National productivity board annual report 2022

Abstract

As discussed in detail within this report, the Maltese economy has, on average, consistently lagged behind its European counterparts when it comes to RDI spending and participation. RDI can be broadly defined as efforts undertaken by private and public sector entities with the purpose of developing new methods of production (including the delivery of goods and services), or the creation of entirely new products. Within this report, a broader definition of ROI is followed, which includes the concepts of organizational innovation, market innovation as well as input innovation. Given the consensus regarding the importance of RDI for productivity, the focus of this report will be centred around developing a better understating of the key drivers and crucially, the key challenges surrounding the development of RDI activities in Malta and to subsequently provide policymakers with several recommendations intended to mitigate or overcome such challenges.