Kuwait Enters Top 70 Most Innovative Economies

- Kuwait advanced 11 places to rank 62nd globally

- High standing in the ICT access and usage indices

- Education expenditure as a percentage of GDP, infrastructure, and private sector credit are key strengths

- Total GDP of $270.2 billion at purchasing power parity, with per capita income of $52,866

Kuwait recorded a notable advancement in the Global Innovation Index 2026, published by the World Intellectual Property Organization (WIPO), moving up 11 places to rank 62nd globally and entering the list of the top 70 economies in the index. This step reflects improvement in several components of the environment supporting innovation, primarily digital infrastructure, financing, and investment.

The WIPO index, a specialized agency of the United Nations, measures the performance of economies in the field of innovation through a broad set of indicators covering innovation inputs and outputs. Kuwait’s progress in the index report is attributed to improvements in its innovation-enabling conditions, particularly in the field of information and communication technology (ICT), where it ranked fourth globally in the ICT access index and third in the ICT usage index, alongside improvements in financing and investment indicators.

The report noted that Gulf economies continue to make progress in the Global Innovation Index, in line with their shift toward knowledge-based, technology-driven, and modern service-oriented economic diversification.

Kuwait recorded one of the most significant levels of progress in the region during 2026, after climbing 11 places to rank 62nd globally. The progress of Gulf economies generally was linked to improvements in several innovation-supporting factors, including digital transformation, infrastructure, higher education, talent attraction, and startup financing.

Kuwait’s standing is particularly prominent in the ICT access and usage indices, ranking fourth and third globally, respectively. The access index measures the availability of necessary infrastructure for using ICT, including mobile phone ownership, household internet access penetration, and mobile network coverage. The usage index measures the level of use of broadband internet services, mobile data, internet traffic volume, and subscriptions to mobile broadband services.

Kuwait also recorded strengths in several other indicators, including education expenditure as a percentage of GDP, infrastructure, domestic credit extended to the private sector, and the value of global brands among the top 5,000 brands as a percentage of GDP.

Globally, the Global Innovation Index 2026 report stated that artificial intelligence is driving a recovery in venture capital financing and research and development (R&D) expenditure, while emerging economies continue to make progress in innovation alongside traditionally top-ranked economies.

Index estimates showed that global R&D expenditure rose by more than 3.3% in real terms in 2025, with growth expected at 3.6% in 2026 to reach approximately $3.4 trillion. Corporate R&D expenditure also increased by 5.8% in real terms in 2025 to reach $1.5 trillion, the highest recorded level, driven by the software and AI sectors, as well as defense-related R&D activities.

In the venture capital sector, funding directed toward startups and innovative business ideas rose by 28% in 2025 to reach $510 billion, marking the strongest annual growth since 2021. Conversely, investment concentration in artificial intelligence increased, with AI accounting for 53% of the global value of venture capital deals in 2025 and 77% during the first half of 2026, even as the number of venture capital deals declined for the fourth consecutive year.

Despite this concentration, the report noted a geographic expansion of investment activity, as startups in Africa raised approximately $3.2 billion in 2025, a 40% year-on-year increase.

At the top of the rankings, no new economies joined the list of the top 15 innovative economies this year, while Canada, Australia, and New Zealand regained momentum in the rankings. The United Arab Emirates advanced by five positions to rank 25th globally, entering the top 25 economies for the first time.

India and Vietnam maintained their record for the longest consecutive streak of outperforming expectations, spanning 16 years. Sub-Saharan Africa hosts the largest number of economies outperforming expectations, with seven such economies, including South Africa for the ninth consecutive year. Mozambique, Pakistan, and the Republic of Moldova returned to this group, while Bhutan recorded its first year among economies outperforming expectations. Brazil remained the only economy in Latin America and the Caribbean to outperform expectations.

The Global Innovation Index 2026 ranks approximately 139 economies based on 79 indicators, distributed across two main sub-indices: “Innovation Inputs,” which includes institutions, human capital and research, infrastructure, market development, and business sophistication; and “Innovation Outputs,” which includes knowledge and technology outputs and creative outputs.

The 2026 edition introduced new indicators, including a measure for research and development in emerging fields and foreign direct investment in advanced technology, based on announced investment projects. The index also provides detailed data for each economy, alongside data on the top 100 innovation clusters.