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Knowledge, that is the obtained knowledge level of a certain community, its capacity to develop innovations, to adopt modern scientific and technological achievements, in other words, its capacity to create a new knowledge, which leads to further prosperity and development, is in the basis of competitiveness. Emphasizing knowledge and innovations as the main resources of developebment and relying on them in creating the competitiveness index surely leads to quality display of competitive capacities of a certain society which is the basis of this paper. Today, the Republic of Serbia is a candidate country for the EU membership and it is at an economic and social turning point, which brings the new challenges and chances. Just as it does for every European country, the European Union represents a basis for stable development and improvement of national competitiveness for Serbia.

Knowledge economy as a factor of competitiveness of the Republic of Serbia on a way to the the European Union