Abstract

Increasing complexity and dynamics of global environment imply increasing need for diverse types ofinnovations. Innovations emerge as the key factor of socio-economic development and play crucial role in economicpolicies. The majority of national economies formulate the set of policies and strategies in order to drive innovations atregional and national level. Aiming to adapt to these societal changes and needs, adopting ofappropriateinnovativepractices, i.e. innovative teaching methods, innovative organizational structures and innovative organizational cultureat higher education institutions (HEIs)isone of the main prerequisites for functioning of higher education institutions(HEIs).Innovations in higher education can be seen as the process of institutional adaptation to environmental changes,but they are also related with the changes of organizational culture, strategy and structure as internal characteristics ofHEIs. Examining the viewpoints of the relevant stakeholders regarding the main factors affecting innovations is therelevant research area. Accordingly, the research aim is to identify the relevant drivers and barriers of innovativenessin higher education through the analysis of students' perceptions. Original empirical research was included the studentsof undergraduate academic studies at the Faculty of Economics, University of Kragujevac. Reseach results indicatestudents' perceptions on internal and externalfactorsthat affect innovations in higher education. Derived conclusionspresent a base for formulating the relevant guidelines for improving innovativeness of HEIs through redefiningorganizational strategies, structures and culture. Within future research, it is necessary to include examinations of theother relevant stakeholders' perceptions (teaching staff, management of the faculty/university, representatives ofbusiness, etc.) as well as students of others faculties/universities.

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