Montenegro’s startup policy is moving beyond the initial use of grants, tax incentives, incubators and promotional programmes, with the retention of intellectual property, skilled employment and capital becoming a central issue as companies develop.
The challenge becomes more significant once startups begin creating valuable assets such as software, patents, data and brands. These assets can be transferred across borders more easily than physical production facilities, making ownership structures, engineering teams and corporate decision-making important factors in determining how much economic value remains connected to Montenegro. Low taxes alone are insufficient to provide the framework required by growing technology companies. Investors need predictable company law, clear rules governing employee stock options, enforceable shareholder agreements and efficient public administration.
Founders also require advisers with expertise in venture financing rather than only traditional small-business accounting. Universities and research institutions need transparent arrangements governing spin-outs and intellectual-property ownership. Without these legal and professional structures, startup incentives can increase the number of registered companies without creating lasting enterprise value.
The issue is particularly relevant to artificial intelligence and deep-tech companies, which can operate internationally from the beginning and may receive acquisition offers at an early stage.
Acquisitions themselves are not something Montenegro needs to prevent. Instead, successful exits can provide founders with capital, give employees experience and resources, and create conditions for those individuals to establish new companies from Montenegro. The effectiveness of innovation policy can therefore be assessed through ownership and retention measures alongside the number of companies created. These include the amount of intellectual property registered or controlled locally, the number of senior technical positions retained after funding rounds, the amount of capital founders reinvest, and the number of companies maintaining meaningful operations following an acquisition.
