Advancing research and innovation capabilities across the GCC

Setting the scene

The transformation to a knowledge-based economy has been central to the GCC’s economic diversification efforts. A key priority for the region's governments has been to develop globally competitive alternative industries. Studies indicate that a 1% increase in Research and Development (R&D) spending can lead to an average economic growth of 0.6%. Thus, the successful transformation of the GCC hinges to a large extent on effective research and innovation.

In the region, governments have launched numerous initiatives, policies and programmes to drive innovation and foster collaboration among research entities, government and industry. In recent years, member states have revisited their innovation gaps and taken concrete steps to strengthen efforts. The UAE, for example, appointed a Minister of State for Advanced Sciences, who chairs the Council of Scientists in 2017, while in 2021, Saudi Arabia established the Research, Development and Innovation Authority with a national mandate to support innovation.

There is a strong innovation potential in the GCC, with a growing number of patents and presence in top-tier journals. With enhanced R&D investment and stronger collaboration, the region is poised for significant growth in research output.

GCC countries spend approximately one third of the global average of 1.9% of GDP on R&D (figure 1).

In 2023, the research output in GCC countries was, on average, 56% lower than that of benchmarking countries, with 1,700 publications per 1 million people in the region (figure 2).

The US publishes 13% of its papers in the top 5% of journals by Source Normalised Impact per Paper (SNIP), while the UK has 14% in the top 5%. In contrast, GCC countries have 6% in the top 5%. By comparison, Singapore alone produces 20% more top 5% publications than the entire GCC region (figure 3).

In GCC countries, academia-industry collaboration remains limited, accounting for only 2.7% of research publications. This figure falls below the global benchmark range of 4-8% for similar collaborative publications (figure 6).

With 4,145 patents granted, the GCC shows a strong innovation potential, but there is still room for growth when compared to the UK (10,578) and other benchmarked countries (figure 7).

In order to address the need for a comprehensive approach to the RDI ecosystem, we propose a framework, designed as a holistic guide for stakeholders to integrate all relevant elements. The framework consists of five main components:

These provide the overall direction, rules, and standards for the RDI ecosystem, including strategy, policy, governance, performance management, and quality assurance

Essential for research execution at any level, this category includes skilled personnel, adequate funding, and the necessary knowledge base

This is where the magic happens, covering research (design, delivery, project management) and commercialisation (disclosure, evaluation, product development, marketing, and launch) activities

These support the practical execution of RDI initiatives, consisting of collaboration and partnerships, infrastructure, tools, processes, and commercialisation support

Tangible results, such as publications, inventions, products, and the licensing and sales of developed technologies and innovations.

In this report, we define these key components and illustrate the common pitfalls and best practices for each, drawing from global experiences. This model offers actionable insights and tools to a wide audience involved in RDI policy and governance, including higher education institutions, research organisations, governments, and funding bodies across the GCC.

The case for change

Government Expenditure on Research and Development (GERD)

Recent data (figure 1) indicates that global average R&D expenditure is 1.9% of GDP, while GCC countries spend approximately one third of this amount. In 2021 Saudi Arabia, Oman, Qatar, and Kuwait allocated less than 0.7% of their GDP to R&D. Between 2017-2021, the average increase in R&D spending in these countries was only 0.1% — half the global average growth rate.

The UAE, however, has made significant progress, increasing its R&D spending by 0.6% during the same period, an increase that matches that of the US. Despite this, the UAE's total expenditure on R&D — at 1.5% share of GDP — still falls short of the Organisation for Economic Co-operation and Development (OECD)’s average of 2.7%.

Figure 1: R&D expenditures, share of GDP, 2017-2021

Since RDI is a high-risk, long-term endeavour, its sustainable development relies on continuous government support. To facilitate significant progress governments should prioritise investments in research and endorse long-term outcomes. Without this, scientific activities may be reduced to short-term, low-impact endeavours. To nurture growth in research and innovation, countries in the GCC must invest heavily in the RDI ecosystem. This implies not just aligning with leading R&D spenders, such as the UK or Singapore (who dedicate more than 2% of their GDP to this sector), but also setting higher targets to accelerate progress and establish a robust foundation for future innovation and scientific achievement.

Publications: A bedrock of research

Publication activity indicates a country’s knowledge production and intellectual output. A higher number of publications per person and their quality reflect a shift towards a knowledge-centric economy. Since 2019, countries in the region have increased their publication rate by 20% annually — outpacing other developed economies. Nearly 40% of GCC publications are in the top-tier Q1 journals, demonstrating a developing RDI ecosystem.

Figure 2: Publications per 1K population and CAGR, 2019-2023

Despite an increase in the number of publications in the GCC, the overall quality remains relatively low. Research reveals that only 6% of regional publications fall within the top 5% category of journals, compared to 19% for Singapore and 14% for the UK (refer to figure 3). Examples of such publications have appeared in notable journals such as the Journal of Molecular Biology and Evolution, and the Journal of Epidemiology and Global Health.

While the number of Q1 publications has slightly increased in the past five years across the GCC countries, the percentage of those in the top 5% has remained unchanged. The total volume of high-quality research publications is vital as it dictates the quality of scientific knowledge, influencing economic impact. Enhancing both the quantity and quality of research outputs could pave the way for increased innovation in the GCC over the next decade.

Figure 3: Structure of publications by SNIP, 2019-2023

Publication in partnerships: Bridging academic knowledge and practical applications

Strengthening industry partnerships is vital in accelerating the GCC's progress towards a sustainable innovation-driven ecosystem. This collaboration comes in three forms: joint research, corporate research fuelled by academic knowledge, and research outsourced to academia by the corporate sector.

In the GCC, research conducted through academia-corporate collaboration is relatively low, accounting for an average of 2.7% of total publications. Building trust and strengthening ties between these sectors is essential for mutual benefits, leading to:

The acceleration of knowledge transfer: Academic institutions conduct research, while corporations have the resources and infrastructure to turn these research findings into practical applications

The facilitation of funding: The corporate sector provides funding for academic research projects and in return, it gains access to new ideas, technologies and IP

The strengthening of networks and partnerships: Collaboration with reputable academic institutions enhances a company's credibility and reputation, while academia may gain prospective partnerships.

Figure 6: Share of research publications made in collaboration with industry (a), produced by the corporate sector (b) in 2018-2023

“Success in building a robust research, development and innovation ecosystem in the GCC is a key part of transitioning to a diversified knowledge-based economy. To achieve it we must embrace strategic collaboration, provide clear direction and support, and build world class skills. By aligning our research and educational efforts with national goals, we can drive long-term sustainability and global competitiveness, creating a brighter future.”

Roland Hancock - Education and Skills Leader PwC Middle East

Innovation: Tricky to create and trickier to measure

Patents play a crucial role in turning innovation into a profitable product. However, to achieve this, a supportive environment is imperative. In the GCC, the number of patents granted is lower than the global benchmark countries (figure 7). However, since 2015 there has been a growth surge of 25%. Saudi Arabia and UAE have made significant progress in closing this gap, with the number of Patent Cooperation Treaty (PCT) patent grants increasing at a CAGR of 20% and 41% respectively from 2015 to 2022.

To bolster the UAE's innovation ecosystem, the Dubai Future Foundation was established in 2016. In 2019, there was a significant increase in the issuance of patents in the UAE, a trend largely attributed to a high rate of patent grants to non-citizens. The UAE Ministry of Higher Education also launched the Collaborative Research Program Grant in 2019, aimed at building research teams of scale. In Saudi Arabia, notable stakeholders, who are catalysts for innovation and economic development, are King Abdullah University of Science and Technology (KAUST), and King Abdulaziz City for Science and Technology (KACST).

Figure 7: Number of patents granted, 2015-2022

Countries in the GCC have the potential to enhance their innovative capabilities and create a culture of innovation. In 2023, the UAE ranked 32th in the Global Innovation Index, narrowing the gap with other benchmark countries on the index. There is considerable potential for improvement in the region, driven by both research and entrepreneurship.

From investment to payoff

To provide structure and guidance to stakeholders across the RDI ecosystem, here we offer a wireframe design as a holistic guide that covers the five main pillars of strategic enablers, requisites, research and innovation execution, operational enablers and RDI outputs. It represents the skeletal framework of the ecosystem, integrating all relevant elements and enablers, as well as covering the RDI ecosystem, serving as an agile tool for analysis and planning.

Figure 9: RDI Ecosystem Wireframe

“To thrive in the era of rapid technological advancement and climate change, we must prioritise continuous skill development and innovation within our educational systems. By investing in research skills, fostering collaboration between academia and industry, and developing our educators, we are not only preparing our cohorts for the future, but also ensuring that our region remains competitive on the global level.”

Ayham Fayyoumi - Partner, Education and Skills PwC Middle East

Way forward

As the GCC countries set their sights on an ambitious future driven by innovation and diversification, it is imperative to establish a robust and comprehensive research, development, and innovation (RDI) ecosystem. This is essential to shape a knowledge-based economy and propel the region towards a shared vision of growth and competitiveness.

To build this ecosystem, GCC governments must continue to prioritise research and innovation in the public sector and foster greater collaboration between academia and the private sector. With the existing political will and world-class infrastructure in the region, a stronger commitment to RDI will contribute to long-term stability and sustained growth. A focused approach will not only attract overseas researchers but also retain local academic talent, leading to improved performance outcomes and securing the region's position as a global leader in innovation.