At Elson Solutions, we take pride in contributing to the innovation and competitiveness agenda in the Western Balkans. Our CEO, Olimpija Hristova Zaevska, PhD. has recently published the paper “Accelerated Western Balkan Innovative Growth with Industry 4.0 Ecosystems” with the Center for Advanced Studies South Eastern Europe (CAS SEE, University of Rijeka).
In this publication, she explores how Industry 4.0 ecosystems (I4ESes) – particularly European Digital Innovation Hubs (DIHs) – can serve as powerful drivers of growth, innovation, and sustainable competitiveness in the region, drawing comparisons with Croatia and Slovenia.
Key insights from the publication
Industry 4.0 technologies such as AI, IoT, robotics, and cybersecurity are transforming industries, but SMEs in the WB6 face significant barriers such as high costs, lack of access to innovation funding and limited technical & financial expertise.
Since 2020, WB6 have established Digital Innovation Hubs focused on digital transformation, fostering collaboration between firms, universities, and governments to drive efficiency and new-to-market innovations. The impact is yet to be seen.
Regions with denser DIH networks show higher innovation scores, yet limited funding (e.g., €0.5M per hub annually) and loose structures hinder radical breakthroughs and patenting, keeping the region as “Emerging innovators” (the bottom innovation category).
Technological diversity in hubs sparks idea cross-fertilization, but specialization is needed for deeper, patentable advancements.
To avoid falling further behind advanced economies, the Western Balkans must strengthen I4ESes through targeted design, stronger governance, optimized financing, and supportive policy frameworks.
Why this publication matters
The findings underscore that while the region is making important strides, Industry 4.0 adoption must accelerate to secure sustainable growth and competitiveness. As Olimpija Hristova Zaevska highlights, strengthening innovation ecosystems is not just an opportunity—it is an imperative for the Western Balkans.
Read the full publication here: Accelerated Western Balkan Innovative Growth with Industry 4.0 Ecosystems
