Montenegro achieved the largest annual improvement in innovation performance among Western Balkan economies included in the 2026 European Innovation Scoreboard, but the country’s overall innovation level remains below half of the European Union average.
Montenegro reached 44.7% of the EU innovation average, representing an increase of 2.8 index points compared with 2025. The country was ranked 33rd among EU member states and neighbouring European economies and remained classified as an “emerging innovator”. The average performance level for that category was 45.5% of the EU average.
Montenegro records strongest regional annual improvement
Among Western Balkan economies, Serbia remained ahead with 60.4% of the EU average, while Montenegro ranked second at 44.7%. It was followed by Albania with 41.6%, North Macedonia with 38.5% and Bosnia and Herzegovina with 28%. Despite remaining below the EU average, Montenegro recorded the region’s largest annual improvement in the latest assessment.
The strongest results were recorded among small and medium-sized enterprises (SMEs). Montenegro ranked first among the observed countries for SMEs introducing product innovations and achieved relatively strong results in employment in innovative companies and cooperation between businesses and research institutions. The SME innovation assessment is based mainly on directly observed data from 2022, while later values are partly estimated. Montenegro’s limited statistical base remains a constraint in evaluating productivity, tourism, research and private-sector performance.
Patent activity and scientific cooperation indicators improve
Montenegro recorded improvements in several innovation output indicators. International patent applications increased by 28 index points, while joint public-private scientific publications improved by 26.9 points. The indicator for international scientific publications increased by 16.2 points.
Business research investment remains a challenge
The weaker area of Montenegro’s innovation system remains innovation financing, particularly private-sector research investment. Montenegro ranked 39th for business expenditure on research and development and placed last among 40 countries for industrial-design applications. Business-sector research and development expenditure declined by 9.4 index points, while the broader business investment category decreased by 3.3 points.
Other weak areas include venture-capital availability, commercial research spending and the number of new doctoral graduates. Digital development indicators also remained below EU levels. Digitalisation reached 20.7% of the EU average, while the share of citizens with above-basic digital skills stood at 24.5%.
Innovation growth requires stronger private capital base
The latest figures show an innovation system with active smaller companies but limited institutional funding capacity. Montenegro’s innovation performance includes entrepreneurial activity and technology-oriented businesses, while indicators for venture capital, corporate research and development and domestic institutional investment remain limited.
Public innovation programmes can support incubation and early-stage development, while further company growth requires private equity, export-oriented customers and stronger integration into EU corporate supply chains. Since 2019, Montenegro’s cumulative innovation improvement amounted to 3.2 index points, compared with an 11.6-point increase across the European Union during the same period.
