Filip Jovićević, Founder and CEO, Montenegro Space Research.
I see Montenegro, known for its scenic coastlines, as the next tech frontier in the Western Balkans. Historically reliant on tourism, the country is diversifying its economy through strategic investments in infrastructure and cybersecurity and by promoting female participation in tech.
Montenegro’s approach to cybersecurity has evolved since the first Law on Information Security in 2010. The latest National Cybersecurity Strategy (2022-2026) focuses on integrating advanced technologies, improving cyber incident responses and enhancing international cooperation.
However, the rise in sophisticated cyberattacks, like the ransomware incidents in 2022, underscores the need for comprehensive cybersecurity measures. I believe partnerships with the U.S. and NATO are crucial in bolstering defenses.
Given that women make up over 50% of Montenegro’s population, their inclusion in the tech sector is both beneficial and necessary. Initiatives to encourage female participation include educational campaigns, scholarships for women in STEM and partnerships with international organizations. Research shows that businesses with a greater gender diversity are more likely to outperform their rivals.
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The Potential Of Montenegro’s IT Industry
As stated, tourism has long been the mainstay of Montenegro’s economy, but it is subject to seasonal fluctuations and external factors such as geopolitical instability and global pandemics. By diversifying into the IT and software development sectors, the hope is that Montenegro can achieve a more stable and sustainable economic model.
Though Montenegro’s IT sector is still in its nascent stage, the country’s strategic location, coupled with its growing pool of tech-savvy professionals, positions it well to attract international tech companies and startups. The Montenegrin government has shown increasing interest in developing this sector, aware that software development and IT services can offer financial benefits that surpass the seasonal nature of tourism.
Additionally, digital nomads have been recognized in Montenegro’s latest programs and can obtain a residence permit, further enhancing the country’s appeal as a destination for remote workers and tech talent.
Strengthening Infrastructure
To realize its potential as a tech hub, Montenegro must address key infrastructure challenges, including high-speed internet connectivity and modern tech parks. The Montenegrin Science and Technology Park project, launched in 2024, aims to attract domestic and foreign startups by providing a central hub for innovation. Public-private partnerships can play a significant role in this transformation, enabling collaboration with international tech firms and educational institutions.
Cybersecurity
As Montenegro aspires to become a tech hub, prioritizing cybersecurity is essential to safeguard innovation, economic stability, and national security. According to USAID, countries that prioritize digital security see stronger foreign investment and economic resilience.
As a part of this push, it’s important to actively incorporate women into the tech field; the gender component in cybersecurity initiatives taps into a vast talent pool and ensures comprehensive technological advancement.
I think that Women4Cyber Montenegro, the national chapter of the Brussels-based Women4Cyber Foundation, can help play a crucial role in promoting the importance of cybersecurity and fostering gender diversity in the tech sector.
According to Neli Rasovic, “Cybersecurity faces new challenges like AI and quantum computing.” She states, “Our task is to equip the next generation of experts.” Montenegro’s commitment to cybersecurity is vital for meeting international standards as a NATO member and aspiring EU member.
Education And Skill Development
For Montenegro to thrive as an IT hub, investing in education and skill development is essential. The country needs to enhance its educational infrastructure to produce a steady stream of qualified IT professionals. An updated curriculum focusing on emerging tech fields like blockchain and AI will be critical. Collaborations with international universities and tech institutes can provide advanced training and certifications. Initiatives like coding boot camps and hackathons can stimulate interest and innovation among the youth.
Advice For Potential Investors
For those looking to invest in Montenegro’s burgeoning IT industry, strategic insights and careful planning are crucial. Here’s my advice for potential investors:
Conduct Thorough Market Research
Before making any investment, understanding local market dynamics is essential. This includes assessing the current state of the IT industry, identifying key players and understanding the regulatory environment.
A significant issue is the talent shortage in specialized IT fields such as cybersecurity. Collaborations between educational institutions and private companies can help address this skills gap. Regulatory hurdles surrounding data privacy and compliance remain complex; engaging local legal experts is vital for navigating these challenges.
Focus On High-Growth Areas
Montenegro’s IT sector has several high-growth areas ripe for investment, including software development, cybersecurity, AI, fintech and e-commerce. By focusing on these sectors, investors can tap into promising opportunities and support the country’s technological advancement.
Leverage Government Incentives
The Montenegrin government offers several incentives to attract foreign investment in its IT sector, including a competitive corporate tax rate of 9%, which is one of the lowest in Europe. The government has designated IT as a strategic sector, providing grants and subsidies to foster innovation. Streamlined administrative procedures facilitate quicker business setups. Investors should engage with Montenegro’s Investment Agency (MIPA) or local firms to explore these incentives.
Build Strong Local Partnerships
Local partnerships are crucial for successfully navigating Montenegro’s business landscape. This includes local market research firms and the already mentioned local legal experts. Building strong relationships through face-to-face interactions with businesses, universities and tech companies can provide valuable insights and access to talent. Conducting thorough due diligence on potential partners’ track records and financial health is essential.
Conclusion
Montenegro stands at a crossroads, with the opportunity to transform its economy through strategic investments in the IT sector, positioning itself as the Western Balkans’ premier destination for IT and software development.
By ensuring robust infrastructure, cybersecurity and education initiatives, the country can pave the way for long-term tech growth. The journey ahead is challenging, but with the right vision and commitment, I believe it can achieve a prosperous and diversified economic future.
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