The Impact of Innovation and Knowledge Management on Enterprises’ Revenues in Serbia

Purpose: The purpose of this paper is to show the importance of knowledge management and innovation for the performance of enterprises in Serbia, and especially for increasing their revenues. Design/Methodology/Approach: In order to determine the extent to which innovations are present in companies in Serbia and whether they are important for the performance of companies (and especially for their revenues) secondary data sources from various national and international bodies and organizations have been used. For that purpose, first the number and size of enterprises in Serbia, then the share of innovative enterprises in the total number of enterprises, and finally the share of innovation revenues in the total revenues of innovative enterprises are determined. Findings: Innovation and knowledge management are of great importance for the revenues of companies in Serbia, regardless of their size and activity. Recognizing that importance, companies in Serbia in recent few years have increased their innovative activity. That progress can be seen from the data of the European Innovation Scoreboard - EIS. Practical Implications: This paper has proved the importance of innovation and knowledge management for corporate performance and can positively influence companies to increase their innovative activities in order to achieve greater performance and thus contribute to economic development in the country in which they operate. Originality/Value: This paper has proved the importance of innovation and knowledge management for the performance of companies in Serbia (and especially for increasing their revenues).