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Abstract.

In the conditions of a dynamic business environment and a constant struggle for survival in the market, innovation becomes the basic factor of the growth and development of an enterprise. Namely, it always leads to new solutions, new ideas, and new ways of doing business. The basic competitive advantage of each modern enterprise is reflected in its ability to innovate its own business. Generally, an innovation of an enterprise results in an advantage over the competition, while the resulting competitive advantage results in an increase in profit, which is the main goal of every modern enterprise. A key precondition for the survival of each enterprise is the continuous improvement of competitiveness, that is, the investment in innovation of products and services. The aim of the paper is to point out the importance of innovations in the business of modern organizations. Innovationbased operations play a key role in fostering prosperity, creating and sustaining competitive advantage. A key aspect of an effective and efficient organization is the active participation of each organizational unit in the innovation process. Innovations are not just the responsibility of research and development, marketing and production units, but involve simultaneous engagement of all functional areas within the enterprise.

PPP offers numerous benefits to both public and private partners in delivery of infrastructure projects. However this partnership also involves great risks which have to be adequately managed and mitigated. Private partners are especially sensitive to revenue risk, since they are mostly interested in the financial viability of the project. Thus they often expect public partners to provide some kind of risk-sharing mechanism in the form of Minimum Revenue Guarantees or abandonment options. The objective of this paper is to investigate whether the real option of abandoning the project increases its value. Therefore the binominal option pricing model and risk-neutral probability approach have been implemented to price the European and American abandonment options for the Build-Operate-Transfer (BOT) toll road investment. The obtained results suggest that the project value with the American abandonment option is greater than with the European abandonment option, hence implying that American options offer greater flexibility and are more valuable for private partners. [Projekat Ministarstva nauke Republike Srbije, br. 179066 and III 42006]

The effectiveness of fiscal and monetary policy has been the center of debate between Keynesians and the monetarists for a long time. However, the results of numerous empirical studies are inconclusive, suggesting that none of the policies can be thought of as superior to the other and their relative effectiveness in any economy depends on the prevailing economic and political conditions at any point in time. In order to determine the influence of fiscal and monetary policy on the economic activity in Serbia, we employed unit root and cointegration tests, as well as the regression analysis on the series of quarterly data for the period 2003-2012. The results obtained show that monetary policy is more effective in stimulating economic growth comparing to fiscal policy. Hence, the overall conclusion is that government should pay more attention to the fiscal policy to improve its efficiency in the future