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Objectives of this paper are exploration of the challenges of use of methodology for creation of smart specialization strategy (S3) in Serbia. S3 is focused on use of knowledge for economic development. Major challenges of implementation of S3 in Serbia are weak links between R&D sector and economy, and undeveloped culture of dialogue for adoption and realization of S3 priorities. In this paper are presented key challenges authors of S3 in Serbia are faced with in very first trial of introduction of S3 methodology in country. Paper is organized in four main parts. First part is (critical) description of the main concepts of methodology for creation of S3. The concept of S3 is a tool for realization of the strategy of the European development through "integrated industrial policy for the globalization era" and "Innovation Union". Second part will present implication of implementation of S3 in Serbia, i.e. conditions for use of one theoretical concept in reality of economy and society in Serbia. Third part is discussion of results of implementation of S3 in Serbia achieved so far (process is not finished at the moment of writing of this article, mid 2018), analysing challenges between proposed methodology and real situation in country. Fourth part is addressed to further steps in implementation of S3 in Serbia, with particular attention to the aspects of dialogue which should be organized between involved stakeholders in order to achieve consensus for adoption and realization of S3 priorities in Serbia.
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