Digital Innovation Hubs Landscape in the Western Balkans

01 Aug 2023 News
Digital Innovation Hubs Landscape in the Western Balkans

The Regional Cooperation Council (RCC) mapped the region's Digital Innovation Hubs (DIHs) to identify their needs and propose regional cooperation actions. The overview portrays the current landscape related to DIHs and similar organisations operating in the Western Balkans. 

DIHs operate as collaborative centers bringing together different stakeholders to foster cross-sector cooperation. They are one-stop shops that support small and medium enterprises to digitalise their business operations. 

They do it by providing workspace, funding, expertise and linkages to investors. By linking players on the market, DIHs can nurture startup growth, pilot new solutions and upskill the workforce. 

The mapping provided several important insights. 

Barriers to Digital Progress

A particular emphasis is on elements of sustainability, services DIHs offer, available capacities and support they are receiving from various support structures. 

The report identifies several barriers currently hindering digital advancement in the Western Balkans. 

A lack of collaboration between diverse actors including businesses, universities and governments means synergy is lacking. 

Limited access to finance also restricts scaling up of new ideas. At the moment, there are limited financial instruments in the region e.x. crowdfunding, venture capital, and angel investors. 

Perhaps most significantly, a shortage of specialised skills prevents the full exploitation of emerging technologies like artificial intelligence, the Internet of Things and advanced manufacturing. 

Without addressing these challenges, the region risks falling behind globally.

The majority of self-declared DIHs in the region primarily provide basic, supplementary services. As a result, there is a mismatch between the roles of DIHs and their perceived functions.

Stakeholders in the region do not fully understand DIHs, partly because they only offer access to a limited number of resources such as incubation, preparation and networking, 

Leveraging Innovation Hubs

To overcome barriers and realise digital opportunities, the report recommends strategically developing Digital Innovation Hubs. 

With other economies making massive digital investments, the region cannot afford to delay. 

Governments, academia and businesses must work as partners with a shared commitment. Policies need reforming to better support innovation. 

Investment in hubs and skills development is crucial. And stakeholders must collaborate proactively. 

If the region rises to these challenges through coordinated efforts, the future potential for prosperity and competitiveness might be immense. 

The Growing Potential of Digital Innovation

Digital technologies are transforming our world at an unprecedented rate. They offer immense opportunities to drive economic growth, boost competitiveness and improve people's lives. 

However, their benefits are not being fully realised across the Western Balkans. If we can address the challenges, the region has strong potential to become a leader in the digital revolution.