Western Balkans Competitiveness Outlook 2024: Serbia

2. Investment policy and promotion

Abstract

Creating an attractive environment for investors is essential to stimulate economic activity and foster sustainable economic growth. This chapter assesses the scope and effectiveness of existing policies and strategies that aim to enhance investment volume and quality. The first sub-dimension, investment policy framework, assesses the robustness of legal framework for investment, the efficiency of dispute settlement mechanisms, as well as intellectual property rights enforcement and awareness-raising capacity. The second sub-dimension, investment promotion and facilitation, focuses on investment promotion agency structures, investment promotion strategies and investor incentives, all geared towards attracting foreign direct investment. The third sub-dimension, mobilising sustainable investment, explores the strategic framework for sustainable investment governance while also reflecting on the scope of financial and technical support allocated to sustainable investment.

Key findings

Since the last assessment cycle, Serbia’s score has slightly improved in investment policy and promotion at 4.0. Serbia outperforms the region in all three sub-dimensions and remains among the best-performing economies in the Western Balkan region for investment policy and promotion (Table 2.1).

Table 2.1. Serbia’s scores for investment policy and promotion

Dimension	Sub-dimension	2018 score	2021 score	2024 score	2024 WB6 average
Investment policy and promotion	1.1: Investment policy framework			4.3	3.9
	1.2: Investment promotion and facilitation			4.0	3.3
	1.3: Mobilising sustainable investment			3.5	2.8
Serbia’s overall score		3.4	3.9	4.0	3.4

The key findings are:

• Since 2021, Serbia has adopted a mix of policy measures to attract investment, particularly in high-value and export-oriented sectors. Offering subsidies, reimbursements and tax incentives, these initiatives are expected to have an impact on the composition of incoming foreign direct investment (FDI) in favour of high value-added industrial sectors.

• As of May 2023, Serbia has made online company registration mandatory, a move poised to streamline the process and lead to substantial savings in both time and costs.

• Despite implemented judicial reforms for court efficiency, alternative dispute resolution, particularly mediation, still lags, accounting for less than 1% of civil court proceedings.

• While Serbia has recently updated its Intellectual Property Rights (IPR) laws since the last assessment and is actively working on legislation reform, particularly with the new Law on Copyright and Related Rights, there is a need for further alignment with the EU acquis.

• The economy advanced in reinforcing the framework for sustainable investment. While still without a dedicated framework per se, the environmental, social and governance (ESG) criteria for FDI were set, making a mixture of mandatory and voluntary sustainability disclosure requirements available to businesses and investors.

State of play and key developments

Having dipped slightly in 2020 and 2021 during the COVID-19 pandemic, foreign direct investment inflows to Serbia fully recovered to reach a record EUR 4.5 billion in 2023 (National Bank of Serbia, 2024[1]). Despite the slight decrease in average annual net FDI inflows, from 7.6% of GDP during 2017-19 to 7% during 2020-22 (World Bank, 2023[2]), Serbia attracted more than half of the total FDI inflows allocated to the Western Balkans (National Bank of Serbia, 2024[1]). Since 2010, Serbia’s stock of inward FDI has increased by 28 percentage points to reach 81% of GDP by 2022, representing the second-largest such increase during the period after Albania, and the second-highest level in the region after Montenegro (UNCTAD, 2023[3]).

FDI remains primarily concentrated in the manufacturing and construction sectors, amounting to EUR 1.3 billion and EUR 2 billion in 2022, respectively (National Bank of Serbia, 2024[1]). The majority of FDI comes from the EU (59% of flows from 2010 to 2022), followed by China, the Russian Federation and Switzerland. China was the single most important source of FDI during the 2020-22 period, accounting for 22% of the total, ahead of the Netherlands (11%) (National Bank of Serbia, 2023[4]).

Sub-dimension 1.1: Investment policy framework

Serbia maintains a clear and comprehensive legal framework for investment, with cohesive regulation that applies to both domestic and foreign investors. Further progress has been achieved since the last assessment cycle. While there have been no updates to the stand-alone Law on Investments since 2018, several economy-wide and sector-specific changes have been aimed at improving the environment for business activities and attractiveness for inward investments. Serbia has introduced successive amendments to its Regulation on determining criteria for granting incentives for attracting direct investments in 2019 and 2023.1 Finally, of relevance to the strategic investment regime, a new Law on Planning and Construction came into force in March 2023. The law allows for a unified procedure for issuing construction permits for a maximum of 28 days.2 After an initial phase-in period, this process will become entirely electronic, further streamlining the procedure. In addition, among other changes, fees have been eliminated for converting land use to ownership rights on construction land; certification of buildings’ energy efficiency and environmental impact has become mandatory; electrical vehicle chargers must be installed in new buildings and parking spaces; and investors now require third-party liability insurance. The new law aims to make it easier to get licences and carry out construction projects, to benefit both foreign investors and the domestic construction industry. Moreover, the government expects this will significantly increase the scope for developing clusters and industrial parks in Serbia.

There have been some developments in providing additional guarantees against expropriation and protection for investors and improving public consultation processes concerning the legal framework for investment. These advances have come about mostly through dedicated agreements on awarding incentives and through Bilateral Investment Agreements, which, once ratified, become an integral part of the legal framework. The Ministry of Economy, with assistance from the World Bank, has been in the process of formulating an additional strategy for foreign direct investments with a more targeted focus. At the time of writing, this strategy is in the developmental stage and has not been made available for public discussion or draft review.

Serbia maintains a predominantly open market with limited exceptions to national treatment. According to the latest OECD FDI Regulatory Restrictiveness Index, the economy achieved a score of 0.05 in 2019, indicating a less restrictive FDI regime than the average for OECD economies (0.064). This suggests that foreign investment rules in Serbia do not present substantial obstacles to FDI (OECD, 2020[5]). However, it is noteworthy that specific restrictions persist in the services sector, particularly within media and transport.

While Serbia’s efforts to align its legal system with those of the EU and the EU acquis have underpinned important advances in recent years, challenges remain with respect to judicial reform and dispute settlement, especially alternative dispute resolution. Serbia has advanced in reinforcing the independence and accountability of the judiciary by promptly enacting most of the legislation needed to operationalise the constitutional amendments of 2022. A suite of legislation implementing these amendments was adopted in February 2023,3 following several months of public consultation. Efforts to improve human resources and case management in the judicial system are also under way. In particular, the authorities adopted a new human resources strategy and action plan in December 2021, while work on a case management system for courts began in September 2021 and is due to be finalised by the end of 2024 (European Commission, 2023[6]). These reforms should help improve judicial performance over the medium term. However, the number of mediations as a proportion of civil court proceedings remains below 1%. In addition to improving legislation and providing additional resources, there is still significant scope to raise awareness among stakeholders of the available alternative dispute resolution mechanisms (European Commission, 2023[6]). Despite low awareness of mediation as an alternative dispute resolution, Serbia has almost twice the regional average of mediators per 100 000 inhabitants, amounting to 24.7, compared to 14 in the WB6 economies (CEPEJ, 2022[7]).

Serbia’s intellectual property rights legal framework is modern, robust and broadly aligned with the EU, although there remains room for improvement in enforcement. Recent years have seen the introduction of several new or amended laws4 to further strengthen the economy’s IPR regime. Legislative reform is ongoing, with a draft new Law on Copyright and Related Rights under preparation.5 Nevertheless, Serbia still needs to harmonise its IPR laws with EU Directives on copyrights6 and online media transmissions.7

In March 2023, a new unit was established in the Intellectual Property Office – the main IP body in Serbia – tasked with the consolidation of co-operation efforts and the more proactive inclusion of its work to improve the efficiency of IPR enforcement. Nonetheless, human resources dedicated to IPR enforcement have not kept pace with increased mandates while high caseloads and a lack of specialised training mean that the judiciary’s capacity to handle IPR cases remains constrained (European Commission, 2023[6]). In accordance with the guidelines, experiences and best practices of the World Intellectual Property Organization (WIPO), the IP Office, the Ministry of Justice and the competent domestic courts8 signed a memorandum of understanding on Co-operation for Enhancing of the Use of Mediation in Intellectual Property Disputes. For its part, the IP Office has engaged in regular IPR awareness-raising events through its Education and Information Centre since 2010. In more recent years, this has been done increasingly in co-operation with institutions representing the economy’s innovation ecosystem, such as Science and Technology Parks, the Innovation Fund, and various research and development bodies.

Sub-dimension 1.2: Investment promotion and facilitation

Serbia retains a solid investment promotion agency structure and strategy for promotion and facilitation, with further progress having been made since 2021. The Ministry of Economy9 has formal authority over investment promotion. Within its jurisdiction, the Development Agency of Serbia (RAS) promotes and facilitates investment projects and supports SME development. As such, the agency is of central importance in implementing core national objectives, such as the Industrial Policy Strategy 2021-30 (Box 2.1), which aims to attract inward investment into the industrial processing sector to drive increasingly high value-added export-led growth. At the same time, RAS, alongside the Ministry of Science, Technological Development and Innovation and the Chamber of Commerce and Industry of Serbia, promotes activities related to digital transformation, notably through advocating a digital transformation support programme. In terms of sectoral focus, this centres on the manufacturing of computers, electronic and optical products, electrical equipment, motor vehicles, and other means of transportation.

RAS is funded by the state budget, in addition to contributions from the EU’s Instrument for Pre-accession Assistance. The agency has seen a slight increase in financial resources in recent years (from an average of 0.03% of GDP during 2016-17 to 0.05% in 2023) and is well staffed compared to similar bodies in the WB6 region (27 during 2016-17, increasing to 32 in 2023).

There have been modest improvements in investment facilitation services and aftercare activities. In late 2021, the authorities adopted amendments to the Law on Registration Procedure at the Business Registers Agency, the notable upshot of which was that online company registration became mandatory as of 17 May 2023.10 This is expected to reduce the cost and time required to register a business in Serbia. RAS has an aftercare unit that remains in continuous contact with foreign investors doing business in Serbia, to get feedback on where it could better assist the company or how the business environment could be improved. The aftercare services provided include regulatory and administrative assistance, structured trouble-shooting with individual investors, provision of databases of local suppliers, matchmaking between investors and local firms, capacity-building support for local firms, and high-level networking facilitation connections with academia and R&D institutions.

Box 2.1. Industrial Policy Strategy of the Republic of Serbia from 2021 to 2030

Adopted on 5 March 2020, the vision of the successor Industrial Policy Strategy of the Republic of Serbia from 2021 to 2030 is one of an “open, regionally and globally competitive, investment active, educated, innovative and digitally transformed Serbian industry”. Of most salience for investment policy and promotion is the strategy’s fifth intervention (of seven), such that “all investors wish to invest in Serbian industry and the Republic of Serbia offers modern physical, digital and social infrastructure, and equal opportunities to all to create multiplied value”. Supportive of this are the fourth and seventh intervention areas, focused respectively on increasing internationalisation and improving the business and institutional climate. Meanwhile, all four intervention areas are of particular relevance to the sustainable investment agenda – and to the twin green and digital transitions as well – relating, respectively, to human capacity, digital transformation, innovation, and the circular economy.

The strategy incorporates five “specific objectives”, broken down into 23 individual measures. Objective 3 – the increased total volume of industrial investments, accompanied by the improved quality of investments – targets an increase in investment as a share of GDP from its 2018 baseline of 20.1% to 25% by 2030. In turn, this objective comprises five implementing measures: i) adjusting the criteria for attracting industrial investments aimed at increasing the share of domestic gross value added; ii) an incentive programme for investments in industrial production; iii) promotion of the Republic of Serbia as an investment destination; iv) a support programme for the development of infrastructure for the needs of industrial zones; and v) balancing regional industrial development.

Notwithstanding Serbia’s success in delivering on its objective to attract a significant amount of inward investment, and the continued centrality of this approach to the new strategy, one independent analysis of the new strategy has stressed the potential pitfalls “of a growth model that relies primarily on outward processing FDI with limited linkages to the domestic economy” (Uvalic, 2021[8]). While RAS does implement programmes aimed at connecting domestic suppliers with multinational companies, ensuring stronger linkages between the domestic and multinational sectors going forward should be further prioritised. That need not require a deep shift in strategic emphasis – since many of the policy reforms suggested in this analysis are conducive to improving the investment climate for domestic and foreign investors alike – but rather a reinforcement of efforts to proactively develop those interlinkages.

Sources: OECD (2022[9]); Ministry of Economy (2020[10]); Uvalic (2021[8]).

The economy introduced a broad range of new investor incentives. In addition to its existing suite of tax incentives, further economy-wide and sector-specific incentives have been introduced in recent years. In May 2021, the authorities introduced a decree11 that allows investors to participate in funding allocation for food industry projects aiming to increase productivity, the number of domestic suppliers, and the use of local raw materials. Funding starting at EUR 1 million was made available, with recipients required to contribute a minimum of 25% from non-state aid sources. Funding limits range from 50% for large companies to 70% for small ones, with restrictions on investments over EUR 50 million or EUR 100 million respectively, in line with EU-compliant state aid rules (Government of Serbia, 2021[11]).

In February 2022, to target higher value-added sectors the government introduced a decree12 under which funds can be assigned for investment projects focusing on automation and innovation, with a minimum investment threshold of EUR 5 million. Beneficiaries can receive 25% of eligible costs for investments in automation, and an additional 5% for either forming a supply chain or developing a new final product with a high degree of production complexity (Government of Serbia, 2022[12]). Finally, in December 2023, a new decree was introduced so that both domestic and foreign filmmakers could apply for a refund of 25% of qualifying costs. For film projects over EUR 5 million, the government offers a refund of up to 30% of qualifying costs (Government of Serbia, 2023[13]). The Council for Economic Development of Serbia,13 formed under the Law on Investments, is responsible for deciding on awarding investment incentives.

Sub-dimension 1.3: Mobilising sustainable investment

Although not dedicated to sustainable investment per se, the Industrial Policy Strategy of the Republic of Serbia 2021-30 nonetheless provides a reasonably solid strategic framework and governance for sustainable investment. It targets not only increased total volume of industrial investments, but also improved investment quality. Moreover, the strategy, as well as its implementation Action Plan for the 2021-23 period, included sustainability objectives relating to productivity and innovation, job quality and skills, and decarbonisation. Together, the overall strategy, its objectives and implementing measures can be interpreted as being broadly aligned with the approach of the OECD FDI Qualities Policy Toolkit, although more explicit incorporation of SDG-linked decarbonisation objectives could be foreseen, and there is scope to incorporate a gender equality axis. Nevertheless, Serbia upholds fundamental investment principles, including safeguarding investor rights, protecting intellectual property, and ensuring non-discrimination, especially in sectors aimed at attracting sustainable investments. These practices are integrated into either specific institutional operational structures or broader multi-sectoral frameworks.

Furthermore, domestic legislation reflects minimum international standards related to sustainable development connected to all four of the SDG-linked policy objectives under the OECD FDI Qualities Indicators (OECD, 2022[9]). Since 1 January 2021, the ESG criteria relating to FDI have been established by Article 37 of the Law on Accounting, while a mixture of mandatory and voluntary sustainability disclosure requirements is in place for both investors and businesses. The Law stipulates that all firms with more than 500 employees include these disclosures in non-financial reports.

There are currently financial and technical supports for sustainable investment in place relating to three of the four SDG-linked policy objectives under the OECD FDI Qualities Indicators framework, namely productivity and innovation, job quality and skills, and gender equality. The latter includes, for example, incentives aimed at female entrepreneurs. Through its export promotion activities, RAS supports SMEs attempting to enter global value chains. While it is common for financial support to be financed from domestic sources, technical supports are primarily donor-financed. Donor-funded supports typically target improvements in the investment climate, and address two of the four SDG-linked policy objectives, namely gender equality and productivity and innovation. Donor-funded supports are subject to monitoring and impact evaluation. Serbia has not yet conducted a comprehensive needs assessment to ascertain the scope and scale of additional financial and technical support that may be required to address the remaining market failures hampering sustainable development.

Overview of implementation of Competitiveness Outlook 2021 recommendations

Serbia’s progress in implementing the Competitiveness Outlook 2021 Recommendations has been mixed. Considerable advancements were observed in efforts to reinforce the IPR framework and boost enforcement, as well as in implementing reforms to the legal framework for investment. Moderate progress was achieved in streamlining the efficiency of the courts, with room for improvement remaining, especially in promoting alternative dispute resolution. The latter has seen little progress, as there is considerable scope for improving the take-up of mediation mechanisms (Table 2.2).

Table 2.2. Serbia’s progress on past recommendations for investment policy and promotion

Competitiveness Outlook 2021 recommendations	Progress status	Level of progress
Accelerate reforms to the legal and regulatory investment framework	There have been several economy-wide and sector-specific changes to improve the environment for business activities and attractiveness for inward investments, e.g., amendments to its Regulation on determining criteria for granting the incentives for attracting direct investments in 2019 and 2023.	Strong
Reinforce the independence, resources, and capacity of the courts, particularly for commercial disputes	Key constitutional amendments were adopted in February 2022 and the relevant implementing legislation in February 2023, aimed at enhancing the independence and accountability of the judiciary. Work got under way on a new case management system for the judiciary in September 2021, while a new human resources strategy was initiated in December 2021.	Moderate
Increase the take-up of mediation mechanisms	No evidence of progress under this recommendation.	None
Reinforce efforts to implement the IPR framework and strengthen enforcement bodies	Human resources had not kept pace with increased mandates, at least until 2022. However, the IP Office established a new unit in March 2023 to consolidate co-operation efforts and drive more proactive inclusion efforts with a view to improving the efficiency of IPR enforcement.	Strong
Reinforce IPR awareness-raising efforts	The IP Office has collaborated with institutions representing the economy’s innovation ecosystem to deliver awareness-raising events through its Education and Information Centre. In 2023, the IP Office organised 43 educational events, which gathered over 2 000 participants.	Strong
Continue to strengthen the capacity of RAS’s staff	Progress was limited in this respect.	Limited
Reinforce the investment facilitation role of RAS through better co-ordination with other government bodies and agencies	Progress was moderate with respect to reinforcing the RAS’s investment facilitation. Nevertheless, there have been modest advances in terms of facilitation more broadly, with online company registration having become mandatory as of 17 May 2023. Despite not being in the RAS’s direct remit, this will positively impact investment facilitation activities in the economy.	Moderate

The way forward for investment policy and promotion

Serbia has been remarkably successful in attracting FDI in recent years. With other economies in the region continuing to improve their own attractiveness as a destination for FDI, however, it will be important for Serbia to introduce timely and targeted reforms and policy adjustments. Indeed, several policy Recommendations from Competitiveness Outlook 2021 remain valid, due to limited progress in the intervening period. Priorities for reform should therefore include the following areas:

• Accelerate reforms to the legal and strategic investment framework. In order to retain its competitiveness as a leading destination for FDI, Serbia should continue to improve its legal framework for investment. Moreover, Serbia should prioritise finalising and adopting a comprehensive strategy for foreign direct investment attraction, which could provide essential guidance to the Council for Economic Development, the Ministry of Economy, and RAS, particularly in defining sectoral and geographic priorities, which are currently lacking.

• Increase the take-up of mediation mechanisms. While Serbia has developed mediation mechanisms that are aligned with EU standards, their use remains limited, preventing them from alleviating the pressure on the courts. Raising public awareness of alternative dispute mechanisms could represent a first step towards this goal. That would entail educating the public about the benefits and processes of mediation, thereby encouraging more parties to consider it as a viable option for resolving disputes outside of traditional court proceedings. Through such efforts, the legal system can reduce its caseload and allocate resources more efficiently while providing parties with a quicker and potentially more amicable resolution process (see Box 2.2).

Box 2.2. Raising awareness on mediation – EU Mediation Development Toolkit

Since 2006, the European Commission for the Efficiency of Justice Working Group on Mediation (CEPEJ-GT-MED) has been steadily developing guidelines and recommendations for developing mediation mechanisms.

In 2018, CEPEJ-GT-MED released the Mediation Development Toolkit, offering a structure for EU Member States and mediation stakeholders that is customisable according to their requirements and circumstances. One of the tools is dedicated specifically to raising awareness about the mediation mechanism, outlining the key steps to take to improve the take-up of alternative dispute resolution.

Despite the universal availability of mediation, as is the case in Serbia, a notable lack of awareness among the judiciary, legal professionals, users of the justice system and the general public can impede the take-up of mediation. The Toolkit outlines the following measures:

To improve awareness among court users:

• Adapt the local court forms to clearly state the availability of a mediation mechanism in the relevant proceedings. Parties may also be requested to mark a checkbox on the court form to express their preference for engaging in mediation.

• Introduce readily available promotional materials (leaflets, pamphlets, posters) to inform court users about mediation.

• Send information on the availability of proceedings through mediation via electronic channels directly to relevant parties.

• Establish a dedicated mediation centre or information point in the courts.

To improve awareness among the judiciary:

• Organise dedicated information sessions along with both initial and in-service training programmes.

• Arrange seminars with all judges within the courts and meetings between the judges and the respective mediators.

To improve awareness among lawyers:

• Encourage bar and lawyer associations to provide information on mediation for their members.

• Encourage lawyers to openly communicate the option of mediation to their clients and modify the court forms to incorporate a checkbox indicating whether they prefer that option.

To improve the awareness of the public:

• Organise promotion events, such as open days, to inform the public about available mediation mechanisms.

The guidelines are part of a management checklist for establishing a Court Mediation Pilot.

Source: European Commission for the Efficiency of Justice (2018[14]).

• Strengthen IPR enforcement. High caseloads and insufficient specialised training for judges restrict their capacity to handle IPR cases. Allocating sufficient resources to strengthen IPR enforcement to handle increasing caseloads and providing judges with comprehensive and specialised training to enhance their understanding of the complexities of intellectual property matters would contribute to improved protection of intellectual property rights and a business environment conducive to innovation. Where appropriate, increased use of alternative dispute settlement mechanisms like mediation can improve outcomes while reducing the caseload on commercial and other courts.

• Conduct a comprehensive needs assessment to ascertain the scope and scale of additional financial and technical supports that may be required to address remaining market failures hampering sustainable development. Such support should be subject to rigorous cost-benefit analysis, with the results made publicly available. The provision of such support forms should be transparent and subject to regular review, monitoring and evaluation. The extension of support should consider market maturity and be subject to parliamentary oversight.

• Further strengthen the presence of sustainability objectives in key policy documents. There is scope for more explicit integration of decarbonisation objectives in crosscutting policy documents (Action Plan covering the 2024-26 period, implementing the Industrial Policy Strategy of the Republic of Serbia from 2021 to 2030). Moreover, the scope should be explored to incorporate a gender equality axis in line with the national Gender Equality Strategy, which also covers the 2021-30 period.

References

[7] CEPEJ (2022), Towards a Better Evaluation of the Results of Judicial Reform Efforts in the Western Balkans – Phase II “Dashboard Western Balkans II”, https://rm.coe.int/20230721-wb-dashboard-deliverable-1/1680ad53aa.

[6] European Commission (2023), Serbia 2023 Report, https://neighbourhood-enlargement.ec.europa.eu/system/files/2023-11/SWD_2023_695_Serbia.pdf.

[14] European Commission for the Efficiency of Justice (2018), Mediation Development Toolkit, https://rm.coe.int/mediation-development-toolkit-ensuring-implementation-of-the-cepej-gui/16808c3f52.

[13] Government of Serbia (2023), Regulations on Investor Incentives for the Production of Audiovisual Works in the Republic of Serbia – 2024, https://www.fcs.rs/en/industry-guide/film-incentives/.

[12] Government of Serbia (2022), Decree on Defining Conditions for Approving Incentives in Attracting Direct Investments in the Automation of Existing Capacities and Innovation, https://ras.gov.rs/uploads/2023/06/regulation-automation-and-innovations-18-22.pdf.

[11] Government of Serbia (2021), Decree Determining the Criteria for Granting Incentives in order to Attract Direct Investments in the Automation of Existing Capacities in the Field of Food Industry, https://faolex.fao.org/docs/pdf/srb203036.pdf.

[10] Ministry of Economy (2020), Industrial Policy Strategy 2021-2030, https://privreda.gov.rs/sites/default/files/documents/2021-08/Industrial-Policy-Strategy-2021-2030.pdf.

[1] National Bank of Serbia (2024), Macroeconomic Developments in Serbia, https://www.nbs.rs/export/sites/NBS_site/documents-eng/finansijska-stabilnost/presentation_invest.pdf.

[4] National Bank of Serbia (2023), Balance of Payments Data, https://www.nbs.rs/en/drugi-nivo-navigacije/statistika/platni_bilans/ (accessed on 23 January 2024).

[9] OECD (2022), FDI Qualities Policy Toolkit, https://www.oecd-ilibrary.org/sites/7ba74100-en/index.html?itemId=/content/publication/7ba74100-en.

[5] OECD (2020), FDI Regulatory Restrictiveness Index (database), http://www.oecd.org/investment/fdiindex.htm (accessed on 17 January 2024).

[3] UNCTAD (2023), UNCTADstat, https://unctadstat.unctad.org/wds/.

[8] Uvalic, M. (2021), Industrial Policy in Serbia: Towards major reliance on internal sources of growth, https://library.fes.de/pdf-files/bueros/belgrad/18411.pdf.

[2] World Bank (2023), World Development Indicators, https://databank.worldbank.org/source/world-development-indicators (accessed on 24 January 2024).

Notes

← 1.  Notably, following the 2023 amendments, a number of criteria have been added with respect to the expert analysis of an investment project, namely consideration of i) the effect of the investment on production capacities, export structure and value added in the processing industry; ii) the effect of low environmental impact production equipment and technologies on sustainability and performance; and iii) the effect of low environmental impact production equipment and technologies on the attraction for and training or retraining of the workforce.

← 2.  Serbian Ministry of Construction, Transport & Infrastructure: www.mgsi.gov.rs/en/odsek/law-planning-and-construction.

← 3.  Namely, the Law on Organization of Courts, the Law on Judges, the Law on the High Judicial Council, the Law on Public Prosecution, and the Law on the High Prosecutorial Council.

← 4.  In 2021, the Law on Protection of Trade Secrets was introduced to harmonise national legislation with the EU Directive 2016/943 on the protection of undisclosed knowledge and experience and business information from illegal acquisition, use and disclosure. The Law on Patents was also amended in 2021 with the aim of harmonising with EU Regulation No. 2019/933 of the European Parliament concerning the supplementary protection certificate for medicinal products. The Law on Trademarks was adopted and entered in force on 1 February 2020.

← 5.  The new Copyright and Related Rights Law aims to achieve complete compliance with the EU acquis regarding collective rights management and orphan works.

← 6.  Digital Single Market Directive: https://eur-lex.europa.eu/eli/dir/2019/790/oj.

← 7.  Directive (EU) 2019/789 on the exercise of copyright and related rights applicable to certain online transmissions of broadcasting organisations and retransmissions of television and radio programmes: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.L_.2019.130.01.0082.01.ENG.

← 8.  The Commercial Court in Belgrade, the Commercial Court of Appeal, and the Higher Court of Appeal in Belgrade.

← 9.  Sector for Investments.

← 10.  As part of its digitalisation project, the Business Registers Agency (BRA) has allowed electronic registration for entrepreneurs since 1 January 2018. Amendments to the Law on the Registration Procedure in 2021 obliged the agency to accept applications for the establishment of new businesses in electronic form, which is in line with Serbia’s e-Government Development Programme (2020-22). From 17 May 2023, the BRA would no longer accept paper applications for business registration.

← 11.  Decree on Defining Conditions for Approving Incentives in Attracting Direct Investments in the Automation of Existing Capacities in the Food Processing Industry.

← 12.  Decree on Defining Conditions for Approving Incentives in Attracting Direct Investments in the Automation of Existing Capacities and Innovation.

← 13.  Comprising key government officials, including Ministers of Economy, Finance, and Labour as well as the President of the Chamber of Commerce, the Council has been operational since 2015.