Programme for Financing Innovative Solutions in the Public Sector – Phase I

The aim of the Programme is to improve public services through the implementation of modern technological solutions by fostering partnerships between the public and private sectors. The Programme enables knowledge exchange and the development of innovative solutions that address specific public sector challenges. The Programme aims to support the application of new technologies in key public sectors, such as healthcare, education, transport and mobility, smart cities, energy, agriculture, environmental protection, finance, social protection, justice and security, tourism, culture, the improvement of business processes in public administration, and other related areas. The Programme is designed to enhance public service delivery by increasing efficiency and reducing costs through solutions offered by start-ups and other innovative entities, as well as scientific research organisations.

The Programme is implemented in two phases: Phase 1: Identification of Challenges – public institutions submit challenges. Under the First Phase of the Programme, the Fund invites all public sector entities to submit applications identifying problems or challenges they face for which no adequate solution is currently available on the market. Based on clearly defined criteria, a Fund committee will select from the submitted applications those challenges for which innovative solutions will be sought in the next phase. Phase 2: Proposal of Solutions – innovative entities develop solutions to the selected challenges. Under the Second Phase of the Programme, innovative entities and scientific research organisations will be invited to submit applications proposing clearly defined innovative solutions to the selected public sector challenges. Ideally, entities awarded funding through this Programme are expected to develop a prototype, conduct a pilot, or deliver a final product or service to be implemented by the selected public sector entity.

Eligible challenges are those that: - do not have an adequate market solution; - require the application of new technologies; - have a clear impact on citizens or the efficiency of the public sector entity.

Any public sector entity, i.e. a public institution belonging to one of the following categories, may submit a challenge: - Direct and indirect budget users in Montenegro (ministries, public institutions such as schools, hospitals and cultural institutions, independent regulatory bodies and other regulatory entities), state administration bodies, public agencies and funds whose majority founder is the Government of Montenegro; - Local self-government units; - The Central Bank of Montenegro; - Public enterprises majority-owned by the state, as well as entities established by public enterprises, and all legal entities in which the state exercises control over more than 50% of the capital or holds more than 50% of the voting rights in governing bodies.

There is no limit – an entity may submit one or more challenges.

No. The Fund finances the development of solutions by awarding grants to innovative entities under Phase II of the Programme.

The public sector entity must commit to allocating funds in its budget for the maintenance of the solution over the specified period. Maintenance costs are not eligible for funding from the Fund. If the integration of an innovative solution requires additional modifications to existing third-party systems with which the public institution already has a contract, the public sector entity is required to cover these additional costs, unless the modifications form an integral part of the innovative solution proposed by the company. Only in that case may the costs of such modifications be included in the project budget for the proposed solution to the challenge. Example: Elektroprivreda (the national electricity utility) seeks smart electricity meters for its consumption points. Company A submits a proposed solution to the challenge and is approved by the expert committee. Elektroprivreda already works with Company B, which supplies its electronic electricity consumption measurement system and generates bills for consumers. To integrate Company A’s product into Elektroprivreda’s system, Company B must either modify the existing system at a cost of X, or further develop the existing system at a cost of Y, install it at a cost of X, and increase the annual maintenance fee by Z. These integration costs are borne by the public sector entity.

Yes. When submitting an application to address a challenge under Phase II of the Programme, the innovative entity is required to provide a maintenance offer for the proposed solution covering a period of at least two years following the completion of the project. The offer should include a maintenance plan for the solution and an overview of all anticipated maintenance costs for the specified period. It must clearly outline the scope of planned activities, the maintenance schedule and the total costs for the two-year period. The maintenance offer is submitted for informational purposes, allowing the Expert Committee and the public sector entity to gain insight into the estimated maintenance costs of the proposed solution after the project has been completed. Submitting the offer does not automatically oblige the innovative entity to provide maintenance services after the project ends. Such an obligation applies only if it is specifically stipulated in a contract between the public sector entity and the innovative entity.

Public sector entities can submit their challenges by completing the predefined Challenge Application Form (available on the Fund’s Portal) during the period in which the public call is open. The application must be accompanied by the CVs of the public sector entity’s team members who will collaborate with the innovative entity throughout the development and implementation of the future solution.

Yes. If multiple public sector entities face the same challenge, they may submit a joint application.

Submitted Challenge Applications are assessed based on the following criteria: - Description of the problem, demonstrating how it can be addressed through new technologies to significantly improve efficiency or reduce costs for the public sector entity. - Clarity of the public sector challenge and precise definition of the target group. - Capacity and commitment of the public sector entity’s team. - Alignment with national strategies and priorities, and the technical feasibility of the proposed challenge. The Committee evaluates the individual aspects comprising each assessment criterion, with each aspect rated on a five-point scale, from 1 to 5. Challenge proposals that achieve a minimum score of 3.5 out of 5 will be approved to proceed to Phase II.

The commitment of the team means that the public sector entity must establish a team during Phase I, at the time of submitting the challenge. This team will be actively involved in the solution development process alongside the selected innovative entity during Phase II. Therefore, the public sector entity submitting the challenge should ensure that its team has the necessary expertise and is committed to the process.

The assessment and selection of Challenge Applications for participation in Phase I of the Programme is carried out by a Committee established by the Fund (hereinafter referred to as the “Committee”). The Committee consists of three members: - One representative of the Government (Ministry of Public Administration), to ensure that innovations align with the country’s strategic objectives; - One expert from the IT sector (technology companies or the start-up community), to provide an in-depth understanding of the latest technologies and practical solutions currently available on the market; - One representative of the Fund, who contributes to the quality of decision-making, ensures alignment with strategic objectives, supports better financial oversight, and provides an important link between the administrative and operational aspects of the Programme.

During the solution development process, the public sector entity is required to establish a team that will work closely with the innovative entity or scientific research organisation developing the solution. It must provide an appropriate environment and the necessary conditions for the uninterrupted development of the solution, and ensure availability and efficiency in providing information and other relevant support. The public sector entity may be asked to provide a written opinion or additional clarifications, exclusively at the request of the Expert Committee.

The public sector entity will have the opportunity to use the developed solution in its operations. It must commit to allocating funds in its budget for the maintenance of the developed solution for the specified period following the implementation of the project.

Any new intellectual property and know-how created during the development of the solution must belong to the innovative entity or research organisation that developed it, while the terms governing the use of the solution will be defined in a contract.