EGG2 strengthens the foundations of a knowledge-based economy in Bosnia and Herzegovina

February 23, 2026

The final conference of the Economic Governance for Growth (EGG2) project marked the conclusion of four years of systemic reforms aimed at strengthening digital education, entrepreneurship and innovation in Bosnia and Herzegovina, while opening a dialogue on the next phase of ecosystem development.

The USD 6.3 million project was financed by the Government of Norway and implemented by UNDP in Bosnia and Herzegovina in partnership with domestic institutions. Its focus was clear, to connect education, the labour market and research into a single system that provides young people with concrete opportunities and institutions with tools for long-term planning.

In schools across the country, STEM and digital skills are becoming part of regular teaching. The first bachelor’s degree programme in Data Science and Artificial Intelligence was established at the University of Sarajevo, and through classroom modernisation, teacher capacity-building and school equipment upgrades, thousands of students have gained access to modern learning methods.

At the same time, entrepreneurship has been integrated into the education system through updated curricula, entrepreneurship clubs and programmes that enable young people to turn ideas into sustainable business models.

Applied research was brought closer to the private sector through grant schemes and investments in research infrastructure, strengthening cooperation between academia, industry and public institutions. During its implementation, the project catalysed more than USD 4 million in domestic public investment in digital education, entrepreneurship and research and development, enabling reform models to transition from pilot initiatives to institutional practice.

The conference brought together representatives of ministries, educational authorities, universities, business associations and development partners to reflect on lessons learned and identify concrete recommendations for further strengthening Bosnia and Herzegovina’s innovation ecosystem. Discussions emphasized the importance of cross-sectoral coordination, sustained public financing and demand-driven skills development as prerequisites for long-term competitiveness and alignment with European economic standards.

Katarina Sara Vučetić, Economic Officer at the Royal Norwegian Embassy in Sarajevo, emphasized that investing in knowledge and innovation represents the most stable foundation for economic development.

“Through EGG2, we supported changes that enable young people to develop the competencies required by the modern economy. It is particularly important to us that reform models have become part of institutional frameworks and that domestic institutions are taking a leading role in their further development,” Vučetić stated.

Renaud Meyer, Resident Representative of UNDP in Bosnia and Herzegovina, underlined that the key value of the project lies in connecting its three pillars, education, entrepreneurship and innovation, into a unified development framework.

“When digital skills, entrepreneurial thinking and research develop in parallel, we are talking about real transformation. EGG2 has shown that Bosnia and Herzegovina has the capacity to build a competitive, knowledge-based economy through clear policies, domestic financing and partnership between the public and private sectors,” Meyer said.

It was concluded that the experience and models developed through EGG2 provide the foundation for the next reform steps, aimed at further strengthening the innovation ecosystem and creating quality opportunities for young people in Bosnia and Herzegovina.