DIGITAL TRANSFORMATION AND INDUSTRIAL COMPETITIVENESS OF SERBIA IN COMPARISON TO THE EUROPEAN UNION

Abstract

In the scientific study, we attempt to examine Serbia's industrial competitiveness and digital transformation processes in relation to the European Union (EU). An empirical combined methodological approach was employed. The quick blending of quantitative and qualitative understanding of economic processes was indicative of this tendency. Data sets from the EU Digital Economy and Society Index (DESI) 2024, as well as development indicators from the World Bank, Eurostat, and the Statistical Office of the Republic of Serbia, all represented the quantitative component. The findings show that while there has been some progress in the digitalization of electronic administration and widespread improvement of internet infrastructure, there has been a decrease in the population's use of digital platforms, a decrease in their capacity for innovation, and an incomplete digitization of small and medium-sized businesses when compared to EU countries. According to empirical data, Serbia's digital alignment and competitiveness lag behind those of the EU. The study indicates that increased integration with EU digital policy, increased investments in educational innovation sectors, and increased coordination between the public, corporate, and academic sectors are all necessary. The ideas include boosting the industrial sector's and the general public's digital literacy process, encouraging more research and entrepreneurial endeavors, and facilitating more effective access to high-speed Internet in a wider context. The results, which indicate that Serbia's DESI index equivalent is still approximately 30% below the EU average, highlight the need for more effective harmonization in Serbia.