Egypt in the Global Innovation Index 2025: From Ranking to Policy

Prepared by: The Egyptian National Competitiveness Council (ENCC) Date: October 31, 2025 Primary Source: Global Innovation Index 2025 – World Intellectual Property Organization (WIPO)

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1. Background and Introduction

The Global Innovation Index 2025 (GII) was published by the World Intellectual Property Organization (WIPO) in partnership with Cornell University and INSEAD on September 16, 2025, marking the 18th edition since its launch in 2007.

The report covers 139 economies and measures their innovation performance through seven main pillars:

Five for inputs (Institutions – Human Capital and Research – Infrastructure – Market Sophistication – Business Sophistication), and two for outputs (Knowledge & Technology Outputs – Creative Outputs).

This index represents the most comprehensive global tool for assessing countries’ ability to translate knowledge and resources into innovative products and services. It relies on over 80 indicators spanning economy, education, finance, technology, and governance.

2. Global Trends and the 2025 Context

The 2025 report, titled “Innovation in a Turbulent World: Financing, Risk, and the Shift Toward a Knowledge Economy”, highlights a global slowdown in innovation investment after a decade of steady growth, largely due to geopolitical tensions and volatile financial markets.

Nevertheless, the leading economies maintained strong performance, with notable advantages for countries that aligned innovation policies with smart financing and risk management mechanisms.

Top 10 Economies Worldwide
Methodological Update 2025

For the first time, “Venture Capital Flows” were added as a third indicator within the measurement of Innovation Clusters, alongside patent locations and research authorship. This reflects the growing recognition of flexible, risk-based investment as a key driver for innovation and for converting ideas into tangible, commercial outcomes.

Top 10 Economies Worldwide

Rank	Country	Region
1	Switzerland	Europe
2	Sweden	Europe
3	United States	North America
4	South Korea	Asia
5	Singapore	Asia
10	China (first time in top 10)	Asia

3. Egypt’s Position in the 2025 Index

Overall rank: 86th out of 139 economies

By income group: 8th among 37 lower-middle-income economies

Regionally (North Africa and West Asia – NAWA): 15th out of 18 economies

Pillar Performance Summary

Pillar	Overall Evaluation	Analytical Notes
Institutions	Below average	Continued governance and regulatory reforms, though effects not yet fully reflected.
Human Capital & Research	Average	Expansion of higher education and scientific publishing, but insufficient applied R&D funding.
Infrastructure	Below average	Progress in digital transformation offset by weak innovation and research–industry linkages.
Market Sophistication	Near average	Expanding financial sector, but innovation financing remains limited.
Business Sophistication	Improving	Growth in entrepreneurship and startups, but still fragmented.
Knowledge & Technology Outputs	Relatively good	Noticeable growth in patents and research output.
Creative Outputs	Highest performance	Expanding cultural industries, software, and digital content sectors.

4. Regional Benchmark (Five-Country Comparison)

A five-country benchmark was conducted for Egypt, UAE, Saudi Arabia, Morocco, and Jordan, representing varying income levels and innovation models across the NAWA region.

Regional Benchmark (Five-Country Comparison)

Country	Overall Rank	Input Rank	Output Rank	Income Group	Key Notes
UAE	30	14	47	High	Very strong inputs (Institutions, Human Capital, Markets) but weaker outputs.
Saudi Arabia	46	31	61	High	Robust economic and financial reforms; input-output conversion gap.
Morocco	57	77	51	Lower-middle	Relatively strong creative outputs; weaker infrastructure and finance.
Jordan	65	66	66	Lower-middle	Balanced performance; needs better infrastructure and human capital.
Egypt	86	94	81	Lower-middle	Stronger outputs than inputs; financing and governance gaps.

5. Analytical and Policy Reading for Egypt

1️⃣ Institutional Explanation

Egypt is undergoing a structural transformation in its innovation system, with expansion in education, research, and digitization. However, institutional and governance limitations still constrain the conversion of these strengths into economic value. Egypt belongs to a group of economies whose outputs improve despite limited inputs, reflecting untapped human and knowledge potential requiring policy and financial stimulation.

2️⃣ Financing and Data Gaps

A national database for venture capital transactions remains absent, limiting visibility of actual activity. The report calls for establishing a unified innovation statistics framework connecting universities, industries, and investors.

3️⃣ Link with Egypt Vision 2030

The GII directly aligns with Egypt’s Knowledge Economy, Digital Transformation, and Entrepreneurship pillars under Vision 2030. Improving Egypt’s ranking requires translating these pillars into measurable Key Performance Indicators (KPIs) consistent with WIPO’s methodology.

6. Lessons from Regional Experiences

Lessons from Regional Experiences

Country	Distinctive Feature	Policy Lesson for Egypt
UAE	Direct government investment in innovation; smart regulatory environment.	Adopt “Innovative Public Procurement” policies to create domestic demand for technology.
Saudi Arabia	Rapid reforms in financing and innovation legislation.	Align tax and financial regulations to attract venture and startup investment funds.
Morocco	Effective knowledge-to-creativity conversion.	Strengthen university–industry linkages in creative sectors.
Jordan	Systemic balance and sustainability.	Maintain institutional discipline while expanding digital infrastructure and applied education.

7. Policy Recommendations

Short Term (6–12 months)

Establish a National Innovation Dashboard linking WIPO data to local institutions.

Update venture capital and investment fund regulations in cooperation with the Financial Regulatory Authority, Central Bank, and Investment Authority.

Enhance open data publishing on research and innovation activities.

Medium Term (12–24 months)

Activate Technology Transfer Offices (TTOs) in universities and research centers.

Support export-oriented creative economy sectors (software, digital media, cultural content).

Link startup support programs with GII metrics to ensure measurable impact on ranking.

Long Term (2–3 years)

Establish industrial innovation zones in new cities and economic areas.

Integrate innovation criteria into government procurement to stimulate local solutions.

Include innovation spending as a measurable share of national development and research budgets.

8. Performance Tracker (ENCC)

Indicator	Current Status	18-Month Target
Input–Output Gap	+13 ranks	≤ +5
Documented VC Deals	<20 per year	≥ 50 per year
University–Industry Tech Transfer Agreements	Limited	+100 annually
Creative Content & Software Exports	+4% growth	≥ +10% growth
Egypt’s Overall GII Rank	86	≤ 75

9. Summary and Perspective

“Innovation is not merely a global ranking but a driver of economic and social renaissance. Egypt’s current position reflects latent potential that must be transformed into tangible impact through smart financing, open data, and genuine partnerships among government, private sector, and academia.”

The ENCC emphasizes that improving Egypt’s GII ranking within two years is not a symbolic goal but an integral part of building a productive, knowledge-based, and competitive economy rooted in creativity, research, and technology.

Conclusion

This comprehensive report serves as the official reference on Egypt’s position in the Global Innovation Index 2025, presenting a realistic roadmap to convert rankings into improved policy, financing, and national innovation infrastructure. It forms part of the ENCC’s continuous monitoring of Egypt’s performance within knowledge economy indicators and Vision 2030, ensuring alignment of national efforts with international standards.

Official Citation:
Egyptian National Competitiveness Council (ENCC) – “Egypt in the Global Innovation Index 2025: From Ranking to Policy”
Cairo, October 2025
📧 info@encc-eg.org 🌐 www.encc-eg.org