Information and communication technologies as a driver of the digital economy

Domazet, Ivana and Lazić, Milena (2017) Information and communication technologies as a driver of the digital economy. In: XXII International Scientific Conference Strategic Management and Decision Support Systems in Strategic Management: proceedings. Ekonomski fakultet, Subotica, pp. 11-19. ISBN 978-86-7233-362-6

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Abstract

One of the major challenges for policymakers in Serbia is to improve the competitiveness of the Serbian economy. Universally applicable solution to this problem does not exist, but there are certain segments which can be a significant driver of improving the effectiveness and productivity of the economy by implementing diverse possibilities offered by the digital economy. A critical factor in the development of digital economy is the sector of information and communication technology (ICT), which has the potential to extremely improve the competitiveness of Serbia and start production towards modern business processes, but also contribute to a notable synergistic effect in terms of the competitiveness of micro-enterprises. Accordingly, the aim of this paper is to highlight the importance of information and communication technologies (ICT) as a factor for competitiveness and development of the digital economy, to analyze the application of ICT in the economy of Serbia, to highlight the benefits of development and acceptance of new solutions in the field of ICT, to create recommendations that would contribute to improving the business environment in the ICT field, and consequently of the digital economy as a whole. The Lisbon Strategy, as one of the most important strategic documents that provides guidelines for improving the competitiveness of the EU countries, indicates that strengthening the competitiveness of the EU is based, inter alia, on the efficient use of new information technologies and the creation of common area for innovation and the digital economy. Serbian economy, being underdeveloped and yet transitional economy, requires modern ICT solutions. Only significant investment in the ICT sector and the development of ICT can encourage creation of a strong economy based on knowledge and information technologies. With that regard, the aim of this paper based on the analysis of the degree of development of ICT in Serbia, is to create guidelines and give recommendations on how to improve the business environment and intensify the development of ICT in Serbia. The methodology used in this paper is based on the analysis of the indicator of Innovativeness and application of new technologies index by the World Economic Forum and empirical research on the degree of implementation of new technologies in enterprises Serbia. The survey was conducted in the period January-March 2017 and the survey sample consisted of 87 Serbian companies, classified as medium and large businesses. The survey results indicate a low level of information and communication development in enterprises in Serbia in the field of implementation of modern ICT, as confirmed by the evaluation of the World Economic Forum on the competitiveness of Serbia in the segment of sophistication of business processes and, consequently, innovation in business. ICT development is a necessary precondition for the economy based on the implementation of new technologies and the relatively low level of ICT development in Serbia should not be seen as a constraint, but rather as an opportunity for further improvement. In order to take advantage of the ICT potential, it is necessary to increase investment in this highly productive sector and encourage the production and sale of domestic ICT products, either through tax reliefs to companies from the ICT sector, either through various forms of subsidies when purchasing domestic ICT products. In addition, it is crucial to impose appropriate educational policies, such as to increase the enrollment quotas for students of electrical, mechanical, technological and other related orientation relevant to the development of ICT.

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