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Advances in Social Sciences Research Journal – Vol. 8, No. 8
Publication Date: August 25, 2021
DOI:10.14738/assrj.88.10794. Alkhanjari, A. H. H., & Matriano, M. T. (2021). The Decline in the Global Innovation Index of Oman’s Ranking in World Intellectual
Property Organization. Advances in Social Sciences Research Journal, 8(8). 711-747.
Services for Science and Education – United Kingdom
The Decline in the Global Innovation Index of Oman’s Ranking in
World Intellectual Property Organization
Almutasim Hamed Hilal Alkhanjari
MBA; Department of Post-Graduate Studies
Middle East College; Muscat, Oman
Dr. Maria Teresa Matriano
Assistant Professor, Department of Post-Graduate Studies
Middle East College; Muscat, Oman
ABSTRACT
One of the most important reports that evaluate the degree of innovation in
countries is the Global Innovation Index (GII). Oman's score has been exceptional
from 2013, with experts anticipating it to ascend to the first 40 nations in GII;
nevertheless, over the previous two years, the ranking of the country has
significantly dropped to 80 in 2019 and is expected to remain to decline after being
57 in 2018. The study's objective is to determine the factors that led to the Oman
decline in GII, analyze the involvement of public institutions in this drop in terms of
policy change or reform, and explore the societal impact of this drop. Because of a
lack of data on the subject, this exploratory, descriptive research used a
combination of data collection methods, involving an interview with five specialists
and a circulation of 204 survey questionnaires. To achieve uniformity and
relevancy, participants were chosen based on the study's themes. This research
focused on identifying the factors contributing to the sudden decline in the GII
compared to prior years. Additionally, it layout a framework for key stakeholders
to execute the major adjustments required to enhance performance in crucial
innovation indicators. Finally, it will result in increasing professional and
organizational awareness of policy instrumentation in Oman and will offer avenues
for future research on this topic and governmental policies that will enhance
several of the GII indicators, notwithstanding Oman's drop in ranking.
Keywords: The Global Innovation Index, ranking of Oman, GII pillars, Rentier economy,
GII Indicators
INTRODUCTION
According to Oxford Business Group (2017), it mentioned that Oman has a rich and diverse
background, as well as a heritage of international discovery. Since 1970, Oman has undergone
solid economic growth and exceptional domestic stability. Profits from the oil and gas industry
have primarily fueled economic development, which drives the economic system. However,
there is risk in the direction of growth; in the short term, the economic system is not creating
sufficient employment for Omanis, whereas in the long-term, oil reserves will decline, and
exploitation expenses will rise against a backdrop of volatile oil prices (Wahaibi 2017).
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Advances in Social Sciences Research Journal (ASSRJ) Vol. 8, Issue 8, August-2021
Services for Science and Education – United Kingdom
Many countries faced economic recession because of fluctuations in oil prices since they depend
on an unsustainable, rentier economy. The instability of oil prices has a significant effect on
people's social and economic well-being. On the other hand, other countries depend directly on
innovation, research, and development to create a competitive economy. This economy is
knowledge-based, and its susceptibility to global economic crises is minimal. In these countries,
innovation is the financial fuel of the future (Sira et al. 2020). Since 2011, the Omani
government has altered the country's growth trajectory through economic diversification,
small and medium-sized businesses, and foreign investments. The Omanisation program was
the most effective policy for creating job prospects, and its outcomes were promising in the
short term (Mansour n.d.). However, the most long-term and sustainable alternative to Oman's
sustainability issue is the drives to promote transformational and diverse progress by solid
national science, technology, and innovation system and strategy. Developing an effective
national innovation system will contribute to a more diversified, prosperous, and sustainable
economy with higher-quality and more appealing employment (UNCTAD 2014).
Hence, Oman started to introduce an integrated and effective national science and technology
system in keeping pace with the requirements of sustainable development. This system aimed
to achieve and expand sustainable socio-economic well-being to ensure subsequent
generations' future, which is reflected by increasing productivity, providing sustainable
employment opportunities, and diversification (TRC 2019). In this context, the role of a
knowledge-based economy relies on research and innovation to ensure a bright future for
Oman today and for future generations and sustain Omani culture through successive
generations.
Al Said and Al-Harthy (2017) stated that Oman's vision is to be one of the top 40 innovation
leaders in 2020 and the top 20 innovation leaders in 2040 by participation in the Global
Innovation Index. GII is an indicator established by Cornell University, INSEAD, and the World
Intellectual Property Organization (WIPO) that brings together approximately 80 indicators
documenting the components of innovation (Malahim 2018, Al-Ghamdi 2014). Oman began
participating in the Global Innovation Index in 2013. Oman was improving its ranking year after
year. According to the Innovation Index report (2017 and 2018), Oman ranked 62 and 57,
respectively, indicating that Oman was on target to accomplish its vision of becoming one of the
index's top 40 leading countries in GII. However, the ranking of Oman suddenly declined to 80
in 2019, followed by another decline to 84 in the 2020 report. GII reports indicate that Oman
has adequate institutional capabilities and that the country's key concern is that its economy is
not adequately diverse.
AIM AND OBJECTIVES OF THE STUDY
Oman's inclusion in the Global Innovation Index is one of the aspects that some experts in this
area are aware of. Furthermore, there are few local reports on Oman's status in GII. Therefore,
the research aims to understand the GII point's calculation to link it with the factors that led to
the sudden decline and identify any complex issue behind it. The influence of that report on the
policies of Omani institutions will be analyzed to ascertain if those institutions take action. The
overall objectives of this research are:
• To evaluate the possible factors that contribute to Oman's decline in GII.
• To investigate whether if there are any complex issues behind that decline.
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Alkhanjari, A. H. H., & Matriano, M. T. (2021). The Decline in the Global Innovation Index of Oman’s Ranking in World Intellectual Property
Organization. Advances in Social Sciences Research Journal, 8(8). 711-747.
URL: http://dx.doi.org/10.14738/assrj.88.10794
• To analyze the consequences of this decline on policies implemented by Omani
institutions linked to the indicators and the action taken in response to the sudden
decline.
• To identify and evaluate the impact of this decline on public perception and their
confidence level on innovation performance.
• To offer policy recommendations that target both the practitioners in charge of
reporting indicators and the stakeholders who carry on the innovation practices.
RESEARCH PROBLEM
The unexpected decline in Oman's ranking in the GII has various causes and ramifications for
Oman and its reputation. The problems addressed in this study are the factors contributing to
the two-year decline in the index and the consequences of this decline on policies adopted by
Oman institutions. Also, the actions are taken to enhance Oman's efficiency and policy
modification and the effect of the decrease on public perception and confidence in innovation
performance. Finally, based on the findings, the report presents policy recommendations to
stakeholders and practitioners.
RESEARCH QUESTIONS
The research seeks to address the following main questions:
• What are the factors that contribute to Oman's decline in GII?
• Are there any complex issues behind the decline in GII?
• What are the consequences of this decline on policies adopted by Omani institutions
that connect to the GII, and what is the action taken to reset the policies to improve
Oman's performance?
• Is there any impact on public perception and confidence level due to this decline? If so,
what is the impact?
• What recommendations can the researcher offer for stakeholders and practitioners in
reporting Oman indicators in the GII?
LITERATURE REVIEW
Overview of National Innovation System (NIS)
Nowadays, economic development is more dependent on a system's capacity to generate
advances than ever since technological advancement trends have accelerated and,
consequently, its findings are becoming more critical. In certain economies, the idea of a
national innovation system explains economic policy output and guides growth down a creative
direction as the primary one (Kasych and Vochozka 2017). Over many years, the definition of
National Innovation Systems has gained theoretical and functional cohesiveness. Initially
experiencing broad acceptance by many countries, specifically developed countries, and later
being the subject of intensified focus to resolve some of the more fundamental challenges
confronting those countries. Economic experts and policymakers consider NIS as a basis of
comprehension of the origins and main drivers of economic growth and an influential
conceptual model critical of producing policies (Feinson n.d.). According to Sohn et al. (2016),
NIS influences world competitiveness since innovation can boost growth. The authors
proposed that innovative performance is followed by creative behavior. The innovation
variables are general innovation infrastructure, cluster-specific circumstances that promote
innovation, including automotive requirements, and company participation in technology and