (AHK) to strengthen SME competitiveness through digital and green innovation.
The DMA is a 20-minute self-assessment that evaluates SMEs across eight key dimensions: enterprise profile, internet connectivity and equipment, internal process digitalisation, digital presence, digital transactions, cybersecurity, readiness for transformation, and sustainability performance. Each dimension is scored on a three-tier scale (low, medium, high). Firms completing the questionnaire, ideally with input from at least three staff members in different functions, receive an automated report detailing their maturity level and tailored recommendations for improvement. The tool integrates sustainability metrics, covering energy use, materials efficiency, waste management, and gender inclusion, linking digitalisation to environmental and social outcomes.
Since its rollout, the DMA has been promoted nationwide through business chambers and state economic ministries. SMEs have used it to identify capability gaps, prioritise digital investments, and plan targeted improvements in cybersecurity, process automation, and resource efficiency. The anonymised data also serve as a policy input for federal and regional SME support programmes, helping benchmark digital readiness at sector and regional levels. Such self-diagnostic tools can provide a practical entry point for SMEs to assess their digital and sustainability maturity, while enabling policymakers to better target financial incentives, training and advisory programmes, and to monitor progress across sectors and regions.
Source: BMZ (2026[91]).
References
[81] AI Platform Serbia (2026), Science and technology parks, https://www.ai.gov.rs/tekst/en/99/science-and-technology-parks.php.
[46] Andrews, D., C. Criscuolo and P. Gal (2016), The Best Versus the Rest: The global productivity slowdown, divergence across firms and the role of public policy, OECD Publishing, Paris, https://www.oecd.org/content/dam/oecd/en/publications/reports/2016/12/the-best-versus-the-rest_60763de4/63629cc9-en.pdf.
[69] Balkan Insight (2025), Balkan countries must respond proactively to evolving cyber threats, https://balkaninsight.com/2025/02/20/balkan-countries-must-respond-proactively-to-evolving-cyber-threats-report.
[45] Berlingieri, G., P. Blanchenay and C. Criscuolo (2017), “The great divergence(s)”, OECD Science, Technology and Industry Policy Papers, No. 39, OECD Publishing, Paris, https://doi.org/10.1787/953f3853-en.
[2] Bianchini, M., Lasheras Sancho, M. (2025), SME digitalisation for competitiveness - 2025 OECD D4SME survey, https://www.oecd.org/content/dam/oecd/en/networks/oecd-digital-for-smes-global-initiative/D4SME-2025-Policy-Highlights.pdf.
[51] Bio4 (2026), Serbia - new bioeconomy hub in Europe, https://bio4.rs/.
[91] BMZ (2026), Digital & sustainability maturity assessment for SMEs (DMA), https://www.bmz-digital.global/en/digitalzentren/digital-sustainability-maturity-assessment-for-smes-dma/.
[31] BPI France (2023), Apply to the 8th cohort of the SME Accelerator, https://www.bpifrance.fr/nos-appels-a-projets-concours/candidatez-a-la-8e-promotion-de-laccelerateur-pme#:~:text=Que%20propose%20l%27Acc%C3%A9l%C3%A9rateur%20PME,Activer%20vos%20leviers%20de%20croissance.
[44] Brynjolfsson, E. (2011), Race against the Machine: How the Digital Revolution Is Accelerating Innovation, Driving Productivity, and Irreversibly Transforming Employment and the Economy, https://www.academia.edu/2662722/Race_against_the_machine_How_the_digital_revolution_is_accelerating_innovation_driving_productivity_and_irreversibly_transforming_employment_and_the_economy.
[52] C4IR (2026), C4IR Serbia - About, https://c4ir.rs/en/home/.
[76] Calvino, F.; Fontanelli, L.; (2023), A portrait of AI adopters across countries, OECD, https://www.oecd.org/en/publications/a-portrait-of-ai-adopters-across-countries_0fb79bb9-en.html.
[47] CCIS (2023), The CTD innovation hub: a new spot for connecting traditional and innovative industries, https://en.pks.rs/news/new-spot-for-cooperation-between-traditional-and-innovative-industries.
[28] CDT (2023), Digital transformation programme, http://cdt-api.ohdstaging.com/storage/assets/MMSP%20Priruc%CC%8Cnik%202023-.pdf.
[71] Council of Europe (2025), CyberSEE project supports Serbia’s efforts to develop a new cybercrime strategy, https://www.coe.int/en/web/cybercrime/-/cybersee-project-supports-serbia-s-efforts-to-develop-a-new-cybercrime-strategy.
[9] Delegation of the European Union in Serbia (2024), Strategic investments in innovation, https://eumogucnosti.rs/euzatebe-strategic-investments-in-innovation/?lang=en.
[40] DSI (2025), “Digital Serbia” initiative strategy 2025-2027, https://www.dsi.rs/en/digital-serbia-initiative-strategy-2025-2027/.
[38] DSI (2025), Digital Serbia initative, https://www.dsi.rs/en/.
[89] EBRD (2026), The facility, https://ebrdgeff.com/serbialeasing/the-programme/geff-srbija-lizing/.
[11] EBRD (2025), Go Digital in the Western Balkans, https://www.ebrd.com/home/what-we-do/focus-areas/digitalisation/go-digital-in-western-balkans.html.
[39] ECEA (2026), About ECEA, https://ecommserbia.org/o-asocijaciji/.
[41] eCommerce4All (2026), Regional platform “eCommerce for all”: Serbia, https://ecommerce4all.rs/en/.
[59] EDPB (2025), Data protection guide for small businesses, https://www.edpb.europa.eu/sme-data-protection-guide/data-protection-benefits-for-you_en.
[29] Eurofound (2025), SME digitalisation in the EU: trends, policies and impacts, https://www.eurofound.europa.eu/en/publications/all/sme-digitalisation-eu-trends-policies-and-impacts.
[49] European Commission (2026), The EDIH catalogue, https://european-digital-innovation-hubs.ec.europa.eu/edih-catalogue.
[54] European Commission (2025), European Innovation Scoreboard - Serbia, https://ec.europa.eu/assets/rtd/eis/2025/ec_rtd_eis-country-profile-rs.pdf.
[60] European Commission (2025), Serbia Report 2025, https://enlargement.ec.europa.eu/serbia-report-2025_en.
[33] European Commission (2024), European Innovation Scoreboard 2024, European Commission, https://op.europa.eu/fr/publication-detail/-/publication/8a4a4a1f-3e68-11ef-ab8f-01aa75ed71a1.
[62] European Commission (2024), Serbia 2024 report, https://enlargement.ec.europa.eu/document/download/3c8c2d7f-bff7-44eb-b868-414730cc5902_en?filename=Serbia%20Report%202024.pdf.
[58] European Commission (2024), State of the digital decade 2024 report, https://digital-strategy.ec.europa.eu/en/factpages/state-digital-decade-2024-report.
[88] European Commission (2023), Production of lignite in the Western Balkans - statistics, https://ec.europa.eu/eurostat/statistics-explained/SEPDF/cache/92575.pdf.
[24] European Commission (2021), 2030 Digital Compass: the European way for the cigital decade, https://eufordigital.eu/library/2030-digital-compass-the-european-way-for-the-digital-decade/.
[23] Eurostat (2024), Adult participation in learning in the past four weeks by gender, https://ec.europa.eu/eurostat/databrowser/view/sdg_04_60/default/table.
[56] Eurostat (2024), Research and development expenditure by sector of performance, https://ec.europa.eu/eurostat/databrowser/view/tsc00001__custom_18725399/default/table.
[22] Eurostat (2023), Share of individuals having at least basic digital skills, https://ec.europa.eu/eurostat/databrowser/view/sdg_04_70/default/table.
[86] Forbes (2024), AI Is accelerating the loss of our scarcest natural resource: water, https://www.forbes.com/sites/cindygordon/2024/02/25/ai-is-accelerating-the-loss-of-our-scarcest-natural-resource-water/.
[65] GDPR EU (2018), What are the GDPR Fines?, https://gdpr.eu/fines/.
[78] Gecic Law (2025), Navigating AI governance: the EU AI Act and Serbia’s strategic alignment, https://www.geciclaw.com/navigating-ai-governance-the-eu-ai-act-and-serbias-strategic-alignment/#:~:text=AI%20Legal%20Framework%20in%20Serbia&text=Building%20on%20this%20international%20leadership,the%20forthcoming%20national%20AI%20Act.
[90] GIZ (2025), Green economy project in Serbia, https://www.ien.bg.ac.rs/cms_upload/pages/files/8582_mpzze.pdf.
[42] Hall, B., J. Mairesse and F. Lotti (2012), Evidence on the impact of R&D and ICT investment on innovation and productivity in Italian firms, NBER, https://www.nber.org/system/files/working_papers/w18053/w18053.pdf.
[50] ICT Hub (2026), About us, https://www.icthub.rs/en/portfolio/sme-hub.
[5] Innovation Fund (2026), About, https://www.inovacionifond.rs/en/fond/about-fund.
[10] Innovation Fund (2026), Increased innovation capacity and growth of SMEs, https://www.inovacionifond.rs/en/int-projects/increased-innovation-capacity-and-growth-of-smes.
[8] Innovation Fund (2026), Matching grants programme, https://www.inovacionifond.rs/en/programs.
[7] Innovation Fund (2026), Mini grants programme, https://www.inovacionifond.rs/en/programs/mini-grants.
[6] Innovation Fund (2025), Report on the implementation of the work programme of the Innovation Fund 2024, https://www.inovacionifond.rs/cms/files//o-nama-akti/Izvestaj_o_ostvarivanju_Programa_rada_za_2024_godinu_word.pdf.
[67] ITU (2024), Global Cybersecurity Index 2024, https://www.itu.int/en/ITU-D/Cybersecurity/Documents/GCIv5/2401416_1b_Global-Cybersecurity-Index-E.pdf.
[70] Karanovic and Partners (2025), From NIS2 to Serbia: how the new Information Security Law impacts your business, https://www.karanovicpartners.com/news/from-nis2-to-serbia-how-the-new-information-security-law-impacts-your-business/.
[61] Karanovic and Partners (2023), Serbia adopts the Personal Data Protection Strategy for 2023-2030: Fresh and bold goals for the times to come, https://www.karanovicpartners.com/news/serbia-adopts-the-personal-data-protection-strategy-for-2023-2030-fresh-and-bold-goals-for-the-times-to-come/.
[18] Kergroach, S. (2021), “SMEs Going Digital: Policy challenges and recommendations”, OECD Going Digital Toolkit Notes, No. 15, OECD Publishing, Paris, https://doi.org/10.1787/c91088a4-en.
[64] Marinkov, Vladimir (2024), Data privacy and cybersecurity regulations in Serbia: progress, gaps, and business implications, https://guberina-marinkov.rs/data-privacy-and-cybersecurity-regulations-in-serbia-progress-gaps-and-business-implications/?lang=en.
[15] Ministry of Economy (2026), Public calls, https://privreda.gov.rs/usluge/javni-pozivi.
[25] Ministry of Education Republic of Serbia (2025), Digitalisation in education, https://prosveta.gov.rs/prosveta/digitalizacija-u-prosveti-i-nauci/?pismo=lat.
[84] MIT (2025), Explained: generative AI’s environmental impact, https://news.mit.edu/2025/explained-generative-ai-environmental-impact-0117.
[43] Mohnen, P.; Polder, M.; Van Leeuwen, G. (2018), R&D and organisational innovation: exploring complementarities in investment and production, NBER, https://www.nber.org/papers/w25044.
[87] MRE (2024), Energy Sector Development Strategy, https://www.mre.gov.rs/extfile/sr/5928/Draft%20-%20Energy%20Strategy%2015072024.pdf.
[53] NALED (2025), Capital innovation point Serbia, https://naled.rs/en/en/en/projekti-capital-innovation-point-serbia-10498#:~:text=Capital%20Innovation%20Point%20Serbia%20(CIPS,as%20well%20as%20public%20sector.
[14] NT Park (2026), Raising Starts programme - about, https://ntpark.rs/en/raising-starts-en/.
[63] OEBS (2019), A guide through the Law on Personal Data Protection and the GDPR - interpretation of the new legal framework, https://sharefoundation.info/wp-content/uploads/2024/10/vodic_zzpl_gdpr_share_2019.pdf.
[75] OECD (2025), AI adoption by small and medium-sized enterprises: OECD discussion paper for the G7, OECD, https://www.oecd.org/en/publications/ai-adoption-by-small-and-medium-sized-enterprises_426399c1-en.html.
[55] OECD (2025), Economic convergence scoreboard for the Western Balkans 2025, OECD, https://www.oecd.org/en/publications/economic-convergence-scoreboard-for-the-western-balkans-2025_bc0babf3-en.html.
[34] OECD (2025), SME digitalisation, OECD, https://www.oecd.org/en/topics/sub-issues/digitalisation-of-smes.html.
[35] OECD (2025), The 2025 OECD definition of e-commerce and guidelines for interpretation, OECD, https://www.oecd.org/en/publications/the-2025-oecd-definition-of-e-commerce-and-guidelines-for-interpretation_2254f1de-en.html?utm_source.
[30] OECD (2025), Unleashing SME potential to scale up: helping SMEs scale up, OECD, https://www.oecd.org/content/dam/oecd/en/publications/reports/2025/11/unleashing-sme-potential-to-scale-up_a7869b94/ea948a58-en.pdf.
[4] OECD (2024), OECD Digital Economy Outlook (volume 2), OECD, https://www.oecd.org/en/publications/oecd-digital-economy-outlook_f0b5c251-en.html.
[20] OECD (2024), SME digitalisation in 2024: Managing shocks and transitions - OECD D4SME survey, OECD, https://www.oecd.org/content/dam/oecd/en/networks/oecd-digital-for-smes-global-initiative/FINAL-D4SME-2024-Survey-Policy-Highlights.pdf.
[36] OECD (2023), Digitally-deliverable services as a share of commercial services trade, OECD, https://goingdigital.oecd.org/en/indicator/71?utm_source.
[16] OECD (2023), OECD SME and Entrepreneurship Outlook 2023, OECD, https://www.oecd.org/en/publications/2023/06/oecd-sme-and-entrepreneurship-outlook-2023_c5ac21d0.html.
[32] OECD (2023), “SMEs in the era of hybrid retail: Evidence from an OECD D4SME survey”, OECD SME and Entrepreneurship Papers, No. 41, OECD Publishing, Paris, https://doi.org/10.1787/882f30b0-en.
[77] OECD (2022), “OECD Framework for the Classification of AI systems”, OECD Digital Economy Papers, No. 323, OECD Publishing, Paris, https://doi.org/10.1787/cb6d9eca-en.
[19] OECD (2021), SMEs Going Digital: Policy Note, https://www.oecd.org/content/dam/oecd/en/publications/reports/2021/08/smes-going-digital_3b1e76c1/c91088a4-en.pdf.
[1] OECD (2021), The digital transformation of SMEs, https://www.oecd.org/en/publications/the-digital-transformation-of-smes_bdb9256a-en.html.
[37] OECD (2020), OECD Tourism Trends and Policies 2020, OECD, https://www.oecd.org/content/dam/oecd/en/publications/reports/2020/03/oecd-tourism-trends-and-policies-2020_7cfc4549/6b47b985-en.pdf.
[3] OECD (2019), Going digital: shaping policies, improving lives, OECD, https://www.oecd.org/content/dam/oecd/en/publications/reports/2019/03/going-digital-shaping-policies-improving-lives_g1g9f091/9789264312012-en.pdf.
[17] OECD (Forthcoming), Digital and Green SMEs: Western Balkans Business Survey, OECD.
[27] OPSI (2020), My first salary programme, https://oecd-opsi.org/innovations/my-first-salary/#:~:text=The%20programme%20My%20First%20Salary%20is%20designed%20to%20lower%20the,in%20the%20Covid%2D19%20economy.
[80] S4AI (2025), The Serbian European digital innovation hub on AI (S4AI_HUB), https://s4ai.rs/en/.
[72] SajberHeroj (2026), About, https://sajberheroj.rs/.
[82] Science Fund (2022), Programme for the development of projects in the field of artificial intelligence, https://fondzanauku.gov.rs/program-for-development-of-projects-in-the-field-of-artificial-intelligence-ai/?lang=en.
[12] SME Hub (2026), About us, https://smehub.rs/en/about-us/.
[48] SMIC (2025), Smart manufacturing innovation centre, https://smic-rs.com/.
[13] StarTech (2026), About the project, https://startech.org.rs/o-projektu.
[21] Statistical Office (2025), Companies by size and entrepreneurs in the Republic of Serbia, 2021-2023, https://www.stat.gov.rs/sr-latn/vesti/20250724-preduzeca-po-velicini-i-preduzetnici-u-republici-srbiji-2021-2023/?a=0&s=1802.
[57] The Danish Government (2018), Strategy for Denmark’s diigital growth, https://www.eng.em.dk/media/15630/digital-growth-strategy-report_uk_web-2.pdf.
[83] The Government of the Republic of Serbia (2025), Cooperation with World Bank on new phase of SAIGE project, https://www.srbija.gov.rs/vest/en/246055/cooperation-with-world-bank-on-new-phase-of-saige-project.php.
[68] The Government of the Republic of Serbia (2024), Serbia in top tier of countries on Global Cybersecurity Index, https://www.srbija.gov.rs/vest/en/231154/serbia-in-top-tier-of-countries-on-global-cybersecurity-index.php.
[74] U.S. SBA Administration (2022), SBA administrator Guzman announces new pilot program to bolster cybersecurity infrastructure of emerging small businesses, https://www.sba.gov/article/2022/jan/21/sba-administrator-guzman-announces-new-pilot-program-bolster-cybersecurity-infrastructure-emerging.
[73] UNDRR (2021), Building the resilience of SMEs in Serbia, https://www.undrr.org/media/81296/download?startDownload=20250716.
[26] WEF (2025), Centre for the fourth industrial revolution network 2023-2024, https://reports.weforum.org/docs/WEF_Centre_for_the_Fourth_Industrial_Revolution_Network_2023-2024.pdf.
[85] WEF (2025), How AI use impacts the environment and what you can do about it, https://www.weforum.org/stories/2025/06/how-ai-use-impacts-the-environment/.
[79] Zunic Law (2025), Artificial intelligence law in Serbia: overview of legal requirements, https://zuniclaw.com/en/artificial-intelligence-serbian-law/.
[66] Zunic Law (2025), New Law on Information Security – challenge or opportunity for companies in the Republic of Serbia?, https://zuniclaw.com/en/new-law-on-information-security/.