Exploring the Interrelationship between Scientific Knowledge and Economic Growth in Serbia: Empirical Insights

The primary objective of this study is to examine the nature of the relationship between the production of scientific knowledge and economic growth in Serbia during the period 1996-2022. For this purpose, the Vector Autoregression approach, along with the impulse response function and forecast error variance decomposition, was employed. Results suggest an impact of economic growth on the production of scientific knowledge, while no impact in the opposite direction is detected. The Serbian government should persist in investing in science and work closely with the scientific community to overcome barriers to scientific knowledge's full contribution to economic prosperity.