Montenegro and other Western Balkan countries are characterized by historical mortgages, political instability, commenced but uncompleted structural reforms and unfavourable economic situation, which all contributed to their lagging behind other EU member states. In addition to this, these countries have been faced with a low level of investment in research and development, unfavourable educational structure, low level of innovation and a lack of awareness about the importance of research and development in modern economies.
The economic and political situation led to their determination to become a full EU member, which requires the fulfilment of specified criteria, implementation of structural reforms and “catching up” with other EU member states. Investment into research and development are found to be the key factor for fulfilling their objective – EU membership.
The global economic crisis has affected the whole world, including Serbia. Countries with different degrees of development reacted with different measures of economic policy, both monetary as well as fiscal. Economic authorities in Serbia have encountered certain limiting factors in the selection of measures, first of all taking into account the unfinished transition process. This paper will examine whether the applied monetary and fiscal policy in Serbia is adequate according to the position which Serbia occupies by the Mundell-Fleming model, as well as to identify the starting position for future economic policy measures.
Deindustrialization is a dynamic process that began to attract the attention of economic theorists in the 60s of the 20th century, which is characterized by a reduction in the share of the industrial sector in GDP and employment. A descriptive analysis of the deindustrialization process in Montenegro was carried out. It was established that throughout the observed period, the process of deindustrialization in Montenegro has characteristics present in developed countries. However, a deeper analysis and taking into account the key indicators showed that deindustrialization in Montenegro did not just arise as a sole consequence of positive economic trends. In addition, the entire process took place under the influence of various non-economic indicators. Moreover, the global economic crisis had a significant economic impact on Montenegro's industrial sector. In the process of accession to the EU and in addressing global challenges, the country's industrial sector, in line with key development strategies, is heading towards reindustrialization, i.e. development and progress under changing conditions.
The industrial sector of the Republic of Croatia is subject to deindustrialization, which was globally recognized as early as in the 1960s. Such a situation is a challenge in terms of implementing new sources of economic growth and industrial production, with a particular emphasis on investing in research and development, education and their products. Since 2011, special emphasis has been placed on the need to implement the concept of Industry 4.0. The problem surveyed in this research derives from insufficient readiness of the Republic of Croatia to implement Industry 4.0, mainly resulting from its major orientation towards traditional industrial sectors and a low share of high value added activities, which is particularly visible through the share of high technology products in total exports. However, the Republic of Croatia is characterized by low levels of scientific research and innovative activities, which greatly slows down this process. The aim of the conducted research is to present the theoretical aspects of the process of deindustrialization and Industry 4.0, to make projections of the key indicators of deindustrialization and Industry 4.0 until 2025, and to propose scientifically based measures to be taken in the direction of securing digital transformation of the Croatian industry. The purpose of the conducted research is to analyse trends in the industrial sector in the Republic of Croatia and to determine the current state of the (de)industrialization process and the level of implementation of Industry 4.0.
The research has showed that the process of deindustrialization in the Republic of Croatia is characterized by a reduction in the share of employment in the primary sector, by a growing employment in the secondary sector, and by a relative increase in industrial production and labour productivity. However, since 2015 there has been an increase in employment in the secondary sector, which is in contrast to the theoretical concepts of deindustrialization and indicates a new trend in the industrial sector. This situation is a challenge concerning the implementation of Industry 4.0, which requires increased investment in research and development and the improvement of knowledge and the ability of the population and their implementation in the economic sector. By analysing this segment of the Croatian economy, some progress has been made. Also, it has also been found that in some segments it significantly lags behind the EU levels.