non-residents of EUR 41.8 million, while the Manufacture of Computers, Electronic and Optical Products received EUR 10.8 million in investment. (source: National Bank of Serbia). Number of IT companies – In 2018 there were 2,349 active companies in Serbia with an individual annual income of more than one million dinars. In terms of business activities, the highest number was that of programming companies (1,483), which accounted for 63% of the total number. In terms of size, a majority of IT companies are micro businesses (with fewer than 10 employees), which accounted for 77.9%. On the other hand, only 11 companies were categorised as large (with more than 250 employees). Relative to 2011, the total number of active IT companies in 2018 increased by nearly 700. Of more than 200 new companies registered each year, half of them (about 100) begin operating, while some 50 will either withdraw from the IT sector or file for liquidation due to bankruptcy or merger. New companies will emerge from new ideas, innovation, in incubators etc. Effectively, it can be said that programming companies are the sole drivers of IT industry’s vitality. Following year after year of growth, the number of active companies currently stands at 1,483, which accounts for 63% of the total number – far more than 32% of the total number as reported in 2011 (source: survey Development of the Information Technology Industry). Capital of Serbian IT industry – In 2018, the IT industry had EUR 674 million of own capital, with an annual growth of 16.0%. For the second consecutive year, IT industry’s capital has seen double-digit growth. Furthermore, relative to 2006, when own capital amounted to approx. EUR 150 million, Serbian IT industry is now worth 4 times more. This trend is spurred by foreign capital, which is already highly represented in the Serbian IT scene (source: survey Development of the Information Technology Industry). Structure of IT industry’s capital by activities 2018 PC equipment; 7% Wholesale and retail; 11% IT services; 26% Programming; 56% Wholesale and retail IT services Programming PC equipment Programming companies have the highest capital – more than EUR 376 million – accounting for 56% of IT industry’s total capital. A distant second (EUR 173 million; 26%) is the IT services sector. Of the 100 largest IT companies, nearly half are foreign-owned. Foreign companies bring international standards to the Serbian IT sector; however, this also requires adaptation and, in some 36