Innovation Fund was established by the Innovation Law in order to provide funding for innovations, particularly through cooperation with international financial institutions, organizations, donors and the private sector. The objective of the Fund is to promote innovation in priority areas of science and technology and to support commercialization of technology transfer thus enabling new technologies to reach the market.

In times of rapid technological development, where scientific and technological achievements permeate all aspects of human life, science, technological development and innovations play an important role in stimulating economic development. Innovations are considered to be the main factors for a stable knowledge based economy, which became the basis of competitiveness and dynamic growth. Therefore, with the establishment of this fund, Republic of Serbia is looking to better position itself in the regional and the global race for innovative technologies.

The intention of the Fund is to contribute to the overall development of innovations through various financial instruments, particularly by fostering the establishment of new and strengthening the existing companies, by positioning them to access venture capital markets, and by attracting foreign direct investment in the high-tech R&D. Innovation Fund aims to promote linkages between research and technology development and economy, and encourage and support the development of innovative technologies.