Numbers confirm: IT has the potential to become a strategic sector for the development of Montenegro
The potential of the IT industry is receiving increasing public attention, and Montenegro is becoming an important country for IT investments. The actual extent of this potential was demonstrated by the numbers presented at today’s press conference organized by ICT Cortex and the Chamber of Economy of Montenegro, where the results of an ICT research study were presented. Montenegro is experiencing growth in the ICT sector in terms of the number of companies, employees, as well as revenues and profits. This was shown by the analysis of the IT sector in Montenegro conducted by the consulting firm “CEED Consulting” for the needs of the ICT Cortex cluster, under the auspices of the Reconomy program. One particularly interesting finding from the research is that the export of computer services increased to a record 21% in 2022, compared to only 3% in 2017. “The growth in the number of companies has been influenced by the war in Ukraine. Despite the crisis, the IT sector is experiencing growth in all observed parameters, and the IT industry has also seen revenue growth. The analysis showed that companies are facing a shortage of qualified workforce,” said Jovana Vujačić from the company “CEED Consulting.” Among the 70 surveyed companies, the following interesting data stand out: Nina Drakić, the President of the Chamber of Economy of Montenegro, stated that, in addition to tourism, agriculture, and energy, the IT sector is recognized as a strategic sector. “The IT sector had the highest growth last year, which indicates its potential,” said Drakić. Statistics show that the number of registered companies in the ICT sector has been steadily increasing on an annual basis. In the previous year, 1,497 companies were registered, and from the beginning of this year until April, 313 companies have been registered. “In the last five years, the structure of the ICT sector has changed. Statistics show that the IT sector accounts for 84% of the ICT sector. Compared to other sectors, the ICT sector deserves to be a priority economic branch,” said Nada Rakočević, Secretary of the Committee of Information and Communication Technology Associations within the Chamber of Commerce of Montenegro. She further highlighted key figures, pointing out a nearly 70% increase in the number of companies and a 44% increase in employment. The ICT Cortex cluster announced that revenues in the ICT industry reached 602.432.407 million euros last year. “Net profit increased by over 100% compared to 2019. With the growth of ICT companies, the number of employees also increased by 30% last year compared to 2021,” said Milena Aković from the ICT Cortex cluster. She emphasized the need to highlight the significance and potential of the IT industry, which should become a strategic sector. Vladan Tabaš, the CEO of Čikom company and the President of the Board of Directors of ICT Cortex, stated that the IT sector is growing rapidly, but the level of digital transformation in society is not satisfactory. “IT has advanced to a great extent, but the digital transformation in Montenegro is slow. We are entering the digital world, and perhaps the turning point was the COVID-19 pandemic. The obstacle is our educational system, which does not provide the necessary workforce. We need skilled professionals, and therefore, we appeal for significant changes in Montenegro’s educational system,” said Tabaš.
Innovative activity as an imperative of economic growth
The need to intensify innovative activities for the economic and social progress of Montenegro is the main message of MeetUp Vol 8, which was held on May 25, and organized by the ICT cluster Cortex and the Montenegrin Chamber of Commerce. Comprehensiveness and sufficiency of the legislation adopted to establish and develop innovative activities, how the benefits and possible reasons for insufficient use of the potential offered by this legislative framework, as well as proposals on how to systematically improve and intensify innovative activities, were topics about which the panelists and participants had a constructive dialogue. Questions and concerns in this area, in a dialogue with the participants, were answered by panelists, who were active participants in the process of adopting, implementing, and using the incentives of this revolutionary innovative legislative framework: Marijeta Barjaktarović Lanzardi – Ministry of Science and Technological Development, Nenad Novović – President of the Assembly in ICT Cortex, owner of IT company Amplitudo, Velibor Bošković – Science Technology Park, Saša Ivanović – consultant UNDP, Bojana Femić Radosavović – Innovation Fund and Đorđije Brkuljan – Innovation and Entrepreneurship Center Tehnopolis. A lot of potential beneficiaries of benefits as well as measures arising from the innovation legislative framework, namely: companies, startups, spinners, and other legal entities, scientific research institutions, centers of excellence and higher education institutions that perform innovative activities, inventors, innovators, and freelancers have been participants of this event. The conclusions from this successfully organized Meetup will be discussed and adopted at the working meeting, which will be held next week, in which the most important subjects of the innovation community will take a part. The topic of the meeting will also be the consideration and definition of priorities for the improvement of the ICT sector, and the entire innovative ecosystem, which will be presented to key decision-makers. If you were not able to follow Cortex meetup Vol 8, you can find a video of the event on our YouTube channel.
RCF: Grants awarded for the development of professional education
The official ceremony for the awarding of grants from the Regional Fund for Challenges was held on February 2, 2021, at the Chamber of Commerce of Montenegro. The ceremony brought together representatives of the Ministry of Education, Science, Culture and Sports, the Comoros Investment Forum, the German Embassy, KfW – the German Development Bank, and representatives of the award-winning consortia. The Regional Challenge Fund (RCF) is a financial mechanism designed to improve the employability of young people. This project is financed by the German Federal Ministry for Economic Cooperation and Development (BMZ) through the German Development Bank (KfW). The main partner in the implementation of the project is the Chamber Investment Forum of the Western Balkans 6 (WB6CIF). At the meeting, it was announced that after the first call for project proposals, RCF received 205 declarations of interest from consortia and institutions dealing with professional education and training, as well as companies from the Western Balkans region. Of the total number of applications, 29 came from Montenegro. Following the further work of the Selection Committee, a decision was made to propose the two most successful projects from Montenegro for financing and receive investments in infrastructure and equipment in institutions for professional education, as well as training and development of all those involved in the implementation of the cooperative education program. The funds will be invested in the total amount of EUR 937,249. The consortium consisting of the High School of Electrical Engineering “Vaso Aligrudic” from Podgorica with partners Bild Studio, Alicorn, Data Design, Amplitudo, and Mont-inženjering received a grant of 511,509 thousand euros, while the consortium of the High School “Danilo Kiš” from Budva with partners Hotelska Grupa Montenegro Stars, Budva, Gospoština Lux, Budva, and Spencer & Hill Team, Bečići awarded a grant for 425,740 thousand euros. The ceremony was attended by Dr. Nina Drakić, President of the Chamber of Commerce of Montenegro, Robert Heinrich Weber, Ambassador of the Federal Republic of Germany in Montenegro, Marija Lalatović, Director of the Directorate for General Secondary Education, Vocational Education and Adult Education, Ministry of Education, Science, Culture and Sports, Željko Uljarević, Director of KfW German Development Bank, Office in Montenegro. The meeting was moderated by Balša Ćulafić, project coordinator for the RCF on behalf of the Chamber of Commerce Investment Forum and coordinator for cooperation with international organizations in the Chamber of Commerce. The President of the Chamber of Commerce, Dr. Nina Drakić, pointed out that this project of the Regional Fund for Challenges is important for Montenegro and neighboring countries because it offers the necessary new knowledge, new personnel energy, that is, qualified employees and executors for our economy to be competitive. – An economy that develops under the influence of new technologies and market demands also implies an educational system that is constantly improved and adapted to the needs of the times. Digitization, automation, artificial intelligence, and other consumer demands will continue to demand and impose new qualifications of professional knowledge and education – said Drakić. According to her, the received grants will improve the work of eight economic entities and two educational institutions from Montenegro, and it is encouraging that even smaller companies are interested in improving personnel capacities and cooperation with educational institutions. She invited companies and educational institutions to apply in the following calls and announced that they will begin activities to announce a new one at the end of the month. German Ambassador Robert Heinrich Weber congratulated the consortiums from Montenegro that received grants for projects from the Regional Fund for Challenges. According to him, the promotion of employment and nurturing of professional education is the main focus in the activities carried out by KFW in recent years, and a very important topic when talking about the cooperation between Montenegro and Germany. – We know that cooperation between vocational schools and the private sector is necessary and extremely important. This is a way to finance and connect regional training centers and the private sector to develop programs that match the needs of the economy. A well-trained workforce is a key to sustainable economic growth and long-term survival of the market – said Weber. He points out that Germany wants to support Montenegro on its European path, and that we should be proud that the implementation of this project will provide a strong contribution to the competitiveness of Montenegrin companies on the common market of the European Union. Marija Lalatović, Director of the Directorate for General Secondary Education, Vocational Education and Adult Education of the Ministry of Education, Science, Culture and Sports, said that only through the cooperation of partners from the world of education and work, the vocational education system can follow the needs of the economy and the individual to he managed as well as possible on the labor market. She said that the results of this project will contribute to the further development of professional education, the improvement of knowledge and skills in priority sectors, greater employment of young people, and the creation of new jobs, as well as greater participation in lifelong learning.
