TAX AND INNOVATION POLICY OF GREEN TECHNOLOGIES IN THE CONTEMPORARY SYSTEM OF THE REPUBLIC OF SERBIA

Abstract

The author of this paper examines the tax and innovation policy for green technologies within the modern system of the Republic of Serbia, as part of a broader strategy for transitioning to sustainable development and a green economy. Through tax incentives, research and development support, and subsidies for innovative projects, the state seeks to encourage investments in green technologies, energy efficiency, and renewable energy sources. Key documents such as the Smart Specialization Strategy, the Integrated National Energy and Climate Plan, and the Green Agenda for the Western Balkans provide the strategic framework for this policy. There are various tax incentives, including benefits for startups and companies investing in research and development, but their implementation remains limited. The innovation ecosystem, supported by the Innovation Fund and science and technology parks, is increasingly incorporating projects in the field of green transition. However, obstacles such as bureaucracy, insufficient awareness, and limited financial capacity slow down broader implementation. To improve green technology policy, it is recommended to introduce additional tax incentives, enhance coordination between the public and private sectors, and align with EU climate and fiscal standards. Overall, while there have been positive developments, Serbia’s tax and innovation policy in the area of green technologies requires further modernization, greater efficiency, and a more strategic approach.