Oman has made significant progress in building the foundations of an innovation-driven economy. Oman Vision 2040, the National Digital Economy Programme, investments in digital transformation, entrepreneurship initiatives, research funding schemes, and the recently launched National Programme for AI and Advanced Digital Technologies all reflect a clear national commitment to innovation and economic diversification.
International indicators suggest that these efforts are yielding results. Oman improved its position in the Global Innovation Index (GII) 2025 by five places, reaching 69th globally and strengthening its standing among innovation-driven economies.
However, the next phase of Oman's innovation journey requires a different conversation. The issue is no longer whether Oman has policies, strategies, or governance frameworks to support innovation. The more important question is whether these investments are generating sufficient economic, technological and societal value.
Evidence suggests that Oman has been relatively successful in building innovation inputs but faces challenges in generating innovation outputs. According to the Global Innovation Index 2025, Oman performs considerably better in innovation inputs than in knowledge and technology outputs.
Perhaps the most important question for Oman is a simple one: What happens after a research project ends?
Every year, universities and research institutions across the country produce journal publications, conference papers, technical reports, postgraduate theses and other valuable academic outputs. These achievements contribute to scientific knowledge, strengthen institutional reputation and improve international visibility. Yet if the ultimate objective is to build a knowledge-based economy, publication should be viewed as an important milestone rather than the final destination.
Once a project has been completed and the final report submitted, what happens next? Does the research result in a patent application? Can the findings be transformed into a prototype or proof of concept? Is there an industrial partner interested in adopting the technology? Can the innovation be licensed to an existing company or form the basis of a startup? Does it contribute to solving national challenges in water security, logistics, energy, food security, healthcare, tourism, or artificial intelligence? Most importantly, does it generate measurable economic value through jobs, investment, productivity gains, exports, or new industries?
These questions matter because, in many cases, the innovation journey effectively ends when the project closes. Publications are counted, reporting requirements are completed, and success is declared. Yet from an economic perspective, the most important phase may only be beginning. Without systematic follow-up, many promising discoveries remain within journals and institutional repositories, never progressing toward commercialisation or practical application.
This does not diminish the importance of publications. Scientific publications remain essential for knowledge creation and academic excellence. However, leading innovation economies increasingly recognise that publications and commercialisation are complementary rather than competing objectives. Research creates knowledge; commercialisation transforms that knowledge into impact. Countries such as Singapore, South Korea and Israel have built systems that encourage researchers not only to publish, but also to patent, prototype, licence, commercialise and collaborate with industry. Their success stems not from producing more research, but from extracting greater value from the research they produce.
Another area that deserves attention is the structure of research funding itself. Oman supports a diverse portfolio of research projects across numerous disciplines. While diversity has undeniable benefits, excessive fragmentation can reduce national impact. Leading innovation economies increasingly organise a significant portion of public research funding around strategic national missions and economic priorities. For Oman, such priorities are already clear: green hydrogen, renewable energy, water security, logistics and smart ports, food security, tourism technologies, artificial intelligence, advanced manufacturing, and circular economy solutions. Concentrating a larger share of funding on these areas would increase the likelihood of generating innovations capable of creating economic value and strengthening national competitiveness.
The economic case for addressing the innovation output gap is compelling. Oman has already made substantial investments in digital transformation, and the digital economy contributes approximately RO 800 million to the national economy. National plans aim to increase the contribution of the digital economy to 10 per cent of GDP by 2040. Achieving this target will require more than infrastructure and digital services. It will require the creation of intellectual property, innovative enterprises, technology-based exports and globally competitive industries.
Moving from vision to value therefore requires a deliberate shift in focus. First, Oman could establish a national innovation output dashboard that tracks patents, licenses, prototypes, startups, technology exports, commercialisation revenues and industry-funded research. Second, a formal post-project commercialisation framework could ensure that every publicly funded research project undergoes evaluation for patentability, commercial potential and industry relevance after completion. Third, stronger university-industry partnerships should be encouraged to ensure that research addresses real market needs and accelerates technology adoption. Fourth, a greater proportion of research funding could be aligned with strategic national priorities and mission-oriented innovation programmes. Finally, innovation procurement initiatives could enable government entities and state-owned enterprises to act as early adopters of promising Omani technologies.
Oman has already laid many of the foundations required for a successful innovation economy. The country enjoys political stability, improving governance indicators, growing digital infrastructure, a strategic geographic location and a clear long-term vision. These achievements should be recognised and celebrated. However, the next stage of development requires a shift from measuring innovation through activities to measuring innovation through outcomes.
The question is no longer whether Oman has the right policies.
The question is whether Oman can transform policy into patents, research into products, ideas into enterprises and innovation into measurable economic value.
The countries leading global innovation today are not necessarily those with the most strategies or the largest number of research publications. They are the countries that have built effective systems for converting knowledge into prosperity. Oman has already built the foundations. The next challenge is to build the bridge between innovation inputs and innovation outputs and, in doing so, unlock the full economic potential of Oman Vision 2040.
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