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In the autumn of each year, the European Commission adopts its “Enlargement package” – providing a detailed assessment of the state of play and the progress made by the enlargement countries on their respective paths towards the European Union, with a particular focus on implementing fundamental reforms, as well as clear guidance on the reform priorities ahead.
Separate chapters are developed for the knowledge economy, i.e. the areas that the Western Balkans Info Hub focuses: “Science and Research” (chapter 25) and “Education and Culture” (chapter 26 which includes also a focus on higher education) as well as the chapter “Enterprise and Industrial Policy” (chapter 20 which includes a focus on innovation in the business sector) are referenced below. Further chapters address topics including fundamentals such as the functioning of democratic institutions, rule of law, economic criteria, etc., intellectual property law, digital transformation, enterprise and industrial policy, green agenda and sustainable connectivity, agriculture, external relations and many more.
For the full report on Albania see the Report and Factsheet.
Chapter 25 – Science and Research
Albania is between having some and a moderate level of preparation in the area of science and research. Some progress was made with the approval of the Smart Specialisation Strategy and the adoption of the Law on science and scientific research, which is aligned with the relevant EU acquis, as well as the first successful call managed by the Albanian Start-Up Agency. Albania still needs to adopt the required implementing legislation to ensure effective implementation of the 2023-2030 National Strategy on Scientific Research, Technology and Innovation. The Commission’s recommendations from last year were partially implemented and remain mostly valid. In the coming year, Albania should in particular:
→ increase investment in research, in line with its own commitments and the new European Research Area priorities, with a view to reaching 1% of GDP by 2030;
→ implement the Smart Specialisation Strategy and Action Plan;
→ produce reliable statistics and data on innovation, science and technology with a view to improving Albania’s classification in the European innovation scoreboard
The EU provides significant support for research and innovation. All EU Member States can participate in the EU’s research and innovation programmes and benefit from them, especially where there is scientific excellence and solid investment in research and innovation.
On research and innovation policy, Albania still needs to adopt the required legislation to ensure effective implementation of the 2023-2030 National Strategy on Scientific Research, Technology and Innovation. In addition, Albania needs to adopt standards for research data management established by international organisations. Albania increased funding for R&D in 2024 to 0.19% of the GDP. This remains below the national target of 1% of GDP that the country intends to achieve by 2030. More actions are needed to increase public funding of research and development, incentives for businesses to increase their R&D expenditure, and to improve cooperation between the private sector and universities. The Institute of Statistics (INSTAT) needs to produce a complete data set on scientific research and innovation.
The Albanian Start-Up Agency launched its first call for innovative start-ups in December 2024, of a total value of EUR 3 million, with a priority given to female-led start-ups, as well as start-ups focusing on green transition and/or digitalisation. The Smart Specialisation Strategy was adopted in December 2024 and includes a costed action plan, which should be implemented. Albania was included for a third consecutive year in the European Innovation Scoreboard as an emerging innovator performing below the average of Emerging Innovators in the EU and neighbouring countries. Albania’s score slightly decreased from 41.7% of the EU average in 2024 to 37.9% in 2025. As regards the EU framework programmes, Albania is fully associated to Horizon Europe. Its participation in the programme reached a total of 46 signed contracts benefitting Albania, worth EUR 7.3 million.
The authorities need to further encourage participation of the private sector in Horizon Europe. National innovation efforts need to be aligned with the New European Innovation Agenda and the Competitiveness Compass. Albania opened five European Digital Innovation Hubs and the first European Institute of Innovation & Technology (EIT) community hub serving as a gateway between Albanian stakeholders and the EIT community programmes. The EIT has set up a Raw Materials Regional Innovation Centre in Albania.
Chapter 26 – Education and Culture
Albania is between a moderate and good level of preparation in the field of education and culture. Some progress was made with the implementation of the National Strategy for Education 2021-2026 and the adoption of legislative acts to reform higher education. Albania still needs to strengthen the quality and inclusiveness of education. The implementing legislation of the Law on cultural heritage and museums has yet to be finalised. The Commission’s recommendations from last year were partially implemented and remain mostly valid. In the coming year, Albania should in particular:
→ further optimise the VET system in line with labour market needs;
→ further improve the professional development and training of teachers and trainers, with a focus on (i) pedagogical skills to implement the competence-based inclusive approach and (ii) digitalisation from pre-primary to university levels, including VET education;
→ adopt the implementing legislation for the Law on cultural heritage and museums.
The EU supports cooperation in education and culture through funding programmes and the coordination of Member State policies through the ‘open method of coordination’. The EU and the Member States must also prevent discrimination and ensure quality education for children of migrant workers, including those from disadvantaged backgrounds.
The estimated public spending on education in 2024 represented 2.6% of GDP compared with 2.1% in 2023, remaining under the EU average of 4.6%. Following the approval of the updated Curriculum Framework and its action plan in December 2024, the process continued with an update of key competences, incorporating innovations for primary, lower secondary, and upper secondary education. An updated curricula on the promotion of cultural diversity and the inclusion of Roma and Egyptian history and culture has been adopted. In the pre-school education, 65 914 children were enrolled, 1.2% less compared with the previous school year (66 711).
In the basic education, 250 617 pupils were enrolled, (48% girls), 2.89% less than the previous year (258 072), of which 136 379 (54.42%) in primary education and 114 238 (45.58%) in lower secondary education. 89 190 pupils were enrolled in upper secondary education, showing a decrease of 2.80% (91 755). Overall, according to INSTAT data for the academic year 2024-2025, 528 602 pupils and students were enrolled in formal education, with a decrease of 1% compared with the previous year (533 711). In the same period, 405 989 pupils were enrolled in pre-university education, marking a decrease of 2.57% (416 717). Albania took part to the Teaching and Learning International Survey.
Albania participated in PISA 2025, and the Ministry of Education and Sports developed a roadmap to target low score students. In the reporting period, the vocational education and training (VET) system has undergone several improvements and was changed to a 3+1 programme. Albania has updated its legal framework to support a dual VET system allowing the involvement of private and public employers. As of September 2024, dual VET programs involving 203 twelfth-grade students (35 girls/168 boys) piloted in ten VET schools. In the academic year 2024-2025, the share of students enrolled in VET public schools represented 19% (16 976) of the general number of students enrolled in upper secondary education, up from 17.90% in the previous school year (2023-2024).
The increase aligns with the National Employment and Skills Strategy target of having one-third of pupils in VET. Albania still needs to establish a legal basis for recognizing prior non-formal and informal learning and fully staff the National Agency for VET and Qualifications. These measures allow to develop a quality assurance framework in vocational education and training, aligning the curricula with the European Qualifications Framework (EQF). On higher education, Albania is a member of the European Higher Education Area (Bologna process).
As set out in the 2024 Bologna Process Implementation Report, Albania still needs to work on the full implementation of the key commitments, especially with regards to automatic recognition and quality assurance. On inclusive education, progress is being noted on the improvement of inclusive and child centred practices in preschool as well as the approximation with the EU “Early Childhood Education and Care Quality” framework. 5 233 students with special needs were attending inclusive classes, 16% more than in 2023 (4 507). Only 453 students with special needs attended special schools in 2024-2025 (518 in 2023). The percentage of students with disabilities attending inclusive education represented 92% of students with special needs compared to 8% of those attending special education. In the reporting period, 2 266 assistant teachers (which is 14% more compared with 2023) were employed in the public pre-university education system.
In the reporting period, 13 130 Roma and Egyptian children were registered in pre-university education compared to 12 508 in 2023. To facilitate communication and cooperation between vulnerable groups and schools, 13 mediators and 100 qualified teachers of Roma and Egyptian background are employed. On digital and green skills, the ICT curriculum was developed in line with the digital transformation plan. This project includes installation of smart labs over 600 public primary and upper secondary schools. The country benefits from the international dimension of the 2021-2027 Erasmus+ programme. There were 15 higher education capacity-building projects selected for funding, from which 9 are coordinated by the Albanian Higher Education Institutions. Selected mobility projects will fund over 3 700 students and staff exchanges from and to Albania.
Albania is participating in all the European Education Area working groups 2021-2025. In 2025, Albania is not taking part in the European Week of Sport. The amendment of the Law on Youth was adopted in April 2025, while the implementation of the 2022-2029 National Youth Strategy continued. On culture, the implementation of the 2019-2025 national strategy continued. Authorities have adopted two sub-legal acts for the Law on Cultural Heritage and Museums, but additional implementing legislation is still needed for full operation. Albania continued to participate in the EU 2021-2027 Creative Europe programme and has acceded to the 2005 UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions.
Chapter 20 – Enterprise and Industrial Policy
Albania is between a moderate and a good level of preparation in the area of enterprise and industrial policy and made some progress, in particular through revising the Business and Investment Development Strategy (BIDS). The Commission’s recommendations from last year were partially implemented and remain mostly valid. In the coming year, Albania should, in particular:
→ accelerate addressing the main challenges to the business environment while improving the predictability of regulatory measures and improve the implementation of the BIDS, notably by ascertaining the needed funding of foreseen actions;
→ speed up the full alignment with the EU acquis on late payments Directive;
→ draft and adopt a unified investment law that would address current challenges faced by investors, and secure legally sound property titles.
EU industrial policy strengthens competitiveness, facilitates structural change and encourages a business-friendly environment that stimulates small and medium-sized enterprises (SMEs).
On enterprise and industrial policy principles, Albania adopted the Smart Specialisation Strategy in December 2024 (see Chapter 25 – Science and research) and in April a mid-term monitoring report on the implementation of the Business Investment and Development Strategy (BIDS). A decision on amending the BIDS has been approved in 2025, that focuses on SME internationalisation and skills, but hardly remedies reported weak implementation progress. In February 2025 Parliament adopted some amendments to the Law on strategic investment, which among others extended its effects until end 2026. The Albanian Investment Development Agency has completed and put online the Export platform, aiming to support the internationalization of micro, small and medium-sized enterprises. Despite further improvements, concerns remain among business representatives on the level of public consultation by the government and Parliament, especially regarding EU integration.
Businesses complain of undue bureaucratic burdens and call for clearer procedures and 76 deadlines. Clarity on implementation of legal acts would eliminate the ‘grey zone’ which might serve as an area on which specific businesses might take advantage in exchange of favours/corruptive actions. Progress on justice reform and anti-corruption are welcomed by business. On enterprise and industrial policy instruments, further coordination between state institutions which provide financial incentives to businesses remains needed, to ensure better access to information for the beneficiaries and to focus efforts of the BIDS which are related such as AIDA investment promotion, TEDA specialisation and SME supplier support. Further alignment with the EU’s late payment Directive needs be ensured. Albania’s definition of SMEs is partly aligned with the EU Recommendation, on the number of employees, but the national capacity to support SMEs remains limited. Albania was positively assessed in the 2024 OECD competitiveness outlook, marking progress in 14 out of 15 dimensions, stagnating in one, state-owned enterprises.
On sectoral policies, Albania extended to 2026 the period of application for tax incentives to investors involved in the construction/development of 5-star hotels. It introduced also a ‘mountain package’ to enhance investment in the mountain areas which include tax free incentives, that would require high attention on preserving Albania’s ecological and biodiversity values. In March 2025 Albania was the official Host Country of Internationale Tourismus-Börse (ITB) Berlin, the world’s leading travel trade show, marking its rapid emergence as one of the fastest-growing travel destinations in Europe. The government adopted regulations that would facilitate the development of the defence industry. The government adopted regulations that would facilitate the transfer of assets to Albanian Investment Corporation for further development and re-vitalisation programmes, as well as regulations on enhancing privatisation of state-owned assets, including land.
For more information on other chapters see the Report and Factsheet.