Kosovo: The (New) Silicon Valley of Europe?

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There is a very big chance you haven’t heard about this country before, but it is possible you may have heard about its popstars such as Dua Lipa or Rita Ora. Kosovo is a small country in the western Balkans with a population of only 1.8 million people. It is one of the youngest countries in the world, as it only has been an independent country since it gained its independence in 2008.

Except for its artists and athletes, Kosovo is also becoming known for its information industry. Successful start-ups such as Gjirafa.com, are proving the drive and motivation of people in this country. The information industry in Kosovo is becoming more relevant every day. What is it about this small country that makes it so special for the information and tech industry?

The first clue lies in its young population. The median age in Kosovo is 29.06 years [1]. This is a very young population compared to the EU, which has a median age of 42.1 years [2]. Young people are the key ingredient for a start-up. It is the young people who come with exciting innovations to current problems. They question the conventional methods and always look for new creative ideas which can make a contribution to solve problems.

Another advantage is the access to and the availability of internet. Kosovo has one of the highest internet penetration of Europe, with 89 percent of the people having access to internet [3]. This is higher than other countries in eastern Europe [3]. Furthermore, the internet is used by an overwhelming majority of 96 percent, while only 3 percent of the population state that they never use the internet [4]. This, and the connection of the population to the Kosovo diaspora living in the west, makes sure that the people are up-to-date with the newest information and trends.

There is a major interest in tech and information from the people in Kosovo. This was not always the case, but since the last five years, there has been a rise in interest for information technology [5]. This is visible in the new schools that have opened specifically for learning IT skills. One of the examples is the “Shkolla Digjitale” (Digital School), which now has 1500 students aged from 7 to 18 [5]. Here, they learn programming, but also soft skills needed to work in the tech industry [5]. By learning programming at an early stage, it helps them develop to think critically and logically [5].

There is an upcoming start up culture in Kosovo. Only in 2018, there were 347 computer programming businesses founded in Kosovo [5]. There are multiple incubators that operate in Kosovo, such as Innovation Center Kosovo [6], and the organization Open Data Kosovo [7]. Most of these businesses are outsourcing companies, where they develop apps for third parties in the west for a lower price, which is the main use of the tech industry in Kosovo at the moment. An example is ZAG apps, which even developed apps for Springs and a Dutch healthcare organization [8].

The most successful example of a start-up is Gjirafa.com, an ecosystem application comparable with Google or Amazon. Gjirafa.com started as an Albanian focused search engine. The reason for the foundation was very simple: the Google search engine was not very usable for Albanian users because of the language barrier and its limited Albanian content. So, the founders started their own fully Albanian based search engine called Gjirafa.com. This search engine has grown so much over the years, and now also offers: an online marketplace, a video sharing platform and streaming service, a news site, public transport platform, e-commerce site and business platform [9]. Gjirafa.com is limited to its Albanian users, but widespread diaspora, it has a large and varied userbase across the whole world.

As described, Kosovo can offer a vibrant and interesting environment as a new tech/information industry. However, to unlock its full potential, Kosovo has to undergo some changes in its business infrastructure and its political situation. The drive and motivation is there, but starting a business is still difficult due to bureaucracy and lack of governmental support. More awareness about the tech potential and the tech industry itself is needed. Luckily, this is starting to change. New governmental regulations are aimed at making Kosovo more open to foreign investors by e.g. reducing the amount of paperwork and providing tax benefits to investors.

Look out for this little country, we can expect a lot more interesting ideas and initiatives in the coming years.

 

References

[1] http://www.erstestiftung.org/en/kosovos-demographic-destiny/

[2]https://ec.europa.eu/eurostat/web/products-eurostat-news/-/DDN-20191105-1#:~:text=Your%20key%20to%20European%20statistics&text=In%202018%2C%20the%20median%20age,was%20recorded%20(37.3%20years)

[3] https://www.internetworldstats.com/stats4.htm

[4]https://medium.com/@opendatakosovo/mankinds-life-before-and-after-the-technology-revolution-ab64cfd2c1a7

[5] https://kosovotwopointzero.com/en/kosovos-tech-revolution-potential/

[6] https://ickosovo.com

[7] https://opendatakosovo.org

[8] https://kosovoblogs.nl/zag-apps-uit-kosovo-maakt-nederlandse-apps/

[9]https://medium.com/@cytlaw/large-enough-for-a-unicorn-to-be-born-interview-with-mergim-cahani-founder-of-gjirafa-6db952180fdf