TIRANA, June 21 – Albania has failed to make any significant progress in innovation during the past decade, according to the Global Innovation Index.
The annual report published by U.S-based Cornell University, the INSEAD business school, and the World Intellectual Property Organization, ranked Albania 93rd out of 127 countries for 2017, lagging behind almost all of its regional competitors. The 2017 rating is almost unchanged to 2016 when the country ranked 92nd out of 128 countries.
A decade ago, when the first report measuring innovation performance was released, Albania ranked 100th out of 107 countries before reaching its best ever ranking of 87th out of 140 economies in 2015.
The 2017 report shows knowledge and technology outputs, business sophistication, creative output and human capital as well as research remain Albania’s weakest indicators. The country ranks better when it comes to market sophistication, institutions and infrastructure.
“Innovation is key to sustaining the productivity growth required to meet this rising demand and to helping enhance the networks (food systems) that integrate sustainable food production, processing, distribution, consumption, and waste management,” says the report’s 10th edition focused on innovation in agriculture and food systems.
Experts warn that in the coming decades, the agriculture and food sector will face an enormous rise in global demand, increased competition for limited natural resources, and the effects of climate change.
Agriculture is also a key sector in the Albanian economy, employing about half of the country’s population, but accounting for only a fifth of the GDP unveiling its poor efficiency. A World Bank report has earlier the livelihoods of Albania’s rural population will be at risk without a clear plan for aligning agricultural policies with climate change.
The Global Innovation Index provides detailed metrics about the innovation performance of 127 countries with its indicators exploring a broad vision of innovation, including political environment, education, infrastructure and business sophistication.
In its latest country report on Albania, the European Commission says Albania’s capacity for technological absorption and research, development and innovation is low.
“Key obstacles include low expenditure on research and development at about 0.4 percent of the GDP, weak links between the scientific and private sectors as well as the fragmentation of the national research and innovation system,” says the report about Albania, an EU candidate country, aspiring to launch accession negotiations by the end of the year.
Due to the weak innovation policy infrastructure, almost all sectors of the economy mainly provide low-technology, labour intensive and low-cost products and services.
“Increased funding and a more focused RDI strategy in a number of specific sectors, particularly in energy, agro-food and sustainable tourism, would support the country’s capacity to attract investment in research, development and innovation,” says the European Commission.
