Smart Specialisation Strategy of Montenegro 2019-2024

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Montenegro

Ministry of Science

I INTRODUCTION
Montenegro
Ministry of Science

July 2019
Introductory
domains of action, a centre of gravity that will
attract and retain those young professionals in
Montenegro. Along with, as we hope, their col-

words of leagues from all over Europe.

the PrIme mInIster


Our response to the above challenges is Smart
Specialisation Strategy, an instrument for link-
ing sectoral policies and defining priority tech-
nological domains in which new added value
ant to strive for more and not to ignore the chal- can be created.
lenges ahead us on the way to the European
quality of life for all our citizens. Montenegro The document is based on thoroughly studied
needs stable long-term growth and develop- data, and its vision was established through a
ment, as well as sustainable and competitive high-quality consultation process, which involved
industrial production and employed young peo- all parts of Montenegrin society. This process has
ple who will drive our society forward with their confirmed that the vision of Montenegro as an
creativity and hard work. The diversification of ecological state is more than just a constitutional
the economy, to at least several technologically norm. It is one of the few national consensuses,
intensive domains, is of particular importance in upon which we need to build better future. This is
this effort. why we are striving to identify and apply smarter
and more competitive solutions in the domains
Mr. Duško Marković, Prime Minister Aware of the scope of our capacities, we do of sustainable agriculture, green energy, sustain-
not have the illusion that we alone can make able health tourism and information technology.
a capital contribution to global progress. Nev-

E
ver since the restoration of its statehood, ertheless, we have no right to ignore the need We are the first in the region to apply this Euro-
Montenegro has continuously confirmed to make our own adequate contribution to this pean tool for development based on technolo-
its capacity for rapid progress towards goal and to improve the quality of life in this re- gy, science and innovation. By doing so, we are
the democratic values of the developed world. gion. The history of the brilliant minds of Mon- facilitating cooperation with our European part-
NATO membership, frontrunner status in the tenegro and our present scientific research ners, creating new opportunities for placement
process of EU accession, good neighbourly re- diaspora, which contributes to state-of-the-art of our products and services, as well as for in-
lations, above-average economy growth rates science and technology worldwide, oblige crease of exports, technological improvement
in the past three years and the implementation us to support innovation in Montenegro with and attracting investments. Primarily, we are
of impressive infrastructural projects are the much more focus and energy. At all levels, but creating conditions for new, high-quality jobs
best confirmation of the potentials at our dis- with special attention to young generations of for highly qualified personnel. That is why this
posal. professionals. Regardless of whether they are strategy is another big step towards a better life
studying in the country, or temporarily looking for all our citizens.
However, while taking note of the progress for new knowledge at an address abroad, our
made and celebrating our success, it is import- task is to create, at least in the identified priority

2/3 I INTRODUCTION
Introductory
Montenegro is the first non-EU country that
has completed this complex process, standing
ready to adopt its smart specialisation strate-

words of gy. This will, I hope, soon result in stronger and


more focused cooperation with EU regions that

the mInIster of scIence have similar priorities, as well as in new invest-


ments and greater breakthroughs in the devel-
opment of technology, science and innovation
in Montenegro, which would, at the same time,
The EU has also instructed future EU Member imply the development of our economy and so-
States, including Montenegro, to start defining ciety as a whole. We now have a clear pathway
their smart specialisation strategies in order to for our economy to utilise the new cooperation
be better prepared for cooperation at the mo- possibilities to become part of the broader, Eu-
ment of accession. One of the most important ropean value chains, offering more advanced
elements of smart specialisation is coordination products and services and finding new busi-
in the programming and use of EU funds, which ness growth opportunities.
often lacked in the past periods, causing invest-
ment fragmentation. The same problem existed At the beginning of the process of drafting the
at the national level as well. strategy, we said that the success of the process
would be measured by the level of cooperation
We accepted this task two years ago, when an achieved between the various departments.
Dr Sanja Damjanović, Minister of Science intensive process of preparation of the strategy We have achieved real progress in this regard
commenced, in accordance with the guidelines and I am grateful to my colleagues from other

W
ith the support of its science ser- and with the support of the Joint Research Cen- ministries for their active participation. Now, the
vice – the Joint Research Centre, tre. For the first time in Montenegro, all the rel- time has come for us to face the challenge of
the European Union has estab- evant society stakeholders were involved in a high-quality implementation, where there is a
lished a precise and knowledge-supported consultation process in such an engaged man- need for even better coordination of depart-
methodology for EU regions to define their ner: enterprises, academic sector, state insti- ments, policies and funding sources. I believe
research and innovation priority areas and to tutions, citizens. After extensive analyses, dis- that, with the commitment of the Government to
establish regional cooperation platforms. This cussions, negotiations and harmonisations, the this policy, and with the support of our EU part-
methodology is called regional smart speciali- areas and technological domains were defined ners, we will succeed in this endeavour.
sation (S3). S3 is a tool providing instructions on to which our country should direct its resources
how to most effectively stimulate economic and in order to create new value for our economy –
social development, relying on research and in- new development projects, areas of application
novation as the dominant development drivers of scientific results, innovations and focused in-
in the global economy. vestments from the business sector.

4/5 I INTRODUCTION
Table of contents:
Table of I INTRODUCTION .............................................................................................................................................................. 8
II GOVERNANCE................................................................................................................................................................11
II 1. S3 DRAFTING PROCESS ....................................................................................................................................11

conTenTs:
II 2. GOVERNING STRUCTURE ...............................................................................................................................14
III STRATEGIC VISION OF DEVELOPMENT .............................................................................................................17
IV ANALYSIS OF POTENTIAL .......................................................................................................................................21
IV 1. ANALYSIS OF ECONOMIC POTENTIAL .......................................................................................................21
IV 2. ANALYSIS OF RESEARCH POTENTIAL ......................................................................................................30
IV 3. ANALYSIS OF INNOVATION POTENTIAL ..................................................................................................34
IV 4. RESULTS OF POTENTIAL ANALYSES.........................................................................................................39
V SWOT ...............................................................................................................................................................................51
VI STRATEGIC S3 PRIORITIES ....................................................................................................................................53
VI 1. SUSTAINABLE AGRICULTURE AND FOOD VALUE CHAIN ...................................................................55
VI 2. ENERGY AND SUSTAINABLE ENVIRONMENT .........................................................................................61
VI 3. SUSTAINABLE AND HEALTH TOURISM ....................................................................................................67
VI 4. INFORMATION AND COMMUNICATION TECHNOLOGIES..................................................................73
REGIONAL INITIATIVE – SEEIIST .......................................................................................................................... 77

• foto VII POLICY MIX AND FINANCIAL FRAMEWORK..................................................................................................79


VII 1. IMPROVING ExCELLENCE AND RELEVANCE IN SCIENTIFIC RESEARCH ACTIVITIES ...............79
VII 2. STRENGTHENING HUMAN RESOURCES IN THE FIELD OF RESEARCH AND INNOVATION .. 80
VII 3. ENHANCING COLLABORATION WITHIN THE INNOVATION SYSTEM ............................................ 80
VII 4. SUPPORTING INNOVATIVE ACTIVITIES IN THE PRIVATE SECTOR ................................................ 80
VII 5. ENHANCING FRAMEWORk CONDITIONS FOR INNOVATION ECOSYSTEM ..................................81
VII 6. FINANCIAL FRAMEWORk ............................................................................................................................ 90
VIII MONITORING AND EVALUATION..................................................................................................................... 101
ANNEX 1 — MAPPING OF ECONOMIC POTENTIAL – METHODOLOGY ....................................................... 112
ANNEX 2 — ENTREPRENEURIAL DISCOVERY PROCESS .................................................................................. 114
ANNEX 3 — FLAGSHIP INITIATIVES.......................................................................................................................... 118
ANNEX 4 — ACTION PLAN FOR S3.ME IMPROVEMENT ...................................................................................120
ANNEX 5 — LIST OF ABBREVIATIONS .................................................................................................................... 121

6/7
I IntroductIon
by drafting the Smart Specialisation Strategy, Montenegro has joined
the initiative of the european Union that focuses on the new model
of economic development at the national or regional level based on
targeted support to scientific research activities and innovations. The
smart specialisation strategy (s3)1 is, therefore, a national or region-
al innovation strategy setting development priorities in order to build
competitive advantage by developing and connecting own capaci-
ties in research and innovation with the needs of the economy, while
responding coherently to growing opportunities and market develop-
ment, which helps to avoid duplication and fragmentation of policies2.
as a key element of economic development policy, smart specialisa-
tion increases the competitiveness of the economy by concentrating
and linking research and innovation resources to a limited number of
determined priority economic areas. In addition, such strategiy should
utilise the competitive advantages of a country or region to the maxi-
mum by encouraging innovation and thus contributing to the econom-
ic growth and overall progress of the society.
The “Innovation Union” is one of the seven leading • They focus policy support and investments on key
initiatives of the Europe 2020 Strategy, aiming to improve national/regional priorities, challenges and needs for
the framework conditions and access to financing of knowledge-based development;
research and innovation that would stimulate economic • They build on each country/region’s strengths, com-
growth and creation of new jobs. petitive advantages and potential for excellence;
• They support technological as well as practice-based
In the European Commission document titled “National/ innovation and aim to stimulate business sector invest-
regional innovation strategies for smart specialisation ment;
(RIS3) – Cohesion Policy 2014–2020”, smart specialisation • They get stakeholders fully involved and encourage
strategies are defined as integrated economic innovation and experimentation;
transformation agendas that do five important things: • They are evidence-based and include sound monitor-
ing and evaluation systems.

1 Smart Specialisation Strategy (S3) or Research and Innovation Strategy for Smart Specialisation (RIS3).
2 Regulation (EU) No 1301/2013 of the European Parliament and of the Council of 17 December 2013.

8/9 I INTRODUCTION
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II GoVernAnce
Through a partnership method and the bottom-up adopting the Smart Specialisation Strategy, Montenegro
approach, smart specialisation brings together local becomes the first non-EU28 country to adopt this policy
decision makers, academic and business community, document, which will have a positive impact on the
civil society and other social actors that work on reputation of Montenegro at the EU level.
implementation of the long-term growth strategy. S3 itself
II 1. S3 DRAFTING PROCESS
enables the creation of synergy between the European In drafting the Smart Specialisation Strategy, the priorities
policies and sources of financing, complementing national and key directions of actions defined in the umbrella policy
At the beginning of the new millennium, Montenegro has well as through the formal adoption by the Government of
and regional programmes and private investments in this documents of Montenegro have been considered, and
started to build market economy based on the rule of law Montenegro. Following the adoption at the national level,
manner. By focusing on those matters that provide the so have the priorities from the key sectoral documents,
and stable institutions. In addition, the Stabilisation and S3.me is submitted to the European Commission for an
greatest competitive potential to particular regions, smart especially the ones to which the Strategy relates, as well
Association Process has additionally strengthened political opinion (Figure 1).
specialisation enables them to find their place in certain as the international obligations of the country, with a
stability and created the preconditions for increasing the
global markets and the international value chains. particular focus on the accession to the EU7.
economic activities. All of the above has resulted in dynamic The Ministry of Science (MoS) has coordinated the
economic growth and increasing level of competitiveness process of developing the Smart Specialisation Strategy
Since 2011, the European Commission has been providing Implementation of the Smart Specialisation Strategy has
of the national economy. The Smart Specialisation Strategy of Montenegro with the help of the Ministry of Economy
advice to the regional and national decision makers great strategic importance for Montenegro as it may
should promote the above development trend further by (MoE), cooperating intensively with other competent
for establishment and implementation of their smart encourage public and private investments in research,
completing the strategic commitments realised so far. institutions from the public, business, academic and non-
specialisation strategies, doing so through the “Smart technological development and innovation. Adequate
governmental sector under a quadruple helix governance
Specialisation Platform”3 mechanism. The platform identification of S3 development priorities may enable
The S3 drafting process uses the methodology developed by model, with systematic assistance provided by the
facilitates joint learning, data collection, analysis and consolidation of research and innovation capacities,
Joint Research Centre of the European Commission (JRC)8, experts of the European Commission. This model has
networking opportunities for around 180 EU regions and gathering a critical mass of researchers and innovators that
which provided support in this process. The activities on enabled the Government to include all the relevant actors
24 national governments. would work together on strategically important topics of
Smart Specialisation Strategy of Montenegro have started in preparation of the Strategy, while maintaining its role
research and innovation with a view to achieving research
in early 2017. The Strategy is a product of a collaborative in organisation and management of the collaborative
In accordance with Regulation (EC) No 1059/2003 of the excellence and strengthening the potential of domestic
process in which different actors have been enabled to activities on the preparation of the document. Figure 2
European Parliament and of the Council of 26 May 2003 on innovative products for commercialisation. In addition, S3
participate in each stage of preparation of the Strategy, with below shows an organisational scheme representing the
the establishment of a common classification of territorial may also encourage the development of new business
the process being open to all the citizens eventually through framework for dialogue between the main actors in the
units for statistics (NUTS), Montenegro has been defined sectors through investments in research and innovation in
the process of public consultations. At the very beginning, process of drafting the S3.
as a single NUTS4 region, as it covers an area of 13,812 km² areas that contain strategic potential within the national
it was necessary to create the governance structure for S3
with a population of 620,029 inhabitants, residing in 215 framework.
development that would enable inter-agency cooperation. Figure 1 – S3 Development Process
municipalities with 1,307 settlements . On this basis, when
6
Having created the organisational infrastructure and
it comes to drafting the Smart Specialisation Strategy and
adopted the JRC methodology, efforts were committed to
knowledge-based economic development, the country is
prepare the quantitative and qualitative analysis needed Governance
also treated as a single region, which should find its place
in the selection of preliminary priority S3 domains. Up to structure and
among the total of 272 NUTS II regions within the EU. inter-agency
this stage, the process has been implemented under a
cooperation
top-down principle. The next stage of S3 drafting was the
In the section devoted to Negotiation Chapter 25: Science
Entrepreneurial Discovery Process (EDP), which utilised the
and Research, within the policy framework, the Programme Coordination
bottom-up principle and the preliminary priority S3 domains EC-JRC S3
of Accession of Montenegro to the EU (2019-2020) with state and
from quantitative and qualitative analyses as the input methodology
EU institutions
envisages that the Government of Montenegro should

.me
parameters. The EDP process gave serious consideration to
adopt the Smart Specialisation Strategy (2019-2024) by
business sector opinions and interests, resulting eventually
the end of second quarter of 2019. By adopting the Smart
in the selection of priority S3 domains. Finally, at the end of
Specialisation Strategy, Montenegro is aligning its policy
the S3 drafting process, it was necessary to conduct state-
framework with the EU policy framework. Furthermore, by Participation Analysis
level consultations and go through the public consultations
3 http://s3platform.jrc.ec.europa.eu/ of main of present state
4 Nomenclature of Territorial Units for Statistics. Montenegro is process in accordance with the national legislation, as
stakeholders (quantitative and
defined as a single NUTS region on all three levels — EDP process qualitative)
(NUTS 1 = NUTS 2 = NUTS 3). 8 One of Directorates General of the European Commission,
5 24 municipalities in 2019. 7 Links between the S3 and the umbrella policy documents of https://ec.europa.eu/info/departments/joint-research-cen-
6 According to information from 2011 census. Montenegro are explained in the Qualitative Analysis. tre_en

10 / 11 II GOVERNANCE
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The S3 operational team consisted of the representatives One of the important steps in drafting the S3 was Figure 2 – Structure of stakeholders involved in S3.me creation
of the Ministry of Science and the Ministry of Economy, the process of mapping and analysing the economic,
while the expanded operational team consisted of the innovation and scientific potential in Montenegro. A
representatives of all the universities in Montenegro. quantitative analysis report titled “Mapping economic,
The main activities of the S3 operational team have innovation and scientific potential in Montenegro”,
Ministry of Science and
been directed at organisation and management of the completed in March 2018, and a qualitative analysis report Ministry of Economy
process of preparation of the Strategy. The activities titled “Qualitative Analysis of Priority Areas for the Smart (S3 operational team for
have encompassed raising the institutional capacities for Specialisation Strategy of Montenegro”, completed in May development of the
preparation and implementation of S3 at the national level, 2018, served as the basis for identifying preliminary priority Strategy)
as well as its promotion. In addition, the S3 operational areas of smart specialisation, which was a precondition
team has been responsible for communication with the for the commencement of the Entrepreneurial Discovery
Joint Research Centre, as well as with the external experts Process.
involved in the process of preparation of the Strategy.
S3 focus groups
Through involvement of the academic sector at the (experts from the
operational level, provisions have been made for the
S3 operational team + universities, Chamber of
academic sector Economy of Montenegro,
Strategy to focus on research and innovation, which Inter-agency working
(high representatives of all Montenegrin Employers
enables a more efficient and better-quality identification four universities) group (representatives of Federation, Montenegro
of key actors for implementation of the Entrepreneurial CANU, MONSTAT, four uni- Business Alliance,
Discovery Process and preparation of the Strategy itself. versities, Chamber of Economy, companies and clusters
Montenegrin Employers Fed- from priority sectors)
eration, Montenegro Business
The S3 operational team has received expert assistance Alliance, NGO and represen-
from S3 focus groups, which were specialised in thematic tatives of
priorities identified through the process of quantitative 10 ministries)
and qualitative analysis for the S3. These groups have
been composed of representatives of the business, public,
academic and civil sector, acting as a pool for gathering
information and ideas through the Entrepreneurial
Discovery Process.

Public debate on
In addition, a separate Inter-agency working group has S3
been formed from representatives of the business, public,
academic and civil sector, with the role of managing the
process of S3 preparation. This group has been involved
Council for
Scientific Research
in all the phases of Strategy preparation and has enabled
Activities
transparency of that process, encouraging collaboration (provided opinion
and participation of different segments of society. The on S3)
inter-agency working group has also paid attention to
compliance of S3 and general policy documents, with a
special focus on alignment with the sectoral strategies
governing the areas defined by the Strategy itself. Finally,
the group has played a particularly important role in
solving horizontal issues related to all thematic priorities
and has supported the implementation and continuity of
the Entrepreneurial Discovery Process.

12 / 13 II GOVERNANCE
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II 2. GOVERNING STRUCTURE Figure 3 – Organisational scheme of research, development and innovation in Montenegro

Parliament of Montenegro

Committee
on Education,
Science,
Culture and
Ministry of Science
Sport

Ministry of economy

GOVERNMENT OF MONTENEGRO Ministry of education

Ministry of Agriculture and


Rural Development
Council for
Smart
Ministry of Sustainable
Specialisation
Development and Tourism

Ministry of
Public Administration
National Office
for Smart Specialisation
Ministry of Health
EDP fokcus groups
Other ministries

MONSTAT
The basic organisational governance scheme for Monte- dent representatives of the academic and business sector, Business associations
negrin research and innovation system has not been sig- monitors the implementation of strategies and laws in the (PkCG, UP, MBA, i dr.)

nificantly changed, but the activity of researchers and en- area of research, development and innovation, provid-
trepreneurs has been strengthened in the past few years ing expert suggestions in terms of improvement of the Scientific Science and Technology Park
research Centres for Exellences, Private sector
due to the more intense process of European integration research and innovation policy. However, although the sector Incubators
Technology transfer offices
and availability of the European funds for research and in- preparatory actions in relation to the S3 and other policy
novation, as well as investments into research and innova- documents are undertaken by the Ministry of Science and
tion infrastructure at the national level. the Council for Scientific Research Activities, the Govern- The National Office for Smart Specialisation works at the The role of the Council for Smart Specialisation as a new
ment adopts the S3 directly, determining the budget for operational level. It operates under the Prime Minister’s public body, based on quadruple helix model, is superviso-
The governance of the system of research and innova- its implementation and approving the composition of the Cabinet and is supported primarily by the Ministry of Sci- ry in nature. This body supervises, advises and facilitates
tion has been centralised at the national level, where the Council for Smart Specialisation and the National Office ence, Ministry of Economy and Ministry of Education, as the transparency of work of the National Office for Smart
main roles are played by the Parliament and the Govern- for Smart Specialisation. well as by the ministries responsible for projects in prior- Specialisation and encourages collaboration and partici-
ment. The Parliament is a legislative authority that passes ity domains (Ministry of Health, Ministry of Public Admin- pation of different segments of the society in the S3 imple-
laws, including the laws relating to scientific research and The Ministry of Economy is responsible for implementa- istration, Ministry of Agriculture and Rural Development, mentation. The Council has a particularly prominent role
innovation activities, and ratifies international treaties on tion of the entrepreneurship and industrial policy, acting Ministry of Sustainable Development and Tourism). The in addressing the issues related to all thematic priorities,
scientific-technological cooperation. The Parliamentary also as an important stakeholder in the implementation line ministries have constant communication with the Na- as well as in ensuring the continuity of the Entrepreneurial
Committee for Education, Science, Culture and Sports has of the innovation policy through the realization of a series tional Office for Smart Specialisation. Its main activities are Discovery Process (EDP).
specific competences in the area of innovation (Figure 3). of programmes. Its organisational structure includes the preparation and monitoring, as well as the organisation of
Directorate for Internal Market and Competition with two evaluation of programmes and projects enabling success- The National Office for Smart Specialisation receives
On the other hand, through the Ministry of Science, the divisions: Division for Intellectual Property and Division ful implementation of the S3. Financial support for the S3 crucial inputs from EDP focus groups specialised in S3
Government of Montenegro creates and implements the for Normative Affairs and International Cooperation in the programmes comes from the ministries that are involved priority domains. Through the activities of these groups,
policy of research, development and innovation through Area of Intellectual Property. The Ministry of Education is in certain programmes or projects from the S3 domain, the continuity of the entrepreneurial discovery process in
national and international programmes of support to these responsible for higher education sector, within which sci- international funds, and in part also through favourable the implementation of the S3 is enabled. This is provided
activities. The Council for Scientific Research Activities, entific research activities are dominantly performed. credit lines for entrepreneurship from the Investment and through periodical meetings of EDP focus groups, general
constituted within the Ministry of Science by the indepen- Development Fund and the banking sector. public conferences and an interactive Internet platform.

14 / 15 II GOVERNANCE
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III strAteGIc VIsIon


of deVeLoPment

The strategic vision of development of Montenegro is These directions constitute a general vision of
based on the increase of competitiveness of the econo- development of Montenegro and are in line with the
my. A developed and competitive economy is founded on spirit of the Smart Specialisation Strategy, representing a
knowledge and resources that should be utilised through logical continuation of the efforts to meet the goals of the
related priorities of the Smart Specialisation Strategy. Fur- Europe 2020 Strategy. The strategic directions confirm
thermore, monitoring and implementation of goals, mea- the country’s orientation to development based on
sures and initiatives regarding the Europe 2020 Strategy, knowledge, environmental protection, high employment
including the national S3, are connected with the key me- level, productivity and social cohesion, with a focus on
dium-term priority – membership in the European Union. three interrelated development goals: smart growth,
sustainable growth and inclusive growth.
A modernised and competitive state is based on three key
strategic directions, as follows: Figure 4 below represents a long-term development vision
1. Healthy Montenegro; for Montenegro, which should, through implementation
2. Sustainable Montenegro; of the Smart Specialisation Strategy, enable the overall
3. Digitalised Montenegro. prosperity of the country in general, improving the quality
of life of every citizen in a real, sustainable and healthy
manner, tailored to the people of the 21st century.

Figure 4 – Strategic vision of the country’s development

Modernised and competitive

Healthy Sustainable Digitalised

16 / 17 III STRATEGIC VISION OF DEVELOPMENT


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HEALTHY MONTENEGRO DIGITALISED MONTENEGRO

With improved aspects of primary, secondary and tertiary In accordance with the Industrial Policy of Montenegro by
protection and prevention and new products, strategic 2020, the national Strategy of Development of Information
direction “Healthy Montenegro” will enable a higher level Society (2016-2020), and the national Strategy of Cyber
of life quality and therefore prosperity of the state. Healthy Security of Montenegro (2018-2021), strategic direction
Montenegro is a centre of bio-medical development “Digitalised Montenegro” should enable reaching the
through new technologies, production of medicines, standards of the EU that are related to Digital Agenda 2020,
medicinal herbs and organic food and with provision of Single Digital Market Strategy and the new EU Industrial
specialised healthcare services (such as innovative and Policy Strategy. Development and application of ICT is of
standard therapeutic and rehabilitation programmes) as utmost importance for economic development. Meeting
a final product, with a view to attracting a special group the ICT standards and goals will lead to development
of patients and researchers from the region and beyond. of trade, better use of capital and strengthened national
Healthy Montenegro is a society of technology for health, competitiveness. Introduction of modern technologies
welfare, science, regional cooperation and peace. and utilisation of available raw materials in priority sectors
will result in the placement of high-quality products on
SUSTAINABLE MONTENEGRO the market. The foundations of this direction are related
to better infrastructure, digital economy and information
Strategic direction “Sustainable Montenegro” relates security. The direction is also directly connected to all the
to the fulfilment of the constitutional provision on priorities defined by the Smart Specialisation Strategy,
Montenegro as an ecological state. This direction implies which is why ICT has been defined as a horizontal sector
ecologically aware and efficient economy from the that provides information and technology support to other
aspect of use and preservation of natural resources and priority sectors.
an inter-generation level of prosperity. It relies on the
Sustainable Development Goals, Europe 2020 Strategy The aforementioned strategic directions of development
and basic strategic documents in Montenegro. Above all, of the S3 are based on the research, innovation and
sustainable Montenegro means further development and economic potentials of the state. As such, they are
efficient use of natural resources. As the most important complementary with the strategic goal of connecting
resource of the country, space has to be utilised in a research and innovation with the real sector, which should
manner that will prevent its devastation. Development of enable further development and an increase in the level of
transport infrastructure and remediation of the ecological competitiveness of the national economy.
“black spots” have to rely on the innovative solutions
and new technologies for a more comprehensive use of
technogenic mineral raw materials and adequate reuse of
waste under the principles of circular economy, creating
prerequisites for sustainable development in this manner.
Fulfilment of the tasks set forth in the area of environmental
protection, especially the ones provided for in Negotiation
Chapter 27, will have a positive influence on the country as
a whole. The implementation of the above strategic goal is
directly connected to all the priorities defined by the Smart
Specialisation Strategy and is a necessary prerequisite for
successful fulfilment of each of them.

18 / 19 IV ANALYSIS OF POTENTIAL
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IV AnALysIs of
PotentIALs
IV 1. ANALYSIS OF ECONOMIC POTENTIAL
According to preliminary data by MONSTAT (Statistical growth in developed countries, and especially not below
Office of Montenegro), in 2018, Montenegro has achieved the Eurozone average.
a positive economic growth rate of 4.9%. Based on the
preliminary quarterly GDP data, in the same year, the gross Based on the first Eurostat estimates, gross domestic
domestic product (GDP) amounted to EUR 4.619 billion, product per capita measured at purchasing power parity10
while the gross domestic product per capita amounted to in Montenegro amounted to 46% of the EU average in
EUR 7,422 (Figure 5). The average annual inflation rate
9
2017. Compared to the EU Member States, Montenegro
amounts to 2.6%. is ranked lower than Bulgaria as the lowest-ranked EU
Member State sitting at 49% of the European average.
Figure 5 – GDP per capita

8,000
6,908 7,422

7,000 6,354
5,873
5,412 5,561
6,000
5,265
5,045 5,126
5,030
5,000 4,842

4,000

3,000

2,000

1,000

0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*

Source: MONSTAT

According to the preliminary model forecast of the Central Compared to the countries of the region, Croatia is the
Bank of Montenegro, the growth of national GDP in 2019 only country ranked better than Montenegro, with 61% of
will amount to 2.7–3.2%, with a central tendency of around the EU average. Therefore, the country is ranked in the top
3%. Therefore, the estimated growth of Montenegrin part of the scale when compared to the region, and slightly
economy of 4.9% in 2018 is above the average growth of below half of the European average (Figure 6).
European economies amounting to 3.8% with an expected
short-term decrease tendency, but not below the average 10 Purchasing power parities (PPPs) are the rates for translation
of currencies that are used to convert the economic indica-
9 Data on population is MONSTAT’s estimate as of 1 January tors expressed in national currencies into a common artificial
2018. currency.

20 / 21 IV ANALYSIS OF POTENTIAL
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Figure 6 – GDP per capita, measured at purchasing power parity in EU and the region (EU=100) Budget deficit consequently increases the net public debt, if the industry belongs to one of the traded clusters or
which, at the end of 2018, amounted to EUR 2.99 billion, of growing sectors in which Montenegro has above-average
GDP per capita purchasing power standard for 2017 which EUR 2.76 billion accounted for foreign debt. strength. Column 10 indicates if the above-average
performance of export of goods may be brought in
300
253 Based on preliminary data, net inflow of foreign direct connection with the sector. The final column indicates if
250
investments in 2018 amounted to EUR 327.6 million, a certain specialised sector may be paired with any of the
184
200 which is a decrease of 32.4% compared to the previous priority sectors of the Government.
158150
150 128 128125 123 122 130 year. Total inflow of foreign direct investments amounted
117 109
100106 105 104 96 96
92 89 85 84
100 78 77 77 77 70 68
67 67 63 61 65
to EUR 843.1 million, out of which ownership investments
49 46 37 37
50 29 32 accounted for EUR 519.9 million, whereas the inflow in the
form of inter-company debt amounted to EUR 300.1 million.
0
EU28
Euro-zone
Luxembourg
Ireland
Austria

Sweden
Belgium
Finland
United Kingdom
France

Malta
Spain
Czech Republic
Slovenia

Lithuania
Portugal
Slovakia

Poland

Greece
Latvia

Croatia

Switzerland

Iceland

North Macedonia
Albania
Bosnia and Herzegovina
Romania

Turkey
Estonia

Serbia
Germany

Bulgaria
Italy

Montenegro
Norway
Netherlands

Hungary
Cyprus
Denmark

According to Monstat data, the industrial production


grew by 22.4% in 2018 compared to 2017. The share of
manufacturing industry in the GDP in 2017 amounted to
3.8%. In 2018, construction recorded a significant increase
in the value of completed construction works (24.9%), as
well as an increase in effective working hours (10.9%),
Source: MONSTAT compared to 2017. According to the Statistical Yearbook
of Montenegro for 2018, in the forestry sector there
was a production growth of 15.8% in 2017 compared to
2016. Based on the data of the Ministry of Sustainable
Development and Tourism, in 2017, Montenegro was
Based on the IMF estimates , a growth rate of global
11
According to MONSTAT data, the average gross wage in visited by 10.3% more tourists than in 2016, who accounted
economy in 2018 amounted to 3.7%. Developed countries Montenegro in 2018 amounted to EUR 766.00, which is an for 11.9 million overnight stays.
grew by the average rate of 2.3% – US economy at a rate increase of 0.1% compared to the previous year. Average
of 2.9%, Euro-zone countries at 1.8%, Japan at 0.9%. Based wage without taxes and contributions amounted to EUR It is evident that tourism, construction, and transport
on the same predictions, a group of developing European 511.00 and was 0.2% higher compared to the previous can be identified among the key growth sectors, with
economies, including Montenegro, achieved an average year. the continuous growth of trade. The main driver of the
growth of 3.8% in 2018. For the period of 2019–2020, economic growth in the coming period will be strong
smaller growth rates have been predicted, amounting to The number of employees in Montenegro in 2018 amounted investment activity coming as a result of planned capital
0.7%, and 2.4% respectively. to 190,132 on average and was 4.3% higher compared to investments for construction of the Smokovac–Mateševo
the average number of employees in the previous year. highway, as well as the investments in the area of tourism,
In the latest Global Competitiveness Report for 2018, Growth in the number of employees in 2018 was achieved energy (for example, construction of a solar power plant in
Montenegro was ranked 71st out of 140 countries in fifteen out of the total of nineteen sectors, with the Briska Gora), telecommunications, etc.
encompassed by the survey. The analysis of the World highest growth rates in the sector of administrative and
Economic Forum is based on a number of factors that affect auxiliary services (13.5%) and construction sector (12.5%), A statistical overview and analysis of national economy
the competitiveness of a country . In 2018, Montenegro
12
and the lowest in the sector of water supply, waste water data has been summarised in Table 114. The first two
improved its position by 2 places. management and waste disposal process control (0.9%)13. columns show identified specialised sectors. Columns 3 to
Unemployment rate published by the Employment 8 summarise the main characteristics of economic output
Agency of Montenegro amounted to 17.83% in December used for sectoral identification, where different volume
11 IMF: “World Economic Outlook Update” – January 2019.
2018, which is a decrease of 4.26% compared to the rate thresholds have been used for determined specialised
12 Factors that affect competitiveness have been grouped
into 12 pillars of competitiveness: institutions, infrastructure, recorded in December 2017. sectors and for determining sectors with high employment
macroeconomic environment, health and primary educa-
growth or high relative wages (cells are colour-highlighted
tion, higher education and training, goods market efficien-
cy, labour market efficiency, financial market development, when a sector exceeds a threshold). Column 9 indicates
technological readiness, market size, business sophistica- 13 Annual macro-economic report of the Central Bank of Mon-
tion, and innovation. tenegro, 2018. 14 For the detailed explanation of the methodology, see Annex 1.

22 / 23 IV ANALYSIS OF POTENTIAL
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15
Table 1 - Mapping of economic potential: results
NACE Sector Specialisation Employment share Employment share above industry Employment share Employment growth Wages relative Traded clusters / emerging Export Priority sector
LQ above 1.5 above the common size specific threshold above industry above 25% to average industries specialisation
threshold of 1% specific size wages higher
threshold than 125%
1 2 3 4 5 6 7 8 9 10 11
012 Growing of perennial plants × × × 0.68% -4.1% 169.2% -- -- Agriculture and
food
052 Mining of lignite 24.64 0.88% 0.88% 0.57% 3.2% 146.0% -- -- --
101 Processing and preserving of 0.41 0.32% 0.32% 0.21% 73.6% 58.3% Blue Growth Industries 15
Yes Agriculture and
meat and meat products food;
Manufacturing
110 Manufacture of drinks 1.18 0.42% 0.42% 0.28% 1.1% 168.8% -- Yes Agriculture and
food;
Manufacturing
161 Sawmilling and planing of 4.64 0.90% 0.90% 0.59% 1.7% 50.7% -- -- Manufacturing
wood
162 Manufacture of wood produ- 0.50 0.27% 0.27% 0.18% 50.4% 45.8% Environmental Industries -- Manufacturing
cts, manufacture of articles of
cork, straw and plaiting mate-
rials
212 Manufacture of 0.51 0.22% 0.22% 0.14% -23.6% 130.4% -- Yes Manufacturing;
pharmaceutical preparations Medicine and
human health
241 Manufacture of basic iron and 1.61 0.47% 0.47% 0.31% -81.9% 91.0% Environmental Industries Yes Manufacturing
steel and ferro alloys
244 Precious metal production and 5.00 0.86% 0.86% 0.56% -66.8% 161.0% -- -- Manufacturing
other ferrous metal production
351 Production, transmission and 3.27 2.55% 2.55% 1.66% -6.0% 180.2% Production and Yes Energy
distribution of electricity transmission of electricity;
Blue Growth Industries;
Environmental Industries
360 Water collection, treatment 5.56 1.87% 1.87% 1.22% 7.6% 99.2% Services related to -- --
and supply environment;
Blue Growth Industries;
Environmental Industries
390 Remediation activities and 78.46 1.96% 1.96% 1.28% -35.1% 87.3% -- -- --
other waste management
services
412 Construction of residential and 1.64 3.55% 3.55% 2.32% 9.3% 78.3% -- -- Construction
non-residential buildings industry
421 Construction of roads and 1.23 0.81% 0.81% 0.53% 36.3% 108.0% -- -- Transport,
railways Construction industry

15 Blue Growth Industries include the following focal areas: ocean energy, aquaculture, maritime transport,
coastal and cruise tourism, maritime mineral resources, blue biotechnology (COM2012/0494).

24 / 25 IV ANALYSIS OF POTENTIAL
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NACE Sector Specialisation Employment share Employment share above industry Employment share Employment growth Wages relative Traded clusters / emerging Export Priority sector
LQ above 1.5 above the common size specific threshold above industry above 25% to average industries specialisation
threshold of 1% specific size wages higher
threshold than 125%
1 2 3 4 5 6 7 8 9 10 11
432 Construction installation 0.31 0.74% 0.74% 0.48% 76.7% 68.8% -- -- Construction
industry

433 Building completion works 0.58 0.80% 0.80% 0.52% 41.0% 55.0% -- -- Construction
industry
461 Wholesale for a commission 2.78 1.27% 1.27% 0.83% 10.0% 59.0% Distribution and -- --
electronic trade;
Experience Industries;
Blue Growth Industries
469 Non-specialized 17.94 9.20% 9.20% 5.99% -12.1% 64.6% -- -- --
wholesale trade
491 Passenger rail transport, 3.48 1.19% 1.19% 0.78% 19.8% 89.8% -- -- Transport
interurban
494 Freight transport by road and 0.47 1.05% 1.05% 0.69% 58.2% 51.9% Transportation and logistics; -- Transport
removal services Blue Growth Industries
522 Service activities incidental to 1.52 2.83% 2.83% 1.84% 1.9% 127.0% Transportation and logistics; -- Transport
transportation Experience Industries16;
Blue Growth Industries;
Environmental Industries
551 Hotels and 2.95 4.90% 4.90% 3.19% -2.6% 85.9% Hospitality and Tourism; Yes Tourism
similar accommodation Experience Industries
561 Restaurants and mobile food 1.11 4.09% 4.09% 2.67% 47.7% 42.1% -- -- Tourism
service activities
563 Beverage preparing 2.20 2.78% 2.78% 1.81% 8.2% 46.8% -- -- --
and serving activities
602 Television programming 5.87 0.93% 0.93% 0.61% -1.1% 98.9% -- -- ICT
and broadcasting activities
611 Wired telecommunication 2.59 1.10% 1.10% 0.72% -20.0% 220.8% -- -- ICT
activities
619 Other telecommunication 2.27 0.55% 0.55% 0.36% -10.9% 190.4% -- -- ICT
activities
620 Computer programming, 0.24 0.56% 0.56% 0.36% 116.6% 88.8% Business services; -- ICT
consultancy and Experience Industries;
related activities Creative Industries
641 Monetary intermediation × × × 1.55% 6.2% 214.6% -- -- Financial services
649 Other financial service × × × 0.34% -9.2% 137.2% -- -- Financial services
activities, except insurance
and pension funding
651 Insurance × × × 0.42% 60.3% 126.7% -- -- Financial services

16 Experience Industries include: accommodation and travelling, food and drinks, museums and parks, sports and recreation, art
(European Cluster Observatory)

26 / 27 IV ANALYSIS OF POTENTIAL
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NACE Sector Specialisation Employment share Employment share above industry Employment share Employment growth Wages relative Traded clusters / emerging Export Priority sector
LQ above 1.5 above the common size specific threshold above industry above 25% to average industries specialisation
threshold of 1% specific size wages higher
threshold than 125%
1 2 3 4 5 6 7 8 9 10 11
683 Management of real estate on 1.22 0.86% 0.86% 0.56% 7.9% 138.9% -- -- --
a fee or contract basis
691 Legal activities 0.88 0.69% 0.69% 0.45% 112.2% 41.5% -- -- --
702 Management consultancy 1.60 1.78% 1.78% 1.16% -34.6% 74.9% Experience Industries; -- --
activities Creative Industries
711 Architectural and engineering 0.46 0.75% 0.75% 0.49% 262.0% 67.4% Business services; -- --
activities and technical Blue Growth Industries;
consultancy Creative Industries
771 Renting and leasing 2.65 0.34% 0.34% 0.22% 55.8% 46.7% Creative Industries; -- --
of motor vehicles Environmental Industries
791 Travel agency and 2.61 0.87% 0.87% 0.57% 12.5% 80.6% Hospitality and Tourism; -- --
tour operator activities Experience Industries;
Blue Growth Industries
801 Private security activities 0.66 0.71% 0.71% 0.46% 2210% 46.0% -- -- --
802 Security systems service 6.33 0.68% 0.68% 0.45% -77.9% 44.1% -- -- --
activities
851 Pre-primary education × × × 0.79% 41.4% 80.0% -- -- --
854 Higher education × × × 0.77% 29.3% 128.2% Education and knowledge -- --
creation
861 Hospital activities × × × 2.74% 28.9% 103.6% -- -- Medicine and
human health
889 Other social work activities × × × 0.39% 54.3% 82.0% -- -- --
without accommodation
900 Performing arts × × × 0.38% 38.4% 78.1% Experience Industries -- --
931 Sports activities × × × 0.44% 27.7% 100.6% Hospitality and Tourism; -- --
Experience Industries
949 Activities of other membership × × 0.75% 36.1% 101.6% -- -- --
organisations

Source: Ministry of Science, 201816

Given that transport, construction and financial services do not have an export component, they are generally less qualified Results of the analysis show that specialised sectors with strong economic potential are: agriculture and food, energy,
to be economic priorities. However, given that the construction sector accounts for the highest growth recorded (8.8%) ICT, manufacturing industry, medicine and quality of life, construction and tourism.
when compared to all industrial sectors, it justifiably finds its place among the priority business sectors.

16

28 / 29 IV ANALYSIS OF POTENTIAL
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IV 2. ANALYSIS OF RESEARCH POTENTIAL According to the Global Competitiveness Report for 2018, Montenegro is ranked 71st out of the total of 140 countries in
terms of competitiveness of the national economy. Within pillar 12, the Innovation Capacity, Montenegro is ranked 74th.
The Government of Montenegro adopted the Strategy results, the state-owned University of Montenegro Within this pillar, in terms of their quality, the Montenegrin research institutions are ranked 94th; in terms of its inter-
of Scientific Research Activity (2017–2021) in December (UCG) is particularly prominent with its 19 faculties and institutional cooperation the country is ranked 59th; and in terms of investments in research and development the country
2017. The Strategy introduces new measures and three institutes. Three private universities also possess is ranked 74th.
instruments that will enable better quality of research, significant resources (University of Donja Gorica, University
access to modern technologies and infrastructures, better of Mediteran and Adriatik University). When it comes to the analysis of scientific potential, Figure 8 – Number of scientific publications
absorption of EU funds and strengthening of initiatives for data on scientific publications have been used from two 200
a knowledge-based economy. The analysis of international cooperation in scientific international data sources: Web of Science and Scimago.
160
publications and cooperation in R&D projects financed by
The Strategy has identified three strategic goals, European programmes has confirmed that the University Web of Science data suggest that in the period from 120

namely: Development of human resources and research of Montenegro (UCG) is by far the largest actor in research 2006 to 2014, the number of scientific publications grew 80
capacities; Improving international cooperation and and development. This is particularly the case in terms rapidly, at a rate of more than 20% annually (Figure 8).
40
networking; and strengthening synergy between science of ICT, agriculture, manufacturing industry and materials, Most publications are in the fields of biological sciences,
and economy. The Strategy has further identified research as well as in electrical and electronic technologies. The engineering, geoscience, mathematics, medical science 0
2006 2007 2008 2009 2010 2011 2012 2013 2014
areas of priority importance in which Montenegro has second most productive institution in Montenegro is the and physics.
the greatest research potential: Energy; Information and Clinical Centre of Montenegro (kCCG), specialised in the Source of data: Web of Science

communication technologies; New materials, products and health sector. The third major actor is the Public Health The quality of scientific performance, measured by the Scimago data also indicate that Montenegro, in
services; Medicine and health of people; Agriculture and Institute of Montenegro (IJZCG), also very active in the country’s share in the top 1% or the top 10% of the most comparison with other countries, specialises in Agricultural
food production; Sustainable development and tourism; health sector, environmental science and biochemistry cited publications worldwide, is below average, while and Biological Sciences, Arts and Humanities, Computer
and Science, education and identity. The measures and (Figure 7). in medicine and physics the share of Montenegrin Science, Economics, Econometrics and Finance, Energy,
instruments defined in the Strategy will be thematically publications is above the world average. Engineering, Mathematics and Social Sciences (Table 2a).
Figure 7 – The main actors in research across domains by
directed at the S3 priorities.
number of records (all sources) (colour intensity denotes
the relative contribution, computed column-wise).
Scientific research institutions carry out scientific research Table 2a – Scientific specialisations
culture, education and the economy

Electric and electronic technologies


in accordance with their activities, and these are:
2006-2016 2011-2016
Process industries and materials

Montenegrin Academy of Sciences and Arts (CANU) and


Better societies - governance,

• Agricultural and Biological Sciences (416) • Agricultural and Biological Sciences (341)
institutions that have been granted a license to carry out
• Computer Science (575) • Computer Science (442)
Environmental sciences

scientific research activities in certain fields of science


Highly specialised • Economics, Econometrics and Finance (79) • Economics, Econometrics and Finance (76)
Health & wellbeing

(universities, institutes, faculties and enterprises). Among


Heavy machinery

• Energy (114) • Engineering (574)


and industries

them, in terms of the number of researchers and research


• Engineering (787) • Mathematics (199)
infrastructure, as well as the achieved scientific research
Transport

• Arts and Humanities (90)


Energy

• Arts and Humanities (416)


Food
ICT

Strongly • Energy (89)


• Mathematics (245)
University of Montenegro 783 497 330 356 196 155 114 94 70 51 specialised • Environmental Science (132)
• Social Sciences (185)
Clinical Center of Montenegro 4 2 201 2 2 0 0 0 0 0
• Social Sciences (168)
Source: SCImago (2018). SJR — SCImago Journal & Country Rank. Retrieved in January 2018, from http://www.scimagojr.com. Between
Institute of Public Health of Montenegro 0 31 47 7 13 10 0 0 0 1
brackets is the total number of documents in the specified period.
Mediterranean University 52 0 0 40 1 0 6 0 1 2

University of Donja Gorica 28 4 2 16 6 0 1 0 0 5 Furthermore, in addition to this analysis of scientific potential, analysis was also conducted at the level of the countries
Institute of Marine Biology 0 46 3 0 2 1 0 0 0 0 of the Western Balkans. Thus, the scientific results of Montenegro in terms of publications and the period in which they
were published (2008-2017) mainly relate to engineering (611), medicine (458), agricultural and biological sciences (426).
Center for Ecotoxicological Research of Montenegro 1 18 17 0 6 0 0 0 0 0
Mathematics (271), computer science (260), physics (237) and social sciences (213) account for the second level of subject
Montenegrin Academy of Sciences and Arts 1 12 2 3 0 6 0 16 0 0
areas with significant scientific results. Finally, the following areas can be regarded as new specialisations in the second
Natural History Museum of Montenegro 0 25 2 0 0 0 0 0 0 0
five-year period: environmental protection (172), economics (80), health sciences (43) and decision sciences (29) (Table 2b,
Figure 9).
Source: Matusiak M. (ed.), Smart specialisation in the Western Balkans – potential for knowledge-based econom-
ic transformation, European Commission, Joint Research Centre (draft report to be published in 2019)

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Table 2b – Scientific Specialisations Table 3 – Nationally funded research projects (2016-2018)


LQn> 0.13 2008-2012 2013-2017   Natural Engineering Medical Agricultural Social Humanities
High Specialisation • Engineering (611) sciences sciences sciences sciences sciences
• Medicine (458) National Project value € 245390 4588000 1289000 528385 414376 201100

• Agricultural and Biological Sciences (426) scientific

Strong specialisation • Mathematics (271) research

• Computer Sciences (260) projects


Number 13 13 8 7 10 6
• Physics (237)
of projects
• Social Sciences (213)
Bilateral Project value € 119600 102300 6700 67400 41000 55500
New specialisations • Environmental Protection (172)
scientific
• Economics (80)
research
• Health Sciences (43)
projects
• Decision-making (29) Number 29 27 4 15 16 9
Source: Scopus of projects

Source: Ministry of Science


Figure 9 – Specialisation trends for all subject areas calculated for two five-year periods

Effects of internationalisation, i.e. direct contacts with leading research teams in several areas already produce visible
Specialisation in publications: ME vs EU28 results under the new applications for projects within Horizon 2020. Since 2014, Montenegrin research teams have partic-
ipated in 18 projects, eight of which have been completed. Based on the data available, there are also 8 projects financed
10-yr trend
AGRI under H2020 in which Montenegrin research teams participate as “third parties” (Table 4).
ECON
Declining
2.0
Emerging Table 4 – Distribution of projects in H2020 (2014-2019)
ENVI HEAL
ENGI
Non Existent Domain H2020 H2020 priority projects Total
MATH Continuous
1.5 Research infrastructures including e-infrastructures 6 2 8
LQn (2013-2017)

Health, Demographic Change and Wellbeing 2 1 3


SOCI
Food Security, Sustainable Agriculture and Forestry, 2 2
1.0 Publications Marine, Maritime and Inland Water Research and the
MEDI
Bioeconomy
VETE CHEM (2008-17)
Safe, clean and efficient energy 1 1
PHAR PHYS
0.5 CENG 200 Climate Action, Environment, Resource Efficiency 1 1
DENT
400 and Raw Materials
600 Secure societies – Protecting freedom and security 2 2
of Europe and its citizens
0 1 2
Leadership in Enabling and Industrial Technologies 1 1
LQn (2008-2012)
Marie Skłodowska-Curie actions 1 1
Innovation in small and medium-sized enterprises 2 2
Source: Matusiak M. (ed.), Smart specialisation in the Western Balkans – potential for knowledge-based economic transformation, ICT 3 3
European Commission, Joint Research Centre (draft report to be published in 2019)
Access to risk finance 1 1
Science with and for society 1 1
At the national level, 157 research projects were funded in the two-year period (2016-2018), with 100 projects that had an
Total 18 8 26
international component (Table 3).
Source: Ministry of Science

32 / 33 IV ANALYSIS OF POTENTIAL
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IV 3. ANALYSIS OF INNOVATION POTENTIAL Among the codes considered, A61 (Medical or veterinary science, hygiene) is strongly specialised, while the others are
highly specialised (i.e. LQn>1.5), in both halves of the reference period (Figure 10).

There were 33 IPC codes in the European Patent Office’s patent dataset for Montenegro. Of these, 17 were associated
with more than one records. Seven IPC codes were recorded only in the first half of the reference period, while six codes
were recorded only in the second half.

Research and development (R&D) represent a significant Based on the established institutional framework, support Figure 10 – Specialisation trends for all IPC codes calculated for two five-year periods for Montenegro
component of innovation and a key factor in development programmes are implemented for the development of
of new competitive advantages. Enterprises that strive to innovations in the economy with a view to commercialisation
Specialisation in patents: ME vs EU28
retain their competitiveness have to invest in research of research. Promotional and advisory support necessary
10-yr trend
and development, by developing new technologies or for the transfer of technological solutions, knowledge and 15
A01
absorbing the existing ones from domestic, as well as from experience is actively realised through EEN network. Declining

international sources. Emerging

Based on the technological readiness factor within the Non Existent

In 2016, Montenegro systematically directed its efforts at Global Competitiveness Index for 2017-2018, Montenegro Continuous
10
creating and shaping a sustainable and efficient innovation is ranked 48th out of the total of 137 countries. Pursuant to

LQ (2012-2016)
ecosystem through the adoption of the Law on Innovative the Global Innovation Index18 for 2018, Montenegro was F03

Activities and the Strategy of Innovative Activity (2016- ranked 52nd among 126 countries included in the survey. E02
B63
2020) with the Action Plan. The strategic focus has been Based on the GII 2018, Montenegro is among the 20 Patents
E04
directed at three main strategic goals: Increasing the countries that have better results in innovation than in the 5
A61
(2007-16)
capacities for innovation and technological development of level of development. These data indicate the importance
Montenegro; Strengthening the instruments of integration of the innovation potential of a country. 2.5

and cooperation of actors in the innovation system; and Y02


5.0
G06 H02
Strengthening the potential for innovation in the business The registration of patents in Montenegro in the reference 7.5
H04 H01
0
sector. With the support of the European Commission17, in period (2007-2016) was predominantly focused on six IPC C07 G01 C05 10.0

December 2018, the Government adopted the Programme codes: A01 (Agriculture and forestry; animal husbandry, 0 25 50 75
of Incentives for Innovative Start-ups in Montenegro, with hunting, trapping, fishing), A61 (Medical or veterinary LQ (2007-2011)
accompanying Action Plan. science, hygiene), H02 (Generation, conversion, or
distribution of electric power), E04 (Building), F01 (Machines
Source: Matusiak M. (ed.), Smart specialisation in the Western Balkans – potential for knowledge-based economic transformation,
or engines in general) and F04 (Positive-displacement European Commission, Joint Research Centre (draft report to be published in 2019)
machines, pumps) – Table 5.

Table 5 – Distribution of patents by IPC codes (2007-2016) The Western Balkans inventive capacity is shown in Table 6. The table provides the volume of patent families in the
selected economies, eliminating the repeated counting of the same patent registered across different patent offices.
IPC Code Description Number of patents
A01 Agriculture and forestry; animal husbandry, hunting, trapping, fishing 10 Table 6 – Volume of inventive technological activities (patent families) and destination economies (applicant)
A61 Medical or veterinary science, hygiene 8 Inventor(s) of residence INPADOC patent families, Top 2 applicant locations
H02 Generation, conversion, or distribution of electric power 6 2000-2017
E04 Building 6 Albania 51.2 Albania - USA
F01 Machines or engines in general 4 Bosnia and Herzegovina 214.3 Bosnia and Herzegovina - USA
F04 Positive-displacement machines; pumps 4 Montenegro 49.8 Montenegro - USA
North Macedonia 96.9 North Macedonia - USA
Source: Directorate for Internal Market and Competition
(Ministry of Economy) Serbia 2166.2 Serbia - USA

Source: Matusiak M., Kleibrink A. (ed.), Supporting an Innovation Agenda for the Western Balkans: Tools and Methodologies,
18 The Index illustrates multidimensional aspects of innovations Publications Office of the European Union, Luxembourg, 2018, ISBN 978-92-79-81870-7, doi:10.2760/48162, Joint Research
by providing a rich and detailed database at the global level, Centre of the European Commission
17 H2020 Policy Support Facility: Towards Entrepreneurial Inno- encompassing 90.8% of the world population and 96.3% of
vation Ecosystems in Montenegro. GDP.

34 / 35 IV ANALYSIS OF POTENTIAL
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The number of registered EU trademarks in Montenegro in the reference period (2008-2017) is very low. In 45 Nice Classification Figure 12 – Global Competitiveness Index, Innovation scores
Classes, Montenegro was active in 11, including 6 in the goods category and 5 in services category (Table 7, Figure 11).

Table 7 – Most common Nice codes


Nice goods Nice services Description Registered
Albania
classes classes trademarks
9 Apparatuses, instruments and computers 2
Bosnia and Herzegovina
41 Education 2
Provision of training
Entertainment North Macedonia
Sporting and cultural activities
Montenegro
42 Scientific and technological services and research and design relating thereto 2
Industrial analysis and research services
Design and development of computer hardware and software Serbia GCI 2017/18
38 Telecommunications 2 GCI 2008/09
WB average
Source: Directorate for Internal Market and Competition (Ministry of Economy)
GCI Inno 2017/18

Figure 11 – Specialisation trends for all Nice Classification Classes calculated for two five-year periods for Montenegro Slovenia GCI Inno 2008/09

Specialisation in trademarks: ME vs EU-28


10-yr trend Croatia

Declining

Emerging
Greece
4

38 Non Existent

Continuous Bulgaria
3
9
LQ (2013-2017)

Romania

2 41
Trademarks 0 1 2 3 4 5

(2008-17)
42
Source: Matusiak M., Kleibrink A. (ed.), Supporting an Innovation Agenda for the Western Balkans: Tools and Methodologies,
0.0
1 Publications Office of the European Union, Luxembourg, 2018, ISBN 978-92-79-81870-7, doi:10.2760/48162, Joint Research
35
0.5 Centre of the European Commission 111430
1.0

1.5
0
34
2.0 According to the latest official data, total domestic investments in research and development in 2016 amounted to 0.32%
0 20 40 60
LQ (2008-2012)
of GDP. Compared to the EU-28, the entrepreneurial-business sector in Montenegro has a relatively small share in total
R&D spending, amounting only to 0.05% of GDP in 2016, while the EU-28 average was 1.32% in the same year. The entre-
Source: Matusiak M. (ed.), Smart specialisation in the Western Balkans – potential for knowledge-based economic transformation, preneurial-business sector employs about 7.75% of all persons engaged in research and development in Montenegro. The
European Commission, Joint Research Centre (draft report to be published in 2019) latest results of the balkan barometer (2016) show that almost 60% of Montenegrin enterprises have introduced a certain
production innovation, while more than 50% have introduced a certain process innovation (Figure 13).
Although the economies of the Western Balkans are still lagging behind the EU in terms of innovation performance, growth
has been identified. Thus, over the past 10 years, based on the Global Competitiveness Reports for the respective years,
Montenegro grew from the score of 2.8 (in 2008/2009) to 3.2 (in 2017/2018) out of the maximum of 7 points (Figure 12)19.
This reflects the overall increase in the capacity of countries for innovation, improved policy framework for innovation, as
well as improved quality of scientific research institutions. However, the region continues to have particularly low private
sector investments in research and development (R&D).
19 World Economic Forum, https://weforum.org/

36 / 37 IV ANALYSIS OF POTENTIAL
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Figure 13 – Share of enterprises (%) with innovation activities (2016)


IV 4. RESULTS OF POTENTIAL ANALYSES
RESULTS OF THE qUANTITATIVE ANALYSIS20

53
Serbia
53
At the end of the mapping process, the results of the Results of the economic analysis presented in Table 1 show
53 economic, research and innovation potential need to be that sectors with strong economic potential are: agriculture
Montenegro
59 integrated with a view to initial identification of priority and food, energy, ICT, manufacturing industry, medicine
sectors to which smart specialisation ought to focus, and quality of life, construction and tourism. These results
50 directing the national policy instruments and measures. are matched with results of research and innovation
North Macedonia
57 However, merging is not easy to implement, as the results mapping by sectors shown in Figure 14, and Table 2a
of economic and innovation mapping are not present and 2b. Figure 14 indicates that ICT is the main sector
37 at the third level of the NACE classification, and when it in terms of outgoing I&R&D parameters for Montenegro,
Kosovo
59 comes to research mapping, the units of analysis are not accounting for about 5% of total ICT production in the
sectors, but the fields of science instead. Western Balkans. ICT is followed by the environment,
50 health and wellbeing, as well as better societies. Food,
Croatia
50 In order to define the priority domains of Quantitative manufacturing industries and materials, energy and heavy
analysis, economic priorities are compared with the machinery are much less prominent. Finally, electric and
58 results of research and innovation analysis. electronic technologies and transport are at the bottom
Bosnia and Hercegovina
65 of the list.

50 Figure 14 – Montenegro: Total results by sectors


Albania
48

0 10 20 30 40 50 60 70
Introduced process innovations Introduced product innovations

Source: Balkan Barometer 2016

The available data indicate that the entrepreneurial sector does not invest in research and development as much as it
should. This limits the capability of enterprises to develop new products, as well as the absorption of new technologies.
National R&D activity is generally below the level present in other European countries. One of the restricting factors for a
realistic assessment of the country’s innovative capacity is the lack of detailed statistics.

Source: Matusiak M. (ed.), Smart specialisation in the Western Balkans – potential for knowledge-based economic transformation,
European Commission, Joint Research Centre (draft report to be published in 2019)

20 Full text of the Quantitative Analysis is available at http://www.mna.gov.me/en/ministry/Smart_Specialisation/

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When the semantic content of specialised sectors for Montenegro is compared with the WB countries, it may be noted that
the records associated with Energy are focused on Power Systems; Environmental Sciences are focused on Marine Biolo-
gy and Water Resources; ICT is focused on Signal Processing and Digital Communications; and Manufacturing Industries/
Materials are focused on Metals.

Sectoral analysis leads to conclusion that Montenegro is specialised for individual sub-sectors in most sectors. Further-
more, presence of a multidisciplinary approach is evident in most sectors.

When the identified areas of economic, research and innovation specialisation are mapped together, we obtain the result
of the Quantitative analysis, where specialised sectors to which the development priority should be given are the following:
Agriculture and food; Energy; ICT; Manufacturing industry; Medicine and quality of life; Construction; and Tourism (Table 8
and Figure 15).

40 / 41 IV ANALYSIS OF POTENTIAL
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Table 8 - Results of Quantitative Analysis

ECONOMIC POTENTIAL RESEARCH & INNOVATION POTENTIAL


NACE Sector Specialisation LQ Employment share Employment share Employment share above Employment growth Wages relative to Priority sector Number of records H2020 Projects
above 1.5 above the common above industry industry specific above 25% average wages higher (publication, patents, EC&Eureka
threshold of 1% size specific size threshold than 125% R&I projects, Creative Europe and
threshold Culture)
1 2 3 4 5 6 7 8 9 10 11
012 Growing of perennial × × × 0.68% -4.1% 169.2% Agriculture and food FOOD
plants
101 Processing and 0.41 0.32% 0.32% 0.21% 73.6% 58.3% Agriculture and food; 200 2
preserving of meat and Manufacturing
meat products
110 Manufacture of drinks 1.18 0.42% 0.42% 0.28% 1.1% 168.8% Agriculture and food;
Manufacturing
161 Sawmilling and 4.64 0.90% 0.90% 0.59% 1.7% 50.7% Manufacturing Process industries and materials
planing of wood
162 Manufacture of wood 0.50 0.27% 0.27% 0.18% 50.4% 45.8% Manufacturing 190 1
products; manufacture of
articles of cork, straw and
plaiting materials
241 Manufacture of basic iron 1.61 0.47% 0.47% 0.31% -81.9% 91.0% Manufacturing
and steel and ferro alloys
244 Precious metal production 5.00 0.86% 0.86% 0.56% -66.8% 161.0% Manufacturing
and other ferrous metal
production
351 Production, 3.27 2.55% 2.55% 1.66% -6.0% 180.2% Energy ENERGY (including energy storage)
transmission and 260 1
distribution of electricity
360 Water collection, treatment 5.56 1.87% 1.87% 1.22% 7.6% 99.2% Environment Environmental science and
and supply industries
390 Remediation activities and 78.46 1.96% 1.96% 1.28% -35.1% 87.3% Environment 1
other waste management 620
services
412 Construction of 1.64 3.55% 3.55% 2.32% 9.3% 78.3% Construction industry Heavy machinery
residential and 120
non-residential buildings
421 Construction of roads 1.23 0.81% 0.81% 0.53% 36.3% 108.0% Transport;
and railways Construction industry
432 Construction installation 0.31 0.74% 0.74% 0.48% 76.7% 68.8% Construction industry
433 Building completion works 0.58 0.80% 0.80% 0.52% 41.0% 55.0% Construction industry

42 / 43 IV ANALYSIS OF POTENTIAL
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ECONOMIC POTENTIAL RESEARCH & INNOVATION POTENTIAL


NACE Sector Specialisation LQ Employment share Employment share Employment share above Employment growth Wages relative to Priority sector Number of records H2020 Projects
above 1.5 above the common above industry industry specific above 25% average wages higher (publication, patents, EC&Eureka
threshold of 1% size specific size threshold than 125% R&I projects, Creative Europe and
threshold Culture)
1 2 3 4 5 6 7 8 9 10 11
551 Hotels and 2.95 4.90% 4.90% 3.19% -2.6% 85.9% Tourism Records within Biodiversity and
similar accommodation natural capital;
561 Restaurants and mobile 1.11 4.09% 4.09% 2.67% 47.7% 42.1% Tourism Environmental health determinants;
food service activities Cultural heritage
563 Beverage preparing and 2.20 2.78% 2.78% 1.81% 8.2% 46.8% Hospitality
serving activities 50
791 Travel agency and tour 2.61 0.87% 0.87% 0.57% 12.5% 80.6% Tourism
operator activities
602 Television programming 5.87 0.93% 0.93% 0.61% -1.1% 98.9% ICT ICT
and broadcasting activities
611 Wired telecommunication 2.59 1.10% 1.10% 0.72% -20.0% 220.8% ICT 900 3
activities
619 Other telecommunication 2.27 0.55% 0.55% 0.36% -10.9% 190.4% ICT
activities
620 Computer programming, 0.24 0.56% 0.56% 0.36% 116.6% 88.8% ICT
consultancy and related
activities
861 Hospital activities × × × 2.74% 28.9% 103.6% Medicine and human Health and wellbeing
health 600 3
212 Manufacture of 0.51 0.22% 0.22% 0.14% -23.6% 130.4% Manufacturing;
pharmaceutical Medicine and
preparations human health

Figure 15 – Results of the Quantitative analysis

Economic Innovation
potential potential potential
Quantitative
analysis

Specialisation: Trademarks: ME vs EU-28

1.0 10-yr trend

HEALTHCARE
Specialisation: Trademarks: ME vs EU-28

MANUFACTURING
Declining

1.0 10-yr trend


Emerging

AGRICULTURE ENERGY 0.5

AND QUALITY 38
Non Existent
ICT CONSTRUCTION TOURISM
INDUSTRY
Declining
Continuous

LQn (2013-2017)
Emerging 41

OF LIFE
42
0.5 38
Non Existent
0.0
Continuous
Trademarks
LQn (2013-2017)

41
42

(2008-17)
0.0
-0.5 Trademarks 0.0

0.5
(2008-17)
1.0
-0.5 0.0
34 1.5
-1.0
0.5
2.0
-1.0 -0.5 1.0 0.0 0.5 1.0
34 1.5
-1.0 LQn (2008-2012)
2.0 Data Source: EUIPO
-1.0 -0.5 0.0 0.5 1.0

LQn (2008-2012)
Data Source: EUIPO

44 / 45 IV ANALYSIS OF POTENTIAL
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RESULTS OF THE qUALITATIVE ANALYSIS21 RESULTS OF ENTREPRENEURIAL the S3 development process had the opportunity to take
DISCOVERY PROCESS part in the EDP by filling out a web questionnaire25, which
A Qualitative analysis of the economic, research and innovation potential of Montenegro commenced in the summer of was available by the end of August 2018.
2017 and was completed in early May 201822. This analysis reviewed the results of the Quantitative analysis and considered After the quantitative and qualitative analyses that defined
the development trends difficult to observe in quantitative terms. seven preliminary S3 priority areas (Agriculture and food, The final S3.me conference with about 150 representatives
Energy, ICT, Manufacturing industry, Medicine and quality of all sectors of the society was held on 18 September
The qualitative analysis assesses the potential for increasing productivity and export capacity of the sectors and sub- of life, Construction and Tourism), the Entrepreneurial 2018, providing the grounds for presentation of the EDP
sectors, as well as the likelihood of utilising this potential. The starting premises for the qualitative analysis were the Discovery Process (EDP) was initiated with a view to results. More than 300 different actors participated in this
national strategic and programming documents that point to the development directions of the state. Along with the results define the final priorities. The EDP has also identified final part of the Entrepreneurial Discovery Process, of which
of the quantitative analysis, these development directions were subjected to critical review and opinion of the surveyed strengths, weaknesses, opportunities and threats (SWOT) more than half were from the business sector.
representatives from the business, academic, civil and public sectors. Representatives of all sectors, and especially for each priority sector, as well as the general SWOT
representatives of business associations and the most important business entities from the priority sectors determined by analysis elements. The Entrepreneurial Discovery Process Given that the Entrepreneurial Discovery Process is
the quantitative analysis, provided answers to a set of questions. The semi-structured survey method was used to collect is “an inclusive and interactive bottom-up process in continuous, after the final S3.me conference, the Ministry
information, whereby the basic questions were always the same, while additional questions varied depending on the which participants from different environments (policy, of Science continued the activities supporting the Process.
business sector. business, academia and civil society) are discovering An analysis was conducted of data collected by processing
and producing information about potential new activities, applications to the call of the Ministry of Science for
Analysis of the gathered information led to qualitative analysis results that essentially match the findings of quantitative identifying potential opportunities that emerge through awarding grants for innovative projects, which was
analysis. However, the qualitative analysis was aimed at new products, services and processes that can influence the this interaction, while policymakers assess outcomes and published in mid-year. The analysis confirmed the sectoral
creation of new value chains in the sectors. Furthermore, it addressed the issue of cross-sectoral relations, which are a ways to facilitate the realisation of this potential” . EDP
23
priorities of EDP, because the received applications
significant dimension of S3 in existing and potential synergistic effects. At the same time, some ambiguities and doubts primarily implies involvement of a broad pool of direct thematically coincided with the defined priorities. In late
arose from quantitative analysis, because statistical indicators cannot give a complete overview of the situation in the business representatives. September 2018, TAIEx expert mission was implemented
real sector. Taking into account the aforementioned circumstances, the qualitative analysis has confirmed the preliminary with a view to build up the national capacities for smart
priority sectors of the quantitative analysis. Also, their synergistic relationship has been more closely defined through The preparation for the EDP was carried out through specialisation. Finally, in early October 2018, the “Stock
diversification of vertical and the horizontal priority sectors. Tourism has been separated as a horizontal priority sector. The the training of the Montenegrin delegation organised Exchange of Prosperous Ideas for Montenegro” was
results of the qualitative analysis are provided in Figure 16. by the RCC-JRC: How to start the S3 process and lead organised, where the presented development ideas
to an entrepreneurial discussion, which took place matched the proposed priority sectors.
in early April 2018 in Ljubljana. The Entrepreneurial
Discovery Process commenced with the organisation of Based on the results of the previous EDP phases, four
the S3.me Conference “Smart Specialisation, Innovation, vertical priority sectors (Sustainable agriculture and food
Figure 16 – Results of the Qualitative analysis Entrepreneurship and Competitiveness”, held on 11 May value chain, Renewable energy sources and energy
2018, which brought together about 200 participants from efficiency, New materials and sustainable technologies,
LQn (2008-2012)
Data Source: EUIPO the business, public, academic and civil sectors. After and Sustainable and health tourism) and one horizontal
-1.0 -0.5 0.0 0.5
HEALTHCARE
1.0

that, more than 60 24


workshops ensued in priority areas priority sector (Information and communication
MANUFACTURING
2.0

-1.0
1.5

AGRICULTURE ENERGY AND QUALITY ICT CONSTRUCTION


34

1.0

INDUSTRY identified through quantitative and qualitative analysis. technologies – ICT) were defined. The priority nature
0.5

-0.5 0.0

OF LIFE
(2008-17)
)7102-3102( nQL

Trademarks
0.0

42
41
The work of focus groups by sectors was continuously of the subject sectors was additionally verified through
Continuous

monitored by experts from Slovenia recommended by the process of adopting the Guidelines for the Smart
Non Existent
0.5 38
Emerging

Declining

TOURISM
Joint Research Centre of the European Commission (direct Specialisation Strategy (2018-2024), adopted by the
1.0 10-yr trend

Specialisation: Trademarks: ME vs EU-28

visits and online communication). The workshops resulted Government of Montenegro in late 2018 as a document
Qualitative in more detailed definitions of the areas of development that attached institutional and formal significance to the
analysis within the preliminary sectors and the potential for further S3 draft. Although this document has no binding character
In-depth Focus Case development. Furthermore, a vision was determined that at the national level as the Strategy itself, the prescribed
interviews groups studies explicitly reflected each priority sector and goals were public debate procedure for its adoption was the same
Specialisation: Trademarks: ME vs EU-28

1.0 10-yr trend


defined with concrete indicators and measures for the – including an interactive web platform for consultation,
implementation of the Strategy. All the actors interested in mandatory opinion of public institutions and an open
Declining

Emerging

0.5 38
Non Existent

Continuous
LQn (2013-2017)

41

hearing of the interested public – which can be considered


42

0.0
Trademarks
23 Smart Specialisation Platform - http://s3platform.jrc.ec.euro-
21 Full text of the Qualitative Analysis is available at: http://www.mna.gov.me/en/ministry/Smart_Specialisation/
-0.5
(2008-17)

0.0
pa.eu/entrepreneurial-discovery-edp
22 Annex 3. 34
0.5

1.0 24 Annex 2, Table A. 25 Annex 2, Table B.


1.5
-1.0
2.0
-1.0 -0.5 0.0 0.5 1.0

LQn (2008-2012)
Data Source: EUIPO

46 / 47 IV ANALYSIS OF POTENTIAL
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a separate phase of the EDP. At this stage of the EDP, a national independent consultative body was also included – the Figure 17 - S3.me priority domains
Council for Scientific Research Activities – which operates within the Ministry of Science and consists of distinguished
representatives of scientific and business community. Vertical priorities
Following the adoption of the Guidelines for the Smart Specialisation Strategy, the work on creating the final S3 document
with the accompanying Action Plan has been continued. In early February 2019, a Joint Research Centre of the European
Sustainable Energy and Sustainable
Commission workshop for the Western Balkans entitled “Cooperation for Smart Specialisation” was organised in Podgorica,
agriculture and sustainable and health
addressing, as one of the central topics, the analysis and suggestions for improving the draft of the Montenegrin S3. By the
end of March 2019, a series of meetings by priority sectors took place with focus groups and institutional actors relevant
food value chain environment tourism
for S3 implementation. Efforts were made to further focus the existing priority areas on the basis of additionally collected
facts. At this stage of EDP, Flagship initiatives26 were also identified for each of the priority domains. Flagship initiatives
are programmes that contain a number of projects related to specific priority domain in which the country has a significant ICT
innovation potential. Projects within every Flagship initiative are connected by a common subject matter in relation to
which there is both research and innovation capacity and commercialisation potential. These initiatives should mobilise
a wide range of economic, research and institutional actors and available material and financial resources to engage in Horizontal priority
smart specialisation. Through open dialogue, using the referential Joint Research Centre of the European Commission
methodology for S3 development, the S3 priority domains have been identified, as well as their synergy based on the
strengths and potentials for research, development and innovation, with an emphasis on practical application and market The final EDP phase ahead of the adoption of the Strategy commenced in April 2019, when S3 draft was sent to the Joint
orientation. Research Centre of the European Commission for final consultations. After that, the document prepared in accordance
with the national legal framework for strategic policy planning27, was adopted in the second quarter of 2019, following a
mandatory public debate. Finally, the Smart Specialisation Strategy adopted at the national level will be submitted to the

Identified priority domains are: Sustainable agriculture and food value chain, Energy and sustainable environment, European Commission for a formal opinion.

and Sustainable and health tourism – as vertical priorities; and Information and Communication Technologies (ICT) –
as a horizontal priority (Figure 17).

27 Decree on the manner and procedure of drafting, harmonising and monitoring the implementation of strategic documents (“Official
Gazette of Montenegro”, no. 54/2018 of 31 July 2018) and Methodology for developing policies, drafting and monitoring the imple-
mentation of strategic documents.
26 Annex 3.

48 / 49 IV ANALYSIS OF POTENTIAL
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V swot
STRENGTHS
• The presence of internationally well-integrated excellent research teams / researchers;
• Developed higher education system;
• Availability of highly educated labour force;
• Attractive location and size of the country for pilot projects based on new technologies;
• Environmental preservation, availability and diversity of natural resources;
• Good telecommunication infrastructure;
• Presence of large international companies;
• The existence of a satisfactory legal and institutional framework.

WEAKNESSES
• Lack of “critical mass” within the scientific and research community due to fragmentation and isolation;
• Generally insufficient transfer of knowledge and technology from European knowledge centres;
• Insufficient investment and participation of the public and private sector in research and innovation activities;
• Weak connections between R&D institutions and the business sector;
• Lack of statistical data on innovation and development that are aligned with those of the European Union;
• Most enterprises are micro and small.

OPPORTUNITIES
• Enabled access to the leading international R&I funds;
• Enabled further access to large international research infrastructures (CERN, EMBL, etc.);
• Availability of natural resources and technogenic mineral raw materials for new industrial applications;
• Implementation of a “large research infrastructure for sustainable technologies” in South East Europe – SEEIIST;
• Establishment of Science and Technology Park and development of centres of excellence;
• Use of human R&I potential in diaspora;
• Clusters playing a more active role in the innovation ecosystem.

THREATS
• Outflow of highly qualified research and innovative human resources;
• Competition at the regional and global level;
• Insufficiently developed traffic infrastructure;
• Administrative barriers for investment and business development.

50 / 51 V SWOT
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VI strAteGIc
s3 PrIorItIes

Pursuant to the strategic development vision of Montenegro, through the application of S3 methodology and conducting
of the Entrepreneurial Discovery Process, four priority areas have been defined. By investments, as well as through devel-
opment of innovative and research potential in the selected priority areas, new opportunities will be created for entrepre-
neurial activities and development of a knowledge-based economy.

The selected priorities are the following: Energy and sustainable environment, Sustainable agriculture and food value
chain, Sustainable and health tourism; and ICT, where ICT is a horizontal sector as it provides business and technological
support to other priority sectors (Table 9).

Table 9 – Priorities and connection with development vision

PRIORITIES DEVELOPMENT VISION OF MONTENEGRO


Healthy Sustainable Digitalised Modernised and competitive
Sustainable agriculture and food value chain x x x x
Energy and sustainable environment x x x
Sustainable and health tourism x x x x
ICT x x

52 / 53 VI STRATEGIC S3 PRIORITIES
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VI 1. SUSTAINABLE AGRICULTURE
AND FOOD VALUE CHAIN

Agriculture is a sector that plays a multiple role in the de- FLAGSHIP INITITIVE
velopment of society and economy of Montenegro. Its
Priority domain: SUSTAINABLE AGRICULTURE AND
economic importance is reflected in high contribution to
FOOD VALUE CHAIN
GDP creation (more than 7%, while accounting for about
2% at the EU level). There is even greater share of agricul- Programme: Bio mapping and Engineering (BME)
ture in the employment of the labour force, since almost
one fourth of the total number of employed people in Mon- The Programme aims to ensure the preservation of biodi-
tenegro are engaged in family farms. In addition, agricul- versity and economic valorisation of the biological poten-
ture plays other important roles as well: it constitutes the tial of autochthonous flora and fauna in Montenegro for
basis for the food value chain (food industry and related the purpose of creation of innovative agricultural products.
sectors); it contributes to the development of tourism; it Their specificity and adaptability to local geographical and
encourages the development of many other sectors (pro- climate conditions can provide recognition and competiti-
duction of equipment, machinery and packaging material, veness in the international market, while meeting the latest
transport and numerous services); it is crucial in the sus- professional standards. The Programme shall focus on:
tainable development and mitigation of the depopulation
of rural areas; it contributes to the fight against poverty in RESEARCH COMPONENTS
rural areas and it is an important factor in preserving tra- • Identification and mapping of the genetic potential of
dition and the overall cultural heritage of the Montenegrin autochthonous plant, animal and microbial species,
villages. breeds, varieties and strains;
• Conservation of identified biopotential for the purpose
There are numerous development opportunities offered of future commercialisation and protection of endan-
by agriculture and the food value chain relying on it: 1) cre- gered and endemic species.
ating new jobs for different professional profiles; 2) huge
opportunities for the placement of knowledge and inno- INNOVATION COMPONENTS
vative technologies across the entire food value chain; 3) • Creation and commercialisation of innovative and au-
ensured potential for growth and generating of new value thentic agricultural products from selected autochtho-
through sustainable use of local raw materials; 4) a wide nous material.

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range of local products for improving the overall tourism offer; 5) favourable conditions for organic production justifying the RESEARCH AND INNOVATION ENVIRONMENT
orientation of Montenegro as an ecological state; 6) a combination of traditional and innovative technologies in the pro- SCIENTIFIC AND EDUCATIONAL INSTITUTIONS
duction of numerous products; 7) producing by-products used as raw materials in energy production; 8) the preservation • University of Montenegro, University of Donja Gorica, Public Health Institute, Montenegrin Academy of Sciences and
of the environment, biodiversity and landscapes. Arts, Specialist Veterinary Laboratory.

To invest in sustainable agriculture means to use investments rationally, because, in addition to synergy with numerous COMPANIES
sectors, it brings along a number of social benefits (immaterial and immeasurable ecosystem services). Agriculture in • Around 40 companies have been identified in manufacturing meat and dairy products, vegetables and food, herbs
Montenegro is characterised by diversity of production by regions (the diversity of agri-ecological and climate conditions and aromatic plants and mushrooms, production of honey, olive oil, potato and cereals, fisheries and aquaculture. As
enables great diversity of cultivated plant varieties and animal species), as well as by the existence of a large number of for the wine and beer production, there are internationally recognised brands, as well as 70 small vineries and 10 small
autochthonous species and varieties in plant and breeds in livestock production. Agriculture is also marked by high com- breweries.
plementarity with other priority sectors, especially with tourism as the driver of all types of agritourism and health tourism
through the presentation of traditional gastronomy in the context of the tourist offer. Also, the sustainable development of BUSINESS ASSOCIATIONS
the sector mitigates the negative demographic trends, contributes to the balance in territorial development, enables the • Chamber of Economy of Montenegro, Montenegrin Employers Federation, Montenegro Business Alliance, National
inclusion of different groups and contributes to the mitigation of the consequences of climate change. Association of Beekeepers, Association of Olive Producers “Boka” - Ulcinj, National association of vine-growers and
wine-makers, Cluster of registered cheese producers, Cluster of small wineries, Cluster of fisheries, Cluster of olive
VISION 2024 producers, Montenegrin prosciutto cluster, Raspberry producers cluster.
Montenegro is recognised for agriculture based on knowledge and innovation and is developing on the principles of sus-
tainability, preserving the tradition and values of the rural areas, complementing the beauty of the Montenegrin landscapes PUBLIC INSTITUTIONS
and forming a basis for the food value chain that offers a wide range of authentic products to the consumers. • Ministry of Agriculture and Rural Development, Ministry of Economy, Ministry of Science, Ministry of Sustainable De-
velopment and Tourism, Monteorganica – Montenegro’s certification body, Investment and Development Fund, local
SECTORAL GOALS self-governments, Administration for Food Safety, Veterinary and Phytosanitary Affairs, Montenegrin Accreditation
Strengthening the value chain of organic production Body, Institute of Hydrometeorology and Seismology, Centre for Ecotoxicological Research.

Development of new agricultural products


CIVIL SECTOR
• Centre for Consumer Protection.
FOCAL AREAS AND TECHNOLOGIES
ExISTING SYNERGISTIC EFFECT IN RELATION TO OTHER PRIORITY SECTORS
• Meat and meat products (traditional and new products); Sustainable agriculture and food value chain
• Wine (from autochthonous and introduced vine varieties, new types of wines, aromatic wines, grape seed oil, dried grapes) Sustainable and health tourism • Production of medicinal herbs, essential oils, cosmetic, spa and other products
and beer; Energy and • Energy efficient and smart management of agricultural production
• Dairy products: traditional and new (including autochthonous cultures for producing dairy products); sustainable environment • Use of waste as a resource
• Fisheries and aquaculture products; ICT • Smart and efficient management of agriculture
• Application of sensors for monitoring healthy food and environment
WITH POTENTIAL
• Development of organic agriculture value chain; KEY PERFORMANCE INDICATORS
• Innovation, creation of new products and application of new technologies for food production, including production of environ- Indicator 2019 Target value 2024
mentally friendly and smart packaging; Number of entrepreneurs and companies in organic production 360 600
• Sustainable use of marine resources for innovative products in biomedicine and pharmacology; Number of innovative and autochthonous products in the food industry 7 15
• Creation of new fruit and vegetable products;
• Innovative products from medicinal and aromatic herbs (production of oil, cosmetic products, pharmaceuticals, spa products,
spices, beverages, etc.);
• Olive oil and other olive products.

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SWOT analysis
STRENGTHS WEAkNESSES
• Preserved land • Structural constraints (the quality of the land, the fragmen-
• Richness in water resources for drinking and irrigation tation of the estate, the land on the slopes unsuitable for
• Diversity of agroecological conditions across regions is mechanised processing)
suitable for the production of a wide range of products • Aging of active labour force and depopulation of rural
• Richness of biodiversity (numerous autochthonous plant areas
and animal species suitable for agricultural cultivation) • Poor rural and insufficiently developed market infrastru-
• Preservation of traditional production (knowledge, consu- cture
mer culture, etc.) • Inadequately affirmed farm-to-table approach
• The existence of the market (locally and tourist oriented) • Insufficient competitiveness of domestic production
• Short food delivery channels to the consumers (local con- • High production costs due to the high share of imported
sumption) raw materials
• Well-developed legal and institutional framework for the • Insufficiently developed control system in the production
agricultural production chain
• Poor organisation of the producers (underdeveloped
clusters)
• Short-term vision of development (particularly in small
and micro enterprises)
OPPORTUNITIES THREATS
• Optimising the utilisation of agricultural land • Insufficient support from the financial sector to the family
• Favourable conditions for organic production (low level farms
of usage of mineral fertilisers – up to 10 x less than the • Strengthening and monopolising of the large retail chains
EU average) • Increase in energy products price
• Substitution of imports with domestic products • Climate change
• Growing tourism offers the opportunity for absorption of
seasonal surpluses and the placement of exclusive do-
mestic products
• Regional market offers the possibility of placement of the
recognisable Montenegrin products (wine, prosciutto,
honey, etc.)
• Growing young manufacturing industry
• Opportunities for merging traditional and new technolo-
gies
• Intensifying the production using modern and innovative
technologies

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VI 2. ENERGY AND SUSTAINABLE ENVIRONMENT

In the growth and development of energy and industrial tal energy production in the country, but only 17% of the
capacities, Montenegro has decided to provide for com- theoretical hydroelectric potential has been utilised so far.
pliance of its development needs with the standards of The theoretical potential for hydropower in Montenegro is
environmental and spatial protection. The centralised en- around 11 TWh/year, of which 5.7 TWh/year is economically
ergy system has been replaced by the electricity market. usable. Out of this potential, the main rivers account for
Montenegro’s approach in terms of the energy sector is to about 3.7-4.6 TWh/year, while the potential of small hydro
increase the share of energy use from renewable sources, power is estimated at 400 GWh/year. Twenty small hydro
with a special focus on the sustainable development of power plant projects have been realised so far, with a to-
the sector. Many projects have been implemented or are tal installed power of about 33 MW. Wind energy has a
being implemented – construction of mini hydro power significant potential for high-speed zones, i.e. areas with
plants, two large wind farms and a large solar power plant. wind speeds above 7 m/s. Energy produced from wind can
In addition, the installation of a submarine electric cable, reach up to 25% (925 GWh) of annual energy consumption
which will enable the connection of the electric power in the country. krnovo (72 MW) and Možura (46 MW) wind
system of Montenegro and Italy is in the final phase. Eco- farms point to the direction of development of the wind
nomical, environmentally friendly and reliable production, potential. Given that the wind farm at krnovo is located
transmission and use of electricity, as well as the identi- at the highest altitude in Europe so far, it can be said that
fication of the manner of optimal management, become Montenegro has positioned itself as a testing environment
the main challenges of the modern electricity sector in the for the application of technologies in extreme conditions.
country. Solar energy is also a very promising resource as the aver-
age annual number of sunny hours in Montenegro is more
Montenegro has great potential for renewable energy than 2000, while the coastal areas have more than 2500
sources (RES). Hydroenergy provides two-thirds of the to- hours per year. The solar energy has so far mainly been

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used for solar thermal heating and cooling of individual FLAGSHIP INITITIVE FOCAL AREAS AND TECHNOLOGIES
buildings. The construction of the first large solar power ExISTING WITH POTENTIAL
Priority ENERGY AND SUSTAINABLE
plant is planned at Briska gora, with capacity of about 250 • Hydro energy; • Solar energy;
domain: ENVIRONMENT
MW. Montenegro has great opportunities to use the wood • Wind energy; • Smart networks and cities;
waste energy potential as well. Programme: Renewable energy sources and • Regional centre for recycling scrap metal; • Development of energy storage systems;
energy efficiency • Producing energy products from wood waste; • Development of the concept of energy consumers/
Increasing energy efficiency in general can be the cheap- • Energy efficiency and improvement of energy bal- producers (“prosumers”);
The Programme aims to ensure the increase in the us-
est and the most productive energy alternative. Signifi- ance; • Transport electrification;
age of renewable sources of electricity and energy effi-
cant energy and financial cost savings can be achieved • Eco materials (wood, stone, aluminium, etc.) process- • Technologies for utilisation of technogenic mineral
ciency in consumption, while focusing on the innovative
through relatively small investments, better selection of ing and use. raw materials;
technical solutions for production, distribution, optimis-
energy efficient technologies, better organisation and im- • Reduction of consumption and CO2 emissions (eco
ation and electricity consumption. The Programme shall
proving the quality of electric power supply. active/passive facilities).
cover:

By applying adequate technologies, waste from Ther- FLAGSHIP INITITIVE RESEARCH AND INNOVATION ENVIRONMENT
RESEARCH COMPONENTS:
mal Power Plant Pljevlja, which produces about 40% of SCIENTIFIC AND EDUCATIONAL INSTITUTIONS
• Integration of prosumers (users as producers of the Priority ENERGY AND SUSTAINABLE
the country’s electricity, could be processed so that the • University of Montenegro, University of Donja Gorica,
energy) is requiring continuous power system opti- domain: ENVIRONMENT
end product is environmentally friendly. Generally, the Mediteran University, Adriatik University, Montene-
misation that heavily relies on mathematical models
manufacturing sector generates or has generated large Programme: Circular Economy (CE) grin Academy of Sciences and Arts.
and application of artificial intelligence algorithms.
quantities of industrial waste with significant potential for
use, which needs to be identified first. The largest utilisa- The Programme aims at strengthening the industrial COMPANIES
INNOVATION COMPONENTS:
tion potential in the industrial waste structure lies with fly competitiveness of Montenegro by recycling the indus- • Several large energy companies have been identified, as
• Improvement of energy efficiency and reduction of
ash, red sludge, slag, metal dust and wood waste. With a trial waste, i.e. the technogenic mineral raw material (red well as a significant number of small and medium-sized
CO2 emissions through smart concepts of smart
view to waste characterisation, its physical, geochemical, sludge, fly ash, foundry slag and ash, etc.) by extracting re- enterprises in the area of renewable energy (hydro and
buildings and cities;
chemical, mineralogical, biological, ecotoxicological and sidual raw materials of high economic value and / or trans- wind energy); there are several engineering enterprises
• Development and technology transfer of innova-
thermal characteristics need to be identified. The logical forming them into new materials suitable for industrial use. that provide support to large energy systems.
tive technological solutions for renewable energy
continuation of the characterisation process is then to se- Starting from the successful examples of such production • About 30 large, medium and small enterprises have been
sources (replacing fossil fuel heating systems with
lect a procedure for further waste management in line with in the world that generate competitive products and solve identified in the industrial and waste recycling sector.
innovative renewable energy solutions, using wind
the circular economy principles. the issue of industrial waste, the Programme shall focus on:
power plants that are positioned at the highest alti-
BUSINESS ASSOCIATIONS
tude in Europe as a testing platform, etc.).
RESEARCH COMPONENTS • Chamber of Economy of Montenegro, Montenegrin

• Enabling extraction of high-value components from Employers Federation, Montenegro Business Alliance,

the existing waste in an efficient and economical Association of Oil Companies of Montenegro, Associ-

way, thus providing raw materials suitable for the ation of Concessionaires of Small Hydro Power Plants.

industrial use;
• Addressing environmental issues related to perma- PUBLIC INSTITUTIONS

nent storage of the remaining industrial waste with • Ministry of Economy, Ministry of Sustainable Develop-

no harmful consequences for the environment. ment and Tourism, Environmental Protection Agency,
VISION 2024 Ministry of Science, Ministry of Public Administration,
Montenegro is recognised as regional energy hub with high-level use of renewable energy sources and mineral raw mate- Ministry of Education, Ministry of Agriculture and Ru-
INNOVATION COMPONENTS
rials on the principles of circular economy and sustainable environment. ral Development, local self-government bodies, Ener-
• Transforming waste material of good technogenic
characteristics into innovative products that can be gy Regulatory Agency, Montenegrin Electrical Energy
SECTORAL GOALS Market Operator (COTEE), Investment and Develop-
used in construction and other industrial branches
Increasing innovative use of renewable energy sources ment Fund, Office for Geological Surveys.
(refractory bricks, tiles, fillers, foam aggregates, ce-
Increasing innovative activities in waste recycling and utilisation ment, ceramics, materials for mortar, concrete and
asphalt, colour pigments, materials for floor coat-
ings, absorbents, etc.).

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SWOT analysis
CIVIL SECTOR STRENGTHS WEAkNESSES
• Academy of Engineering Sciences, CG kO CIGRE (Montenegrin National Committee for the International Council on • Geographical position and completed capital energy projects make Montenegro • Bureaucratic problems related to
Large Electric Systems), Engineering Chamber of Montenegro an energy hub of the Balkans business operations of energy
• There are various production capacities in the country (hydro, wind and thermal) companies
• National energy system is small and flexible • Lack of local energy plans
SYNERGISTIC EFFECT IN RELATION TO OTHER PRIORITY SECTORS • Decentralisation of the EES has been carried out by establishing separate enti- • Low level of waste processing
Energy and sustainable environment ties (production, transmission, distribution, stock exchange, market operator and
Sustainable agriculture and • Energy efficient and smart management of agricultural production regulatory agency)
food value chain • Use of waste as a resource • Large reserves of technogenic mineral raw materials

Sustainable and health tourism • Energy efficiency of tourist and healthcare facilities • Regulations have been harmonised with European regulations and standards

ICT • Optimum management of the electrical energy systems and networks


• Managing data on the state of play and potentials in energy OPPORTUNITIES THREATS

• Cyber security • Potential in renewable energy sources • Cyber security in business and
• Smart energy systems – smart energy and information transportation • Development of the smart energy and information transport management of energy systems
• Smart trade and electrical energy management – energy market • Development of energy market analytics (production capacities, energy
• Smart waste management • Construction of charging stations for electric cars for better tourist offer trading, etc.)
• Investment/research in smart energy networks and smart infrastructure (houses, • High-value export of raw mate-
KEY PERFORMANCE INDICATORS buildings, hotels, roads, crossroads, etc.) rials contained in waste

Indicator 2019 2024. • Transmission and transit of energy (cable to Italy and planned gas pipeline)
• Development of hybrid energy systems (diesel-solar, wind-solar, etc.)
Number of enterprises in the field of renewable energy sources 50 80
• The country can be used as a test energy environment (wind farms at krno-
Percentage of processed industrial waste 3.4%28 5%
28 vo-Gvozd, etc.)
• Possibility of using industrial waste for extraction of high-value mineral elements
through innovative technology
• Possibility of using waste for production of new materials (for construction and
other business sectors)
• Creating new industrial activities on the basis of raw materials which use is ena-
bled thanks to innovative technologies (extraction or industrial waste processing)

28 Monstat (2017)

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VI 3. SUSTAINABLE AND HEALTH TOURISM

From year to year, tourism increasingly justifies the role of concentrated in a relatively small area, which provides for
a strategic business sector, especially given the fact that the possibility to visit the majority of attractive locations in
its total share in GDP is continuously growing (amounting one day, create the conditions for the tourism product of
to 23.6% in 2017 according to the World Travel and Tour- Montenegro to be attractive for a large number of emitting
ism Council), which applies to other indicators as well – tourism markets from which people travel all year round.
the number of tourists, overnight stays and the revenues
from this sector. Compared to 2010, revenues and the Tourism is an important instrument of regional cooperation
number of overnight stays increased by 50%. In the period and a strong catalyst for the European integration process.
from 2013 to 2017, tourism revenues increased by 44.1%. Regional integration in tourism presents the future of de-
In 2017, the tourism sector, directly and indirectly, gener- velopment and strengthening of the competitiveness of
ated over 19% of the total employment. According to the this economic branch. At the same time, it is a prerequi-
estimates of the World Travel and Tourism Council, as for site for diversification of tourism products, i.e. expansion
the next ten-year period, growth of the total contribution of the offer, as well as for eliminating the high seasonality
of tourism to GDP is expected at an average rate of 3.9% in tourism business operations. As for the prospects for
annually. Successful development of tourism has a multi- the development of tourism in the Western Balkans, the
plier effect on other business sectors as well – agriculture, World Tourism Organisation (UNWTO) foresees the contin-
construction, trade, transport and other activities. uation of a favourable development tendency in the next
10 years. Long-term programmes of economic stabilisation
Improvement of the level of competitiveness on the in- of the countries of the region have given tourism a promi-
ternational tourism market is achieved through the orig- nent role in the overall social and economic development.
inality / specificity and quality of particular segments of
the offer. The characteristics of Montenegro, reflected in The attractiveness of Montenegro is reflected in the fact
a favourable geographical position, i.e. proximity to ma- that the area of only 190km of air distance between the
jor European centres, large natural and cultural diversity two furthest geographical points of the country accommo-

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dates the Mediterranean and continental climate, 40 lakes FLAGSHIP INITITIVE the all-year-round tourist offer. With its geographical position, numerous natural tourist attractions, abundance of natural
including the largest lake in the Balkans (Skadar Lake), wealth, rich cultural heritage and diverse offer in the segment of rehabilitation, prevention, dentistry and aesthetic surgery,
Priority SUSTAINABLE AND HEALTH TOURISM
2883 plant species (25% of the European flora at 0.14% of Montenegro has all the conditions to become an internationally recognisable destination for health tourism.
domain:
the territory of Europe), five national parks (Durmitor, Prok-
letije, Bjelasica, Lovćen and Skadar Lake), one rainforest Programme: Adriatic Centre for bone and muscular VISION 2024
(Biogradska mountain), a river with the deepest canyon system diseases Montenegro as a recognised destination for sustainable and health tourism with diversified and authentic tourism offer
in Europe (Tara), and the only fjord in the Mediterranean based on innovative business models and services.
This Programme aims at modernising and improving
(Boka kotorska Bay). This means that tourists can be pro- Montenegrin existing facilities for medical treatment and
vided with a unique experience thanks to the combination SECTORAL GOALS
rehabilitation in the cases of bone and muscular system
of diverse natural factors such as climate, relief, waterbod- diseases, as well as at transformation into recognised The introduction of innovative business models and services in the field of sustainable and health tourism
ies, flora and fauna, which, due to their attractiveness and centre for such treatments in the region and South Eu- Applying and strengthening international quality standards for medical services
healing properties, represent a strong encouragement for rope. This would provide an export-oriented year-round
tourist visits. The beneficial effects of the Mediterranean health tourism services towards high-paying markets. FOCAL AREAS AND TECHNOLOGIES
climate in all seasons, staying at an altitude of 500-1000 Following the latest standards of medical and tourist ExISTING
meters above sea level and higher, along with favourable, services, the programme shall integrate: • Application of green and smart technologies in the sustainable nautical tourism in Montenegro;
soothing effects on convalescents and people with neuro- • Standard and innovative therapeutic programmes for patients with: chronic non-communicable diseases, drug addicts;
ses, anaemia, respiratory diseases, and allergies, indicate RESEARCH COMPONENTS • Advanced medical services: multidisciplinary diagnostics and dentistry;
the possibility to optimally use the healing properties of • Carry out research and improvement of medical • Standard and innovative rehabilitation programmes for: convalescents after orthopaedic interventions, neurological
the natural environment in Montenegro. and rehabilitation treatments for bone and muscu- patients and athletes (balneotherapy, thalassotherapy, heliotherapy, salt therapy, psamotherapy, aerotherapy and mineral
lar diseases, including the development of biomec- water therapy).
Montenegro is known as an area rich in religious (Ostrog, hanics (prosthetics, bio-robotics and exoskeletons)
Our Lady of Philermos, the hand of John the Baptist, Hu- and the application of nanotechnology. WITH POTENTIAL
sein-paša Boljanić’s Quran, monasteries and churches, • Application of research results from the field of sports to the offer in sports-recreational and wellness tourism;
mosques, cathedrals) and cultural and historical monu- INNOVATION COMPONENTS • The use of advanced technologies in oncology within the regional project of establishing the South East European
ments (Roman and Illyrian period monuments, heritage of • Provide innovative and highly specialised medical International Institute for Sustainable Technologies (SEEIIST) - Hadron Cancer Therapy and Biomedical Research with
four Montenegrin dynasties, Njegoš’s mausoleum, Budva, treatments for bone and muscular system diseases Protons and Heavy Ions;
Risan, Herceg Novi, 40 cultural sites on the Skadar Lake, (orthopaedics, rheumatology, neurosurgery, sports • Production and development of pharmacotherapy using comparative advantages of Montenegro (healing and aroma-
Svač near Ulcinj). The natural and cultural-historical area of medicine, etc.); tic herbs, healing mud, sea wildlife);
kotor and National Park Durmitor are listed as UNESCO’s • Provide prevention and rehabilitation for patients • Application of nanomaterials in medicine;
World Heritage Sites. with bone-muscular diseases, by applying advan- • Nutritionism: programmes and supplements (use of food products that contribute to health improvement).
ced standards and innovative methods (physiot-
In a relatively short period of time, health tourism can be- herapy, kinesiotherapy, balneology, acupuncture, RESEARCH AND INNOVATION ENVIRONMENT
come one of the leading tourist products of Montenegro, chiropractic, etc.). SCIENTIFIC AND EDUCATIONAL INSTITUTIONS
especially given the aforementioned comparative and
competitive advantages. The comparative advantages advanced for 9 positions in 2017 based on the report of • University of Montenegro, Adriatik University, University of Donja Gorica, Mediteran University, Montenegrin Academy
include qualified staff and good reputation of health ser- the Euro Health Consumer Index and is ranked 25th in of Sciences and Arts
vices, competitive prices, proximity to large emitting mar- Europe.
kets, natural beauty and favourable climate, country’s COMPANIES
safety and a long tradition in tourism. In addition, the pric- Health tourism is experiencing constant growth and is • Hotels and resorts, travel agencies, public and private health institutions, spa and wellness centres and pharmaceuti-
es of health care services in Montenegro are relatively low one of the most promising segments of the global tour- cal companies.
compared to the countries of Western Europe and some ist offer. The global medical tourism market will grow at
Balkan countries, which makes them very competitive. It an annual rate of 19% in the next five years. Tourism and BUSINESS ASSOCIATIONS
is important to point out that the Health Insurance Fund of health are the main pillars of commitment to sustainable • Chamber of Economy of Montenegro, Montenegrin Employers Federation, Montenegro Business Alliance, Montene-
Montenegro has concluded contracts on the provision of development, while cooperation between the tourism and grin Medical Chamber, Pharmaceutical Chamber of Montenegro, Dental Chamber of Montenegro, Chamber of Phys-
health services with 23 European countries. Of particular health sectors in Montenegro makes it possible to achieve iotherapists, Health tourism cluster.
importance is the fact that the Montenegrin health system a synergistic effect in order to improve health tourism and

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PUBLIC INSTITUTIONS SWOT analysis


STRENGTHS WEAkNESSES
• Ministry of Health, Ministry of Science, Ministry of Sustainable Development and Tourism, Ministry of Education, Minis- • Diversity of the tourist offer (coastal, skiing, religious, cul- • Prominent seasonality and insufficient utilisation of the
try of Agriculture and Rural Development, Ministry of Sports, National Tourism Organisation of Montenegro, Local Tour- tural-historical and other types of tourism) seasons
ism Organisations of Montenegro, Public Company for Coastal Zone Management, Public Company National Parks, • Natural factors and beauty of the country, as well as favo- • Lack of high-category hotels
Public Company Ski Resorts of Montenegro, Public Health Institute of Montenegro, Institute for Standardisation of urable climatological parameters • Poor transport connections (both air and road)
Montenegro, Clinical Centre of Montenegro, Montenegrin Agency for Medicines and Medical Devices, General Hospi- • Level of ecological preservation of the environment • Inadequate municipal waste management
tal “Danilo I” Cetinje, Public Institution for Accommodation, Rehabilitation and Resocialisation of Users of Psychoactive • Safety of the country (Montenegro is a member of NATO) • Insufficient service staff to support the tourist offer
Substances Podgorica, Centre for Autism, Disabilities and Child Psychiatry “Ognjen Rakočević”, Public Pharmaceutical • Competitive offer (price, quality, etc.) • Inadequate statistics
Institution Montefarm, Investment and Development Fund, Secretariat for Development Projects. • Partially outdated existing healthcare equipment and te-
chnologies
CIVIL SECTOR • Lack of accreditation and certification of the health institu-
• Montenegro Tourism Association, Montenegrin Foreign Investors’ Council tions providing health tourism services
• Insufficient development of the systemic national promo-
SYNERGISTIC EFFECT IN RELATION TO OTHER PRIORITY SECTORS tion of health tourism
Sustainable and health tourism • Insufficient market orientation of health institutions
Energy and sustainable environment • Energy efficiency of tourist and healthcare facilities • Inconsistency of the laws in the field of health and tourism
Sustainable agriculture and food value chain • Production of medicinal herbs, essential oils, cosmetic, spa and other products
ICT • E-healthcare services OPPORTUNITIES THREATS
– E-health • Potential for year-round tourism offer • Insufficiently fast development of the tourist offer
– Health tourism applications • Extension of tourist seasons (summer and winter) • Inability to fill tourist capacities in areas dependent on se-
– Health information systems • The proximity of the emitting European market, as well asonal trends by developing an alternative offer
– Telemedicine as the possibility of positioning in the markets of China, • Fast development of the medical technologies that im-
• E-platforms and applications for tourist services North America, and the Middle East poses the need for constant high investment in human
– E-tourism • Development of road infrastructure resources training and equipment
– E-visitor • The use of advanced technologies in oncology (hadron
– Applications using VR/AR therapy) and role of Montenegro in the regional project of
• E-Montenegro model for high quality tourism the establishment of the South East European Internatio-
nal Institute for Sustainable Technologies (SEEIIST)
KEY PERFORMANCE INDICATORS • Existing capacities in the field of rehabilitation medicine,
Indicator 2019. 2024. in vitro fertilisation, dentistry, ophthalmology and aesthe-
Number of innovative business models and services in sustainable and health tourism 20 30 tic surgery
The share of the number of foreign arrivals in medical establishments in relation to the 0,9% 2% • Human resources and good reputation in providing he-
total number of arrivals alth services
• Extending health insurance to preventive services

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VI 4. INFORMATION AND COMMUNICATION


TECHNOLOGIES

In Montenegro, information and communication In recent years, an increasing number of small companies
technologies (ICT) have become necessary and present engaged in the development of software and software
in all other priority areas of development, as well as in products have appeared in the IT market, as well as self-
all economic and social aspects of life, with an identified employed software engineers, freelancers, digital project
growth tendency of the sector. ICT is developing in the managers, digital marketing managers, designers and
context of the improvement of information systems in others, finding engagements in the global IT market.
public administration, education, industry and health, all Software engineering has already experienced significant
in line with modern technological trends and Industry development and has begun to stand out as a separate
4.0. concept. ICT infrastructure in Montenegro is at a economic branch that is not limited by the capabilities
satisfactory level and is ranked 39th in the world29, with of the domestic market. In Montenegro, there are higher
intensive use of software and ICT services identified. In education institutions within the state-owned and private
Montenegro, 98.5% of surveyed enterprises (2018)30 universities that produce ICT professionals in the field of
are using computers in their business, while about 40% software engineering.
of them employ ICT experts, which is a 2.6% growth
compared to 2016. When it comes to the Internet, about As for the “C” segment of ICT, it is dominated by three
80% of enterprises have their web presentation, which is international operators of fixed and mobile telephony, which
3.6% more than in 2017. provide modern communication services to mobile cellular
networks, optical communication systems and digital subscriber
lines (DSL). The existence of modern telecommunication
29 The Global Innovation Index 2018
30 Use of information and communication technologies in Mon-
infrastructure is the basis for the development of many other
tenegrin companies, 2018 – MONSTAT economic areas and the entire society.

72 / 73 VI STRATEGIC S3 PRIORITIES
STRATEGIJA PAMETNE SPECIJALIZACIJE (S3) CRNE GORE > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > >

VISION 2024 FLAGSHIP INITITIVE SYNERGISTIC EFFECT IN RELATION TO OTHER PRIORITY SECTORS
Digital Montenegro with the use of advanced ICT solutions ICT
Priority INFORMATION AND
in all sectors of the economy and developed IT awareness (horizontal priority sector)
domain: COMMUNICATION TECHNOLOGIES
that enables a dynamic and proactive access to new and Sustainable agriculture and food • Smart and efficient management of agriculture
innovative technologies. Programme: Digital Transformation value chain • Use of sensors for monitoring the environment and the production, storing and trans-
port of food (bio-sensors, smart buoy, smart bee hive, etc.)
The Programme aims to ensure the reorganisation and
SECTORAL GOALS • Centre of Excellence BIO-ICT
improvement of business processes in priority areas of
Improvement in competitiveness of the ICT sector through Energy and • Optimum management of the electrical energy systems and networks
smart specialisation and public administration with the
innovative activities sustainable environment • Managing data for smart use of energy sources or engaging network capacities
help of digital technologies. Digital transformation shall
Strengthening digital economy • Cyber security
help reach the latest technological standards, develop
• Smart energy systems – smart energy and information transportation
the e-infrastructure and apply innovative ICT solutions
FOCAL AREAS AND TECHNOLOGIES • Smart trade and electrical energy management – energy market
at the state level in the following areas:
ExISTING • Management of data regarding the potential and the state of affairs in the enegry
• Telecommunications; sector
• ENERGY AND SUSTAINABLE ENVIRONMENT –
• Software engineering. • Development of a business intelligence system in the energy sector
Development of a smart city concept;
• Green ICT
• SUSTAINABLE AGRICULTURE AND FOOD VALUE
WITH POTENTIAL • Smart waste management
CHAIN - Agri-ICT;
• New generation communication technologies (5G, Sustainable and health tourism • E-healthcare services
• SUSTAINABLE AND HEALTH TOURISM - Digitalisa-
SDN, NFV, GNSS, etc.); – E-health
tion of cultural and natural heritage and its conne-
• IoT (Internet of things); – Health tourism applications
ction with tourist services;
• Virtual reality, augmented reality (VR/AR), 3D; – Health information systems
• PUBLIC ADMINISTRATION – Building and impro-
• Digital transformation (ERP systems, e-commerce, fi- – Telemedicine
ving digital services in order to increase efficiency
nancial technologies, etc.); • E-platforms and applications for tourist services
and quality of services delivered by public admini-
• Blockchain technology and cryptocurrency; – E-tourism
stration, creating a digital identity of citizens at the
• Big Data, Cloud – services; – E-visitor
state level, cyber security and open data as a basis
• Video games; – Applications that use VR/AR
for technological entrepreneurship.
• Security of information systems; – e-Montenegro model for high tourism
• Smart technologies (cities, buildings, etc.);
• Green ICT (emission reduction, energy saving, etc.);
• Machine learning and artificial intelligence. KEY PERFORMANCE INDICATORS31
PUBLIC INSTITUTIONS Indicator 2019 2024.
RESEARCH AND INNOVATION ENVIRONMENT • Ministry of Economy, Ministry of Science, Ministry of ICT export (% of goods exports) 0.4% 0.7 %
SCIENTIFIC AND EDUCATIONAL INSTITUTIONS Public Administration, Ministry of Education and local Number of enterprises using e-commerce 24.1% 31
(2016) 45%
• Montenegrin Academy of Sciences and Arts, Univer- self-government bodies.
sity of Montenegro, University of Donja Gorica, Medi- 32

teran University, Adriatik University. CIVIL SECTOR


• NGOs
COMPANIES
• Four major international telecom operators, as well
as about 40 large and small and medium-sized enter-
prises, numerous micro and start-up companies, and
few incubators have been identified.

BUSINESS ASSOCIATIONS
• Chamber of Economy of Montenegro, Montenegrin
31 Action Plan for Implementation of the Strategy of Information Society of Montenegro by 2020 and the Report on the Implementation
Employers Federation, Montenegro Business Allian-
of the Action Plan for 2018, p. 25.
ce, Association of Managers of Montenegro. 32 http://www.gov.me/ResourceManager/FileDownload.aspx?rid=355318&rType=2&file=12_116_04_04_2019.pdf

74 / 75 VI STRATEGIC S3 PRIORITIES
STRATEGIJA PAMETNE SPECIJALIZACIJE (S3) CRNE GORE > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > >

SWOT analysis
STRENGTHS WEAkNESSES REGIONAL INITIATIVE – SEEIIST
• Good telecommunications’ infrastructure • Education is not adapted to the market S3.me priority sectors fit into a
• High percentage mobile telephony penetration • A large number of start-ups register companies’ headqu- broader regional concept defined by
• Presence of large ICT international companies arters abroad the Macro Regional (Adriatic-Ionian)
• Possibility to effectively connect ICT companies • Inaccessibility of founding capital for start-ups Smart Specialisation Strategy33. Smart
• Small country suitable for the application and testing of • Fragmented competence of state administration for IT specialisation requires specific stimulation
the new technologies sector policies, investments and projects,
• Lack of initiative in companies for digital transformation including projects based on large scale
process infrastructures. In this context, Montenegro
• Strategic and statutory regulations not adequately applied is recognised as the initiator of establishment
of the South East European International
OPPORTUNITIES THREATS Institute for Sustainable Technologies –
• Significant number of programmers and software engi- • Outflow of ICT experts SEEIIST[2]34. The initiative was formalised
neers working independently • Lack of IT awareness and literacy as a Regional project with the signing of a Declaration of Intent on 25 October 2017 at a Ministerial meeting at
• Stimulating policy in the field of taxation through incenti- • Lack of strategic management in companies with regard CERN, Geneva. The Signatory Parties were Albania, Bosnia and Herzegovina, Bulgaria, kosovo*, Montenegro, Serbia,
ves to establish new companies to ICT (a reactive approach) Slovenia and North Macedonia. Croatia joined ‘ad referendum’, while Greece took an observer status.
• Establishing a full service of international electronic pay-
ments that will enable the establishment of a competitive Reviewing common regional social and economic challenges and the need for high technologies, which is equivalent
e-commerce system to a “Regional EDP process”, a state-of-the-art “Facility for Tumour Therapy and Biomedical Research with Protons
• Business environment that enables better connection and Heavier Ions” was selected as the core of the SEEIIST Project. Tumour treatment with heavy particles like protons
and competition at the global level or carbon ions is the most modern and the most powerful method of treating many types of cancer, given that the
radiation dose is deposited solely in the tumour region, thus protecting the normal cells. Heavier ions are unique
even for the treatment of radio-resistant tumours. The latter method is still in the pioneering phase and requires
extensive research. It is therefore planned to dedicate 50% of the beam time to research, which would make the
SEEIIST project unique in the world and therefore an attractive and important facility for Europe as a whole.

The establishment of the facility will offer numerous opportunities for technology transfer to the South East European
states. In particular, this will be a great benefit for the local industry, since the procurement and construction of certain
technological components for the facility can be assigned to local industry. Moreover, the project will give rise to
spin-offs and trigger complementary technologies, like boosting the use of green infrastructures. On top of that, the
facility will also boost the creation of a powerful digital network and big data handling and cyber security. To reach the
clinical and scientific goals, two networks will be set up, a Clinical and a Scientific Network. Capacity building and the
prevention of brain drain would become immediate benefits. The SEEIIST project is now entering the Design Study
Phase, thanks to the first financial support by the European Commission – Directorate General for Research and
Innovation. Two renowned international research centres, CERN in Geneva and GSI-FAIR in Darmstadt, are providing
generous support as hosts of the SEEIIST Design Study Phase. With the support of these institutions, the SEEIIST
Project is now in the best hands, with great potential for success.

Up to EUR 200 million is required for the SEEIIST project, which would guarantee competitiveness in Europe.
The project should be integrated into the general European plans for the development of the region and regional
cooperation. The successful realisation of the SEEIIST project perfectly fits into the context of regional cooperation
for smart specialisation. At the national level, the SEEIIST project incorporates all three strategic directions: healthy,
sustainable and digitalised Montenegro.

33 OS-AI R pilot project; www.oisair.net


34 http://seeiist.eu/

76 / 77 VI STRATEGIC S3 PRIORITIES
VII PoLIcy mIX
And fInAncIAL
frAmeworK

The S3 implementation, as well as the process of drafting Priority domain specific goals, i.e. sectoral goals will be
the Strategy, have implied the involvement of a large num- achieved by implementation of a combination of policy
ber of key actors responsible for defining and implement- instruments and measures distributed throughout S3.me
ing development policies related to research and inno- common policy mix goals. The attainment of these goals
vation activities. These policies included industrial policy, shall particularly be supported by exclusively sector orient-
human resources development policy, entrepreneurship ed policy instruments. However, since the accomplishment
promotion policy, digitalisation policy, agricultural devel- of sectoral goals is primarily expressed through sectoral key
opment policy, energy policy, tourism policy, environmen- indicators, these will be predominantly achieved through
tal protection policy, etc. synergistic effects of different policy instruments.

The identified thematic priorities will provide for financial VII 1. IMPROVING ExCELLENCE AND
support from both the state budget and from other avail- RELEVANCE IN SCIENTIFIC RESEARCH
able funds. Investing in research and innovation strength- ACTIVITIES
ens the existing production and technological capacities In order for the scientific research capacities to be enhanced
and creates new development directions in the economy, and used in an adequate manner, it is necessary to define
while stimulating competitiveness and the creation of and implement a model for improving the national scientific
highly qualified jobs. In this regard, the scientific research research infrastructure and an open access to it. In this
system and the innovation system need to contribute to context, investments should be made in the existing and
the knowledge-based economy. creation of new laboratories, as well as in the procurement
of the necessary equipment meeting the state-of-the-art
The S3 Strategy identifies the main common objectives of technological standards. At the same time, open access
policy mix, determined by the interests related to research needs to be provided for interested researchers to the
and innovation activity, and these are: research equipment in the possession of public institutions,
under clearly determined professional standards and open-
1. Improving excellence and relevance in scientific re- access policy that needs to be defined. This policy should
search activities; also enable researchers to access scientific research
2. Strengthening human resources in the field of research literature, international publications, scientific databases
and innovation; and research-academic networks, in order for them to
3. Enhancing collaboration within the innovation system; be able to follow global trends in science in a high-quality
4. Supporting innovative activities in the business sector; manner. Support to efficient research ecosystem will also
5. Enhancing framework conditions for innovation eco- be implemented through promotion of the national research
system. infrastructure, via development of centres of excellence and
grants for scientific research projects.

78 / 79 VII COMBINATION OF DEVELOPMENT POLICIES AND FINANCIAL FRAMEWORK


VII 2. STRENGTHENING HUMAN VII 3. ENHANCING COLLABORATION with a view to facilitating the establishment of start-up and
RESOURCES IN THE FIELD OF RESEARCH WITHIN THE INNOVATION SYSTEM spin-off companies. Programmes for providing advisory Policy instruments within policy objectives are
AND INNOVATION The public and the business sector should engage more services, mentoring, networking and trainings aimed at designed to have an impact on different levels.
Human resources are crucial for the successful in creating an environment suitable for the development supporting innovative entrepreneurship will be organised. Firstly, there are policy instruments that impact
implementation of S3.me, as they are the driver of of research and innovation that corresponds to their particular S3.me priority domain in an attempt
economic and social development, which is why they needs. This can be achieved by providing the necessary VII 5. ENHANCING FRAMEWORK to further strengthen innovation capacities and
need to be strengthened in a proper way. Strengthening support to research and innovation activity, as well as by CONDITIONS FOR INNOVATION competitiveness of that priority domain. Secondly,
the capacities of the research community, particularly of integrating it into economic operations. Creating an efficient ECOSYSTEM some policy instruments have an impact on two or
young personnel, needs to be achieved by encouraging innovation eco-system will be implemented by improving the Creating a favourable eco-system for the development of more S3.me priority domains, producing positive
their excellence through scholarships for doctoral national research and innovation infrastructure through the innovative entrepreneurship is an important component synergistic effects. Thirdly, other policy instruments
research, employment within the framework of scientific establishment of the Science and Technology Park (STP). of economic development. With a view to better protect are horizontal and have an impact on all business
research projects, and by providing awards for excellence Furthermore, exchange of knowledge between the academic intellectual property and its economic viability, it is sectors including S3.me priority domains. The role
in science and innovation. The employment programmes and the business sector and the use of innovative solutions necessary to work on further improvement of the legal of the horizontal policy instruments is to strengthen
for PhD students, PhD degree holders and students of will be stimulated through the establishment of a Technology and institutional framework. Inter alia, adequate support research and innovation potential of all sectors,
postdoctoral studies, primarily in the business sector, Transfer Office, with a view to support development of new programmes for the protection of intellectual property, in including S3.me priority domains. These instruments
will stimulate the knowledge transfer and enable the technologies and their commercialisation. particular patents, will be developed. enable development of new emerging sectors over
acquisition of practical knowledge that will strengthen time and make continuous EDP process more
the innovation capacities of enterprises. In this way, Special attention will be paid to the development of high- An attractive environment for innovative entrepreneurship dynamic.
development and research in the business sector will tech clusters by stimulating cooperation between SMEs will generally be provided by an innovative fiscal policy,
be enhanced, which will contribute to a more dynamic on innovative projects. When it comes to supporting the primarily through tax incentives for investments in research
development of a knowledge-based economy. cooperation between academic and business sectors, the and innovation and favourable customs treatment of A detailed description of the policy instruments within the
attention will be given to mobility grants for doctoral students, equipment and materials intended for research. The policy objectives is presented in the Table 10.
Through membership in EU funds and a number with a view to develop innovative solutions in enterprises. programmes will also be implemented for attracting
of programmes (COST, H2020, COSME, EUREkA, investments from the financial and private sector in the
ERASMUS+), Montenegro’s integration into the European VII 4. SUPPORTING INNOVATIVE form of venture capital in start-ups and other innovative
Research Area (ERA) is encouraged and cooperation is ACTIVITIES IN THE BUSINESS SECTOR companies.
enabled with international scientific teams of excellence, With a view to building a society based on knowledge
so the state should continue to support this type of and innovation, efforts will be focused on encouraging The development of broadband Internet and the
international integration in the field of science and innovations in the business sector. Innovative companies establishment of a number of e-government services,
technology strongly. In addition, international programmes represent the most dynamic and the most significant including an open data initiative, will contribute to the
will be developed that will enable the involvement of development potential of a modern economy. Through development of digital entrepreneurship and the reduction
scientific diaspora in the national innovation ecosystem development of new products and new technologies, better of the digital gap. In particular, policy and legal measures
and economic development in general, which would business efficiency and competitiveness are provided. Main will be supported to identify new technologies that lead
provide for utilisation of their knowledge and experience contribution to strengthening competitiveness will be made to the creation of new economic sub-sectors and thereby
as a valuable national resource. by supporting business sector innovative activities in S3.me modernisation of the economy. Activities promoting the
priority domains. Direct financial support programmes benefits of innovation for the economy and society will be
In addition to these measures, the constant promotion of in the form of grants for innovation, which envisage co- implemented through studies, workshops, conferences,
the researcher profession and its affirmation in society financing, will stimulate investments of the business sector exhibitions, publications, creativity competitions, etc.
will be insisted upon, in order to attract as many talents in innovation, strengthening its competitiveness at the
as possible into the profession, as well as to restore the international level.
confidence of the business sector in the national human
capital and to attract investments from this sector. Particular attention will be devoted to creating new high-
tech companies through the support programmes for
development of start-up companies. In this context, support
will also be provided to development of incubators and
accelerator programmes (which accelerate development),

80 / 81 VII COMBINATION OF DEVELOPMENT POLICIES AND FINANCIAL FRAMEWORK


Table 10 - Policy Mix
Centres of A centre of excellence is a structu- MoS Consortia of rese-
Excellence re where research and technology arch organisations;
LEGEND: development is performed at a high Consortia of compa-
Sustainable agriculture and food value chain; Energy and sustainable environment; Sustainable and health tourism; standard, in terms of measurable nies;
ICT; All domains including S3.me priority domains; Note: Larger size of the circle represents dominance of the priority scientific production (including tra- Research organisa-
domain within policy instrument ining) and/or technological innova- tions
tion. This is a co-financing scheme.
FLAGSHIP INITIATIVES in S3.me domains: those policy instruments contributing to flagship initiatives are colour-highlighted.
Strengthening Support for PhD Measures that support the deve- MoS Research organisa-
human resour- students lopment of human resources for tions
Abbreviations: MoS – Ministry of Science, MoE – Ministry of Economy, MoEdu – Ministry of Education, MoPA – Ministry of Public
ces in the field research such as grants to support
Administration, MoARD – Ministry of Agriculture and Rural Development, MoSDT – Ministry of Sustainable Development and To-
of research and research in specific fields. This is a
urism, MoH – Ministry of Health, MoF – Ministry of Finance, MoC - Ministry of Culture, MoLSW -Ministry of the Labour and Social
innovation grant scheme.
Welfare, IDF – Investment and Development Fund.
Support for Measures that support the develop- MoS Research organisa-
post-doctoral ment of human resources for rese- tions
NOTE: “Co-financing scheme” in the description means that private co-funding is a compulsory feature.
students arch within post-doctoral program-
mes. This is a grant scheme.
Policy Objective Policy Instrument Description S3.me Responsible Target groups
Grants strengthe- Measures that support researchers MoS, Research organisa-
Priority entity (and other
ning participation and entrepreneurs to participate in MoE tions;
Domain (and partners) beneficiaries)
in international ini- international networks, especially Enterprises
Improve ex- Competitive fun- Competitive grants provided to MoS Consortia of resear- tiatives in EU initiatives. This is a grant sc-
cellence and ding of research academic research institutions, uni- ch organisations; heme.
relevance in versities, and public and private re- Research organisa- Science promoti- Events, awards, open days and ot- MoS, Research organisa-
scientific rese- search institutions. The focus is on tions on communicati- her activities that promote research MoEdu tions
arch activities conducting basic research projects on activities and science communication. Grant (NGOs)
or research projects addressing a and co-financing scheme.
societal challenge, as well as, to a Development of Support to developing qualificati- MoEdu. Research organisa-
smaller extent, on involving com- qualifications and ons and entrepreneurship skills of MoH tions
panies or industry. This is a grant educational pro- researchers, professionals. This is a (Enterprises)
scheme. grammes grant scheme.
Competitive fun- Competitive grants provided for MoS Consortia of resear- Development of Lifelong learning, support to voca- MoEdu, Enterprises
ding for applied applied research in S3.me priority (MoE, ch organisations; professional skills tional training with an innovation MoLSW
research in S3.me domains, to academic research in- MoARD, Research organisa- in line with future dimension, support to innovation
priority domains stitutions, universities, and public MoSDT, tions needs management training for staff in
and private research institutions. MoPA, MoH) enterprises. This is a co-financing
This is a grant scheme. scheme.
R&D infrastructure Support to the development of na- MoS Consortia of resear- Enhancing the Cluster develop- All policy initiatives specifically MoE Enterprises
tional research infrastructures (both ch organisations; c o l l a b o r a t i o n ment programme aimed at promoting cluster deve- (Research organisa-
general and tied to a specific pro- Consortia of compa- within the inno- for S3.me priority lopment and providing support to tions)
gramme) and to ESFRI – European nies and research vation system domains cluster management at national le-
Strategy Forum on Research Infra- organisations; vel. This is a co-financing scheme.
structures. This is a grant scheme. Research organisati-
ons

82 / 83 VII COMBINATION OF DEVELOPMENT POLICIES AND FINANCIAL FRAMEWORK


Supporting in- Support to start- Support provided to the creation of MoS (MoE) Start-ups
Technology tran- Support given to establish and ope- MoS Research organisa-
novative activi- ups through start-ups, from idea to the market.
sfer office rate structures and mechanisms to tions;
ties in the busi- grants This is a co-financing scheme.
encourage the transfer of know- Enterprises;
ness sector
how and technology from research Start-ups
Grant scheme for Support provided to encourage MoS Enterprises
to business: funding of technology
mobility between the recruitment of researchers by
transfer offices and other structures
academia and bu- enterprises. This is a co-financing
for knowledge transfer between
siness sector scheme.
academia and industry. This is a
Grant scheme for Support for engagement of univer- MoEdu Enterprises
grant scheme.
engagement of sity graduates in the business se-
Science and tech- Science and technology parks MoS Enterprises
university gradua- ctor. This is a co-financing scheme.
nology parks aim to establish concentrations (Research organisa-
tes in the busine-
of firms in a particular area. It is a tions,
ss sector
property-based initiative that has a Start-ups)
Grant scheme for Support to improvement and transi- MoARD Enterprises
high-quality physical environment,
innovative acti- tion from traditional to organic far-
is located at a reasonable distan-
vities in organic ming by using innovative approac-
ce from a university or research
agriculture hes. This is support to sustainable
institute, and emphasises activities
management of natural resources
encouraging the formation and
by reducing the negative impacts of
growth of a range of research, new
agriculture on the environment and
technology or knowledge-based
conservation of biodiversity while
enterprises. This is a grant scheme.
raising the quality of agricultural
C o l l a b o r a t i v e Measures to support innovative MoS Consortia of compa-
products. This is a co-financing sc-
innovation pro- projects conducted through inten- nies;
heme.
grammes sive cooperation between innovati- Research organisa-
Grant scheme for Strengthening investment in hig- MoARD Enterprises
on system actors. This is a co-finan- tions
higher-stage indu- her-stage industrial processing and MoE
cing scheme.
strial processing market placement through grants
Genetic research Support to the research and inno- MoARD Research organisa-
and market place- (IPARD programme and IPARD-like
and innovation vation activities including the sele- tions;
ment projects, etc.), as well as manufa-
programme35 ction of genotypes from autochtho- Enterprises
cturing industry modernisation.
nous populations of plant species
This is a co-financing scheme.
and enriching the database on
Programmes of Establishment and implementation MoE Enterprises
genetic resources and creating a
energy efficiency of financial support mechanisms for
platform for innovation and com-
and renewable rational use of energy resources in
mercial cultivation of domestic and
energy sources36 business, based on the principles
autochthonous species / varieties /
of environmental protection, impro-
races, which should be one of the
ved energy efficiency and greater
ways for recognition of Montene-
use of renewable energy sources.
grin agricultural products and their
This is a co-financing scheme.
quality components on the interna-
Innovation vouc- Support to companies to access MoE Enterprises
tional market. This is a co-financing
hers schemes knowledge resources in research (Start-ups)
scheme.
centres (public, private). This is a
co-financing scheme.

1 1

35 Linked to the Flagship Initiative for Sustainable agriculture and food value chain. 36 Linked to the Flagship Initiative for Energy and sustainable environment.

84 / 85 VII COMBINATION OF DEVELOPMENT POLICIES AND FINANCIAL FRAMEWORK


Business and te- Support to access specialised ser- MoE Enterprises Enhancing fra- Strengthening in- Funding of activities aimed at pro- MoS, MoE Enterprises;

chnology advisory vices that can guide companies to (Start-ups) mework conditi- novation culture moting awareness of the benefits (MoARD, Research organisa-

service scheme better alignment of their business ons for innovati- of innovation to the economy and MoSDT, tions;

models and technological capabi- on ecosystem society and at encouraging an in- MoPA, MoH) Start-ups;

lities with their strategic and ope- novation culture. Activities suppor- Organisations and

rational objectives, with a focus on ted could include: studies, surveys associations of the

how to maximise the value of the and dissemination of the results, civil sector

investment. This is a co-financing workshops, conferences, exhibiti-

scheme. ons, networks, publications, broad-


casting, competitions for creativity,
Incubators and Support to the establishment and MoS Start-ups
innovation or new venture awards,
accelerators strengthening of incubators and
etc. This is a grant scheme.
programmes accelerators programmes. This is a
grant scheme. Support to crea- Support measures that address MoPA Citizens;
tion of e-gover- importance of digital economy and (Enterprises,
R&D tax Tax credits aimed at fostering in- MoF Enterprises;
nment and open introduction of an array of e-gover- Research organisa-
incentives vestment in research and develop- Research organisa-
data services nment and open data services. This tions,
ment. tions;
is a grant scheme. Start-ups,
Start-ups
Organisations and
Support scheme Support to digital transformation, MoPA Enterprises
associations of the
for digital transfor- i.e. the adoption of digital proces- (Start-ups )
civil sector)
mation of compa- ses and tools to achieve strategic
Intellectual prope- Support provided (including provi- MoE Enterprises;
nies37 business goals. This is a complex,
rty rights (IPR) su- sion of information) through open Research organisa-
multifaceted process that brings a
pport and promo- days, workshops, trainings for pa- tions;
cultural shift in the workplace and
tion tents, trademarks, copyright, de- Start-ups
changes every part of an organisa-
sign rights and their commercial
tion. This is a co-financing scheme.
exploitation. This is a grant scheme.
Environment pro- Support measures that address MoSDT Enterprises
Financial instru- Subsidised loans, guarantees, su- MoF, IDF Enterprises;
tection and waste new technologies in the field of (Research organiza-
ments (loans, equ- pport to private equity, etc. Start-ups
management pro- environment protection and waste tions)
ities and guaran-
gramme38 management with a special focus
tees)
on ecological black spots. This is a
co-financing scheme. Support to ventu- Public funding provided to private MoE, IDF Enterprises;
re capital (or public-private) financial service Start-ups
Support scheme Support measures that create a MoSDT, MoH Enterprises
providers with a view to leveraging
for innovative he- new and innovative business mo- (Start-ups )
an increased private investment
alth tourism servi- del (process) for entrepreneurs to
into innovation activities of existing
ces39 fulfil the special needs of patients
enterprises, including guarantee
and their families in the field of he-
mechanisms (development stage
alth tourism. This is a co-financing
capital).
scheme.
Public procure- The aim is to improve public pro- MoF Enterprises;
ment of innovati- curement practices, promote the Start-ups
ve products and demand for innovative goods and
services services, and foster innovation.

37 Linked to the Flagship Initiative for ICT.


38 Linked to the Flagship Initiative for Energy and sustainable environment.
39 Linked to the Flagship Initiative for Sustainable and health tourism.

86 / 87 VII COMBINATION OF DEVELOPMENT POLICIES AND FINANCIAL FRAMEWORK


A description of the context indicators that measure broader social, economic and environmental context in which policy
Strategic and le- Support to strategic and legal mea- MoE, Enterprises;
objectives are operating is presented in Table 11.
gal framework for sures that address new and emer- MoSDT, Research organisa-
new technologies ging technologies that lead to cre- MoH, tions;
and sub-sectors ation of new sub-sectors (electric MoPA, Start-ups
Table 11 – Overview of context indicators 35363738394041424344454647
mobility, health tourism, fintech, MoF
etc.)
No. CONTExT INDICATOR 2019 2024
Health Techno- Support measures that address MoH Enterprises;
logy Assessment the systematic evaluation of the Public health institu- 1 New PhD graduates 3040 40

(HTA) Programme properties, effects, and/or impacts tions 2 Population that completed tertiary education 33% 41
50%

of innovative health technology. 3 Lifelong learning 3,3% 42


5.5%
The purpose is to address the dire- 4 International scientific co-publications 152043 2500
ct, indirect, intended, and uninten- 5 Scientific publications in the top 10% most cited 5.7% 44
7%
ded benefits and consequences of 6 Broadband penetration 10,5% 45
14%
the adoption of healthcare techno- 7 R&D expenditure in the public sector 0.23%46 0.33%
logy. This is a co-financing scheme. 8 R&D expenditure in the business sector 0.05 47
0.09
Support measures for creative in- IDF, MoC Enterprises 10 Employment in knowledge-intensive activities 11.4% 48
15%
Support to entre- dustries. Creative industries en- 11 ICT share in GDP 4% 49
6%
preneurship in compass a broad range of activi- 12 Share of agriculture in GDP 7%50 9%
creative industries ties, including cultural industries 13 Share of renewable energy sources in total final energy consumption 33% 51
45%
and cultural or artistic production. 14 Direct share of tourism in GDP 7% 52
12%
There is an increasing convergen-
ce between business services and
creative industries through the use
of ICT. This is a co-financing sche-
me.

40 Ministry of Science.
41 Ministry of Economy.
42 2016, Eurostat: trng_lfs_01.
43 Matusiak M. (ed.), Smart specialisation in the Western Balkans – potential for knowledge-based economic transformation, European
Commission, Joint Research Centre (draft report to be published in 2019).
44 2015, UNESCO Science Report.
45 2017, Monstat: Use of ICT in Montenegrin Enterprises.
46 2016, Ministry of Science.
47 2016, Ministry of Science.
48 2016, Eurostat: htec_kia.
49 2017, National accounts statistics does not include the data on ICT share in GDP. The data on the share of NACE J activity of ICT in
GDP is available on MONSTAT’s website, at the following link: https://www.monstat.org/cg/page.php?id=19&pageid=19
50 2017, Data on the share of NACE A activity of Agriculture, Forestry and Fisheries in the total GDP is available on MONSTAT’s website,
at the following link: https://www.monstat.org/cg/page.php?id=19&pageid=19
51 Ministry of Economy.
52 2017, National accounts statistics does not include the data on the share of tourism in GDP. The data on the share of NACE I activity
of Accommodation and Food Services in the total GDP is available on MONSTAT’s website, at the following link: https://www.monstat.
org/cg/page.php?id=19&pageid=19

88 / 89 VII COMBINATION OF DEVELOPMENT POLICIES AND FINANCIAL FRAMEWORK


VII 6. FINANCIAL FRAMEWORK Table 13 – IPA cross-border and transnational cooperation programmes
Programme Programme priorities TOTAL
For the period from 2019 to 2024, the Smart Specialisation Strategy will serve as the foundation for priority specific in- 2014-2020
vestments in research, innovation and development. In this period, investments in the amount of about EUR 174 million in EUR million
are planned. Of the total planned funds, EUR 116.5 million will be provided from the budget, while the private sector in- Bilateral cross-border - Promoting tourism and cultural and natural heritage 13.8
vestments are projected at EUR 21.7 million. Around EUR 33.5 million is expected from the EU funds, with around EUR 2.5 cooperation programme - Protecting the environment, promoting climate change adaptation and miti-
million expected from other international organisations and programmes. Montenegro – Albania gation, risk prevention and management
- Promoting employment, labour mobility and social and cultural inclusion
EU funding is based on IPA funds that are planned until 2020 due to allocation of these funds at a national level. After 2020, across the border
IPA funds allocation will be managed at the WB6 regional level; hence, funds will not be allocated per country but through Bilateral cross-border - Promoting employment, labour mobility and social and cultural inclusion 9.73
a competitive process between the WB6 countries. Therefore, funds allocation is not possible to predict after 2020. How- cooperation programme across the border
ever, projects that are programmed until 2020 will use the N+5 rule; therefore, implementation of the projects will take Montenegro – kosovo - Protecting the environment, promoting climate change adaptation and miti-
place until 2025, so it is possible to predict the available funds in this period. For IPA programming financial allocation, for gation, risk prevention and management
selected sectors, in the period of 2014-2020, see Table 12:
- Promoting tourism and cultural and natural heritage
Bilateral cross-border - Promoting employment, labour mobility and social and cultural inclusion 9.73
Table 12 – IPA II – indicative allocations (2014-2020)
cooperation programme across the border
IPA II 2014 2015 2016 2017 Total 2018 2019 2020 Total TOTAL
Bosnia and Herzegovina – - Protecting the environment, promoting climate change adaptation and miti-
2014- 2018- 2014-
Montenegro gation, risk prevention and management
2017 2020 2020
- Promoting tourism and cultural and natural heritage
(EUR
Bilateral cross-border - Promoting employment, labour mobility and social and cultural inclusion 9.73
million)
Competitiveness 11.1 10 32.9 11.3 65.3 25.5 39.2 26.6 91.3 156.6 cooperation programme across the border

and growth Serbia – Montenegro - Protecting the environment, promoting climate change adaptation and miti-
Environment, 2.8 0 16 0 18.8 16.3 16.3 35.1 gation, risk prevention and management
climate change and - Promoting tourism and cultural and natural heritage
energy Trilateral Interreg IPA - Improving the quality of the services in public health and social care sector 67
Competitiveness, 8.3 5 11.9 6 31.2 17.5 8 14.9 40.4 71.6 Cross-border Cooperation
- Protecting the environment and biodiversity, improving risk prevention and
innovation, Programme:
promoting sustainable energy and energy efficiency
agriculture and rural Croatia,
- Contributing to the development of tourism and preserving cultural and
development Bosnia and Herzegovina
Education, 0 5 5 5.3 15.3 8 11.7 19.7 35 natural heritage
and Montenegro
employment and - Enhancing competitiveness and developing business environment in the
social policy programme area
Trilateral Interreg IPA - Strengthening the cross-border cooperation and competitiveness of SMEs 93
In addition, within the financial perspective 2014-2020, Montenegro participates, on a competitive basis, in 9 IPA cross-bor-
Cross-border Cooperation - Smart management of natural and cultural heritage for the exploitation of
der and transnational cooperation programmes (Table 13).
Programme: cross border sustainable tourism and territorial attractiveness
Italy, Albania and - Environmental protection, risk management and low carbon strategy
Montenegro - Increasing cross border accessibility, promoting sustainable transport service
and facilities and improving public infrastructures
Danube Transnational - Innovative and socially responsible Danube Region 19.8
Programme - Environment and Culture responsible Danube Region
- Better connected Danube Region
- Well-governed Danube Region

90 / 91 VII COMBINATION OF DEVELOPMENT POLICIES AND FINANCIAL FRAMEWORK


Mediterranean - Promoting Mediterranean innovation capacities to develop smart and susta- 250
Transnational Programme inable growth
(MED) - Fostering low-carbon strategies and energy efficiency in specific MED terri-
tories
- Protecting and promoting Mediterranean natural and cultural resources
- Enhancing Mediterranean governance
Adriatic-Ionian - Innovative and smart region 15.7
Transnational Programme - Sustainable region
(ADRION) - Connected region
- Supporting the governance of the EUSAIR

The plan is to allocate a portion of these funds to research and innovation projects in the S3.me priority domains. Private
sector contribution and investments are leveraged mostly by way of co-financing programmes that are an integral part of
the policy mix instruments. Co-financing is an excellent mechanism to enable the private sector to play a pivotal role in
the implementation of S3.me strategy and ensures it’s commitment to development of a knowledge-based economy. The
indicative amounts of funds necessary for implementation of all planned and allocated programmes and projects are pre-
sented in the S3 Financial Framework (Table 14).

92 / 93 VII COMBINATION OF DEVELOPMENT POLICIES AND FINANCIAL FRAMEWORK


Table 14 – Financial framework for S3 (2019–2024)
Policy Objective Policy Instrument MoS MoE MoEdu MoARD MoSDT MoPA MoH MoC MoLSW MoF IDF Private sector EU grants International Amount in
donations euros
Improving excellen- Competitive funding 4,000,000                         4,000,000
ce and relevance of of research
scientific research
activities
Competitive funding 600,000  500,000   300,000  300,000  300,000  300,000            300,000   2,600,000
for applied research
in S3.me priority do-
mains
R&D infrastructure 800,000   400,000 95,000                 100,0000 1,000,000 3,295,000
Centres of 1,800,000                     200,000     2,000,000
Excellence
  Support for PhD 1,200,000                         1,200,000
  students
Strengthening hu-
man resources in
the field of research
and innovation
 
 
Support for 300,000                            300,000
post-doctoral
students
Communication 1,200,000   100,000     50,000 50,000           100,000 50,000 1,550,000
activities for science
promotion
Support grants to 7,050,000 750,000 180,000                 102,600 444,0000 100,000 12,622,600
strengthening parti-
cipation in internati-
onal initiatives
Development of 420,000 360,000 2,580,000 180,000 1,800,000    8,000,000   300,000     200,000 800,000   14,640,000
professional skills
in line with future
needs
Development of qu-     2,100,000             360,000 420,000   2,880,000
alifications and edu-
cational program-
mes
  Cluster develop-   600,000   960,000               634,216   2,194,216
  ment programme
Enhancing collabo- for S3.me priority
ration within the in- domains
novation system
 

94 / 95 VII COMBINATION OF DEVELOPMENT POLICIES AND FINANCIAL FRAMEWORK


Policy Objective Policy Instrument MoS MoE MoEdu MoARD MoSDT MoPA MoH MoC MoLSW MoF IDF Private sector EU grants International Amount in euros
donations
Genetic research and       240,000               60,000     300,000
innovation programme
Collaborative innovati- 3,750,000                     2,000,000  250,000   6,000,000
on programmes
Technology Transfer 150,000                     20,000   170,000
Office
Science and techno- 8,300,000                     100,000   20,000  8,420,000
logy parks
  Business and techno-   3,306,000   360,000               144,0000 1,360,000 560,000 7,026,000
Supporting innova- logy advisory services
tive activities in the
business sector
 
Start-up grant support 2,690,000  300,000   1,250,000   72,000      500,000     100,000 3,000,000 200,000  8,112,000
programmes
Innovation voucher   300,000                   300,000     600,000
schemes
Incubators and accele- 1,500,000 990,000                    500,000 500,000  240,000  3,730,000
rators programmes
Grant scheme for mo- 500,000 500,000                    300,000 1,000,000   2,300,000
bility between aca-
demia and business
sector
Grant scheme for en-   30,240,000                 1,728,000     31,968,000
gagement of university
graduates in the busi-
ness sector
Grant scheme for hig-   1,200,000   5,500,000               9,000,000 16,500000   32,200,000
her-stage industrial
processing and market
placement
Energy efficiency and   1,000,000                   500,000 500,000 250,000 2,250,000
renewable energy so-
urces programme
R&D tax incentives                 2,000,000         2,000,000
Support scheme for di-   100,000       60,000           200,000 310,000   670,000
gital transformation of
companies
Support scheme for         100,000   100,000         100,000 250,000    550,000
innovative health touri-
sm services

96 / 97 VII COMBINATION OF DEVELOPMENT POLICIES AND FINANCIAL FRAMEWORK


Policy Objective Policy Instrument MoS MoE MoEdu MoARD MoSDT MoPA MoH MoC MoLSW MoF IDF Private sector EU grants International Amount in euros
donations
Environment protecti-         1,000,000               500,000   1,500,000
on and waste manage-
ment programme
Grant scheme for in-       1,200,000               2,400,000  250,000   3,850,000
novative activities in
organic agriculture
  Strengthening innova- 636,000 390,000 100,000 100,000 100,000 100,000         684,000 200,000 2,310,000
Enhancing fra- tion culture
mework conditions
for innovation
ecosystem
IPR support and pro- 20,000 500,000                   24,000      544,000
motion
Financial instruments                     3,210,000       3,210,000
(loans, equities and
guarantees)
Support to venture ca-                     126,000   90,000 30,000  246,000
pital
Support to creation 50,000       200,000 720,000       1,800,000     1,510,000   4,280,000
of e-government and
open data services
Strategic and legal fra- 100,000  200,000   300,000 200,000  270,000 100,000     210,000      30,000 50,000 1,190,000
mework for new tech-
nologies and sub-se-
ctors
Support to entreprene-               1,380,000     100,000 600,000 180,000   2,260,000
urship in creative indu-
stries
Public procurement of  5,000                 100,000         105,000
innovative products
and services
Health Technology As-             1,000,000         200,000     1,200,000
sessment Programme
 TOTAL 35071000 10996000 35700000 10115000 3700000 1572000 9650000 1380000 800000 4110000 3436000 21708816 33534000 2500000 174272816

98 / 99 VIII MONITORING AND EVALUATION


STRATEGIJA PAMETNE SPECIJALIZACIJE (S3) CRNE GORE > > > > > > > > > > > > > > > >

VIII monItorInG And


eVALuAtIon
Particularly important for the successful implementation of the tions possible if needed. External evaluation will be financed
Smart Specialisation Strategy are the implementation control from international funds, primarily IPA pre-accession funds.
mechanisms. For this purpose, the Monitoring Plan (Table 15)
The National Office for Smart Specialisation will work at the
has been prepared for monitoring the accomplishment of the
operational level and will be responsible for implementation
set goals and activities.
and monitoring, while external evaluation will be conducted
Given that the implementation and monitoring process is a by independent experts. The S3 strategic group, representa-
multi-stage and participatory mechanism that implies the ac- tives of relevant ministries and S3 focus groups will support the
tive participation of a large number of public sector entities, monitoring and evaluation system.
the implementation of the Smart Specialisation Strategy will
S3 monitoring and evaluation will be based on the quantified
take place on the basis of the Action Plan for Implementation,
goals identified through the various stages of the Strategy
which will be prepared and submitted to the Government for
preparation and based on the Entrepreneurial Discovery Pro-
adoption separately in the coming period. The Action Plan will
cess. Measurable S3 indicators have been identified in Table
define in detail all the relevant elements in relation to the S3
14. Indicators at the level of the implementation area will in
Monitoring Plan (priorities, objectives, measures and activities,
some cases be modified and, where necessary, revised in the
indicators, deadlines for implementation), and in particular the
preparation of the Action Plan.
funds needed for the implementation of individual measures,
as well as their sources (distributed primarily per proponents of In the process of Action Plan monitoring, data will be collected
individual activities). upon the realisation of individual activities and projects of the
competent institutions, as well as upon the achievement of the
A special segment of monitoring the success of the imple-
objectives, i.e. the results, the output and the outcome indica-
mentation of the S3 will be an evaluation that will look at its
tors, which will form the basis for the Annual Implementation
relevance, efficiency and impact of the defined measures on
Reports that are submitted to the Government for adoption. In
achieving strategic goals. As part of the evaluation process,
this way, it will be possible to measure the success or identify
Conclusions on the Success of Implementation will be made,
problems, or gaps in the implementation of the Strategy. The
with Recommendations for Changing and Improving Planning
monitoring process will also serve as a basis for the potential
(Figure 18).
introduction and implementation of additional measures need-
Figure 18 – Continuous S3 monitoring and improvement ed to achieve the successful implementation of the S3. The an-
nual reports will be prepared by the National Office for Smart
Specialisation.
Preparation
If this is necessary, it will be possible to revise the S3 even
Planning Implementation before the end of the period for which it has been adopted,
based on the:
• results of S3 implementation reflected through the monitor-
ing reports;
Conclusions &
recommenda- Monitoring • evaluation of the effectiveness of the system of measures
tions established by the S3; and
• results of a continuous EDP process (periodic consultation of
According to the plan, a mid-term evaluation will be conducted interested business entities and associations),
by external evaluators. In line with recommendations of the Eu- The S3 revision process is entrusted to the Council for Smart
ropean Commission, at least one evaluation will be conducted Specialisation, in cooperation with the Ministry of Science and
during the implementation of the Strategy, with more evalua- the Ministry of Economy.

100 / 101 VIII MONITORING AND EVALUATION


All the activities related to the management, monitoring, evaluation, revision and open dialogue within the continuous
entrepreneurial discovery process will be conducted transparently, and their overview will be available to the public
via the website of the National Office for Smart Specialisation.

Table 15 –Monitoring plan


Policy Objective Policy Instrument S3.me Priority Domain Responsible entity Target groups Input indicators Output indicators Outcome indicators
(and partners) (and other beneficiaries) (= funds allocated) (reporting period)
(NF – national, EU grants,
PF – private funds,
ID – international donors)

Improving excellence and Competitive funding of MoS Consortia of research NF 1. Number of researchers su- 1. Number of indexed publicati-
relevance in scientific research research organisations, pported through competitive ons with Montenegrin authors
activities Research organisations grants for research projects (2 years)
2. Number of projects suppor- 2. Funds obtained from
ted international sources
(3 years)
Competitive funding for MoS Consortia of NF 1. Number of researchers su- 1. Number of indexed publicati-
applied research in S3.me MoE research organisations, pported through competitive ons with Montenegrin authors
priority domains MoARD Research organisations grants for research projects (2 years)
MoSD 2. Number of projects suppor- 2. Funds obtained from interna-
MoH ted tional sources
MoPA (3 years)
R&D infrastructure MoS Consortia of NF, EU, ID 1. Number of new or improved 1. Number of indexed publicati-
research organisations, research infrastructures ons with Montenegrin authors
Consortia of companies and 2. Number of new equipment (4 years)
research organisations, pieces
Research organisations
Centres of Excellence MoS Consortia of NF, PF 1. Number of new CoEs 1. Number of indexed publicati-
research organisations, 2. Number of researchers enga- ons with Montenegrin authors
Consortia of companies and ged in CoEs (2 years)
research organisations 2. Funds obtained from interna-
tional sources
(3 years)
3. Number of new initiatives
(spin-offs, patents, service con-
tracts, innovations, licencing
agreements)
(4 years)
Strengthening human resour- Support for PhD students MoS Research organisations NF 1. Number of awarded scholar- 1. Number of new holders of
ces in the field of research and ships for PhD candidates in the PhD degree
innovation academic and business sector (4 years)
2. Number of small grants at do-
ctoral competitions

102 / 103 VIII MONITORING AND EVALUATION


Support for post-doctoral MoS Research organisations NF 1. Number of post-doctoral stu- 1. Number of indexed publicati-
students dents supported ons with Montenegrin authors
(2 years)

Support grants for MoS Research organisations NF, EU, ID 1. Number of researchers and 1. Number of projects submitted
strengthening participation in (Enterprises) entrepreneurs involved in to international calls
international initiatives international projects (1 year)
2. Number of projects appro-
ved under international calls
(2 years)
Communication MoS Research organisations NF, EU, ID 1. Number of events 1. Number of participants
activities for science promotion MoEdu (NGOs) (1 year)

Development of qualifications MoEdu Research organisations 1. Number of improved or new 1. Number of people with im-
and educational programmes MoH (Enterprises) NF, EU, PF programmes proved education and qualifi-
cations
(4 years)
Development of professional MoEdu Enterprises 1. Number of new programmes 1. Number of people with im-
skills in line with future needs NF, EU, PF in S3.me priority domains proved qualifications in S3 .me
priority domains
(3 years)
Enhancing collaboration within Cluster development program- MoE Enterprises NF, EU, PF 1. Number of projects in the 1. The growth of number of new
the innovation system me for S3.me priority domains (Research organisations) clusters products and services per S3.
2. Number of new cluster mem- me priority domain
bers in existing clusters (3 years)
Technology transfer office UCG Research organisations NF, EU 1. Number of organisations in- 1. Number of licenses, TT agre-
MoS (Enterprises, volved in TTO ements, patents or copyrights,
MoEdu Start-ups) 2. Number of TTO initiatives spin offs
(3 years)
Science and technology parks MoS Enterprises NF, PF 1. Number of the compa- 1. New innovative initiatives by
(Research organisations, nies - tenants in the STP S3.me priority domain
Start-ups) 2. Number of STP user services (2 years)
2. New business initiatives by
S3.me priority domain
(3 years)
Collaborative innovation MoS Consortia of enterprises NF, PF 1. Number of enterprises co- 1. Number of innovative produ-
programmes and research organisations operating with research institu- cts, services and processes
tions by S3.me priority domain (2 years)
2. Private investment matching 2. Number of innovative produ-
public support to enterprises by cts, services and processes by
S3.me priority domain S3.me priority domain
(2 years)

104 / 105 VIII MONITORING AND EVALUATION


Genetic research and MoARD Research organisations, NF, PF 1. Number of projects 1. Number of innovative and
innovation programme Enterprises 2. Number of research organi- autochthonous products in
sations involved Agri-food S3.me priority domain
3. Number of enterprises invo- (3 years)
lved 2. Number of innovative com-
panies in agri and organic pro-
duction
(4 years)
Support to innovative activities Support to start-ups through MoS Start-ups NF, PF 1. Number of grants allocated 1. Number of innovative compa-
in the business sector grants MoE nies
(5 years)
2. Survival rate of new compa-
nies after 5 years
Grant scheme for mobility MoS Enterprises NF, EU, PF 1. Number of grants allocated 1. Number of researchers retai-
between academia and 2. Number of enterprises invo- ned by enterprises
business sector lved (3 years)
3. Companies’ own investments
Grant scheme for engagement MoEdu Enterprises NF, PF 1. Number of grants allocated 1. Number of trainees retained
of university graduates in the 2. Number of enterprises invo- by enterprises
business sector lved (2 years)
Grant scheme to innovative MoARD Enterprises NF, PF 1. Number of grants allocated 1. Number of innovative produ-
activities in organic agriculture 2. Number of enterprises supp- cts, services and processes
orted (3 years)
3. Companies’ own investments
Grant scheme for higher-sta- MoARD Enterprises NF, EU, PF 1. Number of enterprises using 1. Number of new food produ-
ge industrial processing and grant support. cts, processes and marketing
market placement 2. Value of equipment procu- activities
red. (3 years)
Energy efficiency and renewa- MoE Enterprises NF, EU, PF, ID 1. Number of grants allocated 1. Number of innovative proces-
ble energy sources program- 2. Number of enterprises supp- ses and products
mes orted (3 years)
3. Companies’ own investments
Innovation voucher schemes MoE Enterprises NF, PF 1. Number of voucher schemes 1. Number of innovative produ-
(Start-ups) granted cts, services and processes
2. Number of companies supp- (2 years)
orted through voucher sche-
mes
3. Companies’ own investments
Business and technology MoE Enterprises NF, EU, ID, PF 1. Number of advisers 1. Number of enterprises using
advisory service scheme (Start-ups) supported B&T advisory services
(2 years)
2. Number of innovative produ-
cts, services and processes
(3 years)

106 / 107 VIII MONITORING AND EVALUATION


Incubators and accelerators MoS Start-ups NF, PF 1. Number of incubators suppor- 1. Number of new innovative
programmes ted companies
2. Number of new start-ups in (5 years)
incubators 2. Survival rate of new compa-
3. Number of companies using nies after 5 years
acceleration programme
Providing R&D tax incentives MoF Enterprises, NF 1. Number of companies su- Number of innovative products,
Research organisation, pported services and processes
Start-ups 2. Amount of tax incentives (5 years)

Support scheme for digital MoPA Enterprises NF, EU, PF 1. Number of companies su- 1. Number of companies that di-
transformation of companies (Start-ups) pported gitally transformed their busine-
2. Number of grants allocated ss practices and services
3. Companies’ own investments (3 years)
Environment protection and MoSDT Enterprises NF, PF, EU 1. Number of projects 1. Number of innovative soluti-
waste management (Research organisations) supported ons in circular economy
programme 2. Number of companies or (3 years)
consortia involved in program-
mes
3. Companies’ own investments
Support scheme for MoSDT, MoH Enterprises NF, PF 1. Number of projects 1. Number of innovative soluti-
innovative health tourism (Start-ups ) supported ons in health tourism
services 2. Number of enterprises in- (3 years)
volved in programmes
3. Companies’ own investments
Enhancing framework Strengthening innovation MoS, MoE, Enterprises, NF, EU, ID 1. Number of organised manife- 1. Number of participants
conditions for innovation culture (MoARD, MoSDT, MoPA) Research organisations, stations at national and interna- (1 year)
ecosystem Start-ups, tional level
Organisations and associations
of the civil sector

Support to creation of MoPA Citizens, NF, EU 1. Number of enterprises invo- 1. Number of new e-services
e-government and open data (Enterprises, lved in development of created
services Research organisations, e-services (2 years)
Start-ups, 2. Number of open data sets 2. Number of new applications
Organisations and associations by enterprises, based on open
of the civil sector) data
(2 years)
IPR support and promotion MoE Enterprises, NF 1. Number of organised manife- 1. Number of new IPR applica-
Research organisations stations at national and interna- tions
(Start-ups) tional level (3 years)
2. Number of grants allocated 2. Number of new IPR applica-
tions
(3 years)

108 / 109 VIII MONITORING AND EVALUATION


Financial instrument (loans, MoF, IDF Enterprises, NF 1. Amount of loans granted for 1. Number of innovative produ-
equities and guarantees) Start-ups innovative projects cts, services and processes
2. Number of loans granted for (3 years)
innovative projects
3. Number of guarantees gran-
ted for innovative projects
Support to venture capital MoE, IDF Enterprises, NF, EU 1. Number of innovative compa- 1. Number of innovative produ-
Start-ups nies supported through venture cts, services and processes
capital (3 years)
Public procurement of innovati- MoF Enterprises, NF 1. Number of tenders for public 1. Number of innovative produ-
ve products and services Start-up procurement of innovative pro- cts, services and processes
ducts and services (4 years)
2. Number of enterprises appl-
ying to tenders
Strategic and legal framework MoE, Enterprises, NF 1. Number of policy documents 1. Number of policy documents
for emerging technologies and MoSDT, Research organisations, initiated adopted
sub-sectors MoH, Start-ups (3 years)
MoPA,
MoF
Health Technology Assessment MoH Enterprises, NF, PF 1. Number of HTAs performed 1. Number of new health proce-
(HTA) Programme Public health institutions 2. Number of organisations in- dures approved
volved (3 years)
IDF, MoC Enterprises NF, EU 1. Number of loans 1. Number of innovations in cre-
Grant scheme to enterprises in 2. Amount of loans ative industries
Creative Industries 3. Number of companies supp- (3 years)
orted

110 / 111 VIII MONITORING AND EVALUATION


IX AnneX 1 When it comes to boosting economic development, clusters are of great importance. In 2006, the European Commission
launched the European Cluster Observatory, which provides statistical information, analyses and mapping of clusters and
cluster policies in Europe for the EU Member States and other European countries. Sectors that are at a common location
MAPPING OF ECONOMIC POTENTIAL – METHODOLOGY will probably have common interests or links. By identifying regional concentrations of economic activities at the fourth lev-
el of NACE classification in related sectors, the observatory defined 51 traded clusters (clusters that serve markets beyond
the region in which they are located). Such regional clusters encompass sectors that serve markets beyond the region in
which the clusters are located, as well as those that are completely exposed to the competition from other locations. These
The goal of mapping of economic potential is to identi- Fast growing sectors have greater potential to lead to eco- clusters are concentrated in regions and their high wages and high levels of innovative activities make them the key drivers
fy the sectors with proven advantages and potential for nomic transformations. Employment growth in the period of regional economies. Under the definition of the Observatory, clusters measure the existing connections because they
launching economic transformation. Economic mapping between 2011 and 2016 has been used as an additional are based on the existing industrial classification. It can be expected that more economic activities will occur where sectors
is based on the analysis of available economic data at a selection criterion. Sectors are selected if the employment overlap. In this regard, using, inter alia, information on mergers and acquisitions among the sectors, the European Cluster
detailed sectoral level. Sectors have been selected on the growth in the period between 2011 and 2016 amounted to Observatory identified 10 cross-sectoral groups of sectors where the growth of cross-sectoral links is most probable. By
basis of a combination of criteria, including: 1) the degree at least 25%. using detailed 4-digit data of MONSTAT on employment, the largest clusters and growing sectors have been identified.
of sectoral specialisation compared to the EU, 2) the criti- This was used to support the mapping, along with the use of detailed data at the sectoral level.
cal mass, i.e. a sufficiently large volume measured by the Sectors with above average wages contribute more to the
number of employees, 3) employment growth, 4) average economic development of the country. Wages should be
wages compared to the average for Montenegro, 5) ex- at least 25% higher than the average ones in Montenegro.
port performance; and 6) possible match with two different
types of broader sectoral groups with cluster performance In order to identify the degree of specialisation, critical
measurement and the presence of emerging sectors. mass, employment growth and relative wages, MONSTAT
made available data at a detailed industry level, at the third
Specialisation is calculated by comparing the relative level of NACE classification531 (3-digit numerical codes), for
48

share of employment in a certain sector in total employ- the number of employees and gross wages for the period
ment in Montenegro with the relevant share of employ- from 2011 to 2016.
ment in that sector in EU in total employment in EU. The
relation between these two shares is known as a location Sectors are selected if they qualify both for the degree
quotient (LQ), where location quotient above 1 indicates of specialisation and for the critical mass, or if they meet
above-average concentration in a certain sector, whereas the conditions for employment growth or relative wages.
LQ below 1 shows a below average concentration in the In total, 46 sectors at the third level of NACE classification
particular sector. For economic mapping, a threshold of 1.5 have been selected as specialised sectors.
was used. Thus, it is considered that the sector is special-
ised if its share in employment is at least 50% higher than When it comes to measuring the export performance, NACE
the share of that sector in employment in EU. classification data are not available. Instead, data for export
in different groups of products have been used. The anal-
Critical mass or volume of the sector has been added to ysis indicated different groups of products in which Monte-
the selection process in order to prevent the selection of negro is specialised compared to the export performance
very small sectors with marginal economic weight. Critical of EU 28, including the following: meat and meat prepara-
mass is calculated as share of employment in the sector in tions; vegetables and fruits; beverages; hides, skins and
the overall employment. For each broad sectoral group, a fur skins (raw); metalliferous ores and metal scrap; electric
different minimum share has been identified, with a lower current; iron and steel; non-ferrous metals. These groups of
share if there is a greater number of sectors at the most products have been used to assist in the mapping, with the
detailed sectoral level and a higher share if there are less use of detailed data at the sectoral level.
sectors at the most detailed sectoral level. 53 NACE is a statistical classification of economic activities used
by Eurostat, the statistical office of the European Union, as well
as by the national statistical offices of the European countries.

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IX AnneX 2
25 26 July 2018 Sustainable agriculture and Podgorica 7
food value chain
26 30 July 2018 ICT Podgorica 7
27 31 July 2018 Health Tourism Podgorica 7
ENTREPRENEURIAL DISCOVERY PROCESS
28 1 August 2018 New materials and Podgorica 9
sustainable technologies
The S3 webpage on the website of the Ministry of Science contains detailed information on the Entrepreneurial Discovery
29 16 August 2018 Health Tourism Podgorica 6
Process and is available on the following links:
30 24 August 2018 Health Tourism Podgorica 7
In Montenegrin:
31 28 August 2018 New materials and Podgorica 18
http://www.mna.gov.me/ministarstvo/Strategija_pametne_specijalizacije/
sustainable technologies
In English:
32 28 August 2018 ICT Podgorica 17
http://www.mna.gov.me/en/ministry/Smart_Specialisation/
33 28 August 2018 Renewable energy sources Podgorica 19
34 28 August 2018 Sustainable agriculture and Podgorica 16

Table A — Workshops, trainings and meetings organised during the EDP process food value chain

Workshops, trainings and meetings organised during the EDP process 35 29 August 2018 Sustainable and Health Tourism Podgorica 30

No. Date Sector/ Priority Location Number of 36 5 September 2018 Sustainable agriculture and Podgorica 5

participants food value chain

1 11-12 April 2018 EDP training Ljubljana 8 37 5 September 2018 ICT Podgorica 7

2 11 May 2018 Metal industry Podgorica 11 38 6 September 2018 New materials and Podgorica 11
sustainable technologies
3 11 May 2018 Health and quality of life Podgorica 23
39 6 September 2018 Energy Podgorica 6
4 11 May 2018 Construction Podgorica 18
40 7 September 2018 Sustainable and Health Tourism Podgorica 15
5 11 May 2018 Tourism Podgorica 13
41 12 September 2018 Interagency working group 20
6 11 May 2018 Energy Podgorica 20
42 18 September 2018 New materials and Podgorica 10
7 11 May 2018 Agriculture Podgorica 21
sustainable technologies
8 11 May 2018 Information and Communication Podgorica 25
43 18 September 2018 ICT Podgorica 19
Technologies (ICT)
44 18 September 2018 Renewable energy sources Podgorica 18
9 7 June 2018 Health and quality of life and tourism Podgorica 34
45 18 September 2018 Sustainable agriculture and Podgorica 13
10 8 June 2018 Energy Podgorica 30
food value chain
11 20 June 2018 ICT Podgorica 27
46 18 September 2018 Sustainable and Health Tourism Podgorica 20
12 21 June 2018 Agriculture Podgorica 25
47 12 October 2018 New materials and Podgorica 7
13 22 June 2018 Construction and metal industry Podgorica 31
sustainable technologies
14 3 July 2018 Joint meeting of the EDP focus groups Podgorica 21
48 12 October 2018 ICT Podgorica 9
15 6 July 2018 Health Tourism Podgorica 9
49 12 October 2018 Renewable energy sources Podgorica 7
16 10 July 2018 Sustainable and Health Tourism Podgorica 12
50 12 October 2018 Sustainable agriculture and Podgorica 7
17 12 July 2018 Sustainable agriculture and Podgorica 12
food value chain
food value chain
51 12 October 2018 Sustainable and Health Tourism Podgorica 8
18 16 July 2018 ICT Podgorica 7
52 22 October 2018 Interagency working group Podgorica 17
19 17 July 2018 Health Tourism Podgorica 16
53 6-8 November 2018 Multi-Country Workshop – Training for Brussels 4
20 19 July 2018 Renewable energy sources Podgorica 4
National and Regional Smart Specialisa-
21 20 July 2018 Sustainable and Health Tourism Budva 9
tion Teams in Enlargement and
22 24 July 2018 Sustainable and Health Tourism Podgorica 3
Neighbourhood Countries.
23 25 July 2018 Health Tourism Podgorica 11
54 3 December 2018 Public discussion Podgorica 30
24 25 July 2018 Sustainable and Health Tourism Podgorica 3

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Table B — WEB QUESTIONNAIRE – EDP


55 10 December Interagency working group Podgorica
29 LIST OF QUESTIONS
1 What are the comparative advantages and positions of the sector at national, regional and international level?

56 15 January 2019 Renewable energy sources and Podgorica 15 What are the innovative capacities of the enterprise and the potentials for adopting the latest technologies?
energy efficiency 2 • What are the new sub-areas with great development potential based on knowledge, competencies and market
57 15 January 2019 New materials and Podgorica 10 potential?
sustainable technologies What are the new products, services or processes that can create new value chains in the sector?
3
58 16 January 2019 Sustainable agriculture and Podgorica 10 • If you could do something, what would you change?
food value chain 4 What are the specific specialties within the sector that are most successful and are emergent?
59 16 January 2019 Sustainable and Health Tourism Podgorica 6 5 What are the main challenges in the business operation and development of the enterprises?
6 What are the state measures that can have a positive impact on the sector?
60 17 January 2019 Information and Podgorica 10 What are the sub-areas in the sector that produce a synergistic effect in relation to the other priority sectors that have
7
Communication Technologies been identified so far?
61 28 January 2019 Sustainable and Health Tourism Podgorica 9 Please define three problems in your field of work that exist in Montenegro, in relation to which you believe there is a
chance that science and innovation could offer adequate solutions. The problems should relate to the lack of knowledge
62 5 February 2019 “Cooperation for smart specialisation — Podgorica 60 and technical solutions and should be possible to address by scientific and/or expert assistance.
1st Western Balkans workshop” • Are there available resources for dealing with the above problems, which could contribute to their successful
8 resolution (natural and human resources, previous research in Montenegro, interest of foreign donors / inve-
stors, etc.)?

1. Yes (Please specify __________________________________________)


2. No (Please specify __________________________________________)
What are the current trends in the sector that can negatively influence its future?
9

How much has the sector changed in the last five years?
• Great negative changes
• Small negative changes
10
• No changes
• Small positive changes
• Great positive changes
11 What are the development trends in your sector for the next five to ten years?
What are the products, services or processes from your sector that make an important difference in the world market?
12
• How could we reach that level? _____________________________________
13 Are you going to continue doing business in your sector and why?
Are you willing to invest your own funds in innovation and research projects in order to improve your business operation?

14 1. Yes (Please specify the reasons ________________________________)


2. No (Please specify the reasons _________________________________)

What has helped you to get where are you now and what else should you do to move even further in the desired dire-
15 ction?
• If you could do something, what would you change?

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IX AnneX 3 Accordingly, flagship initiatives will not only pave the way for implementation of a network of distinguished research and
innovation projects, but will also engage in promotion and provision of market access and positioning of innovative prod-
FLAGSHIP INITIATIVES ucts which is equally important. Likewise, this approach shall enable application of a governance model, managed by the
new National Office for S3.me, which presumes close collaboration between the competent bodies in charge of research
Flagship initiatives are programmes that have been identified through EDP for each of the S3.me priority domains. The EDP and innovation policy and competent bodies responsible for policy areas with direct economic and social impact, primar-
has identified numerous already-existing research and innovation projects, along with creative ideas or concrete project ily those closely related to S3.me priority domains. Consequently, limited national financial resources designated for R&I
proposals that are complementary to realistic needs and opportunities the business community would like to seize by should be augmented by attracting private sector capital. Moreover, this capital shall be predominantly directed at commer-
relying on state assistance. These innovative projects and proposals have been carefully grouped and refined in order to cialisation of innovative products, enabling future financial streams to be channelled through smart specialisation priority
distinguish flagship initiatives as programmes that promote the most promising project groups from the economic point of domains that would ultimately lead to systemic transformation of the national economy into a knowledge-based economy.
view. Therefore, each flagship initiative will contain a number of projects related to the specific priority domain in which the
country has significant innovation potential and the chance to establish competitive advantage on the international market
or to upgrade domestic social environment.

Projects within each flagship initiative are connected by a common subject matter containing both the research and in-
novation capability and the commercialisation potential. Gathering flagship initiative projects around the common subject
matter will enable development of excellence in a particular innovation niche, providing for engagement of much broader
innovation and business capacities, which would not be possible if flagship initiatives related only to a single project. Such
an approach considerably increases success odds in a country with generally limited resources, guaranteeing broader
involvement of stakeholders, particularly SMEs, in the smart specialisation process.

Table A — Overview of Flagship Initiatives


Priority domains Flagship Initiatives Subject matter
Sustainable agriculture and Bio mapping and Engineering (BME) Autochthonous plant, animal and
food value chain microbial species
Energy and Renewable energy sources and energy Renewable energy sources and
sustainable environment efficiency energy efficiency

Circular Economy (CE) Recycling industrial waste

Sustainable and health tourism Adriatic Centre for Bone and Muscular System Medical treatment and rehabilitation
Diseases for bone and muscular system disea-
ses
ICT Digital Transformation Digital technologies relevant to S3.me
priority domains and public administra-
tion

Competent authorities within the S3.me governance model will undertake a higher level of commitment to the implemen-
tation of flagship initiatives, accordingly narrowing the scope of S3.me implementation. After the adoption of the Strategy,
a feasibility study shall be developed for each flagship initiative within the set timeframe. These feasibility studies shall
thoroughly elaborate the network of relevant projects, their particular subject within the general subject matter, necessary
personnel and equipment for implementation, required involvement of domestic and international partners, ways of com-
mercialisation of innovative products, necessary financial resources and execution timeframes. Moreover, these feasibility
studies shall list, evaluate and assess innovation contribution and financial value of the already existing projects in line with
the flagship initiatives; such projects have served as a foundation for flagship initiatives identification.

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IX AnneX 4 IX AnneX 5
ACTION PLAN FOR S3.ME IMPROVEMENT LIST OF ABBREVIATIONS

Table A — Action Plan for S3.me


Activity Timeframe 3D Three-dimensional
1. National Office for Smart Specialisation established 3 months following the S3.me adopti- 5G Fifth Generation Cellular Network Technology
on at the latest AMM Association of Montenegrin Managers
2. Feasibility studies for Flagship Initiatives developed 9 months from the National Office for AR Augmented Reality
S3.me establishment B&T Business and Technology
3. Reliable innovation statistical data provided By the end of 2020 CALIMS Montenegrin Agency for Medicines and Medical Devices
CANU Montenegrin Academy of Sciences and Arts
In 2018, the National Statistical Office (MONSTAT) carried out a pilot survey on inno- CBCG Central Bank of Montenegro
vative statistics for methodology testing purposes. In 2019, in cooperation with the CERN European Organization for Nuclear Research
Ministry of Science, a new pilot survey will be undertaken for testing the changed
CETI Centre for Ecotoxicological Research
methodology. Data from pilot surveys are not available for publication due to the
CG kO CIGRE Montenegrin National Committee for the International Council on Large Electric Systems
requirements of Article 33 of the Law on Official Statistics and the Official Statistical
CoEs Centres of Excellence
System of Montenegro (“Official Gazette of Montenegro”, no. 18/12). Hence, official
COTEE Montenegrin Electrical Energy Market Operator
innovation statistics may be expected for the following year.
CTU Montenegrin Tourism Association
4. European Innovation Scoreboard enrolment 2021 edition
DSL Digital Subscriber Line
5. Structural business statistics (SBS) – NACE level 3 Work with MONSTAT to define the
EDP Entrepreneurial Discovery Process
timeframe for collection of SBS –
EEN Enterprise Europe Network
The data for the production of structural business statistics (SBS) are collected from NACE level 3
EES Electric Energy System
administrative and statistical data sources (Tax Administration of Montenegro). Ar-
EC European Commission
ticles 53-60 of the Law on Official Statistics and the Official Statistical System de-
fine the framework for the protection, use and transfer of confidential data. This ERP Enterprise resource planning

framework restricts publication of data that can enable identification of individual EU European Union

reporting units, which may be the case in Montenegro given its small size and a EUROSTAT European Statistical Office
limited number of companies per sector. FAIR Facility for Antiproton and Ion Research
6. Multiannual budgetary planning introduced Announced for 2021 FDI Foreign Direct Investments
GDP Gross Domestic Product
The current public finance system provides only for annual planning of budgetary GNSS Global Navigation Satellite System
expenditures. This was favourable for S3 adoption, as it enabled the introduction GSI Centre for Heavy Ion Research
of new policy approach into the national system. There were no constraints that HTA Health Technology Assessment
could be imposed by mid-term limitations of financial sources already distributed ICT Information and Communications Technology
through previously adopted policy documents. However, mid-term national budge- IDF Investment and Development Fund
tary planning, i.e. budgetary planning for three-year periods, has been announced. IJZCG Public Health Institute of Montenegro
IMF International Monetary Fund
IoT Internet of Things
IPC International Patent Classification
IPR Itelectual Property Rights
IT Information Technologies
JP Public Company

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kCCG Clinical Centre of Montenegro


MBA Montenegro Business Alliance
MoE Ministry of Economy
MHE Small hydro power plants
MICE Congress Tourism (meetings, incentives, conferences and exhibitions)
MoPA Ministry of Public Administration
MoS Ministry of Science
MONSTAT Statistical Office of Montenegro
MoSDT Ministry of Sustainable Development and Tourism
MoEdu Ministry of Education
MoARD Ministry of Agriculture and Rural Development
MoSp Ministry of Sports
MoH Ministry of Health
NACE The Statistical Classification of Economic Activities in the European Community
NATO The North Atlantic Treaty Organization
NFV Network functions virtualization
NICE System of Classifying Goods and Services for the Purpose of Registering Trademarks
NID Scientific Research Activity
NTO National Tourism Organisation
NUTS Nomenclature of Territorial Units for Statistics
OB General Hospital
PkCG Chamber of Economy of Montenegro
PPP Purchasing Power Parity
RCC Regional Cooperation Council
RES Renewable Energy Sources
R&D Research and Development
R&I Research and Innovation
S3 Smart Specialisation Strategy
S3.me Smart Specialisation Strategy of Montenegro
SBS Structural Business Statistics
SDN Software-Defined Network
SME Small and Medium-sized Enterprises
STP Science and Technology Park
SWOT Strengths, Weaknesses, Opportunities and Threats
TE Thermal power plant
TTO Technology Transfer Office
UCG University of Montenegro
UDG University of Donja Gorica
UNESCO The United Nations Educational, Scientific and Cultural Organization
UNkCG Association of Oil Companies of Montenegro
UNWTO World Tourism Organization
UP Employers Federation
VR Virtual reality
WB Western Balkans

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IMPRESSUM

SMART SPECIALISATION STRATEGY OF MONTENEGRO


2019 - 2024

Publisher:
Ministry of Science
Rimski Trg no. 46,
81000 Podgorica, Montenegro
www.mna.gov.me/ministarstvo

Chief Editor:
Dr Sanja Damjanović

Editors:
Dr Darko Petrušić
Dr Nina Radulović
Milena Milonjić

Tranlsator:
Goran Drinčić

Design & DTP:


GARAŽA

CIP - kaталогизација у публикацији


Национална библиотека Црне Горе, Цетиње

ISBN 978-9940-732-03-5
COBISS.CG-ID 38880016

The Government of Montenegro has adopted the Smart Specialisation Strategy of Montenegro 2019 - 2024,
on the session held on June 20th, 2019.

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