Authored article by Dr Saša Lazović

SCIENCE AND INNOVATION: THE STRENGTH OF A NATION

Dr. Saša Lazović, Managing Director of the Innovation Fund of Serbia

In the dynamic circle of global change, Serbia has strategically oriented its development policy toward knowledge and innovation. We have built a resilient innovation ecosystem based on research, technological and entrepreneurial potential, as well as on a long-term vision, guided by the belief that education, science, and innovation are the foundations of stability and growth. At the center of this system are young researchers, engineers, and entrepreneurs who are building a growing segment of the national economy and whose innovative solutions are demonstrating their value on the global stage.

When we speak about long-term development, the question is no longer whether to invest in innovation, but how to do so consistently, systematically, and with confidence in our potential. In Serbia, this process began more than a decade ago with the establishment of the Innovation Fund, an institution founded by law, which today represents the central infrastructure for supporting innovation, from research to market. Instead of occasional incentives, a stable and transparent structure has been established. The Fund's strategy has strengthened the position of innovation as a state priority and a driver of economic development. Because the state fosters innovation, and innovation in turn empowers the state.

From the very beginning, with the support of the Government of the Republic of Serbia, the Ministry of Science, Technological Development and Innovation, the European Union and the World Bank, the Fund has demonstrated that Serbia creates innovation. By combining financial support, mentorship, education, and access to investors, the Fund has become a reliable partner to both the private and academic sectors, particularly to young teams and startups on the path from idea to realization. Its impact is best measured through tangible results. Since 2011, the Fund has invested over EUR 120 million to support upwards of 900 innovative projects and has awarded over 1,250 innovation vouchers. This support has resulted in the development of over 680 new products and services, many already introduced to the market. Revenues have surpassed EUR 100 million, and one in five supported startups has managed to attract additional investment. This stable partnership, built on trust, continues to shape a forward-looking innovation ecosystem. More than half of the total budget originates from national sources, reinforced by substantial support from the European Union and the World Bank.

In the startup ecosystem, every step is burdened with barriers, from the very first euro to market entry. This is why the Fund’s programs do not remove challenges, but transform them into steps toward growth. Young teams with an idea, but lacking experience, capital, or access to support networks, now have the opportunity, thanks to the Fund’s programs, to build their first prototype, validate their business model and compete on a global level.

That is why the Fund’s support is carefully designed to follow the entire innovation development cycle. From the Smart Start program, aimed at the earliest-stage ideas still taking shape, to Katapult, Serbia’s first accelerator that helps startups enter the market well-prepared and connected with investors, and Serbia Ventures, which is creating the country’s first domestic venture capital funds and accelerating its investment into high-potential startups. In addition, there are dedicated programs like GovTech, which enables innovative solutions to be applied in the public sector, and the newest one, Katalitik, focused on those developing artificial intelligence-based solutions. Each of these programs responds to real needs and represents a step forward toward a mature, resilient, and globally connected startup ecosystem. Every new innovative company brings not only revenues and technologies, but also creates jobs, supports the digital transformation of both the public and private sectors, boosts exports, and gives young people a reason to stay and build their future in Serbia.

That this journey is not just a vision but a reality is demonstrated by the Serbian fintech startup Relio. The team from Belgrade behind this solution successfully entered the highly demanding Swiss market with their technology for automated compliance assessment (anti-money laundering, AML) and raised over EUR 3 million in investment. Today, Relio works with clients across Europe, proving that innovations developed in Serbia can address global challenges.

However, at the core of every innovation lies curiosity, and at the foundation of every discovery stands scientific research, because science is the very ground on which both education and innovation are built. This is why the Fund’s programs also provide support to research institutions, helping them move from the laboratory to real-world application, so that technologies emerging from academic environments can realize their value in industry and society. When scientific knowledge is integrated with an entrepreneurial spirit and institutional support, science becomes a catalyst for a much broader transformation into a knowledge-based economy. From technology transfer to collaboration with the private sector, research institutions in Serbia today have the opportunity, with the support of the Fund, to move beyond the academic sphere and become active contributors to innovation-driven development.

As global investment trends in innovation increasingly rely on the connection between the state, science and entrepreneurship, Serbia is building its own model, shaped by its specific needs but guided by the same ambition and vision to ensure that the ideas of young researchers and entrepreneurs do not remain at the starting point but are given a genuine opportunity to grow. The most successful innovation systems demonstrate that it is not the size of the economy or the number of startups that makes the difference, but vision, determination and confidence in one’s own potential.

For example, Finland, a country with a smaller population than Serbia, made a global breakthrough precisely when national policy connected scientific knowledge with startup culture. The result is the now-famous Slush, an event that began as a student initiative and has become one of the world’s largest innovation conferences. In the Netherlands, one of the most innovative countries in the EU, the system is designed to enable continuous collaboration between universities, industry and the state. Innovation clusters such as the Brainport Eindhoven region demonstrate how joint efforts in research and prototyping can lead directly to market success. South Korea, meanwhile, has shown that one does not need to be large in territory to be great in ideas. Its transition from an industrial to an innovation-driven economy is based on long-term investment in research and education. Today, Seoul is considered one of the most dynamic startup hubs in the world, just as Belgrade and Novi Sad are establishing themselves on Europe’s innovation map.

It is therefore no surprise that Serbia is a leader in the region and increasingly visible on the global innovation map. The programs of the Innovation Fund have been recognized as a model of good practice in the region, and our approach to supporting startups and researchers is increasingly featured in international panels and studies. The trust built by young teams, domestic and foreign investors, as well as scientific institutions, is a clear signal that we as a society have developed a culture of innovation in which the value of what may initially appear as a risk is recognized as an opportunity.

The world is here, and so are we - with our knowledge, talent and perseverance. And when that potential receives clear and structured support, the result is not just a new technology or product, but a stronger, smarter and more innovative Serbia.

About the Author: Dr. Saša Lazović is Managing Director of the Innovation Fund and a Research Professor at the Institute of Physics Belgrade. From 2018 to 2022, he served as Assistant Minister in the ministry responsible for science, technological development, and innovation, where he led key administrative reforms. He is the founder of the Innovation Center of the Institute of Physics Belgrade, the Laboratory for Biomimetics, and served as Deputy Director of the Institute. Dr. Lazović earned his PhD in Physics from the University of Belgrade and received advanced research training in Europe and Asia. He is the author of over 30 scientific papers and a co-author of the publication "Science and Innovation in Serbia" (2024).