Sandra Jednak

The Influence of the Knowledge-Based Economy on the Competitiveness of European Economies and Businesses

Certain globalization trends exist that countries must adapt to if they want to survive and stay competitive. One of the trends is the transformation process of a traditional economy towards the activities and sectors based on knowledge. The competitiveness of European economies is improved by the implementation of various economic measures. Market globalization and information and communication technologies significantly influence the creation of many possibilities, but also challenges and risks. Information and communication technologies and knowledge have become important factors in economic changes. They also have become a part of the social and economic structures and development in every country. Economic activities have risen in sectors that intensively use knowledge and technology, thus increasing productivity and employment.

The effects of economic activities diversification on development: The perspective of Serbia

Each economy specializes in certain economic activities depending on the development level and availability of resources. During their development, countries undergo sectoral transformation. In order to achieve a higher level of economic development, it is necessary for a country to diversify its economic activities and determine which economic activities should be invested in. The aim of this paper is to analyse the effects of economic structure and diversification activities on the development of Serbia for the period 2007-2012. Optimization model has been used to present diversification of activities. Furthermore, the efficiency frontier is used to show returns, risks and correlation among activities. The results show that the economic activities - Mining and quarrying, Public administration and defence, Compulsory social security, Other service activities, Financial and insurance activities, Arts, entertainment and recreation should be drivers of economic growth, because they provide a balance between growth and security regarding GVA in economic activities.