I am playing as Greece in my home-made scenario and I have just started a war against The Knights Of Saint John, I thought It should be an easy victory but I was wrong!! They had already got riflemen and with just 15000 men they destroyed my 45000 men army, now I wonder how can such a small country with only one province advance quicker then me?? I’ve seen this before when small German states have very high tech levels, and is this only for the AI, or will I also advance quicker if I choose to play a minor with one province?
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It cost less for smaller powers to advance in research. So, that one province country next door you thought should be push over. While it's not!!! I guess it's the way game give the little guys a fighting chance.
Research costs are proportional to the number of provinces you have, so minors with only one wealthy province are able to improve their tech fairly quickly. The Knights of St. John often get a lot of money from trade, which is perhaps why they're improving their tech so fast.