Business clusters for sustainable economic growth


 Business Clusers
Photo: UNDP in Montenegro

Pursuant to the development of the Strategy for Sustainable Economic Growth in Montenegro trough Introduction of Clusters by the end of 2016, the purpose of the project is to strengthen the competitiveness and market access of selected clusters and networks in Montenegro, with a special emphasis on the more impoverished Northern region. In this context it will foster a more equitable integration of small and medium scale businesses in that region into domestic and international value/supply chains through enhanced dynamism, collective efficiency, productivity and viable business partnerships with private sector investors. A cluster approach will help local firms move beyond their individual capacities, organize themselves in dynamic production networks, develop strategic relationships with other firms and institutions to improve their competitive advantages based on economies of scale, innovation and learning.

What is the project about?

The project’s objective is to enhance the competitiveness of priority businesses within the identified clusters, with specific focus on the small and medium size enterprises in the Northern Region of Montenegro. This will be achieved through joint action and collective efficiency that will enable clusters to provide products and services that are needed in the local, regional and international market. The activities will also aim to strengthen the relevant business support institutions and government bodies to provide required services and assistance schemes to these clusters, thus building local and national capabilities by training and coaching. To this end, the project will also upgrade the offer of service providers by enhancing their institutional capacities and enabling them to assess and address gaps of assistance in an effective and sustainable manner.

What have we accomplished so far?

  • Conducted an inventory of business clusters;
  • Reached consensus on the ranking criteria, based on which the top priority clusters in the country were identified;
  • Carried out an in-depth analysis of the 15 priority clusters;
  • Completed a demand assessment – based on which the potential for import substitution is identified;
  • Selected seven pilot clusters from six sectors and started working with them;
  • Designed an Action Plan for the Clusters Strategy, in consultation and cooperation with the key partners; and
  • Helped develop a Strategy for Sustainable Economic Growth in Montenegro trough Introduction of Clusters by the end of 2016, which was adopted by the Ministry of Economy.

Who finances it?

Donor Name

Amount contributed

Government of Montenegro, Ministry of Finance

USD 544,440

One UN Fund

USD 110,250


USD 654,690

Delivery in previous fiscal years

December 2012

USD 208,000

December 2011

USD 344,124

Project Overview
Project Start Date:
September 2011
Estimated End Date:
May 2013
Geographic Coverage:
Focus Area:
Economy & Environment
Project Officer:
Ms. Sanja Međedović
Tel. +382 20 22 55 33;
Fax +382 20 22 55 51