The Gozo Regional Development Authority has published a new Policy Note entitled “A Framework for a Startup Ecosystem in Gozo”, developed by the Gozo Economic Transformation Taskforce.

The Policy Note presents a strategic vision and a series of practical recommendations aimed at fostering innovation, entrepreneurship and investment, while supporting the long-term diversification, competitiveness and resilience of Gozo’s economy.

The Gozo Business Chamber contributed directly to the development of the framework through its Chief Executive Officer, Daniel Borg, who chairs the Gozo Economic Transformation Taskforce, and Chamber member Ricky Bugeja, who also serves as a member of the Taskforce.

Addressing Gozo’s Economic and Talent Challenges

The Policy Note recognises the sustained economic growth experienced by Gozo in recent years, while also highlighting the continued concentration of economic activity in a relatively limited number of sectors.

It identifies the development of a startup ecosystem as an important opportunity to create more graduate-level and high-value employment, support entrepreneurship as a credible career path, and enable skilled individuals to build their careers in Gozo while accessing national and international markets.

A stronger startup ecosystem could also contribute to retaining Gozitan talent, attracting new skills and investment, and reducing the island’s dependence on traditional economic sectors.

A Focused and Place-Based Approach

Rather than seeking to replicate larger innovation hubs, the framework proposes a focused, place-based approach that builds on Gozo’s particular strengths, including its human capital, quality of life, community cohesion and geographic characteristics.

The Policy Note highlights education as both a sector in its own right and an essential enabler of the wider ecosystem. It also identifies incubation and acceleration programmes as central structures for assisting early-stage businesses with mentoring, market validation, technical guidance and access to investors.

Other areas with potential for further development include medical technology and health-related services, unmanned aerial vehicles, drone technologies and autonomous vehicle applications.

The document emphasises that any sectoral development should be based on evidence, realistic capabilities and the existence of a clear competitive advantage for Gozo.

Strengthening Support for Entrepreneurs and Startups

A central recommendation is the need to map existing national and regional support programmes and assess how effectively Gozo-based businesses and entrepreneurs are benefiting from them.

The framework proposes a range of measures, including:

  • transforming Youth4Entrepreneurship Gozo into a structured pre-incubation and early-stage development programme;
  • introducing targeted digitalisation incentives for startups and micro-enterprises;
  • establishing a Digital Audit Voucher Scheme;
  • strengthening access to financing instruments suited to Gozo’s economic context;
  • developing a structured mentoring network involving local, national, international and diaspora expertise; and
  • organising regular networking, innovation and sector-specific events.

The Policy Note also underlines the importance of treating digital nomads and remote professionals as potential contributors to the local startup ecosystem through knowledge transfer, mentoring and international connections.

Repositioning the Gozo Innovation Hub

The Gozo Innovation Hub is identified as a major strategic asset which should be repositioned as a central entry point into the startup ecosystem.

The framework proposes moving away from a model based primarily on long-term office rental towards a more flexible ecosystem model supporting graduate founders, student initiatives, startups, research collaborations, remote teams and innovation-driven businesses.

Recommendations include subsidised or zero-cost access during the initial startup phase, shared workspaces, flexible leasing arrangements and the co-location of mentoring, business support and public programmes.

The Policy Note also proposes exploring the establishment of a research institute or specialised training centre within the Hub, while considering a complementary Gozo Showcase Office in Malta to provide meeting, representation and promotional facilities for Gozo-based companies.

Education, Skills and Entrepreneurship

Education and skills development are placed at the centre of the proposed ecosystem.

The document calls for entrepreneurship to be presented from an early age as a credible and socially valued career path, supported by financial literacy, project-based learning, innovation challenges and direct engagement with entrepreneurs and businesses.

At tertiary level, stronger links are proposed between educational institutions, industry and the startup community through internships, collaborative projects, entrepreneurship modules and interdisciplinary programmes.

The framework also identifies opportunities for MCAST Gozo and other institutions to expand short programmes and micro-credentials aligned with priority areas such as ICT, artificial intelligence, renewable energy, digital services, agri-tech and tourism-related technologies.

Attracting External Startups and Skilled Talent

The Policy Note recognises that the development of a sustainable startup ecosystem cannot depend exclusively on locally generated activity.

Attracting external founders, entrepreneurs, remote professionals and skilled employees can help accelerate knowledge transfer, create employment opportunities for local graduates and strengthen international business networks.

The proposed approach is based on attracting high-value activity rather than volume. It includes consideration of targeted fiscal measures, streamlined residency procedures and other incentives aimed at founders and skilled professionals willing to establish meaningful and long-term economic activity in Gozo.

Governance and Coordination

The framework identifies effective governance and institutional coordination as essential to the success of the startup ecosystem.

It proposes that the Gozo Regional Development Authority assume a central coordinating role, working closely with Malta Enterprise, educational institutions, funding agencies, regulatory authorities, the private sector and other stakeholders.

Regular coordination mechanisms, thematic working groups, joint pilot projects and measurable performance indicators are recommended to ensure that the strategy is implemented as a coherent long-term programme rather than as a series of isolated initiatives.

The Gozo Business Chamber welcomes the publication of this Policy Note and remains committed to working with the GRDA and other stakeholders to support the development of an innovative, competitive and diversified Gozitan economy.

The full Policy Note may be downloaded here.