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This Law shall regulate the goals and organization of the application of scientific knowledge, technical and technological knowledge and inventions in the function of improving products, processes and services as a driver of development of the Republic of Serbia, and in particular:

1) subjects of the national innovation system;

2) organization and competencies of the Innovation Fund;

3) financing of innovation activities and economic incentive measures;

4) register of subjects of the national innovation system.

Certain terms used in this Law shall have the following meanings:

1) national innovation system shall be a set of organizations, institutions, subjects of the national innovation system and their connections in the function of the development of innovation activity in the Republic of Serbia;

2) innovation activity shall imply the development activities undertaken for the purpose of creating new products, technologies, processes and services or significant changes to existing ones, in accordance with the market needs;

3) innovation shall be the application of a new or significantly improved product, process or service with the aim of creating new added value, and as such may be product innovation, process innovation, organizational innovation or marketing innovation;

4) product innovation shall imply the application of a new or significantly improved product, which is new for a legal or natural person (does not have to be new to the market), and is not a change of aesthetic nature or exclusively sale of innovated products produced and developed by another legal entity;

5) process innovation shall imply the application of a new or significantly improved method of production or delivery (including significant changes in technology, equipment or software, but not exclusively organizational and managerial changes) that is new or improved for the observed legal or natural person, regardless of who developed;

6) innovation of the organization shall imply the application of new or significant changes in the structure or methods of management, with the intention to improve the use of knowledge, quality of products or services, or increase the efficiency of business flows;

7) marketing innovation shall imply the application of a new marketing method, including significant changes in product design, packaging, marketing and product promotion and product charging;

8) innovation project shall be a set of activities by which the innovation is developed, i.e. placed on the market or put into use;

9) subject of the national innovation system shall be an innovative entity, a subject of innovation infrastructure, as well as an investor in innovation activity;

10) innovative subject shall be a company, other legal entity, part of a legal entity, entrepreneur, natural person or a set of natural persons ("start-up team") developing innovations, i.e. places its own or other people's innovations on the market or in use;

11) subjects of innovation infrastructure shall be the legal entities that provide professional subjects with professional, administrative, logistical and other support to develop, put into use and place their innovation on the market, and whose key role is to create an environment for cooperation between science and economy;

12) innovation activity investor shall be a legal or natural person who invests financial resources into innovative entities and/or into entities of innovation infrastructure;

13) business angel shall be an investor in an innovation activity who invests financial resources in a start-up.

Innovation policies shall include setting goals and providing systemic conditions for the creation, development and implementation of innovations.

Innovation policies shall be contained in public policy documents determined by the Government in accordance with the law governing the planning system of the Republic of Serbia.

The public policy documents referred to in paragraph 2 of this Article shall be proposed to the Government by the Ministry in charge of scientific research, technological development and innovation system (hereinafter: the Ministry).