Western Balkans: A Rising Tech Hub Defying Europe’s Divide with Innovation and Connectivity

Belgrade, May 27, 2025 - The Western Balkans—comprising Albania, Bosnia and Herzegovina, North Macedonia, Montenegro, Kosovo, and Serbia—are carving out a competitive tech ecosystem, defying Europe’s technological divide as of May 27, 2025. Despite structural challenges, these smaller nations are harnessing unique strengths like compact territories, flexibility, and strategic geographic positioning to foster innovation.

Governments are prioritizing digital transformation through investments in connectivity, human capital, regulatory alignment with EU standards, and startup innovation. Real-time insights from regional tech forums indicate a surge in cross-border collaboration, with initiatives like the European Digital Innovation Hubs (EDIHs) Network expansion in January 2025 empowering local startups to access advanced technology and funding.

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Connectivity Fuels Growth

Robust digital infrastructure is a cornerstone of the region’s startup growth. Montenegro leads with 90% internet penetration and 89.7% broadband mobile connections, having activated 5G across all municipalities by late 2024. North Macedonia boasts near-universal 4G coverage and expanding 5G networks, supported by competitive broadband speeds. Serbia’s 4G is widespread, with a new strategy aiming to advance 5G by 2027.

Kosovo shows promising 5G test speeds, while Albania focuses on non-standalone 5G networks but struggles with rural-urban disparities. Bosnia and Herzegovina lags behind the EU average due to regulatory hurdles, yet efforts to improve infrastructure persist. Recent data highlights that the EU’s Growth Plan for the Western Balkans (2024-2027) has accelerated 5G deployment, aiming to connect 70% of rural households by 2027.

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Building a Skilled Workforce

Human capital development is pivotal for sustaining innovation. Serbia offers extensive IT education, coding bootcamps, and retraining programs, while Kosovo and North Macedonia leverage their tech-savvy youth with EU-backed digital education initiatives. Montenegro is reforming vocational training to emphasize ICT skills, and Albania and Bosnia are progressing with EU support, though digital literacy gaps remain, particularly in marginalized communities.

Real-time sentiment from regional education summits underscores the urgency of addressing the digital divide, with programs like the Digital Education Action Plan (2021-2027) targeting inclusive e-education for groups like the Roma community, aiming to train 500,000 individuals by 2027.

Did You Know?
Serbia ranks among the top five globally for blockchain developers, with startups like OriginTrail gaining international recognition for supply chain innovation.

Regulatory Alignment and Startup Boom

Alignment with EU digital frameworks is accelerating the region’s integration into the Digital Single Market. Montenegro excels in implementing the Digital Services Act and bolstering cybersecurity, while North Macedonia advances in data protection and e-services. Serbia and Kosovo are making strides in e-commerce and digital governance, though Bosnia faces delays due to administrative fragmentation. Albania is reforming cybersecurity and e-government services, with Tirana emerging as a fintech and AI startup hub.

Serbia’s ecosystem thrives with high ICT exports and support from accelerators and science parks, while North Macedonia’s Fund for Innovation and Technology Development drives ICT and e-commerce growth. The EU’s €6 billion Reform and Growth Facility (2024-2027) is fueling these efforts, with a goal to double the region’s economic output within a decade.

Digital Nomadism: A New Frontier

The Western Balkans are becoming a haven for digital nomads, offering low living costs and strong internet infrastructure. Montenegro’s Digital Nomad Visa, launched in 2023, allows a two-year stay, while Albania’s Unique Permit offers renewable one-year stays. North Macedonia and Serbia provide alternative options for remote workers, and Bosnia allows 90-day stays on tourist visas. This trend is boosting local economies through tourism and co-working spaces, with real-time data showing a 15% rise in digital nomad applications in 2025, particularly in Montenegro and Albania, as reported in regional economic forums.