o:2376 OPEN INNOVATION IN SMALL AND MEDIUM-SIZED ENTERPRISES en The subject of this paper is the so-called open innovation model and its importance for the development of small and medium-sized enterprises ( in further paper SMEs). The importance of the open innovation model for the development of SMEs, as well as identifying the major obstacles that stand in the way of wider application of this model in SMEs, is the aim of this research. The study used a variety of methods, such as induction and deduction, analysis and synthesis, as well as the method of description. SMEs are the driving force of economic development of the state, since they employ the largest part of the working-age population, significantly influence the formation of gross domestic product, solve the unemployment problem, raise the standard of living and strengthen the country’s international competitive position through export business. By facilitating the process of intensive exchange of knowledge, tools and technology among certain economic actors, the concept of open innovation has contributed to improving the innovation of the SMEs sector as a key driver of the growth of their competitiveness in the knowledge economy. Innovation is a powerful tool for new SMEs to successfully enter the market and change the existing situation, enabling existing companies to maintain or improve their position on the market by improving their innovation. Ekonomika, vol. 65, br. 3, pp. 89-101 innovations, small and medium enterprises, open innovation model. 1552099 10.5937/ekonomika1903089J 2024-03-07T14:35:36.374Z 44 yes 46 Gordan Janković Faculty of Economics, University of Niš 0000-0003-3172-6990 2019 46 Miloš Golubović Faculty of Economics, University of Niš 0000-0001-7783-719X application/pdf 569922 https://phaidrani.ni.ac.rs/o:2376 no yes 18 70 92000001 18A15