Startups in the Western Balkans Need Better Conditions for Development, Investment and Innovation Testing

The development of startups in the Western Balkans requires validation of market demand, opportunities to test innovations in practice, better access to investment and stronger support for young people, alongside enhanced regional cooperation, connections with international markets and a more supportive business environment for developing innovative ideas. This was assessed during the “Startups” panel held as part of the eighth Digital Summit of the Western Balkans in Herceg Novi, organized by the Ministry of Public Administration under the auspices of the Government of Montenegro, in partnership with the Regional Cooperation Council (RCC) and as part of Montenegro’s chairmanship of the Berlin Process. Speaking about differences between European and American approaches to startup financing, Šoć said that the European system is characterized by more demanding procedures, while the American approach, in his view, enables a faster transition from idea to investment. Bojana Lalatović, Programme Coordinator at the Regional Youth Cooperation Office (RYCO), highlighted the importance of involving young people in social and economic life, particularly through non-formal education, the development of entrepreneurial skills and support for innovative ideas. According to him, the region has people with high-quality ideas and the potential to develop innovations, but too much attention is paid to the solution and technology itself, while insufficient consideration is given to whether users are ready to adopt and pay for such a solution. As an example, he cited preparations for cooperation with a digital innovation hub from North Macedonia, which should enable the exchange of expertise and infrastructure between the two countries so that small and medium-sized enterprises can derive concrete benefits.