Overview of Business Models and Sustainability of Digital Innovation Hubs in Western Balkan Region

The Digital Innovation Hubs (DIHs) in Europe are created to support the digital transformation of small and medium enterprises (SMEs). The network of DIHs is in the process of establishing throughout Europe. However, the work of DIHs is not sufficiently investigated neither in developed nor in developing economies. In the Western Balkan region (the WB-6), there are 25 registered DIHs, but only six of them are fully operational. Throughout the survey, the authors investigated the work of the WB-6 DIHs and compared their performance with their EU-28 counterparts. The results of the survey and interviews with the WB-6 DIHs indicate their main challenge of providing financial sustainability in their work. This issue is related to the quality of the services provided to clients. Nevertheless, DIHs possess a substantial capacity to enhance collaboration among industries, academic institutions, and governments.