Inovation policy of industry business entities as a factor of sustainable development in transitional environment

Innovations hold a primary role in today' Abstract s model of economic growth and are considered an important factor of sustainable development. With that aim in mind, it is necessary to define adequate innovation policy, as well as the development of inovation incentive environment, which needs to be strengthened both at macro level and the business entities level. The basic aim of this research is the analysis of the impact of innovation policy of the Serbian industry business entities as a factor of sustainable development in transitional environment. The starting hypothesis is that the largest number of Serbian business entities does not base their competitiveness on innovation development, as is common in developed countries. The paper summarises what industry business entities in Serbia need to do in order to be more numerous and more efficient. The paper consists of theoretical research that was realised in accordance with the techniques of the methodology of scientific research.