Advancing Innovation in Georgia through Job Creation and Women’s Empowerment

Challenge

Despite strong reforms and growth, Georgia continued to struggle with weak innovation and competitiveness. Small and medium enterprises (SMEs)-94% of businesses-contributed less than 20% of the GDP, constrained by low productivity, scarce financing, and low survival rates. Rural areas lagged in broadband access and digital skills, while women faced higher barriers to participation. These gaps prevented Georgia from fully harnessing its entrepreneurial potential or integrating into global markets, making inclusive, innovation-led growth an urgent national priority.

Approach

The World Bank's approach in Georgia focused on unlocking innovation and digital participation as drivers of inclusive growth. It combined financing, skills, and institutional support to create an ecosystem where entrepreneurs and firms could thrive. Through the GENIE Project, this agenda was advanced by creating regional and community innovation centers, expanding broadband in rural areas, and piloting grant programs for start-ups, SMEs, and applied research. Regional hubs and tailored training expanded access to digital skills, with women comprising half of participants. A strong partnership with the European Union, through the technical assistance program-Georgia Institutional Capacity for Innovation (GICI)-reinforced institutional capacity and policy support. By aligning public investment, private capital, and capacity building, the World Bank helped embed innovation as a driver for competitiveness, job creation and long-term growth.

Results

Key Results (2016-2023)

1. Direct Project beneficiaries: 52,000 of which half were women
2. Jobs and Gender Inclusion: 2,127 jobs created; women-held 50%
3. Skills and Connectivity: 3,100+ trained in digital skills-half women and nearly half youth (48% in Tbilisi, 58% in regions); 1,408 gained international ICT certifications; 1,380 rural households connected to broadband
4. Innovation and Finance: 138 start-ups financed
5. Private capital mobilization: US$105 million private investment mobilized (15× target)
6. Revenues of firms supported: Total revenue generated by beneficiary-led firms over the life of the project amounted to almost US$39 million, more than eight times the project target of US$4 million.

Contribution to WBG Targets and Jobs

The project closed prior to the introduction of the World Bank Group's new Corporate Scorecard and associated Targets. Nevertheless, its outcomes align closely with the WBG jobs agenda. By financing start-ups, catalyzing private investment, and expanding access to digital skills, the project created more than 2,000 jobs-half held by women-and built a stronger foundation for private sector-led employment

Lessons Learned

A key lesson from the project is the importance of combining financial support with non-financial services. Matching grants alone would not have delivered lasting results; pairing them with acceleration, mentoring, and skills training helped start-ups grow, attract private investment, and create jobs. Another lesson is that inclusion requires deliberate design. By setting implicit gender participation targets and expanding outreach beyond Tbilisi, the project ensured women and rural communities benefitted equally. For both internal and external stakeholders, these lessons highlight that innovation ecosystems thrive when financing, capacity building, and inclusion are pursued together to unlock sustainable, broad-based impact.

Next Steps

Through the ongoing "Relief and Recovery for MSMEs" Project and "Georgia SMEs and Innovation Ecosystem Support" ASA, the World Bank continues to support Georgia's innovation and entrepreneurship agenda by expanding access to finance for start-ups and SMEs, strengthening business ecosystem services, and fostering a dynamic R&D environment. The World Bank also focuses on integrating cutting-edge digital solutions, with particular emphasis on artificial intelligence (AI). This includes supporting the development and implementation of Georgia's AI National Strategy and advancing AI literacy, while expanding affordable broadband access in rural areas and promoting digital literacy among vulnerable groups. Through these efforts, the World Bank enhances competitiveness, creates more and better jobs, and sustains inclusive growth, ensuring innovation and entrepreneurship remain central to the country's development path.