Montenegro has demonstrated the most significant annual enhancement in innovation performance among Western Balkan nations, according to the 2026 European Innovation Scoreboard. Despite this progress, the country’s overall innovation score remains less than half of the European Union average.
The nation achieved 44.7 percent of the EU innovation average, marking an increase of 2.8 index points from the previous year. In terms of ranking, Montenegro placed 33rd among EU members and neighboring economies, retaining its classification as an “emerging innovator.” The average score for this category stands at 45.5 percent of the EU level.
Within the Western Balkans, Serbia leads with an innovation score of 60.4 percent of the EU average, followed by Montenegro, which ranks second. Albania, North Macedonia, and Bosnia and Herzegovina follow with scores of 41.6 percent, 38.5 percent, and 28 percent, respectively. Montenegro’s improvement over the past year is noteworthy within the regional context.
The most promising indicators stem from small and medium-sized enterprises (SMEs). Montenegro ranked first among the countries studied for SMEs that introduced product innovations and performed well in areas such as employment in innovative companies and collaboration between businesses and research institutions.
However, caution is advised regarding these results since the latest data on SME innovation comes from 2022, with subsequent figures being partially estimated. The country’s limited statistical foundation continues to pose challenges in evaluating productivity, tourism, research, and private-sector performance.
Improvements were also noted in patent and scientific cooperation metrics. International patent applications surged by 28 index points, while joint public-private scientific publications rose by 26.9 points. Additionally, international scientific publications increased by 16.2 points.
Conversely, financial aspects of the innovation system remain weaker. Montenegro ranks 39th for business expenditure on research and development and is last among 40 countries for industrial design applications. Business-sector R&D saw a decline of 9.4 index points, while overall business investment dropped by 3.3 points.
The availability of venture capital, commercial research funding, and new doctoral graduates are identified as some of Montenegro’s weakest indicators. Digitalization efforts reached only 20.7 percent of the EU average, while citizens with above-basic digital skills accounted for just 24.5 percent.
The data illustrates an innovation ecosystem characterized by active small companies but lacking adequate institutional capital. While Montenegro can foster entrepreneurial activities and individual technology ventures, it does not possess a robust venture capital market or a corporate R&D base necessary for supporting companies beyond their initial stages.
Public innovation programs can facilitate incubation and early development; however, scaling these efforts will require private equity investment, export-oriented customers, and stronger integration with EU corporate supply chains. Although the latest annual improvement is significant, Montenegro has only seen a cumulative gain of 3.2 points since 2019, in contrast to an EU-wide enhancement of 11.6 points during the same timeframe.
