International Scientific Conference Squaring the Circle : the New Global Dynamics (2026) [pp. 141-144]
AUTHOR(S) / AUTOR(I): Sonja Đuričin 
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DOI: https://doi.org/10.46793/7067.3731.141DJ
ABSTRACT / SAŽETAK:
Contemporary global dynamics are increasingly shaped by rapid technological change, intensified international competition, and the restructuring of global economic relations. In this environment, the ability of national economies to adapt depends more on their capacity to generate, absorb, and apply innovation. Innovation capacity is a key determinant of economic resilience, defined as an economy’s ability to respond to external shocks, adapt to change, and sustain long-term development. At the same time, it influences a country’s position in the international economy. In advanced economies, innovation capacity primarily supports the maintenance and further strengthening of established competitive advantages, while in developing and transition economies, it plays a more decisive role in creating opportunities to improve their position in the global economy. The existence of a gap relative to more developed economies, along with structural imbalances across innovation system dimensions and regions, complicates the assessment of the actual adaptive capacity of the economy in the context of current global changes. Against this background, the paper examines how national and regional innovation capacities shape Serbia’s potential to improve its economic position in the current global environment, with particular focus on small and medium-sized enterprises. The analysis is based on the composite SME Innovation Pulse index, developed within the IES study “Innovation Pulse of the Republic of Serbia 2025,” which enables a comparison between Serbia and the EU27 across key dimensions of innovation performance. The central argument of the paper is that the key challenge lies not only in the level of innovation performance, but primarily in its structure and uneven distribution. This raises the question of their role in shaping economic resilience and Serbia’s position in the international economy.