Rural areas and development 13 (2016) Branko Mihailović Institute of Agricultural Economics, Belgrade, Serbia,
[email protected] Drago Cvijanović Faculty of Hotel Management and Tourism – Vrnjci Spa, University of Kragujevac, Serbia,
[email protected] Transfer of Knowledge and Innovation as a Model of Rural Development of Smederevo Region in Serbia Abstract: Many factors affect low investments in Smederevo and among them, above all, are: high commercial and non-commercial risks, tardy economic transition and underdeve- loped institutions, which guarantee in practice the rights deriving from the private property and contracts. Rural development in Smederevo requires that sources of competitiveness move toward high education, the efficient market and capability to earn on the existing technologies, i.e. the focus of agriculture should be moved from physical resources to know- ledge, especially since agricultural enterprises in Smederevo have non-profitable business performances, which manifest through decline in the market share and profitability, increase in indebtedness, inadequate investments and the increased volume of new business ventures at the expense of the primary business. It is noticeable that the adequate entrepreneurial skills and the innovated managerial abilities and skills are necessary. Accordingly, exactly the development of innovation and transfer of innovative knowledge and technologies from the academic to agricultural sector are the most important form of activities, which stimu- late development. In that sense, it is necessary to stimulate the common work of universi- ties, research institutions and agriculture as well as to use the equipment and knowledge of everybody at universities and institutes by the companies and vice versa and the student projects and practice.