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Today, in the era of knowledge economy a competitive advantage is based on technological development and innovation, as well as the exploitation of potential opportunities and possibilities for whose implementation knowledge is necessary. Constant investment in human capital increases productivity, employment and receives a direct source of innovation and long-term competitiveness. Human resources and their knowledge are the key to success for the economy and businesses, while incompetent workforce is one of the most important brake in their business. Development of competition in the domestic and international market, it became imperative for the development of a modern economy. In fact, knowledge is the capitalization of innovation through the creation of new products, services, processes, or labels, but that has no value and significance, if is not commercialized in the market. The aim of this paper is to show the level of competitiveness of the Serbian economy, measurable changes that occur in this direction and degree of easiness of doing business in Serbia, which should contribute to an increase in labor productivity

Technological development and knowledge as a source of increasing competitive advantage in Serbia