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Portugal on the way to the forefront of innovation – EU average reached!
Portugal has established itself as a moderate innovator, with progress in R&D and digitalization, but challenges remain.
Portugal on the way to the forefront of innovation – EU average reached!
Portugal has moved closer to the EU in its innovation rating and has been classified as a moderate innovator. According to a report by The Portugal News Portugal achieved a value of 185.8% of the EU average. This is primarily due to public support for research and development (R&D) in companies. However, the National Innovation Agency (ANI) reports that there are structural challenges to private investment in R&D and venture capital.
In comparison, the EU average for R&D spending is now 112.6%, but has experienced a slight decline of 0.4 percentage points between 2024 and 2025. This development indicates a stagnation in innovation consolidation, despite progress in several Member States.
Leading countries in the innovation rankings
Sweden continues to lead the innovation rankings with a score of 155.5%, followed by Denmark, the Netherlands, Finland and Ireland. This trend shows that several European countries are investing intensive efforts in their innovation strategies. On the other hand, countries such as Poland, Slovakia, Latvia, Bulgaria and Romania fall into the category of emerging innovators with scores below 70% of the EU average.
These emerging countries face significant structural challenges, particularly in the areas of productivity, high-tech exports and private innovation facilities. In Portugal, however, all regions, including Lisbon as a strong source of innovation with 109.6% and the Central region with 90.1%, have shown sustained growth since 2018.
Research and development spending in the EU
The average R&D spending by EU countries was around 2.2% of GDP in 2023. Total spending on R&D in the EU was around €386 billion, with business accounting for 67% of this spending. Germany alone contributed 130 billion euros, making up 34% of the total in the EU.
Another indicator of the highest R&D spending in the different European regions shows that all three top regions are in Germany, with Stuttgart as the region with the highest spending at 6.8% of regional GDP.
In summary, Portugal has made progress in its innovation strategy, while other EU countries, particularly in Central and Eastern Europe, continue to face challenges. The developments are expected to influence future innovation performance across the EU and beyond.