Oman has made notable strides in establishing the groundwork for an innovation-driven economy, with initiatives such as Oman Vision 2040, the National Digital Economy Programme, and the National Programme for AI and Advanced Digital Technologies underscoring the country’s commitment to economic diversification and technological advancement. These efforts have contributed to an improved ranking in the Global Innovation Index (GII) 2025, where Oman moved up five places to 69th globally, enhancing its profile among innovation-based economies.

Despite these gains, experts highlight a critical challenge facing Oman’s innovation ecosystem: converting research and policy efforts into tangible economic outcomes. While Oman performs strongly in innovation inputs—such as policy frameworks, investments, and research activity—the country lags behind in innovation outputs, particularly in translating knowledge into marketable technologies and commercial applications.

A key concern is the post-research phase, where much academic work—ranging from journal publications to technical reports and postgraduate theses—remains confined to academic circles without progressing toward practical exploitation. While scholarly publications contribute to scientific knowledge and institutional prestige, the current system often treats them as an end goal rather than a stepping stone toward commercialisation. Without effective follow-up mechanisms, many promising discoveries risk remaining dormant, limiting their potential impact on the broader economy.

Moreover, there is growing recognition that innovation policy should balance the importance of both knowledge creation and commercialisation to maximize societal benefits. Leading innovation-driven countries emphasize that research outputs must move beyond publication to generate intellectual property, support new enterprises, and enhance exports based on technology.

Another area under scrutiny is the fragmented nature of research funding in Oman. While the country supports a broad array of projects across multiple disciplines, this diversity may dilute the overall national impact. Experts suggest that aligning research investments more closely with strategic national priorities—such as green hydrogen, renewable energy, water security, logistics and smart ports, food security, tourism technologies, artificial intelligence, advanced manufacturing, and circular economy solutions—could enhance the economic value derived from innovation activities.

The economic rationale for addressing this innovation output gap is strong. Oman’s digital economy currently contributes around RO 800 million to the national economy, with plans to increase its share to 10 percent of GDP by 2040. Realizing this target will require not only infrastructure and digital services but also the development of intellectual property, innovative companies, and competitive technology-based industries.

Oman benefits from political stability, improving governance, expanding digital infrastructure, and a strategic geographic position, alongside a clear long-term vision. Building on these foundations will be essential as the country seeks to close the gap between innovation inputs and outputs, turning research achievements into lasting economic and technological value.