Montenegro’s Hidden Opportunities

December 2025

I just returned from a short trip to Montenegro. This was my third experience in the western Balkans, though I have spent a few years working with these countries, mostly through remote projects and research. Seeing the country in person, I was fascinated by the beauty of the landscape and the generosity and kindness of the people. Protection of this natural heritage should be a point of pride in any future socioeconomic direction the country will take.

During my visit, I spoke with people about their daily lives, work, mobility, and local economic prospects. In the lovely city of Cetinje, I visited Pejović Guitars, a small company that produces beautiful instruments through local craft and modern methods. The company translates how skill and creativity can generate value despite limited demand and market access, proving a broader potential for an innovation economy.

Montenegro has a population of around 600 thousand people. The country continues to experience population decline and internal migration, reducing activity and skills in several regions and putting pressure on local economy.

From what I observed, Montenegro, benefiting from the use of the Euro as its currency, has space to grow through an innovation economy that draws on light manufacturing, niche food products, and artisan goods as a starting point. These sectors can serve local and external markets without heavy infrastructure and offer small-town residents stable income.

I see three practical steps that can support this direction:

1- Creating shared production spaces where small producers can use equipment, tools, and testing facilities without bearing the full cost.

2- Applying training that links product development with market entry through hands-on learning and cooperation with universities, municipalities, and accessible support programs for small producers.

3- Supporting marketing Montenegro touristically as a hub for small-scale innovations. This includes creating channels for online sales, product fairs, and simple distribution arrangements that help producers reach buyers locally and abroad and build steady production over time.

* I invite you to see the amazing work of Pejović Guitars on the following link: https://pejovicguitars.com

** Photo from the scenic Cijevna River near Podgorica.

#InnovationEconomy #EconomicGrowth #LocalEntrepreneurship #SkillsBuilding #ImpactThatMatters #Montenegro