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The National Startup and Innovation Program operates through multiple coordinated mechanisms combining policy development with direct support services:
What are the main aims and objectives?

The primary objectives of the National Startup and Innovation Program are to create a favorable environment to promote the formation and growth of startups; to establish and perfect a legal framework supporting innovative startups; to develop institutional structures and support centers; and to build comprehensive startup ecosystem infrastructure across the country.

The program aims to respond to the country's needs for economic growth and sustainable socio-economic development through innovation; to increase investment in human capital and create employment opportunities; to increase the number of self-employed and entrepreneurs; to empower youth and promote innovations in technology, science, and business; to strengthen the competitive potential of Albanian startups; to facilitate connection between startups and regional and global markets; to provide training and capacity building for ecosystem stakeholders; to establish networks connecting angels, investors, incubators, accelerators, entrepreneurs, and researchers; to provide direct funding and support for startup projects and enterprises; to promote entrepreneurship culture and mindset change; and to ensure Albania's economic competitiveness through innovation-driven growth.

How does the program work?

The National Startup and Innovation Program operates through multiple coordinated mechanisms combining policy development with direct support services:

Legal and Policy Framework:

The program is anchored in the Law on Support and Development of Start-ups (2022), which defines startups as registered companies with innovative business models, operating for less than five years, and generating revenue (or having products) from intellectual property, technology, or innovative business models. The law established legal recognition for startups as distinct entities from SMEs and created policy mechanisms supporting their development.

Startup Albania Agency:

The Startup Albania Agency, established in 2023, serves as the central institutional structure coordinating the program and serving as strategic partner to the innovation community, helping Albanian startups succeed nationally and internationally. The Agency coordinates ecosystem development, administers funding programs, and promotes Albania as an attractive destination for digital nomads and startup development.

Support Infrastructure:

The program supports development of multiple types of support organizations including:

  • Incubators: Providing foundational support to early-stage startups
  • Accelerators: Supporting growth-stage companies (e.g., Uplift Accelerator, EU4Innovation partnerships)
  • Co-working Spaces: Providing physical infrastructure (e.g., Coolab, DESTIL Creative Hub)
  • Support Centers: Seven municipalities received funding for local startup development centers
  • University-based Programs: Tirana Inc., launched 2023, provides university-based startup support

Funding and Grant Programs:

The program provides multiple funding mechanisms:

  • Startup Albania Grant Scheme: Direct grants to startups and ecosystem support organizations
  • Challenge Fund (EU4Innovation): Competitive grants supporting innovative MSMEs and startups with tech focus (managed with Sida)
  • Minister's Grant Scheme: Supporting local entrepreneurship and innovation across municipalities
  • Strategic Investments: Government co-financing of high-potential startups (e.g., Machine Thinking Lab €8.8 million in 2025)

Capacity Building and Training:

The program provides entrepreneurship education and training through:

  • University Curricula: Entrepreneurship courses integrated into higher education
  • Junior Achievement Programs: Pre-university entrepreneurship education
  • Professional Training: Programs like UPSHIFT building entrepreneurial and soft skills for youth
  • Mentorship: Connecting entrepreneurs with experienced advisors and mentors

National Startup Portal (Startup Albania Platform):

Launched in 2025, the portal provides centralized digital access to:

  • Information about startup ecosystem, services, and events
  • Online courses and educational resources for building entrepreneurial skills
  • Program information and application processes
  • Networking and community features
What is the overall cost?

No information on overall budget however, specific program funding components include

  • Challenge Fund (EU4Innovation): Up to EUR 10,000,000 (managed by Sida/GIZ/KfW)
  • GIZ Support (ProSEED 2.0 and EU4Innovation): Up to EUR 10,000,000 commitment
  • KfW Funding: Up to EUR 1,200,000
  • Sida Funding: Up to EUR 550,000
  • Machine Thinking Lab Investment (2025): EUR 8.8 million (approximately 1 billion LEK) government co-investment
How was it implemented?

The National Startup and Innovation Program emerged from recognition that Albania's entrepreneurship ecosystem required systematic government coordination and support to compete regionally and globally. Prior to formal program launch, Albania's startup ecosystem was characterized by fragmentation, inconsistent support, and donor-dependent initiatives lasting less than one year, creating confusion for entrepreneurs seeking support.

The Startup and Innovation Program was established by Albania's government (originally coordinated by the Prime Minister's Office, Development Programs and Cooperation Unit) to systematically address entrepreneurship barriers and build the ecosystem. The SIP adopted cross-cutting approach involving multiple government agencies, ecosystem actors, and development partners, identifying need for policy development (enablement policies), education and promotion, and empowerment (funding) mechanisms.

The program developed comprehensive legal framework including multiple decrees and laws addressing startup support, research commercialization, small business development, and investment incentives. In 2022, the Law on Support and Development of Start-ups was formally enacted, establishing legal recognition for startups as distinct entities from SMEs and creating policy mechanisms supporting their development including grant schemes for startups and support organizations.

In 2023, the Startup Albania Agency was officially launched, providing dedicated institutional structure for startup ecosystem coordination and marking formal government commitment to startup development as strategic priority. The Agency became central coordinating body administering Startup Albania Grant Scheme and coordinating ecosystem partnerships.

In 2025, the Startup Albania digital platform was launched, providing centralized portal for information access, training resources, and community engagement, representing significant infrastructure advancement in ecosystem accessibility.

What impact has been measured?

No information available. 

What lessons can be learned?
  • Fragmentation requires coordinated government-led consolidation: Albania's experience with earlier fragmented, donor-dependent initiatives lasting less than one year demonstrates that ecosystem fragmentation and inconsistent support undermine entrepreneurship development, suggesting need for deliberate government coordination and institutional commitment.
  • Legal framework formalization enables ecosystem maturation: The establishment of formal Startup Law (2022) recognizing startups as distinct entities represents inflection point toward greater government support and ecosystem legitimacy, demonstrating that legal framework development is prerequisite for sustained ecosystem growth.
  • Dedicated institutional structure drives sustainability: The Startup Albania Agency's 2023 creation as dedicated institutional structure (rather than fragmented ministry responsibility) demonstrates importance of formal institutional commitment to ecosystem development.
  • Government co-investment attracts ecosystem attention: The €8.8 million Machine Thinking Lab co-investment (2025) signals government willingness to invest in high-potential startups for economic benefit, suggesting that government role extends beyond policy and funding access to strategic investment.
  • Digital platform centralization reduces information barriers: The launch of Startup Albania digital platform (2025) providing centralized access to information, training, and community demonstrates that information consolidation reduces entrepreneur search costs and improves resource utilization.
  • International partnership extends resources and expertise: The integration of EU4Innovation multi-donor action, GIZ, KfW, and Sida partnerships extended resources far beyond government budget constraints, suggesting that international partnerships are critical for resource-constrained countries developing startup ecosystems.
  • Regional brain drain and small market remain constraints: Despite progress, academic research identifies that Albanian startups face "low local market size mixed with brain drain" leading to slow growth, suggesting that educational investment and market access remain ongoing challenges.
  • Critical mass challenges persist despite growth: Even with ecosystem growth, support organizations note insufficient "critical mass of serious, highly qualified startups" for financial self-sufficiency, suggesting that ecosystem development remains uneven.
  • Funding accessibility remains primary constraint: Research explicitly identifies that "funding accessibility remains a significant challenge for entrepreneurs in Albania, with predominant reliance on informal sources such as personal savings and family support," indicating that despite programmatic improvements, capital access gap persists.
  • Mentorship quality variable and specialized expertise lacking: Evaluation findings note that "mentorship available is often of average quality, indicating a need for more specialized and industry-specific guidance," suggesting need for mentorship capacity building alongside funding and infrastructure.
  • University-startup integration remains work-in-progress: While approximately 170 universities engaged in entrepreneurship activities, research highlights that "universities emphasize difficulty getting students to continue working on start-ups due to high demand from private sector for qualified graduates," indicating tension between startup pipeline development and graduate employment market.
  • Regional disparities persist despite decentralization efforts: Although 20+ innovation centers established across provinces and seven municipalities funded, data suggests that ecosystem development remains concentrated in Tirana with slower development in regions, indicating need for sustained regional support.
  • Limited published comprehensive impact evaluation constrains optimization: The absence of published independent evaluation documenting aggregate employment outcomes, business survival rates, or comparative effectiveness across support mechanisms limits evidence-based program optimization.
  • Lesson on ecosystem patience and persistence: The observation that progress was "gradual and uneven, marked more by persistence than by breakthrough moments" over multi-year period suggests that startup ecosystem development requires sustained commitment beyond short-term cycles, and that incremental progress can eventually reach inflection points of maturation.

CURATED BY

Florensa Haxhi

Director General of Development Programs & Cooperation
Prime Minister's Office, Albania
Albania