Montenegro’s aspirations for European Union membership are hindered by its minimal investment in research and development (R&D), which stands at just 0.29% of its gross domestic product (GDP) for 2024. This figure represents a decline from 0.51% in 2021, raising concerns about the country’s ability to capitalize on the opportunities that EU accession may offer in the research and innovation sector.
The government aims to finalize accession negotiations by the end of 2026, with hopes of joining the EU by 2028. Out of 33 negotiating chapters, 18 have been provisionally closed, including science and research, which was closed in 2012 due to relatively straightforward legislative alignment. However, this alignment does not necessarily translate into a capacity for producing commercially viable research or attracting competitive European grants.
Montenegro’s R&D spending translates to approximately €22 million annually, based on a nominal GDP of €7.65 billion. This funding encompasses public institutions, universities, and private companies but does not reflect a dedicated government innovation budget. The limited financial base means that large European projects can account for a significant portion of the country’s total annual R&D efforts.
The recent decline in R&D expenditure is concerning, as it suggests that research activities are not keeping pace with economic growth driven primarily by tourism and construction. This reliance on less knowledge-intensive sectors limits productivity improvements necessary for alignment with EU standards.
To reach a modest European target of 0.6% of GDP, Montenegro would need to increase its R&D expenditure to about €46 million annually, requiring an incremental annual investment of around €24 million. Achieving a target of 1% would necessitate approximately €76 million, significantly above current spending levels.
Despite these challenges, financing options through EU mechanisms such as the €383.5 million allocation from the EU Reform and Growth Facility could provide essential support if paired with national investments. However, effective utilization of these funds requires robust institutional frameworks capable of managing complex research proposals and projects.
Montenegro has secured over €6 million from Horizon Europe, surpassing its earlier Horizon 2020 receipts of roughly €4.6 million. The establishment of a national Horizon Europe Office aims to facilitate this engagement further. Nonetheless, these figures remain modest compared to national R&D expenditures and highlight the need for consistent participation from various stakeholders in the research ecosystem.
The University of Montenegro plays a crucial role in the national research landscape but faces challenges due to its focus on teaching rather than sustained research initiatives. The reliance on individual researchers for project continuity poses risks when key personnel leave or transition to administrative roles.
The local private sector also presents barriers to growth in R&D investment. Many businesses are small and primarily service-oriented, lacking the capacity for long-term experimental financing. The Innovation Fund of Montenegro, established in 2021, has begun addressing this gap by financing various projects but still faces limitations regarding capital-intensive research funding.
Montenegro’s first Smart Specialisation Strategy outlines potential areas for development but must be linked to specific technical capabilities and market needs to be effective. Successful projects like the newly awarded CENNA centre-of-excellence initiative illustrate how targeted efforts can leverage existing strengths in environmental monitoring while creating economic opportunities.
While larger projects like the South East European International Institute for Sustainable Technologies hold promise for advanced biomedical research, they require careful planning and substantial investment commitments from regional partners to ensure sustainability beyond initial funding phases.
Montenegro’s trajectory towards enhancing its R&D capabilities will depend significantly on its ability to build institutional capacity before full EU membership. Increased domestic spending on research and development combined with effective project management could yield substantial benefits without destabilizing public finances.
The upcoming EU research framework from 2028-2034 aligns closely with Montenegro’s accession timeline, presenting a critical opportunity for the country to strengthen its institutional framework and improve its competitiveness within Europe’s research landscape.
