Analysis of value chains in the Western Balkan economies – Enriching the potential for regional cooperation in priority areas

Project duration: December 2020 – June 2021

Call/Program/Scheme: /

Client / Financier: Joint Research Center (JRC), European Commission

Participating institutions:

The Vienna Institute for International Economic Studies – Wiiw
Institute of Economic Sciences

Principal investigator (PI): Robert Stehrer, Wiiw

The role of IEN in the project: IEN manages the work task

IEN project team (manager/coordinator, team members):

dr Isidora Ljumović (coordinator)
dr Sonja Đuričin
dr Isidora Beraha
dr Elena Jovičić
dr Darko Marjanović

Description:

Western Balkan (WB) economies are applying smart specialization to identify promising economic domains, yet studies reveal significant similarities in key sectors across the region, requiring systematic analysis to determine where collaboration could strengthen value chains and competitive positioning.

The project analyzes competitive value chains in six strategic sectors (textile, automotive, agrifood, energy, tourism, and ICT) across the WB, serving policymakers and stakeholders by identifying cross-border collaboration opportunities and sectoral competitive advantages.

The methodology employs multi-dimensional analysis, examining factors determining WB economies' potential and systematically assessing sector-specific strengths, challenges, and interdependencies through quantitative competitiveness indicators and qualitative evaluation of value chain structures, innovation capacity, and market positioning.

The project delivers a comprehensive analytical report providing actionable insights on regional collaboration possibilities for value chain improvement and market performance, with evidence-based recommendations for aligning national Smart Specialisation strategies.

The findings establish a foundation for coordinated regional economic development, enabling WB economies to leverage complementary strengths, avoid duplication, and create synergies enhancing collective competitiveness.

Keywords: smart specialisation, value chain analysis, regional competitiveness, economic policy development, cross-border collaboration