The Third National Development Strategy 2024-30 (NDS-3) underlines the significance of innovation as a key driver for sustainable growth. The NDS-3 aims to bolster Qatar’s innovation ecosystem and amplify its role in propelling productivity and supporting economic expansion. By 2030 the NDS-3 aims to double gross domestic expenditure on research and development (R&D) as a percentage of GDP, with the private sector expected to account for 60% of this spending. This aligns with Qatar’s aspiration to rank within the top-30 economies on the World Intellectual Property Organisation’s Global Innovation Index (GII).

Progress

According to a 2021 survey conducted by the Planning and Statistics Authority, the country’s innovation ecosystem showed significant progress in several areas. The number of patents granted to Qatar by the US Patent and Trademark Office increased from one in 2011 to 29 in 2022, demonstrating the country’s success in fostering innovation. This was complemented by a steady increase in gross domestic expenditure on R&D, which rose by 25.6% from QR3.1m ($839,000) in 2015 to QR4.5m ($1.2m) in 2021. Qatar’s rising GII ranking – 50th among 132 economies in 2023, marking the first time it made it into the top-50 – aligns with the country’s increased expenditure in this field, reinforcing its standing as an emerging global leader in innovation.

Strategic shifts in the country’s research focus have also been evident – between 2018 and 2021 expenditure on basic research decreased by 10.4%, while spending on applied research and experimental development rose by 49.1% and 85.3%, respectively. This shift underscores a focus on initiatives with immediate application and development potential. Furthermore, the sources of R&D funding in Qatar have become increasingly self-sufficient, with self-funding for research facilities accounting for 79.9% of R&D in 2021.

In 2023 the Qatar Research, Development and Innovation (QRDI) Council, the national body tasked with formulating the country’s strategy in these subsectors, updated its research suite, which includes three new primary programmes. The Academic Research Programme supports R&D institutions in developing knowledge and promoting scientific researchers. The National Research Programme backs activities that address long-term challenges like precision medicine and food security. The third body, the Research Talent Programme, seeks to cultivate a strong base of research talent in Qatar, offering participants the chance to pursue careers in research and acquire the skills necessary to succeed in an innovation-based economy during various stages of their undergraduate education.

These efforts have already paid off. For example, in January 2024 the Qatar Diabetes Prevention Programme was launched as the region’s largest researchbased programme of its kind. The initiative is funded by the QRDI Council and Hamad Medical Corporation’s Academic Health System, with contributions from various organisations. Moreover, Qatar’s reputation in diabetes research has achieved international recognition. In February 2024 Qatar was ranked second in the world for research on diabetic neuropathy per capita by a study published in the scientific journal Frontiers in Endocrinology. The study revealed that Qatar produced 18.1 articles on diabetic neuropathy per 1m inhabitants, coming in behind only Denmark, at 20.3.

Challenges

Applied innovation is expected to be a key component of future efforts to diversify the economy and boost productivity. According to the IMF, Qatar’s total factor productivity has been on the decline since the early 2000s, and labour productivity remains low. General and sector-specific innovation could play a role in reversing this trend. However, the country faces a set of structural challenges that may hinder further progress. In response, Qatar has deployed measures to further incentivise the participation of nationals in the private sector and promote competition to put it in a strong position to attract international talent to both institutes of higher education and the private sector.