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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 Bosnia and Herzegovina see the Report and Factsheet.
Chapter 25 – Science and Research
Bosnia and Herzegovina has some level of preparation on science and research. No progress was made in this area during the reporting period. Research capacities remain very limited. The Commission’s recommendations from last year were not implemented and therefore remain valid. In the coming year, Bosnia and Herzegovina should in particular:
→ develop a new strategy and action plan for scientific development and develop and adopt a smart specialisation strategy;
→ improve participation in the Horizon Europe programme;
→ improve reporting on research and innovation statistics by reporting on at least 24 European Innovation Scoreboard indicators.
The EU provides significant support for research and innovation. All Member States can participate in the EU’s research and innovation programmes and benefit from them, especially where there is scientific excellence and a solid investment in research and innovation.
The legislative framework on research and innovation policy remains fragmented and needs to be improved. Bosnia and Herzegovina needs to develop and adopt a new strategy and action plan for scientific development, as well as a smart specialisation strategy. The estimated total allocations for research and innovation remain below 0.3% of GDP, which is far below the European Research Area objective. There is no countrywide policy on topics related to the European Research Area, as decisions are made by each university. Bosnia and Herzegovina is included in the European Innovation Scoreboard with performance at 33.1% of the EU average in 2024. The country’s performance is below the average of ‘emerging innovators’ (48%) and the performance gap with the EU is increasing. Further progress should be made to ensure reliable and comprehensive statistics on research and innovation, useful for instance for the European Innovation Scoreboard and the European Research Area. Regarding EU framework programmes, Bosnia and Herzegovina takes part in Horizon Europe as an associated country. It received EUR 1.7 million in 2024, compared to EUR 3.2 million in 2023.
Chapter 26 – Education and Culture
Bosnia and Herzegovina is at an early stage of preparation on education and culture. There was limited progress in this area during the reporting period. A draft qualifications framework was drawn up in December 2024. The Council of Ministers adopted in December 2024 an action plan for improving quality assurance in education. Bosnia and Herzegovina needs to ensure a fully functional system of accreditation and re-accreditation of higher education institutions and study programmes across the country. Bosnia and Herzegovina did not regularly participate in international assessment studies in the past five years.
The Commission’s recommendations from last year were partly implemented and therefore remain broadly valid. In the coming year, Bosnia and Herzegovina should in particular:
→ develop a national qualifications framework (NQF) referenced to the European qualifications framework;
→ implement the action plan to improve quality assurance with a view to joining the European Association for Quality Assurance (ENQA);
→ ensure continued participation in international assessment studies8, intensifying preparations to join the 2029 Programme for International Student Assessment (PISA) and implement findings to improve PISA results.
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.
On education and training, Bosnia and Herzegovina needs to move from a content-oriented towards a competency-based approach to education. Transformation and harmonisation of curricula is needed to ensure systemic regulation of learning and teaching process. Bosnia and Herzegovina did not take part in the 2024 TALIS assessment. It only partially join the 2023 ICILS and 2023 TIMSS assessments, as the Republika Srpska entity and the West Herzegovina Canton did not conduct them. The country dropped out of the 2021 PIRLS. After failing to participate in two PISA rounds (2022 and 2025), preparations to join the 2029 PISA need to intensify. No systemic measures have been taken to address the findings of the 2018 PISA and 2019 TIMSS.
In the absence of a countrywide approach, some cantons have started reforming their curriculum based on student learning outcomes to improve quality in line with recommendations. Bosnia and Herzegovina has enrolled to join TIMSS 2027. Although the legal framework is in place, there is still no mechanism to systematically measure or monitor the quality of education inputs, outputs or outcomes, and data does not feed into the policymaking process. Due to demographic changes, the number of students is in decline. Disputes over education continue, while systemic solutions are not in place to ensure inclusive and non-discriminatory education, eliminating the practice of ‘two schools under one roof’.
The common core curriculum remains incomplete and is not applied throughout the country, and the availability of teaching of the national group of subjects remains limited. Despite Constitutional Court decisions, the name of the Bosnian language is still not recognised in schools in the Republika Srpska entity, leading to recurrent friction. Biased narratives on wartime heroes and victims are present in all curricula, contributing to a politicised education. In January 2025, the Constitutional Court repealed as unconstitutional certain history lessons on the 1992-1995 war. Bosnia and Herzegovina is a member of the European Higher Education Area.
On higher education, according to the 2024 Bologna Process implementation report, the country still needs to ensure full implementation of the key commitments, especially with regards to national qualifications frameworks, automatic recognition and quality assurance.
Regarding inclusiveness, some positive steps were undertaken through the roadmap for improving inclusive education, notably with a decision of the Council of Ministers in September 2025 to intensify efforts to support quality education for all. All education authorities should step up work to implement the 2020 roadmap, meeting all recommendations and reporting on it. Infrastructure and fundings are needed for the education of children with special needs. There is no countrywide coordinated approach and only limited effort in supporting the digital transformation of education and training, including on digital skills, also ensuring that core teacher competencies are properly developed. The authorities need to strengthen their efforts, in line with the EU digital education action plan 2021-2027. The establishment of an advisory board for digital education represents a step forward but further efforts are needed.
A countrywide policy document on vocational education and training (VET) has been in place since 2021, based on the Riga conclusions. However, no noticeable progress followed. In a positive development, Bosnia and Herzegovina joined the European Alliance for Apprenticeships (EafA) in October 2024, showing its commitment to improving youth employment.Measures to promote life-long learning of adults (including women) also need to be stepped up. Bosnia and Herzegovina’s national qualifications framework (NQF) is not yet referenced to the European qualifications framework (EQF), nor is there a mechanism for the validation of prior learning. Cooperation continued between the two accreditation agencies, one at State level and one in the Republika Srpska entity. Bosnia and Herzegovina needs to further improve quality assurance in higher education and to intensify accreditation of study programmes with a view to joining the European Association for Quality Assurance (ENQA). Bosnia and Herzegovina benefits from the international dimension of the 2021-2027 Erasmus+ programme. The country is participating in all the working groups 2021-2025 of the European Education Area (Bologna process). Four universities from Bosnia and Herzegovina have been selected as partners in alliances funded by the European Universities Initiative.
Bosnia and Herzegovina continued to participate in the European week of sport.
In the area of culture, Bosnia and Herzegovina continues to implement measures under the UNESCO Convention on the protection and promotion of the diversity of cultural expression. The country still has to ensure a permanent solution to the legal status and financing for the seven ‘cultural institutions of national significance for Bosnia and Herzegovina’. Bosnia and Herzegovina continues to participate fully in the Creative Europe programme.
The budget allocation for culture at all levels of government would improve with longer-term, multiannual funding decisions to provide financial stability for cultural creation and operation. Bosnia and Herzegovina would benefit from establishing formal partnership structures enabling transparent and organised participation in cultural policymaking.
Chapter 20 – Enterprise and Industrial Policy
Bosnia and Herzegovina remains at an early stage of preparation in the area of enterprise and industrial policy. Limited progress was made in this area during the reporting period with the adoption and implementation of legislation on entrepreneurial infrastructure in the entities and in Brčko District. The investment environment remains unsatisfactory. The Commission’s recommendations from last year were not implemented and therefore remain valid. In the coming year, Bosnia and Herzegovina should in particular:
→ adopt regulation allowing for the mutual recognition of licences and certificates between the entities and ensure that e-registration of companies and business registries across the country are interconnected and fully operational, including e-signature/e-stamps;
→ take first steps towards aligning with the late payments directive;
→ accelerate improvements to the investment environment to attract sustainable investments that integrate with the domestic industrial base.
EU industrial policy strengthens competitiveness, facilitates structural change and encourages a business-friendly environment that stimulates small and medium-sized enterprises (SMEs).
During the reporting period, both entities increased and diversified incentives for SMEs, to raise competitiveness through technological modernisation and energy efficiency. In January 2025, the Federation entity adopted a Law on social enterprises to improve support for hard-to-employ groups, and in March 2025 it also adopted a strategy for the development of SMEs, valid until 2027. The Federation entity adopted bylaws for a more enabling environment for SMEs. In November 2024, the Republika Srpska entity adopted legislation on individual traders and on incentives, as well as the annual SMEs report. The Republika Srpska entity also amended its SME law to align with EU principles on business failure second chance. There are still no countrywide guidelines for harmonisation of SME support in line with the EU Small Business Act. The alignment of the legislation with the EU acquis remains to be assessed.
On enterprise and industrial policy principles, there is still no countrywide development strategy and no State-level body promoting policy consistency with industrial strategies.
In February 2025, the Republika Srpska entity adopted an action plan for its industrial development strategy. Limited steps were taken to improve the business environment and to attract investments. The Republika Srpska entity amended its law on foreign direct investments (FDI) and adopted the action plan for its FDI strategy 2025-2027 and decisions on the functioning of the foreign investors council and on granting free zone status to Gradiška. Work also started on a countrywide roadmap to improve competitiveness of free zones. High barriers to starting a business, rules on taxes and para-fiscal (non-tax) charges and regulatory differences across various levels of government remain to be addressed. Separate business registers make it harder for companies to operate throughout the country. As for investment environment, the resolution rate of commercial disputes remains low and arbitration weakly developed.
There is room to align alternative dispute resolution mechanisms with EU standards and best practices. Functional mechanisms and capacities for effective oversight and governance of publicly owned enterprises are still lacking. Notably, only the Republika Srpska entity has published an annual report on the performance of the 20 largest public companies, highlighting a significant gap in transparency and accountability at all government levels. The Republika Srpska entity has introduced legislative preconditions but still lacks a single register of publicly-owned enterprises, and the Federation entity has formally established oversight and management units but they are still not functional. Preparations for the green and digital transitions, resilience, and global competitiveness of industry are at a very early stage. Progress on energy diversification and a greater focus on green investments in manufacturing are needed. The financial support for introducing innovations in green and digital transformation needs to be improved, in particular for SMEs, including start-ups. There is no improvement of transparency and accountability in the use of public funds.
The capacity and funding to perform monitoring and evaluations of enterprise and industrial policy measures are still overly limited, and the statistical data remain insufficient. As for enterprise and industrial policy instruments, no progress was made in aligning with the EU acquis the legislation against late payments in commercial transactions. Bosnia and Herzegovina continues to participate in the EU Single Market programme through two entity-based consortia selected under the call for European Enterprise Network. As regards sectoral policies, some cantons are implementing dedicated programmes for the development of tourism. However, the level of harmonisation with the EU acquis and standards remains to be assessed for all adopted legislation in the sector. In January 2025, the Federation entity adopted its sectoral strategy for textiles and clothing for 2024–2033.
For more information on other chapters see the Report and Factsheet.