Abstract:

Purpose:
A special peculiarity of the higher education financing system in the Republic of Serbia is that faculties are, within the non-integrated University, independent legal subjects with independent financial operation and current account in the framework of the Republic of Serbia consolidated treasury. Thus, in line with the above mentioned, budget funds are appropriated from the budget directly to faculties and not through the integrated University, as is the case in most European countries.

One of the aims of the present study is a choice of a higher education investment model that has a decisive impact on the competitiveness of higher education. It is shown that the quality of teaching, the scope and structure of investment, the number of students as well as the competitiveness of higher education all depend on the investment model.

Despite the fact that human resources are the most important potential of Serbia, the offer on the domestic labour market does not correspond to the needs of the economy/business and the society. Consequently, contrary to the status in the EU, the education system in Serbia is not turned to the needs of the society and economy.

Findings:
This paper analyses the state of the competitiveness of higher education in Serbia, through observation and analysis of selected indicators of competitiveness and through calculating the index of competitiveness of higher education. The goal of this paper is to present an overview of the possibilities for increasing the level of the competitiveness of higher education in Serbia by implementing a new investment model.

Methodology/Approach:
The methodology applied involves the use of methods of analysis and synthesis and the use of statistical and mathematical methods, particularly data envelopment analysis (DEA method), which is the application of linear programming method based on the ranking of countries / regions according to individual indicators analyzed.

Research limitations/implications:
The Government of the Republic of Serbia steers and encourages higher education institutions to operate more cost-effectively by using their available resources, while improving the quality of higher education services. It is necessary to develop a new model of financing higher education in the Republic of Serbia with indicators, which would measure the quality of the education process and encourage the excellence of the teaching staff.

Originality/Value of paper:
Strategy refer to the reality and possibility of implementing the set objectives, likewise the employment opportunities of highly educated labour in Serbia.

The improvement of solving the financing of the University, faculties and colleges in Serbia implies also the increase of the funds appropriated for such purposes from the budget:
• Competitiveness in the European higher education field and improving the University of Novi Sad's ranking in the Shang-hai list,
• Improving the functional status and modernization of the faculty and college buildings,
• More significant cash investments are needed in all operation costs, especially for the costs of lecturing,

Defining the acknowledged number of teaching and non-teaching staff, as a point of departure for the calculation and payment of salaries to employees in higher education institutions, in line with the valid criteria, norms and standards is made for the calendar (budgetary) year.

Keywords:

Competitiveness, data envelopment analysis, higher education investment model.