Modelling the Composite Competitiveness Index of the Knowledge-based Society

Abstract

In the era of globalization of world markets, movement of the European Union toward the knowledge-based society, and Serbia's EU accession process, competition has become one of the most important characteristics of successful development and achievement of these objectives. The existing competitiveness indices are discussed in this study, and it has been found that they do not reflect the position of transition countries and Serbia appropriately. A great impact of the quality indicators on Serbian ranking was determined based on the analysis of the existing studies. A new, original index is therefore proposed - the Competitiveness Index of the Knowledge-Based Society. The index is applied to 18 territorial units, including the EU and the Western Balkan countries, Serbia, and Vojvodina as a European region. The new model set out in this article provides a more realistic and objective picture of the state of Serbia and the Western Balkans as regards the competitiveness of knowledge. In other words, the new competitiveness model of knowledge-based society provides a better monitoring of the development of the Republic of Serbia and the Western Balkans on their way towards development of knowledge society. The results are analyzed and discussed.