Unveiling Partners and Regions - Bosnia and Herzegovina

Located in Southeastern Europe, Bosnia and Herzegovina is a country rich in history, cultural diversity, and natural beauty. It borders Croatia (EU) to the north and west, Serbia to the east, and Montenegro to the southeast.

The economy of Bosnia and Herzegovina combines traditional industries with new, growing sectors. The metal and wood industries remain key parts of the economy, producing furniture, steel, aluminum, and car parts, mostly for the EU market. Natural resources form the backbone of the energy sector, with a focus on hydroelectric power and coal. Agriculture is significant, as is forestry, which supports wood processing industry. Tourism is also on the rise, attracting an increasing number of visitors seeking to enjoy the country's natural beauty and rich history. Recently, the information and communication technology (ICT) sector has been rapidly developing, with a growing number of startups and companies involved in software development and IT services.

Industrial SMEs, which form the backbone of the economy, face challenges in the digital transformation process, primarily due to a lack of resources and access to cutting-edge technologies. While ICT solutions have been mostly implemented in production processes, other key sectors such as marketing, sales, human resources, and logistics are still underdeveloped and often lag in digitalization. This highlights the need for better organization and optimization of business processes to successfully integrate advanced digital solutions.

Another challenge in digitalization is the weaker integration between the ICT sector and manufacturing companies, due to the ICT sector's orientation towards foreign markets. This slows down the more efficient application of technology. There is a clear need to establish stronger cooperation between these sectors to make digital transformation more efficient and sustainable.

Universities in major cities (Banja Luka, Sarajevo, Mostar, etc.) contribute to the development of local talent, educating specialists in engineering and IT fields. Thanks to the support of international organizations and projects in BiH, several DIHs have been recently established aimed at supporting small and medium-sized enterprises in adopting digital technologies. Enterprise Development Agency Eda is one of the members of the IDEMO DIH consortium, which is focused on the metal processing, wood processing industry, and the ICT sector. Eda supports the digitalization of SMEs in Bosnia and Herzegovina through projects supported by several donors and international organizations.

Participation in the BEST DIH project is a strategic opportunity to accelerate digital transformation. Through this project, we aim to improve collaboration with European colleagues, share knowledge, resources, and opportunities to enhance the ecosystem, contribute to strengthening the regional innovation framework, enhance support for digitalization, and provide better services to small and medium-sized enterprises.