Innovation and technological change are recognized as key drivers of economic development and growth. Economies that achieve faster growth are those that successfully create and utilize new technologies, production processes, and products. Economic development is also increasingly linked to globalization, requiring economies to integrate into global markets to access the information, technology, and expertise necessary for competitiveness. This is relevant for both highly industrialized nations and latecomer economies, particularly in Central and Eastern Europe, with a focus on Serbia, a former socialist country. The book demonstrates a new approach to innovation system analysis, particularly through the lens of the automotive industry, which symbolizes significant economic and social changes during the transition period of the 1990s. The Serbian automotive industry, once a successful sector until the 1980s, has faced challenges due to embargoes from the Balkan wars and its socialist legacy. The text explores whether the Serbian automotive innovation system encounters structural national or sectoral issues that hinder the industry's upgrading and integration into the global automotive chain, providing insights into the complexities of its current state.
