Accelerated Western Balkan Innovative Growth with Industry 4.0 Ecosystems

This essay explores the transformative potential of Industry 4.0 Ecosystems (I4ESes) in fostering innovation and competitiveness in the Western Balkan Six (WB6) countries—Albania, Bosnia and Herzegovina, Montenegro, North Macedonia, Kosovo, and Serbia—alongside Croatia and Slovenia. Leveraging Zaevska’s I4ES framework (2024), the study maps European Digital Innovation Hubs (EDIHs) as proxies for I4ESes across these countries, analyzing their structure, sectoral focus, and impact on regional innovation. Findings reveal that I4ESes, particularly in strong innovator regions, enhance new-to-market product sales but show limited impact on patenting. The essay highlights challenges such as limited funding, loose management, and broad technological focus, proposing targeted policy recommendations. These include specialized I4 technology focus, improved orchestration-management, and optimized financing to bridge the innovation gap, positioning I4ESes as drivers for transformative growth in the WB6.