Montenegro’s European Union accession process is expanding access to European research and innovation programmes, but the country’s limited domestic investment in research and development remains a constraint on its ability to benefit from the larger EU market.
The country is targeting completion of accession negotiations by the end of 2026, with possible EU membership in 2028. Of the 33 negotiating chapters, 18 have been provisionally closed, while the government says work on the remaining chapters has entered its final phase. The science and research chapter was among the first to be closed, in 2012, reflecting the relatively limited scope of legislative alignment required compared with areas such as competition, agriculture and environmental policy. Formal alignment with EU rules does not determine the ability to generate commercially valuable research, attract competitive funding or retain scientific talent.
R&D spending remains below European levels
Montenegro invested only 0.29 per cent of GDP in research and development in 2024, down from 0.51 per cent in 2021. With nominal GDP of €7.65 billion, the latest ratio corresponds to estimated annual R&D expenditure of approximately €22 million. The figure includes spending by public institutions, universities, private companies and non-profit organisations, rather than representing a separate government innovation budget.
The decline since 2021 indicates that research investment has not increased in line with economic expansion. Montenegro’s recent growth has been driven largely by tourism, construction, consumption and property investment, without a comparable increase in knowledge-intensive activity. Increasing R&D expenditure to 0.6 per cent of GDP would require annual spending of approximately €46 million at the 2024 economic level, representing an increase of about €24 million.
Reaching 1 per cent of GDP would require around €76 million, or approximately €54 million more than the estimated current level. These amounts compare with Montenegro’s allocation of €383.5 million under the EU Reform and Growth Facility, consisting of approximately €110 million in grants and €273.5 million in concessional loans.
EU funding access requires stronger domestic capacity
The challenge is not only the availability of financing but also the ability to convert funds into productive investment. Research programmes require project proposals, international partnerships, procurement procedures, financial reporting systems, intellectual-property frameworks and teams capable of maintaining projects after initial funding ends. Montenegro has increased participation in European programmes. The country has secured more than €6 million from Horizon Europe, excluding its newly awarded Teaming project.
This exceeds the approximately €4.6 million obtained under Horizon 2020. Montenegro also established a national Horizon Europe Office in 2026 to provide information and practical support to applicants. Despite this progress, Horizon Europe funding remains limited compared with domestic R&D spending. Successful participation depends on building a consistent pipeline involving universities, research institutions and businesses. European research funding is competitive rather than automatic. Montenegrin teams compete with institutions that often have dedicated grant-management offices, legal specialists, technology-transfer units and professional proposal teams.
Universities remain central to research system
The University of Montenegro remains the core institution in the country’s research system and is increasingly connected to European academic networks. Research activity is still largely based on individual academics or small groups rather than permanent laboratories with long-term financing and technical personnel. This structure can produce publications and individual international partnerships but creates dependence on specific researchers.
Young scientists face limited funding opportunities, rigid career structures and fewer options outside academia. Companies often cannot provide research positions that compete with salaries and infrastructure available elsewhere in Europe. EU accession could increase mobility pressures by making access to European laboratories, universities and technology companies easier. The policy response is expected to focus on creating stronger research careers rather than restricting movement, including funding for researchers, technicians and project managers alongside investment in equipment and facilities.
Private-sector innovation remains limited
Private-sector research represents another major challenge. Most Montenegrin companies are small, concentrated in services and traditionally compete through location, pricing or access to property rather than technology development. Many businesses lack the financial capacity for multi-year research programmes, while banks generally do not provide financing for unproven products, patents or research teams without predictable cash flow. The Innovation Fund of Montenegro, established in 2021, has begun addressing part of this gap.
By the end of 2025, the Fund had financed 278 projects worth more than €12.2 million, including 109 projects supported with more than €4.1 million during 2025. Its programmes include proof-of-concept support, early-stage start-up financing, innovation vouchers and cooperation between smaller companies and research organisations. During 2025, the Fund launched calls worth €2.4 million. The largest programme allocated €1.2 million for innovation projects in micro, small and medium-sized companies, with grants ranging from €50,000 to €200,000.
Proof-of-concept and early-stage start-up programmes each received €400,000. These programmes support early development and project pipelines but are not designed to finance capital-intensive research or international technology expansion.
Smart specialisation priorities linked to existing sectors
Montenegro’s first Smart Specialisation Strategy, adopted in 2019, identified four priority areas:
- sustainable agriculture and food;
- health and sustainable tourism;
- energy and environment;
- information and communications technology.
The priorities reflect existing economic structures, but their effectiveness depends on connecting research activities with specific markets and customers. Areas such as marine sensors, environmental monitoring, water management, energy-efficiency systems, digital tourism services and specialised food production provide direct links between research and existing industries.
The CENNA centre-of-excellence project, focused on smart environmental monitoring and nature-based solutions for protected areas, builds on the MONUSEN underwater sensor-network initiative. The project addresses areas of practical relevance for Montenegro, including coastline monitoring, tourism, fisheries, water resources and environmental protection. A successful centre could provide services to municipalities, ports, tourism companies, utilities and protected areas, while potentially serving neighbouring Adriatic and Balkan markets. Its commercial impact will depend on developing products, data services and long-term contracts beyond grant financing.
Large-scale research projects require sustainable models
EU Teaming for Excellence projects can receive contributions of up to €15 million. For Montenegro, such funding represents more than two-thirds of estimated annual R&D expenditure. Major research centres require long-term operating budgets, professional management and income sources beyond initial grants.
National co-financing is therefore important. The government needs multi-year reserves for successful EU projects and bridge financing because European programmes often reimburse eligible expenses after costs have already been incurred. Montenegro’s proposed South East European International Institute for Sustainable Technologies (SEEIIST) presents a larger-scale example.
The project, promoted since 2017, would use particle-accelerator technology for cancer treatment and biomedical research. Design work has advanced, but implementation has not progressed without a binding financing and governance structure. The project would require agreements on ownership, capital contributions, operating subsidies, patient referrals, procurement and liability. Development banks and EU institutions could support construction, but operating costs would still require sustainable financing.
Research investment linked to productivity and competitiveness
Smaller distributed research projects may provide faster economic returns by connecting directly with domestic industries. Laboratories focused on environmental science, agriculture, energy and digital services require less capital and can help Montenegro build institutional experience before undertaking large infrastructure projects. Croatia provides one comparison point, with R&D expenditure increasing from roughly €260 million around the time of EU accession in 2013 to more than €575 million, equivalent to approximately 1.35 per cent of GDP.
Montenegro cannot replicate Croatia’s trajectory due to its smaller economy and narrower industrial base, but additional annual investment of €20 million to €30 million, if effectively allocated, would significantly change research capacity.
Building innovation capacity before accession
The next phase of Montenegro’s research policy will require stronger institutional capacity. Universities need improved grant-management systems, clearer intellectual-property rules and technology-transfer functions. The Innovation Fund needs to support promising companies through multiple development stages and attract private co-investment.
Government institutions need coordinated information on applications, funding, co-financing obligations and project results. Public procurement could also support innovation by creating demand for solutions in areas such as waste management, water systems, traffic, energy efficiency and coastal management. Montenegro’s participation in the European Institute of Innovation and Technology’s Jumpstarter programme has increased, with applications rising from four in 2025 to 17 in 2026. Three Montenegrin teams successfully completed the programme.
The longer-term measure of success will be whether these teams develop sustainable businesses, attract investment, generate exports or obtain larger European grants. Preparations for the EU’s next research framework covering 2028–2034 coincide with Montenegro’s possible accession timetable, creating an opportunity to enter the new funding cycle with stronger institutions. EU membership will provide access to funding, networks and infrastructure, but Montenegro’s ability to benefit will depend on domestic investment, research careers, company participation and the capacity to convert projects into commercial results.
