Smart, connected products as a new competitive advantage: Challenges for Serbia

Abstract

The current debate among scholars of innovation and competitiveness centres on the concept of smart connected products (SCP). In this review article, we attempt to engage Serbia in this global debate by explaining the core concepts and arguments, building on previous research, and demonstrating how the developments in Serbia's ICT sector exemplify the new theory. We present the cases of three companies engaged in the production of SCPs, namely Schneider Electric DMS NS, Strawberry Energy, and Bitgear. Whilst the bulk of the IT production and exports volume in Serbia can be ascribed to outsourced, general software programming, these case studies are evidence of future potential of SCP (or Internet of Things) development. For more companies to specialise and successfully compete at the global level, additional, principally foreign investment in the sector is required. The key limitation here, in addition to the deficiencies in the business climate, is the availability of quality human resources, which calls for increased public funding of education in the relevant ICT skills, a more comprehensive reform of research and innovation infrastructure and gearing publicly available funding for innovation principally via institutions like the Innovation Fund, which is functioning based on best international practices.