“Building innovation capability for the future”

DuBai innovationinDex

H.E. Hamad BuamimPresident & CEO, Dubai Chamber of Commerce and Industry

Innovation is critical for the sustenance and development of an economy in a dynamic global environment. The Dubai government has been cognizant of this with a vision to become the world’s most innovative city in the coming years. However, we at Dubai Chamber realised that we need a benchmark to compare the progress made not just at a city level but also at the private sector level and this is how this first-of-its-kind index – Dubai Innovation Index came into existence.

This Index which cover 28 countries, helps to draw a comparison not only across global cities, but also within the private sector in Dubai, across industries and varying sizes of companies.

The Index is an integral pillar of our innovation strategy and a qualitative and quantitative indicator of the performance of the economy. With %90 of Dubai’s private sector made up of SMEs, for who being innovative is imperative, this Index will be a compass not only for them but also for the government in order to understand which areas we excel in and what is we need to build on.

The Chamber studied global indicators to adopt what is best suited to Dubai’s economy, creating the first index in one of the world’s emerging economies. With a focus on eight key sector and 61 indicators, the Index, we believe will definitely stimulate the private sector and inspire them to participate in Dubai’s innovation initiatives to remain ahead of the rest.

Dr. Anil KhuranaPwC Partner, Strategy & Innovation

PwC is proud to be part of the development of the Dubai Innovation Index with Dubai Chamber. This is a unique and comprehensive index that evaluates and compares macroeconomic data to private sector views of a city. The macroeconomic index compares Dubai against the leading innovative cities in the world and highlights that Dubai has made significant progress and investments in recent years towards the post-oil knowledge economy. Dubai, however, needs to further enhance its R&D and STEM (Science, Technology, Engineering and Mathematics) emphasis and investments to be even more competitive.

Our generation is faced with a range of challenges and opportunities - space travel, renewable energy, climate change, food security, advanced materials, digital technologies and others. Dubai›s vision and innovation strategy position it well to be a leading light in this global agenda.

Private sector businessmen views highlight that there is a great challenge to find and retain talent that facilitates innovation. The private sector also views creating and fostering an innovative culture in their organizations as a crucial step towards innovation.

Prof. David Gann, CBEVice President, Innovation & DevelopmentImperial College London, United Kingdom

Innovation lies at the heart of economic growth, providing the means to improve the quality of life for everyone. These activities are increasingly concentrated in cities. It is therefore important to understand how city innovation capabilities are developed and sustained.

The public sector, including the city authority, has a central role in creating the conditions for innovation to thrive. The private sector, working in partnership with universities and research organisations is the engine-room of entrepreneurial endeavour, seeking opportunity, embracing risk and delivering outcomes that can surprise and delight.

Dubai Chamber is very well positioned to take a lead role to create closer collaboration between private and public sectors and create a better platform for innovation. By launching Dubai Innovation Index in partnership with PwC the chamber has taken an important step in showing how the city can develop and expand its innovation capabilities. This comprehensive index sets a benchmark in two ways. First, it provides a baseline from which Dubai can measure progress against its own requirements over time. Second, it provides a comparison with other major international cities indicating areas of relative strength and weakness from which the city and its businesses can learn, acting as focal points for future development.

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TABLE OF CONTENTSExECuTIvE SuMMARy 5

OvErvIEW OF ThE DuBaIInnovATIon InDEx DESIGn 7

InnovATIon RAnKInGS 9

GloBAl InSIGHTS 11

PRIvATE SECToR PERSPECTIvE 13

InDuSTRy InSIGHTS 23

a hOlISTIC vIEW OF InnOvaTIOn“DuBAI InnovATIon InDEx” 25

AnAlySIS AnD CoMPARISon 27

RECoMMEnDATIonS 29

APPEnDIx 31

DuBai innovationinDex

3 4

exeCutive SuMMaRY

Innovation is the key to growth and development in a dynamic global environment. Dubai has been cognizant of this with a vision to become the world’s most innovative city in the years to come. To measure Dubai’s progress in innovation set a benchmark, Dubai Chamber of Commerce and Industry (DCCI) has partnered with PwC to develop a unique and comprehensive innovation index. The index has been designed to compare Dubai with 28 global cities on macroeconomic measures of innovation and to analyse innovation performance of Dubai’s private sector. This is the 1st time ever a study has evaluated and compared macroeconomic data at a firm level.

The macroeconomic view of the index studies the ecosystem elements at the city level in two parts, the first part measures innovation performance and second part looks at factors that enable innovation,thus giving us an overall view of a firm’s impact on innovation, its capability to innovate, and its innovation activities.

The index helps to draw a comparison not only across global cities, but also within the private sector in Dubai, across industries and varying sizes of companies. In future years, we hope to expand the private sector study to the other 27 global cities.

In this study, london has emerged as the most innovative city, followed by Hong Kong and Singapore respectively. Dubai ranks 16th across 28 global cities.

Dubai has scored well on several enablers, namely “Government support” and “building the culture of innovation”, and scored average on “funding” and “political, economic and social environment” elements. However, lower scores for “infrastructure for innovation” and “skills & talent” suggest these areas require improvement.

“Dubai ranks 16th across 28 global cities on the innovationindex”

“87% of Dubai’s privatesector firms have recognized theimportance of creating and fostering the culture of innovation”

BuSInESSMEn vIEW

MACRoEConoMIC DATA

Within the areas of innovation performance, Dubai ranks relatively well on tangible outputs (12th). Tangible outputs measure “new products & services”, “creative output”, “technology readiness”, and “revenue generation” in a city. However Dubai scores low (16th) in intangible outputs, which measure “intellectual property”, “creation of culture of innovation” and the “extent of collaboration for innovation”.

To obtain private sector insights, an online survey was conducted and business leaders were interviewed for qualitative inputs. We received 600 useable responses to the survey. The results indicate that retention of talent and availability of funds are the key challenges to build innovation capabilities. Most of the respondents have also identified the difficulty in taking innovative ideas to the market quickly, as an obstacle.

The analysis of both macroeconomic and private sector data indicates that innovation in

Dubai is primarily driven by the government. Furthermore, while the Dubai government is building and investing for a long-term and sustainable innovative economy, the private sector has been unsurprisingly focusing on the short term, i.e. immediate outputs. Thus, it is imperative for the private sector to collaborate and work closely with the government to benefit from the government’s investments and build on the Emirate’s vision.

The private sector is crucial to promoting innovation in Dubai, and the Chamber can play a pivotal role in facilitating the collaboration between public and private sector and supporting the private sector through initiatives related to innovation.

“Both macroeconomic and private sector views have concluded that “skills and talent”,“infrastructure forinnovation” and“intellectual capital”are areas of improvement for Dubai”

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Dubai Innovation Index is designed to be unique and comprehensive in measuring innovation at city and private sector levels…

“What is Dubai’s position on the global innovation map?”• Measuring the current state of innovation in Dubai• Defining a scorecard highlighting Dubai’s innovation performance on a global scale

1. Baseline

“What are the key challenges & opportunities to innovation faces by firms?”• Identifying key challenges and opportunities - for policy makers, DCCI, companies, government departments and others

2. Challenges & Opportunities“How can businesses andgoverment implement practicesto further foster innovation?”• recommendations for public policy changes that can help private sector to innovate• actions for organisations to enhance innovation performance

3. Actions

Progress tracking and improvement over the years

ECoSySTEM

ECoSySTEM

DUBAIINNOVATION

INDEX

TOP-DOWN(Macro-economic)

BOTTOM-UP(Private sector

view)

• Factual macroeconomic data compared across selected global cities

• Comparing enablersand output performanceof innovation across28 selected global cities

• Evaluating innovation capability, activity and impacts of innovationacross industries and varying firm sizes

• Supported by insights from selected Dubai industry leaders

While most innovation studies gather and analyze either macro data or survey data, the Dubai Innovation Index evaluates and compares both macroeconomic data across the 28 selected global cities and private sector data (collected through surveys at firm level) across industries.

The categories of data points for both macroeconomic and private sector level studies have been selected in such a manner as to to ensure that they are comparable to each other.

“The index is expected to provide insights into the contribution of private sector to the overall Dubai innovation performance.It will also allow to identify gaps and areas of improvement”

The index aims to seek answers to three main questions:

1. What is Dubai’s position on the global innovation map? 2. What are the key challenges and opportunities to innovation faced by private sector firms? 3. How can businesses and government implement practices to further foster innovation?

This study will be conducted annually in the coming years to track the progress and identify opportunities for improvement towards a more innovative Dubai.

The macroeconomic view of the index studies ecosystem elements at the city level in two parts, first part looks at factors that enable innovation and second part measures the innovation performance. Similar to the elements of macroeconomic study, the private sector view is a measurement of firms’ capability to innovate, their activities and their overall impact on innovation.

1 refer to appendix for detailed index design framework and explanation of elements

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Dubai ranks 16th out of 28 peer global cities in innovation

The Innovation Score is calculated as an average of indicators that measure enablers of innovation (categorised under 6 areas) as inputs and indicators that measure performance of innovation (categorised under 2 areas) as outputs.

Enablers of innovation as inputs are primarily about what is being done today as an investment for the future, thereby building a foundation for innovation activities and initiatives to flourish.

Performance of innovation is about outputs of innovation seen today, measuring the current impact of innovation.

Innovation Ratio is a measurement of the outputs of innovation to the inputs, i.e., investments made in innovation. It is calculated as a ratio of performance score average to enabler score average.

PES EnvironmentMeasures political stability, economicenvironment an overall appeal of the city

GovernmentMeasures policies and regulations set by the government that impact the business environment

FundingMeasure theextent and prevalence of funding, both private and public which helps develop new businesses

CultureMeasures thepresence of anentrepreneurial and open, employee friendly culture in the city which boosts innovation

InfrastructureMeasures theinfrastructure forinnovation including R&Dlabs, ICT infrastructure and the environmental performance of the city

Skills & TalentMeasures theenablement of skills & talent through primary and higher education and institutions of education

INNOVATION ENABLERS

INNOVATION PERFORMANCE

Tangible OutcomesMeasures tangible results ofinnovation including new products & services, creative outputs, technology outputs and revenue generation in the city

Intangible OutcomesMeasures outputs in terms of intellectual property, creation of culture and the extent of collaboration for innovation

InnovationScore Rank

12345678910111213141516171819202122232425262728

CityLondon

Hong KongSingapore

SeoulNew York City

TokyoStockholm

ZurichCopenhagen

ParisTorontoSydney

San FranciscoBerlin

Kuala LumpurDubai

ShanghaiBeijingDoha

RiyadhMadridIstanbulMoscow

Mexico CityMilan

Sao PauloJohannesburg

Mumbai

InnovationScore58.1653.7952.1651.0450.7249.6645.6544.9644.7644.7143.7841.6341.5040.4539.7339.1438.7437.6533.9733.8433.6633.3732.6530.1927.1425.5524.3820.06

EnablerScore65.0164.1764.0956.6057.3454.7457.3155.7656.9053.9355.1455.4052.9654.0246.3646.4837.4536.7546.0942.1547.0339.5539.5339.3939.8527.7431.4623.13

PerformanceScore51.3143.4240.2345.4744.1144.5833.9834.1732.6235.4832.4127.8530.0326.8833.0931.8040.0338.5621.8525.5320.3027.2025.7820.9814.4223.3717.2916.98

InnovationRank

61215574181620131924212591112261727101423283228

InnovationRatio0.790.680.630.800.770.810.590.610.570.660.590.500.570.500.710.681.071.050.470.610.430.690.650.530.360.840.550.73

Innovation Score =Enablers Average + Performance Average/2

Innovation Ratio =Enablers Average /Performance Average

“Dubai’s Enablers score is higher than Performance score indicating that Dubai is investing in the innovation ecosystem which is expected to provide a sound base for the future. However, Dubai’s rank for the Innovation Ratio is 11th suggesting that Dubai’s doing well in innovation outputs to its investments.”

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The scores indicate that Dubai ranks higher for tangible output measures such as “new products & services”, and below average for intangible output measures such as “development ofintellectual property” and “research & development”

What characterizes the leading (# 1) cities in each element of Innovation Performance (Outputs)

• Top-notch telecommunications infrastructure of the city• The Cyberport, a hi-tech multimedia hub costing HK$ 13 billion that provides support to the IT industry across training, organizing business matching events and offering financial assistance to nurture companies and entrepreneurs

HONGKONG

Tangibleoutputs53.73

• Outstanding research quality on a par with the best science cities globally• First class training and education base and a long standing reputation as a global cultural capital• leading the table in terms of knowledge-intensive jobs and collaboration for scientific publications as well as for joint ventures and strategic alliances

LONDONTangibleoutputs58.21

Where Dubai stands in comparison to global leaders• lack of creative outputs and low growth & revenue generation over the past year• low market capitalization and stocks traded • high technology readiness but low export of creative goods and low global entertainment & media output, resulting in low creative output scores• high % growth in manufacturing and services value added over the past year

Tangibleoutputs35.26#12

• Bottom five rank for both patents and trademarks registered (24# and 26# respectively)• low scores for collaboration with institutes and economies for scientific work• high labour force participation • high no. of Jv-strategic alliances

Intangibleoutputs35.26#16

Dubai…“Doing more with less”Dubai has scored well in the areas of “Government support” and “building a culture for innovation”, and “funding” and “political, economic and social environment” elements scores are average. However, lower scores of “infrastructure for innovation” and “skills & talent” suggest that these are areas of improvement. lack of sophisticated institutions for education, research and development and training have emerged as area of concern.

However, Dubai ranks 11th in innovation ratio which is the measure of outputs of innovation compared to the investments in enablers of innovation. This indicates that Dubai is “doing more with less” and performing well in comparison to many other leading innovative cities such as Stockholm, Paris, Singapore and Zurich.

LONDONIntangible outputs

58.21

HONG KONGTangible outputs

53.73

11 12

The scores indicate that Dubai ranks above average for“government support” and “culture of innovation”, andbelow average for “skills & talent” and “infrastructure forinnovation”

LONDONInfrastructure

62.18HONG KONGSkills & Talent

71.52

SINGAPOREGovernment

94.88

STOCKHOLMCulture75.76

NEW YORK CITYFunding

65.99

ZURICHPES Environment

75.70

• Sound political environment• But low economic growth indicated by low GDP per capita change • low happy Planet Index score due to a high ecological footprint

PESEnvironment

57.99#17

• lack of good ICT infrastructure• low scores for environmental stability & energy performance• relatively low expenditure on research and development has led Dubai to score among the lowest five cities on the infrastructure pillar

Infrastructure62.18#25

• high regulatory quality, low tax rates and low trade tariff result in a relatively high rank for Dubai for the Government pillar• low scores for logistics performance and lack of integrated initiatives, as seen in Singapore, hold Dubai back from achieving a higher rank

Government69.70#12

• relatively high government expenditure on education per pupil• lack of libraries and low scores for education institutions and adult literacy rate results in the low Skills & Talent rank

Skills & Talent37.99#22

• Ease of getting credit and provision of domestic credit to private sector are low scoring indicators• low inward FDI flow and relatively low venture capital deals also contribute to low funding scores

Funding31.74#17

• high scores for entrepreneurial culture and for non-monetary incentives for employees • Initiatives such as launch of Dubai Innovation Strategy and Dubai Innovation Week further enhance the innovation culture in the city

Culture64.06#12

Where Dubai stands in comparisonto global leaders

• high quality of life and attractive educational and employment opportunities which attracts businessmen and employees• high political and economic stability, legal certainty, healthy public finances coupled with comparatively moderate taxes and the stable Swiss currency, as well as premier services backed by a strong service culture

ZURICHPES

Environment75.70

• london ranks 1st for computer software spending and the overall pillar of institutions for R&D• Tfl is committed to syndicating open data to third parties and engaging developers to deliver and innovate using open data platform

LONDONInfrastructure

62.18

• Corruption-free government, skilled workforce, and advanced & efficient infrastructure have attracted investments from more than 3000 MnCs from around the world as reported in Singapore Industrial and Business Directory volume 1• Improved business environment through solutions such as Tradenet® which serves as a neutral and secure trade platform to facilitate connectivity among the trading community and TradeFIrST which is a one-stop assessment framework that makes trade easy, fair and secure

SINGAPOREGovernment

94.88

• The World Bank Group ranks new York city 2nd in the ease of getting credit ranking• CB Insights reports new York City attracted 1.93$ billion in vC money in the second quarter of 2015, up 56 percent from a year earlier

NEW YORKCITY

Funding65.99

• SuP46 (StartuP People of Sweden) community was created to encourage and motivate innovation• Modeled after the famous Google campus, they are providing entrepreneurs a place to capitalize on the Swedish ideology of sharing resources and ideas

STOCKHOLMCulture75.75

What characterizes the leading (# 1) cities in each element of Innovation Enablers (inputs)

• according to the hong Kong government, total budgeted government expenditure on education in the 16-2015 financial year is 79.3$ billion, representing %18 of its total expenditure • The Government has extended free education in public sector schools from nine years to twelve years since 09/2008

HONG KONGSkills & Talent

71.52

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To obtain views of private sector businessmen, a survey wasconducted that received 580 useable responses through onlinesurvey and phone interview modes

Responses by Number of Employees

1-20eMPLoYeeS

40%

21-100eMPLoYeeS

23%

101-250eMPLoYeeS

11%

250-1000eMPLoYeeS

11%

1000+eMPLoYeeS

15%

Responses by Firm Size

<10 MiLLionaeD

51%

10-100 MiLLion

24%

100 MiLLion -1 BiLLion aeD

14% 14%

>1 BiLLion aeD

580

Useable Respondents Mode of Outreach

online

PHone

Survey Audience

DuBai PRivateCoMPanieS

Responses by Industries

12% others

12% Real Estate& Construction

10% Financial, Insurance& legal Services

10% Energy& utilities

9% F&B, hospitality,leisure & Entertainment

8% agriculture, Fishing& Forestry

8% Education

7% Manufacturing

7% Wholesale & Retail

6% ICT

5% Transport & logistics

4% Healthcare2% Media & Marketing

15 16

The Dubai private sector innovation survey provides insight into key themes that are supported by the views of selected Dubai industry leaders

“Businesses today need to realize innovation is a key aspect to theirdevelopment. An innovation strategy has to be a part-and-parcel of their DNA. Your success is a function of having a vision before the others.”

– H.E. Faisal bin Juma Belhoul

STRATEGY

“An innovationstrategy is essential

to enhance innovation capability”

75% 73%

“Innovation is acompetitive necessity

and it is very importantto think of innovation now”

78%

“Innovation willbecome a

competitive necessityin 5 years’ time”

COLLABORATION

73%oPen

innovationplan to collaborate with

customers over the next 3years to deliver innovative

products & services

51%StRateGiC

CoLLaBoRation

plan to collaborate withexternal partners over the next

3 years to deliver innovative products & services

46%aCaDeMiC

inStitutionSplan to collaborate with

academic institutions overthe next 3 years to deliver

innovative products

45%of respondents believefinding the right partnersto collaborate with ischallenging

BUT...

“Collaboration is fundamental and we need to have an open mind towards collaboration; we need to work with all stakeholders and know how toencourage them to innovate.”

– H.E. Majid Saif Al Ghurair

GOVERNMENT SUPPORT

Although 70%respondents believe general government

assistance is boosting innovation output

58%

58% do not directly benefit from government

funding to support innovation

“Public-private partnership must be created and leveraged to make innovation happen. Platforms to help public-private partnership grow is crucial.

– Sanjeev Chadha,CEO PepsiCo Asia, Middle East & Africa

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Survey results of Dubai’s private sector indicate that “implementationof ideas” and “retention of talent” are key challenges to build innovation capabilities and lead to a low score for “intellectual capital”

80

70

60

50

40

30

43.79

70.2259.35

31.3

77.22

Average: 58.62

Above Average Scores

Below Average Scores

new Products& Services

Growth & Revenue Generation

TechnologyReadiness

Intellectual Capital Creation of Culture Collaboration

69.82

*Score limits to define high, mid and low categories are based on the 100th, 2/3rd and 1/3rd percentile limits.

Scores across elements of ImpactScores across elements of Enablers

70

65

60

55

50

45

40

65.15

48.29

60.42

51.11

44.83

62.3

67.17

46.68

Average: 55.74

Above Average

Below Average

Strategy,leadership & Culture

Management of Innovation

organisationEnablers

Collaboration Skills& Talent

Accessing new Ideas

Selecting &Developing new Ideas

Implementingnews Ideas

Output score across Innovation Elements measured for Dubai’s Private Sector (0-100)ELEMENT

new Products & ServicesGrowth & Revenue Generation

Technology ReadinessIntellectual CapitalCreation of Culture

Collaboration

SCORE59.3543.7970.2231.3077.2269.82

Impact(Outputs)

58.62 IntangibleOutput59.45

Tangible Output57.79

Input score across Innovation Elements measured for Dubai’s Private Sector (0-100)ELEMENT

Strategy, leadership & CultureManagement of Innovation

organisation EnablersCollaborationSkills & Talent

Accessing new IdeasSelecting & Developing new Ideas

Implementing new Ideas

SCORE51.1165.1548.2960.4244.8362.3067.1746.68

Enabler(Inputs)56.34

Activity58.72

Capability53.96

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Dubai’s business leaders have recognized the importance ofcreating and fostering a culture of innovation and identified that it’s difficult to take innovative ideas to the market quickly

INTANGIBLE IMPACT

only 5% have an IP assigned to the firm or an IP in process

BELOW AVERAGEScore = 31.30Intellectual

Capital

87% feel it is crucial to create and foster an innovative culture through recognition and rewarding of talent, senior executive participation in innovation, seeking

best practices and fostering a failure and risk tolerant environment

ABOVE AVERAGEScore = 77.22Creation of

Culture

53% havent had any significant innovation in the area of data and knowledge management in the last 3-5 years

BELOW AVERAGEScore = 31.30Intellectual

Capital

ACTIVITIES IN INNOVATION

62% say taking innovative ideasto the market quickly is challenging

BELOW AVERAGEScore = 46.68Implementing

New Ideas

TANGIBLE IMPACT

only 13% believe that over a third of their company’s annual revenue was derived from new products and

services launched in the last 3 years

BELOW AVERAGEScore = 43.79Growth & Revenue

Generation

19% believe 50% or more of their total growth in revenue over the next 5 years will be derived from innovation

BELOW AVERAGEScore = 43.79Growth & Revenue

Generation

66% do not gain support from enablerssuch as funding

BELOW AVERAGEScore = 48.29Organisation

Enablers

INNOVATION CAPABILITY

53% respondents think it is challenging to find and retain talent that facilitates innovation in Dubai

BELOW AVERAGEScore = 44.83Skills &

Talent

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The private sector innovation survey shows the Healthcare Industry to have the highest scores whereas Financial, Insurance and Legal services Industry scores lowest

Based on evaluation of scores from

the private sector innovation survey,

the healthcare industry scores

highest for innovation amongst

private sector industries, followed

closely by Media & Marketing. ICT,

Manufacturing, Education, Training &

Research and Transport & logistics

score average in relation to other

industries, whereas Construction

& real Estate, Financial, Insurance

& legal Services and Agriculture,

Fishing & Forestry industries

produced the lowest scores.

INNO

VATI

ON S

CORE

Financial, Insurance& legal Services

54.54

other Services55.32

agriculture, Fishing& Forestry

55.01

Construction& Real Estate

56.61

Transportation & logistics57.33

Education, Training& Research

57.51

Manufacturing58.43

Healthcare60.25

F&B, hospitality,leisure & Entertainment

58.44

Wholesale& Retail59.08

Media &Marketing

60.06

ICT59.29

Energy& utilities

57.12

These scores are direct average scores obtained from survey results, further detailed analysis will highlight correlation across innovation ecosystem elements and highlight key areas of strength in innovation for the industries above.

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Dubai Innovation IndexLinking Micro-Macro scores

note: Macroeconomic and Micro level (Dubai Private Sector) scores are measured using different methods, therefore scales of numbers should not be compared directly. Macroeconomic scores are based on 28 cities data collected from well established and reliable sources.

Macroeconomic View of Dubai

INNOVATION SCORE: 39.14/100

MACROECONOMIC INNOVATION RATIO: 0.68

ENABLER SCORE46.48/100

PERFORMANCE SCORE46.48/100

Private Sector View of Dubai (Micro Level)

INNOVATION SCORE: 57.10/100

ENABLER SCORE56.34/100

CAPABILITY SCORE53.96/100

ACTIVITY SCORE56.34/100

TANGIBLE IMPACT57.79/100

INTANGIBLE IMPACT59.45/100

IMPACT SCORE58.62/100

PRIVATE SECTOR INNOVATION RATIO: 1.04

Micro level scores are calculated using data from an online survey where questions are on a 1-5 scale normalised to 0-100 scale. however, a comparison of these scores has provided insights into the relationships between Dubai’s investments and ability to innovate, and innovation in private sector.

25 26

Evaluation and comparison of macroeconomic data andprivate sector view of Dubai provides insights that support recommendations for the future

Dubai has a sound base for Innovation, althoughInnovation is largely driven by the Government in Dubai

Government is building and investing for the future in innovation but the private sector is focusing on the short term,

i.e. immediate outputs.

Government is enabling and driving innovationto a greater extent than the private sector

Lower enabler (input) score compared to performance score (output) at private sector level suggests focus on short term

outputs

Dubai has challenges to utilise the strong foundation and further boost innovation performance

Retention of talent for innovation recognized as a challenge by the private sector

There is a lack of awareness of the importance of innovation across the private sector

Dubai ranks very low for knowledge and R&D institutions resonating with poor scores for implementation of ideas by

private sector

Funding and innovation policies stand out as areasof improvement to further enable innovation

Low intellectual capital and skills & talent scores at both macroeconomic and private sector level

27 28

Dubai government, the private sector and Dubai Chamber should collectively lead the initiatives to progress Dubai’s innovation

DUBAI GOVERNMENT

1. Collaborate: Encourage public sector collaboration with the private sector to create tangible and intangible innovation outputs

2. Policy: Develop clear policies for sound innovation governance such as intellectual property management3. Investment: Government needs to invest in R&D institutions, education

and skills development for innovation. Incentivise private sector for investments in skills development, retention of talent and R&D

PRIVATE SECTOR1. Engage: Recognize the challenge with retention of talent and actively

engage with the right talent to cultivate innovation2. Investment: Make investments in development of skills and R&D

activities to develop a sound foundation for the future and creation of intellectual property

3. Collaboration: Actively seek collaboration with public sector and other industry peers for innovation

DUBAI CHAMBER

1. Policy Advocacy: Work closely with government organisations and private sector firms to develop policies to support and enable innovation

2. Diagnostic Tools: Develop and offer the private sector diagnostic tools for them to regularly evaluate their position in terms of innovation and actively help them improve

3. Initiatives: launch and run innovation initiates such as an innovation institute and workshops/seminars hosted by world class experts with the goal of reducing hindrances to innovation in Dubai’s private sector.

29 30

AppENDIx: How the study and index were designedThe Index Definition and Scores – What Makes the Index?

MACROECONOMIC VIEw: The macroeconomic view of the index studies ecosystem elements at the city level in two parts, first those that enable innovation and second those that measure innovation performance. This study is based on city level data from a range of widely used sources. Data for each indicator was collected from the same source for the same year and from credible sources. only hard/factual data has been used in the study of macroeconomic indicators, whereas opinion survey data has been eliminated.

PERFORMANCE: Performance measures the outputs of innovation across the city. Both tangible and intangible innovation outputs are considered and measured. Intangible performance measures refer to the development of talent, intellectual property and collaborative partnerships for innovation, whereas tangible performance measures include development of new products and services, and economic growth.

ENABLERS: The term enablers of innovation refers to all elements of the innovation ecosystem that help create the ideal environment for innovation. Enablers of innovation include macroeconomic factors such as Political, Economic and Social Environment, Government, Funding, Infrastructure, Skills & Talent and Culture. Measures of enablers are forward looking and are expected to have a long-term impact. a higher enablers score implies investments are being made by the city to build a sound foundation to support innovation activities and initiatives in the future.

DuBAI INNOVATION INDEx: This score is a top-down macroeconomic measure of innovation of a city based on city level data from a range of widely used sources. 28 global cities have been selected for this study. The score takes into account both enablers (as the input) and performance (as the output) as equal contributors towards innovation.

MACROECONOMIC INNOVATION OuTPuT RATIO: The Innovation Output ratio is defined as the ratio of performance score to enabler scores for a city. This measure indicates the cities abilities to translate its investments in creating ecosystem for innovation to successful outcome of innovation.

PRIVATE SECTOR VIEw: The private sector view is a measurement of firms’ capability to innovate, its activities and overall impact of innovation. This study is conducted through an online survey and interviews with Dubai’s business

leaders for qualitative inputs. This measures innovation across the whole private sector as well as for key industries and varying firm sizes.

IMPACT: Impact measures the outputs of innovation across private sector firms in Dubai. Both tangible and intangible innovation outputs are considered and measured. Intangible performance measures refer to the development of talent, intellectual property and collaborative partnerships for innovation, whereas tangible performance measures include development of new products and services, and economic growth.

CAPABILITy: Capability measures a firm’s ability to innovate using elements that can sustainably influence innovation activity, i.e., firm’s strategy, leadership and culture, management of innovation, organisation enablers, collaborations, skills and talent.

ACTIVITy: activity measures a firm’s activities across the innovation lifecycle from accessing, developing and implementing ideas. Activity of innovation is distinctively measured at private sector level since real innovation activity elements can practically be measured at firm level only.

Note: The capability and activity measures at private sector level collectively are equivalent to enablers of innovation that can be evaluated and compared with enablers at macroeconomic level. PRIVATE SECTOR INNOVATION SCORE: This score is a bottom-up measure of innovation at private sector level The score takes into account capability and activity (as the input) and impact (as the output) as equal contributors towards innovation.

PRIVATE SECTOR INNOVATION OuTPuT RATIO: Defined as the ratio of impact score to the average of capability and activity scores. This measure indicates the private sector’s ability to translate its investments and activities in innovation to successful outcomes.

Dubai InnovationIndex

Innovation OutputRatio

Enablers

MAC

ROEC

ONOM

IC VI

EW Calculated as an average of enablers for innovationand performance of innovation for 28 selected global cities

Calculated as ratio of performance to enablers.It’s a measurement of innovation efficiency.

performance

private SectorInnocation Score

private SectorOutput Ratio

CapabilityImpact

Activity

pRIVATE SECTOR VIEW

Calculated as evrage of sub-indices indentifiedunder capability, activity and impact

Calculated as a ration of impact to theaverage of capability and activity scores.

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