https://unilib.phaidrabg.rs/o:4772 INOVAEDUCATION 2017 vol. 1 br. 1 str. 135-153 info:eu-repo/semantics/article http://creativecommons.org/licenses/by/4.0/legalcode 2017 Key words: innovation, competitiveness, corruption THE EFFECTS OF CORRUPTION ON INNOVATION AND COMPETITIVENESS THE CASE OF SEE COUNTRIES Ignjatijević, Svetlana Buturac, Goran eng application/pdf 459482 bytes Abstract: The paper deals with the analysis of interdependence between innovation, corruption and global competitiveness in the selected countries in transition. In addition to gaining new knowledge on the competitive position of individual countries in the observed sample, the aim of the paper is to identify the key areas where reforms for raising the level of innovation and competitiveness are needed in the analyzed countries. The research included the following countries: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Hungary, Macedonia, Montenegro, Romania, Slovenia and Serbia from 2007 to 2016. The examination of the direction and strength of the association was conducted by using Pearson linear correlation coefficient. The results indicate that corruption perception, innovation and competitiveness were in decline during the initial years of transition. Afterwards, there was an improvement in the observed indicators with the growth of openness and the degree of integration of these countries into institutionally and economically more developed Western Europe countries. Although the impact of corruption on innovation and competitiveness is of a different intensity among the countries, the results of the analysis confirm the expectations that the continued growth and openness and economic integrations could result in the reduction of corruption, increase in innovation and competitiveness, as well as in the convergence of the strength of interdependence of these variables among the countries.