DUBAI INNOVATION INDEX 2018 REPORT
“Innovation as an enabler... in easy and difficult times” CONTENTS
FOREWORDS 2
EXECUTIVE SUMMARY 4
DUBAI INNOVATION INDEX FRAMEWORK 10
MACROECONOMIC: ANALYSIS OF INNOVATION IN GLOBAL CITIES 12
MICROECONOMIC: ANALYSIS OF INNOVATION IN DUBAI’S PRIVATE SECTOR 34
RECOMMENDATIONS 78
APPENDIX 88
Dubai Innovation Index 2018 1 FOREWORDS This year’s edition of the Dubai Innovation There are lessons learned, some obvious Index, now in its fourth year, is likely and others not, from the leader board the most interesting one thus far. While of the Innovation Index. Why have With the Fourth Industrial Revolution The innovation score of Dubai’s private Dubai’s ranking has dropped by 4, it is cities like New York, Hong Kong, and upon us, it is clear that innovation is sector saw a 4.7% increase between still in the same range, and has kept its London consistently been at the top? playing a major role in reshaping the 2017 and 2018, signalling a stronger place amongst some well-known and The data and the interviews suggest global economy. Digital disruption is commitment on the part of businesses competitive cities around the world. that this is possibly shaped by 4 key leading organisations to rethink their in the emirate to develop their own What is really interesting is the clear drivers – the existence of a strong approach to fostering innovation and innovation processes. recognition that Dubai is at an inflexion customer base; ongoing collaboration competing in a business environment point (as are several other cities and amongst entrepreneurs, large companies, driven by rapid technological change. The theme of the index - enabling economies). Given the recent slowdown academia, and investors; the availability innovation in easy and difficult times in the economy on one hand and the of public sector as well as risk capital for It is crucial that companies do more to - is particularly relevant to Dubai as tsunami of tech-enabled disruptions on R&D and new ventures; and last but not create an organisational culture that the emirate’s government continues the other, can Dubai’s public and private the least being simply the fact that these encourages new ideas and innovative to adopt forward-looking policies that sectors adapt to deliver on the ambitious cities are a strong draw for people. thinking and processes. In an era of drive innovation in the public and private promise? continuous change, companies must sectors, and pave the way for sustainable The Dubai government’s policy adapt, define their core competitive economic growth. I personally feel optimistic and confident enhancement roadmap will need to advantage and innovate towards it. in Dubai’s responses shaped by both the move forward at a much faster rate in H.E. Majid Saif Al Ghurair Business communities around the world Dr. Anil Khurana government and the private sector. Policy coming years, while addressing some The Dubai Innovation Index Report can utilise this report as a reference changes – such as long term visas and of the recent challenges such as the 2018 reveals several key trends that are and development tool to improve their allowing 100 percent foreign ownership rise in Dubai’s cost of living. The private Chairman of the Dubai Chamber driving innovation in Dubai and other PwC Partner, Strategy & Innovation innovation performance and work among others – and investments into the sector needs to quickly become leaders of Commerce and Industry global cities, as well as valuable insights Global Head of Industrials, towards a brighter future. future such as Dubai Future Foundation’s in innovation by really speeding up that companies in the emirate can Manufacturing & Automotive various initiatives and ventures. The adoption and embracing an innovation benefit from. recent World Government Summit culture – recognizing that technology- spotlighted the Dubai government as an The report highlights the findings of driven business disruption will require innovation leader. This year also showed the fourth Dubai Innovation Index and companies to rapidly transform their the private sector stepping up things assesses indicators that are enabling organization and their innovation culture. a bit, with still another uptick in the innovation across 32 cities, while it The comment in the Executive Summary innovation scores for the private sector also analyses feedback of over 1,500 – that the “perfect storm” is here, and a despite a difficult economy. businesses in Dubai. “brave new world” around the corner – is spot on!
The results of the Dubai Innovation Index Dubai Chamber of Commerce and The 2018 Dubai Innovation Index pro- The fluctuation in Dubai’s ranking in Report 2018 have shown that major cities Industry launched the Dubai Innovation vides a substantial and accessible report the top 20 global cities is not a major around the world are now prioritising and Index in 2015 with the aim of recognising of Dubai’s Macro position as a global concern, given the fierce competi- embracing innovation across all segments and evaluating innovation-related city, together with Micro analysis of pri- tion, significant investment and level of society. progress on a city and industry level. The vate sector activities. of commitment to innovation found in award-winning index, an integral pillar of other major cities. Dubai, nevertheless, Within Dubai, we have observed a major our innovation strategy, measures and A number of refinements have en- will need to increase its efforts to drive improvement in the performance of compares innovation output across 32 hanced the Index which is published innovation if it is to meet its aspirations large companies which have become global cities. for the fourth year, providing indication as a global city. increasingly proactive in integrating of trends over the period. In particular, innovation within their organisations. The Index has become an important the global benchmark case-studies and Whilst the private sector innovation tool for benchmarking efforts within global trends analysis help to spotlight score has continued to improve, evi- At the same time, businesses in Dubai Dubai’s private sector. Most importantly, ideas and opportunities some of which dence in DII 2018 shows that the private are raising their expectations for greater it enables us to look at the areas are of direct relevance for Dubai. sector is not yet providing the leadership product and service innovation. We are where businesses can improve, while and investment required to benefit sub- very encouraged by these positive trends it also provides us with practical The Dubai Government is to be con- stantially from innovation. There appears as they signal growing awareness of these recommendations for enhancing gratulated for its continued leadership, to be a gap between ambition and deliv- concepts within the private sector. Prof. David Gann, CBE investment and support for innovation. H.E. Hamad Buamim performance in the future. ery, this is in part explained by the need The public sector stands-out in driving for an innovation culture to evolve. The fourth edition of the Index points Fostering closer cooperation between the innovation agenda. It is gaining glob- to an urgent need for public and private Vice President, Innovation & President & CEO Dubai’s public and private sectors has al recognition for being one of the most Expo 2020 provides an ideal opportunity sector players in Dubai to better prepare Development Dubai Chamber of Commerce always been a top priority of Dubai tech-savvy governments and is creating to showcase private sector innovation themselves for major changes in business and Industry Chamber. By continuing on this path, I am Imperial College London, United the conditions for long-term prosperity activities and I look forward to seeing models and competitiveness. confident that we can build an innovation Kingdom and economic growth. how this emerges in the coming year. culture in Dubai that enhances the emirate’s global competitiveness.
Dubai Innovation Index 2018 3 The Dubai Innovation Index (DII) was conceptualized in This year suggests an inflection point, when digital 2015 in line with Dubai’s vision to become the world’s disruptions are both allowing organisations to “Building capability most innovative city by 2021. The Index is a collaboration reimagine different possibilities, while dealing with the 2015 for the future” between PwC and the Dubai Chamber of Commerce need to adapt and think ahead in a world transforming which aims to holistically quantify innovation in Dubai. with exponential speed.
To achieve this, the DII measures and reflects on As such, we have refocused our discussion to innovation at both the macro level (city-wide indicators provide real insights about the challenges faced by “Strengthening public and private for Dubai and leading cities around the world), and at all stakeholders in the innovation ecosystem; from 2016 sector collaboration” the micro level (private sector inputs based on a survey entrepreneurs to large businesses to investors to of more than 1,500 businesses in Dubai). government entities. We have also shared benchmarks and case study examples from around the world, For the macro study, we measure innovation levels for 32 demonstrating how other businesses and cities have leading global cities, including Dubai, using established driven innovative ideas to overcome all types of social, “Developing skills & talent for data indicators from a variety of trusted sources. For the economic and political pressures. 2017 sustainable innovation” micro study, we measure the innovation levels of Dubai- based private sector companies across 12 industries We want to redefine innovation in the minds of both the through a structured survey. public and private sectors - innovation is not a luxury. In the world of emerging technologies and disruptive At both the macro and the micro levels, the DII business models, it is essential to innovate and recreate “Innovation as an enabler… framework assesses indicators that enable innovation, in order to remain competitive and relevant. It is the vital in easy and difficult times” 2018 such as government regulations or talent development, element for organisations, and cities, to survive and be and indicators that measure innovation performance (or sustainable. outcomes), such as intellectual capital or new products and services. A more detailed view of the framework is found on page 9. Macro analysis across 32 leading cities around the world Every year the DII goes through a cycle of enhancements, stress tests, and additions of new cities Our macro analysis shows that Hong Kong, New (see Appendix III for a brief on the stress testing and York and London once again lead the index in first, enhancements done during this year’s cycle). This second and third place respectively. All 3 cities lead year, we have also added two new cities to the Index: in collaboration, R&D financing, growth and revenue Ghana’s capital city Accra for further mapping of Africa’s generation, among others. innovation landscape, and the Italian city of Turin, one of An interesting observation this year has been the Europe’s emerging innovation hubs. significant improvement of Shanghai (up 8 ranks) and Beijing (up 4 ranks), two of the Chinese cities included In this fourth edition of the Index our theme centres on in the DII rankings. Most substantially contributing to “innovation as an enabler… in easy and difficult times”. their rise is the increase in overall intellectual capital The theme was derived from the recent economic and collaboration. This aligns with China’s overall efforts happenings around the world, and is especially to shift away from its traditional manufacturing-driven relevant for cities such as Dubai. PwC’s 2019 CEO economy. Although the Chinese government initially EXECUTIVE Survey had a similar observation ... a decline in CEO enacted protectionist policies, in recent years it has confidence globally and in the Middle East, along with increasingly opened up to foreign companies – at least strong recognition that business models are rapidly to some extent, notwithstanding the recent trade issues SUMMARY changing and there is a need to invest in innovative new between China and the US. This has enabled local technologies such as AI and others. It also summarizes entrepreneurs to grow, producing the likes of Alibaba the discourse we have seen come to surface in our The Dubai Innovation Index (DII) was conceptualized in 2015 in line and Tencent. interviews and surveys over the past couple of years. with Dubai’s vision to become the world’s most innovative city by 2021. For many, innovation has often implied an unachievable The Index is a collaboration between PwC and the Dubai Chamber of goal only within the reach of large organisations or well- Commerce which aims to holistically quantify innovation in Dubai. funded hi-tech companies with time and money on their side.
Dubai Innovation Index 2018 5 For Dubai, the past 3 years have highlighted the city’s Similar to the past two years, the overall score for For the public sector, a governance model may be Government policies and regulations can address a part rank steadily climbed from 16th in 2015 to 14th in 2017. innovation enablers has improved this year, indicating established to guide and monitor research efforts in of this, but the private sector innovation ecosystem of This year however, Dubai has experienced its first drop to increased efforts by Dubai’s private sector to enable terms of ensuring original and applied research, creating venture capital, talent, and executive leadership will 18th. This does not necessarily come as a surprise in light access to new ideas and develop innovative processes. an emphasis on science and technology, and rewarding trigger the bigger shift. In addition, companies have benefitted more from for quality output. For the private sector this may of the recent economic slowdown in the Middle East, and government support schemes and policies. translate into more collaboration (among companies an increasingly competitive landscape in which more and with academia), vital knowledge transfer, as well as Concluding remarks cities are investing in and supporting innovation activity. One enabler that experienced a drop is ‘Strategy, incentives for innovation and research. Dubai is moving positively towards realising its vision The UAE experienced a similar setback this year in the Leadership & Culture’. This reflects the need for as a global innovation hub. Its policy and regulatory companies to set clear innovation strategies and The third recommendation addresses the digitisation UN’s Global Innovation Index (GII) and a petrodollar- enhancements this year have demonstrated educated cultivate a culture of innovation and creativity. landscape that is impacting all industries. Policy makers fuelled economic slowdown has affected the region as a and targeted decision making by policy makers for have a role to play in incentivising and encouraging whole. At an industry level, the Hospitality industry witnessed progressing the innovation ecosystem. While the recent experimentation and adoption of technologies such as the highest increase in score, ranking first amongst its economic slowdown has not been ideal, the private Innovation is essential for organisations, cities and cloud, IOT, blockchain, and others, by reducing costs peers. This is due to innovation in how the industry has sector has exhibited increased awareness and optimism countries to survive and be sustainable. and providing regulatory leeway. Both public and private In difficult or enhanced customer experience and – likely triggered for the future, where disruption is less a rarity and more sector organisations must define their digital strategies prosperous times, innovation should drive cities to by the difficult market over the past year or two. The a norm. grow and absorb shocks – embedding this into a city’s industry expects that it will be better prepared for the and dedicate the necessary resources. near future. Dubai’s public and private sectors must prepare culture can play a key role. This is further explored In reference to our fourth recommendation, Dubai must themselves for major changes in business models in our recommendations for Dubai. The city has an One significant shift this year is that ‘Large’ companies be applauded for it continuously evolving and improving and competitiveness. It seems the “perfect storm” is opportunity to navigate through challenging times by (100-500m AED in annual revenue) are the top overall start up ecosystem. This has been reflected in both the upon us, fuelling opportunities for innovation-based embracing innovation. In particular, we identified some innovation scorer compared to ‘Micro’, ‘SME’ and ‘Very macro and micro analysis. However as these start-ups growth in Dubai. With technology-driven radical of the key aspects of innovation that Dubai should pay Large’ companies. This is a significant improvement grow, the second phase of their maturity brings about business disruptions, visible green shoots of innovative from 2017, where ‘Large’ companies ranked last in most new needs and new challenges. It is therefore essential closer attention to – namely, funding, intellectual capital, organizations and investors, and pressure on the future areas. Throughout this year’s economic challenges, large that the ecosystem enables scaling up. Challenges talent, and research production. Funding challenges in of jobs - a “brave new world” is around the corner! to be addressed include scarcity of funding, investor particular have emerged, with weak access to funds due companies have renewed their optimism for the future. Overall, our survey highlighted the private sectors’ expectations of immediate and risk-free high returns, to tightened government financing and scepticism from increased expectations for greater product and service obstacles in accessing markets (especially outside banks leading to difficulty in obtaining credit – SMEs are innovation. Dubai), and worries surrounding talent. particularly susceptible to these challenges.
In spite of these challenges, Dubai has continued to demonstrate its dedication to its innovation agenda. This Recommendations past year witnessed increased investment in platforms Both the macro and micro level insights gained through and mechanisms to enable entrepreneurship and talent analysis of secondary data, surveys and interviews point to four key recommendations this year: acquisition and retention for a competitive innovation ecosystem. Some steps forward taken by the city 1. Cultivate an innovation culture included eliminating certain registration fines, extending 2. Build a research ecosystem long term visa opportunities especially for technology- 3. Enable adoption of emerging technologies related roles, freezing school fees and permitting 4. Support start-ups to scale up 100 percent foreign ownership of some UAE-based businesses. Building an innovation culture should take place at the city, organisation and community levels. This requires Dubai government policies that drive collaboration and Micro analysis of Dubai’s private sector risk taking. Organisations, on the other hand, can nurture Regarding our micro analysis, this year’s private sector such a culture externally through partnerships, applied survey has outlined more progress and optimism. research with academic institutions, etc. and internally The results highlight the private sector’s continued through leadership, processes, research, incentives and innovation score improvement. It increased by 4.7% other internal tools. between 2017 and 2018, following a 1.2% increase in the Regarding the research ecosystem, we have observed previous year. Perhaps, this is an indication that Dubai’s that Dubai, similar to the rest of the GCC, has private sector is beginning to step forward without successfully developed the infrastructure and facilities relying only upon the government. necessary, but needs to now focus on research output.
Dubai Innovation Index 2018 7 2018 Dubai Innovation Index Rankings – map view
14. Toronto
7. Stockholm
9. Copenhagen 17. Beijing
11. Shanghai 10. Paris 12. San Francisco 2. New York City 15. Tallinn 3. London 22. Moscow 5. Seoul 13. Berlin
8. Zurich 20. Warsaw 23. Doha 19. Madrid
18. Dubai 26. Turin 6. Tokyo
24. Milan 27. Riyadh 1. Hong Kong
32. Nairobi 28. Accra 4. Singapore 29. Bangalore 25. Mexico City 21. Kuala Lumpur
16. Sydney
30. Sao Paulo 31. Johannesburg
Figure 1: Dubai Innovation Index ranking 2018
Dubai Innovation Index 2018 9 1. The framework used to develop this Innovation Index
Our framework for measuring innovation covers two levels – MACRO and MICRO. The MACRO level analysis measures innovation using 59 city-wide indicators relating to the macro framework elements on the left hand side. This year we assessed 32 cities at the macro level. The MICRO level analysis measures innovation using a structured survey for the private sector. Survey questions relate to the framework elements on the right hand side. Only Dubai’s private sector was assessed at the micro level this year (although more cities may be assessed in the future). Dubai Both the macro and the micro measure innovation in two parts: first, looking at the elements that enable innovation(Enablers) and second, looking at the elements that measure innovation outcomes (Performance). Innovation This methodology has allowed us to identify the gaps in Dubai’s innovation environment, and thus draw recommendations and next steps that the city can action in order to achieve its vision of a fast-growing sustainable innovation-based economy. Index *Find all macro (page 67) and micro (page 70) indicators in Appendix II Framework
MACRO MICRO Measures Dubai’s private Measures a city’s innovation sector innovation level through level using secondary data surveys and interviews with companies *This year we analysed 32 global cities to compare *This year we surveyed 1681 Dubai against organisations in Dubai
ENABLERS ENABLERS
Political, Economic & Political, Economic & Infrastructure Infrastructure Social Environment Social Environment - Political Environment - ICT - Political Environment - ICT - Economic Growth - Institutions - Economic Growth - Institutions - People/Social Environment - Environmental Stability - People/Social Environment - Environmental Stability
Funding Culture Funding Culture - Public - Entrepreneurial - Public - Entrepreneurial - Private Investment - Incentives - Private Investment - Incentives - Banking - Banking
Skills & Talent Government Skills & Talent Government - Education - Policies - Education - Policies - Higher Education - Regulations - Higher Education - Regulations - Business Environment - Business Environment
PERFORMANCE PERFORMANCE
Tangible Impact Intangible Impact Tangible Impact Intangible Impact
New Products & Intellectual New Products & Intellectual Services Capital Services Capital
Growth & Revenue Talent & Culture Growth & Revenue Talent & Culture Generation Generation
Technology Readiness Collaboration Technology Readiness Collaboration
Creative Outputs Creative Outputs
Dubai Innovation Index 2018 11 2. City Rankings
We used published data (through secondary research) to measure the innovation levels of 32 cities – how do they compare?
Macro: Table 3: Global Cities Rankings, 2015-2018 Analysis of 2015 2016 2017 2018 Innovation in City Rank Rank Rank Rank Global Cities 28 Cities 30 Cities 30 Cities 32 Cities Hong Kong 2 3 1 1 New York 5 1 2 2 London 1 4 3 3 Singapore 3 6 4 4 Seoul 4 8 5 5 Tokyo 6 5 6 6 Stockholm 7 7 7 7 Zurich 8 9 9 8 Copenhagen 9 10 8 9 Paris 10 2 11 10 Shanghai 17 19 19 11 San Francisco 13 11 10 12 Berlin 14 12 15 13 Toronto 11 13 12 14 Tallinn N/A - N/A - 17 15 Sydney 12 14 13 16 Beijing 18 21 21 17 Dubai 16 15 14 18 Madrid 21 16 18 19 Warsaw N/A - N/A - 16 20 Kuala Lumpur 15 20 20 21 Moscow 23 23 23 22 Doha 19 18 22 23 Milan 25 22 25 24 Mexico City 24 24 26 25 Turin N/A - N/A - N/A - 26 Riyadh 20 17 24 27 Accra N/A - N/A - N/A - 28 Bangalore N/A - 28 28 29 Sao Paulo 26 26 29 30 Johannesburg 27 25 27 31 Nairobi N/A - 27 30 32
Dubai Innovation Index 2018 13 2.1 Selected index trends and insights…
OUR TOP THREE CHINESE CITIES’ RISE CITIES ARE CAN BE ATTRIBUTED STRONGEST IN TO SIGNIFICANT R&D, FINANCING, IMPROVEMENT IN GROWTH & REVENUE INTELLECTUAL GENERATION AND CAPITAL AND COLLABORATION COLLABORATION SCORES
Hong Kong, New York and Chinese cities witness most London as our top 3 innovative cities significant improvement
The ranks of the top performing cities have not differed from last year, we once again see Hong Kong, Regarding the cities that have seen the most significant advancement in their rankings, we can spotlight New York and London occupying the top 3 positions. In analysing the data we can uncover some two Chinese cities. Shanghai and Beijing have both jumped in rank by 8 and 4 places respectively. Much insightful observations… of the rise can be attributed to Collaboration and Intellectual Capital that have improved substantially since last year.
Innovation Enablers: Innovation Performance: • News headlines are abundant with stories of Chinese Development Plan aimed at increasing average R&D collaborations. This year alone saw the Shanghai expenditure per person to more than USD 72,000 by • All 3 cities perform well in the Infrastructure pillar. This • Hong Kong scores the top position in Technology Municipal Government collaborate with Johnson & 2020. reflects strong institutions, environmental stability and Readiness. New York comes in at #10 and London at Johnson Innovation to launch JLABS @ Shanghai. They high ICT-related spending in particular. #7. As an example of Hong Kong’s commitment to • In addition, Chinese policy makers have historically also signed a strategic collaboration deal with Baidu to technology, the Hong Kong Monetary Authority has driven extensive protectionist policies preventing • Interestingly, all the top 3 cities, Hong Kong, New York promote smart city development and the integration of recently published a revised guideline to help companies multinationals from fully competing in the market. For and London score relatively low in the ‘Public Funding’ emerging technologies in the city, AI in particular. In the obtain virtual bank licences to enable its Fintech industry. example, Google and Facebook are still prevented from domain. This seems to be a trend in our DII data, where spirit of international collaboration, this year’s China-Italy operating freely. This has allowed local equivalents such public funding makes up a much smaller percentage of • Not surprising are New York and London’s top positions Science, Technology and Innovation Week resulted in 19 as Baidu and RenRen to thrive. It is a key lesson for total funding in developed cities in comparison to some in Creative Output (i.e. Global Entertainment & Media cooperation agreements between Chinese and Italian cities to learn from. Now that China has strengthened of their more developing counterparts such as Mexico Output and Creative Goods and Services Exports) where firms including between Shanghai Aircraft Design and its internal market, it is eager to globalise further using City and Johannesburg. both cities are strong global reaching media influencers. Research Institute and the Italian Aerospace Research initiatives such as the Belt and Road, Greater Bay Area Hong Kong scores in the lower percentile in this area Centre. • Hong Kong ranks highly in Government Policies, and Made in China 2025. however, particularly in Creative Goods Exports. Regulations and Business Environment but its greatest • It has become clear to the world that China is changing strength is in Skills & Talent particularly in Higher • Collaboration is also a strength for all three innovation quickly. A decade ago, only fourteen Chinese companies Education and Gov’t Expenditure on Education per Pupil. hubs with Joint Ventures/Strategic Alliance Deals being a were among leading consulting firm, Strategy&’s top The city has five universities ranked in the QS World key indicator. 1000 R&D spenders. Most of them were oil companies University Ranking’s top 200. and spent around $2.7 billion in total. In this year’s study, • New York however leads in Entrepreneurial Culture and 133 Chinese companies make the list with Alibaba alone Funding, particularly from private investors and banks. spending $3.6 billion, a 44% increase on the previous The Big Apple is already renowned for its strong and year. The Chinese government also plays a role with mature financial sector however in recent years it has its 13th Five-Year National Science and Technology really become a hub for venture capitalists and start ups to come together.
Dubai Innovation Index 2018 15 2.2 Other regional trends… Regarding regional trends, we see that the majority of cities in North America, Middle East and Africa have experienced decline in GCC CITIES HAVE their innovation performance, while most of those in Asia Pacific, Latin America and Europe have improved or remained the same. DECLINED MOST IN TANGIBLE OUTCOMES SUCH NORTH AS NEW PRODUCTS AMERICA & SERVICES AND
GROWTH & REVENUE 2015 2016 2017 2018 GENERATION San Francisco and Toronto have declined in ranking this year, City 2017 Trend 2018 mainly as a consequence of diminished overall Enabler scores. While San Francisco’s world renowned ecosystem of top In the face of economic challenges, New York 2 2 universities, business networks, talent and risk-taking culture has the GCC cities continue to drive their diversification agendas attracted many innovators in the past, this year more residents left and locally based capitalists have invested over half their San Francisco 10 12 funds outside the city. Analysts not only criticise the city’s The DII’s three MENA cities, Dubai, Riyadh and Doha, have each dropped in rank. At a high level, this ever-increasing living costs, but also the monopolisation of may reflect the overall increasing strength of other cities analysed in the index. Furthermore, the talent by industry giants as a whole and increasing international Toronto 12 14 economic slowdown faced by the region due to decreased oil prices and geopolitical challenges has competition as investors become more outward looking. affected political stability scores.
• Analysing the data further, we find that while Enabler ‘soft’ infrastructure. This refers to ease in setting up scores have remained relatively consistent over the businesses, costs associated, legal requirements, risks last few years, all three cities experienced decline in involved, safety net for failure and capabilities for scaling their Performance scores this year. This indicates lower up. The ecosystem is still evolving but needs to address innovation output and is particularly attributed to drops such challenges quickly. ASIA in Tangible Outcomes such as ‘New Products & Services’, • Regarding the Performance pillar, indicators that have ‘Growth & Revenue Generation’, ‘Technology Readiness’ PACIFIC remained consistently low over the years are patent/ and ‘Creative Outputs’. trademark applications, scientific & technical articles • Under the Enabler pillar, all 3 cities have had persistently and ICT goods exports. Dubai, Riyadh and Doha are still low Bank Funding scores due to low levels of domestic relatively young cities in terms of the maturity of their credit to the private sector and difficulty in obtaining innovation ecosystems - enablers put into place now, 2015 2016 2017 2018 credit. This being said, the number of venture capital may take up to 5 to 10 years to have substantial impact. deals are improving – Riyadh’s rank went up from 23rd to Furthermore, in spite of these difficult times, public 17th and Dubai from 28th to 14th. sector entities continue to actively propel agendas for City 2017 Trend 2018 transforming their historically oil-dependent economies • This relates to our discussions with the private sector who to diversified and sustainable hubs. highlight the growing availability of early stage funding Hong Kong 1 1 Most of the Asia Pacific cities remained the same this year. Kuala Lumpur and Bangalore are the only cities to for start-ups but the challenges faced at later stages for • A significant aspect to these agendas has included Singapore 4 4 decline slightly (by one rank each), partially a result of SMEs, especially when looking for funding from banks. nurturing the R&D, technology, knowledge and innovation the significant increase experienced by our Chinese cities. spaces. The UAE’s Vision 2021 and Saudi Arabia’s Vision Seoul 5 5 • This year’s Gateway Gulf Investor Forum in Bahrain Commendably, four of the DII’s top 6 cities are Asia Pacific. 2030 have been driving forces in these areas. They have saw more than 500 global investors and CEOs Tokyo 6 6 pushed for creating an enabling ecosystem for start- generate interesting discussions around GCC economic Although the cities differ, some trends witnessed across ups and SMEs, specifically in the areas of science and Shanghai 19 11 the region include high social-network penetration and an opportunities and challenges. The GCC’s progress in technology. This year witnessed the UAE reinvigorate and open minded consumer base that encourages creativity in creating enabling ecosystems for start-ups to innovate Beijing 21 17 enhance these objectives by introducing the National the tech sector. was highlighted. Audiences then listened to Fadi Strategy for Advanced Innovation aimed at driving Kuala Lumpur 20 21 Ghandour, Wamda Group Chairman, discuss the region’s outcomes in the areas of “exploration, future skills, quality advances in ‘hard’ infrastructure (physical infrastructure Bangalore 28 29 of health, living and life, green power, transport and such as facilities and laboratories) versus its need for harnessing technology to serve humankind”.
Dubai Innovation Index 2018 17 LATIN AFRICA AMERICA
2015 2016 2017 2018 2015 2016 2017 2018
City 2017 Trend 2018 City 2017 Trend 2018 Generally, Mexico City and Sao Paulo’s scores have not strayed Accra is added as a new city to our index and has ranked too much from last year. With the exception of both cities higher than our other two African cities, who both declined ranking highly in their ‘People’ sub-pillars (especially the Happy Accra N/A - 28 this year, Johannesburg most considerably. The South African Mexico City 26 25 Planet Index which takes into account human wellbeing and city has witnessed increased unemployment and decreased environmental impact) their strengths lie in different areas. Mexico ‘Environmental Stability’, ‘Order & Security’ and ‘New Products City lands top 10 rankings in ICT Goods Imports and Exports, Johannesburg 27 31 Sao Paulo 29 30 Graduates in Science and Engineering, Funding and No. of & Services’. For Accra, ‘Economic Growth’, ‘New Products & Trademark Applications. These outcomes substantiate the city’s Services’ and Labour Force Participation are notably high. growing reputation as a tech hub with access to government Nairobi 30 32 support, funding opportunities and quality talent. The federal government has funded over 620,000 start ups in 2017 picked up 25% of all Latin America’s VC investment. For Sao Paolo, focus has been assigned to building necessary enablers such as improving ease of opening business and public Wi-Fi access.
EUROPE MENA
2015 2016 2017 2018
City 2017 Trend 2018 2015 2016 2017 2018
London 3 3 City 2017 Trend 2018 Stockholm 7 7 As highlighted in our previous discussion, all MENA cities have Six of our European cities have improved in their rankings this Dubai 14 18 Zurich 9 8 dropped in ranking this year particularly as a consequence of year most notably in the Performance pillar. The most significant Doha 22 23 decreased Performance scores. Copenhagen 8 9 improvements being for Berlin and Tallinn, particularly in the ‘Tangible Outcomes’ of Services Value Added and New Business Riyadh 24 27 Paris 11 10 Density. For Berlin, the city has become known as a hub for venture capitalists, diverse talent and community. Simultaneously, Berlin 15 13 Tallinn has seen a surge in investments in the tech industry Tallinn 17 15 especially (e.g. ID verification startup Veriff) raising over USD 500mn in 1.5 years. This year, the Estonian capital was included Madrid 18 19 in British Airways’ list of Europe’s top innovation cities and celebrated for its tech talent. Warsaw 16 20
Moscow 23 22
Milan 25 24
Turin N/A - 26
Dubai Innovation Index 2018 19 3. Enablers, Performance and Innovation Efficiency
Innovation enablers measure the degree to which a city is creating an environment favourable for innovation to thrive. This includes government policies and private investment. Innovation Performance measures the tangible and intangible outputs of innovation in cities, such as the availability of talent and intellectual capital. The Performance to Enabler ratio acts as a measure for understanding and comparing a city’s level of innovation output to its inputs.
Because inputs (or enablers) require time to take affect, we cannot make the assumption that increasing enabler scores will or should immediately cause the increase of performance scores – there will always be lag time to take into consideration.
However, we can use the ratio as a snapshot indicating a city’s innovation efficiency. The less input and more output, the more efficient the city appears to be.
Performance to Enabler Ratio Rankings, 2015-2018
’15 Ratio ’16 Ratio ’17 Ratio ’18 Ratio City Rank Rank Rank Rank Shanghai 1 2 1 1
Beijing 2 3 3 2
Tokyo 4 1 1 3
Seoul 5 6 4 4
New York 7 8 6 5
London 6 9 7 6 Chinese cities take top positions, Latin American cities show most
Hong Kong 12 7 5 7 with much higher innovation outputs significant rise in their Performance Singapore 15 12 10 8 to inputs to Enabler ratio Kuala Lumpur 9 19 12 9 Notably, the top four cities in their Performance to Also of note are two of the most improved cities, both from Latin America. Mexico City experiences a San Francisco 21 16 8 10 Enabler Ratios are once again Asia Pacific cities with Shanghai and Beijing taking 1st and 2nd place 10-spot climb to 14th and Sao Paolo jumps 8 places Zurich 16 15 12 11 respectively. The two cities assume some of the lowest to 16th. For ratios to increase in value, Enabler scores Stockholm 18 10 14 12 Enabler scores but stand out with their Performance must decrease and/or Performance scores must increase. For our Latin American cities, both conditions Paris 13 5 16 13 pillars - improvements in New Products & Services, Intellectual Capital and Collaboration (particularly Joint have been observed, leading to improved ratios. Mexico City 23 21 24 14 Ventures and Strategic Alliance Deals). This reflects a Although they have experienced diminished Enabler Moscow 14 26 18 15 shift in culture. For example, where China had once been scores, their Performance scores have evidently Sao Paul 3 23 24 16 infamous for its weak IP rights and protections, the past increased particularly in ‘Talent & Culture’’. Through government initiatives and other efforts to ultimately Toronto 19 17 21 17 few years have seen the country’s resolve to improve. Since 2014, China has opened specialised IP courts and transform Mexico’s’ economy to a technology-driven Tallinn N/A - N/A - 26 18 tribunals in Beijing, Shanghai and Guangzhou, training global player, the world has begun to take notice of Copenhagen 20 22 18 19 attorneys and judges in technical cases. These courts its growing ecosystem with strong local talent and increasing funding opportunities. The country has Berlin 25 25 23 20 have witnessed increasing numbers of cases and have encouraged both foreign and local investment activity. a young population and university enrollment has Warsaw N/A - N/A - 10 21 tripled over the last few decades. Multinationals such Nairobi N/A - 4 16 22 as Boeing, Ford and HP have all invested in high-tech manufacturing. Furthermore, the start-up scene is Bangalore N/A - 11 8 23 growing steadily. This year saw local startups such Dubai 11 14 15 24 as Cornershop be acquired by Walmart and Yogame Accra N/A - N/A - N/A - 25 raised USD 26.9 million in series B funding.
Madrid 27 28 - 28 26
Milan 28 27 29 27
Turin N/A - N/A - N/A - 28
Sydney 24 18 21 29
Doha 26 13 20 30
Johannesburg 22 24 30 31 *See Appendix VI for Enabler and Performance Rankings Riyadh 17 20 27 32 *See Appendix VI for Performance to Enabler Ratio Calculations and Rankings
Dubai Innovation Index 2018 21 4. 4.1 Spotlighting Dubai Overview of Dubai’s innovation levels from 2015 to 2018
Once again Dubai takes its place as the most innovative city in the region, however this year its overall rank has dropped to #18. This can be attributed to decreasing city scores in ‘Funding’, ‘Tangible Outcomes’ and ‘Intangible Outcomes’. On the other hand, the city’s strongest pillars are ‘PES’ (#3) and ‘Government Policies’ (#6). Furthermore, indicators such as New Business Density (#10) and Labour Force Participation Rate (#2) have also demonstrated significant improvements. Dubai should look to focus on addressing some of its weakest pillars such as ‘Infrastructure’, ‘Growth & Revenue Generation’, ‘Intellectual Capital’ and ‘Collaboration’ We will deep dive into these insights in the next few pages. DUBAI, UAE
Saudi Arabia Oman
Dubai Innovation Index 2018 23 4.3 Dubai’s Innovation Dubai’s Macro Rankings, 2015-2018 Enabler Scores vs. Top Cities Ref. 2015 2016 2017 2018 Data measure No. 28 Cities 30 Cities 30 Cities 32 Cities In line with Dubai’s aspiration to become a Rank Score Rank Score Rank Score Rank Score leading global innovation hub, Dubai’s score on 0_1 Enablers 16 46.48 16 45.22 15 51.67 15 47.91 each enabler pillar and sub-pillar was compared 1 Political Economic and Social Environment 17 57.99 13 55.33 2 75.62 3 69.02 to the global best performers. In this context, 1_1 Political Environment 10 80.19 14 68.67 10 80.46 10 73.46 we can compare, benchmark and learn from the 1_2 Economic Growth 19 59.76 8 56.73 6 59.28 13 45.03 best practices of top performing cities in the 1_3 People/Social Environment 26 34.02 19 40.59 1 87.11 1 88.56 different elements of innovation. 2 Infrastructure 25 17.39 23 16.98 27 14.35 27 16.13
2_1 ICT 27 2.71 28 1.40 29 2.19 28 4.06
2_2 Institutions 26 0 21 1.53 23 0.89 21 2.26 Dubai’s Innovation Enablers Rank, 2015-2018 2_3 Environmental Stability 16 49.46 16 47.99 21 39.96 20 42.08
3 Government 12 69.70 14 68.32 12 72.92 12 73.14 2015 2016 2017 2018 Rank Trend Rank Trend Rank Trend Rank 3_1 Policies 3 83.82 6 83.42 6 80.59 6 80.52 Innovation 16 16 15 15 3_2 Regulation 15 54.17 15 53.11 16 56.27 16 55.99 Enablers 3_3 Business Environment 17 71.12 19 68.44 11 81.89 11 82.9 4 Skills and Talent 22 37.99 24 31.92 14 49.23 14 48.15 POLITICAL ECONOMIC AND SOCIAL ENVIRONMENT 4_1 Education 22 37.84 22 33.28 11 48.34 17 40.37
4_2 Higher Education 23 38.15 23 30.56 18 50.13 11 55.92
5 Funding 17 31.74 13 35.13 14 37.84 22 30.20
5_1 Public 4 75 3 88.26 3 90.26 11 68.76 Singapore has become renowned for attracting 5_2 Private Investment 15 8.03 18 4.57 16 10.32 14 7.74 investment with its robust 5_3 Banking 24 11.40 27 12.57 29 12.94 27 14.11 Intellectual Property protection laws. 6 Culture 12 64.06 11 63.62 14 60.10 14 50.84
6_1 Entrepreneurial 12 77.01 12 77.41 12 76.27 16 73.07
6_2 Incentives 17 51.11 18 49.83 18 43.93 14 28.60
0_2 Performance 15 31.80 17 28.48 15 29.94 19 23.84 Dubai: 1 Tangible Outcome 12 35.26 13 37.31 11 40.55 14 32.76 In the Political, Environmental and Social Environment (PES) pillar, Dubai has performed very well. Although its ‘Political Stability’ score has decreased in rank due to regional tensions, in the area of ‘People/Social Environment’, the city has seen consistent high 1_1 New Products and Services 7 65.95 11 71.75 5 72.89 15 43.48 scores over the years due to its relatively young population and significantly low unemployment. 1_2 Growth and Revenue Generation 28 0.96 25 1.06 28 1.10 27 1.90 1_3 Technology Readiness 4 73.02 4 76.41 2 81.42 2 80.36 Singapore: 1_4 Creative Outputs 27 1.12 27 4.82 25 6.80 28 4.82 Singapore achieves an almost perfect score in the ‘Political Environment’ pillar which takes into account ‘Political Stability’, ‘Order and Security’ and ‘Government Effectiveness’. 2 Intangible Outcomes 16 28.34 20 19.66 19 19.33 21 14.93 As an example, Singapore has become renowned for attracting investment with its robust Intellectual Property protection laws. 2_1 Intellectual Capital 27 0.87 25 1.06 27 1.30 28 1.94 The city was ranked first in Asia (and 4th worldwide out of 137 countries) for Best Protection of IP in the Global Competitiveness Report 2017-2018. 2_2 Talent & Culture 4 53.71 3 52.33 3 49.36 9 36.89 Furthermore, other than fulfilling the city’s base needs of safety and stability, the city also recognizes the key role security plays 2_3 Collaboration 8 30.44 26 5.60 25 7.34 26 5.96 in a digital economy. The Innovation Cyber Security Ecosystem was set up earlier this year in a collaboration between VC Innov8, the National University of Singapore and gov’t entities such as the Cyber Security Agency of Singapore to support start-ups, entrepreneurs and academics in the field.
Dubai Innovation Index 2018 25 GOVERNMENT
Singapore has demonstrated innovative uses of regulations to support the development of newer capabilities such as Big Data and Fintech.
Dubai: In this pillar, Dubai makes it to the top 15 due to its policies pertaining to low tax rates, the National Innovation Strategy and also the previously mentioned STI Policy.
Regarding ‘Regulations’ and ‘Business Environment, a most notable achievement for the UAE this year has been its rise by 10 spots in the World Bank’s annual Ease of Doing Business report to 11th place globally from 21st in 2017. The result marks the first time a MENA economy makes it into the top 20. The report attributed the rise to four significant economic reforms; the elimination of fees for industrial and commercial electricity connections, improvements to the online registration system for new businesses, INFRASTRUCTURE strengthened access to credit and increased transparency in its land administration system making property registration easier.
Singapore: In the ‘Government’ pillar, Singapore takes the lead with top scores in Ease of Doing Business, Regulatory Enforcement and The US’ Research and Regulatory Quality. Experimentation (R&E) tax The city has demonstrated innovative uses of regulations to support the development of newer capabilities such as Big Data and credit encourages private Fintech. The use of a ‘regulatory sandbox’ empowers entrepreneurs in these areas with the space to experiment and take risks R&D by allowing companies without as many regulatory barriers. unlimited deductions for The Monetary Authority of Singapore’s (MAS) Fintech strategy is already producing results. Current participants in the program qualified research spending. include AI-based advisory firm Kristal Advisors and currency exchange Thin Margin.
Dubai: In ‘Infrastructure’, Dubai still has room for improvement, particularly in the areas of ICT Spending, R&D Expenditure and Energy Sustainability. In terms of R&D Expenditure, this seems to be a reflection of Dubai’s maturity as a young city still making headway in its innovation ecosystem. Government driven initiatives and plans such as the 2015 Science, Technology and Innovation (STI) policy have identified the challenges. In light of this,the city has set goals for strengthening STEM talent, supporting higher education, expanding R&D facilities and incentivizing private investment. Regarding Energy Sustainability, although it does not score high, Dubai has made it a priority for its future goals such as Vision 2021 and the Dubai Plan 2021 which include the establishment of renewable energy and energy efficiency targets. The city’s total number of charging stations for electrical transport is set to double by end of 2018 and the government has launched an incentive package, which includes free charging until 2019, parking fee exemptions as well as rebate in the toll fees.
New York: For New York, Computer Software Spending and Business-Financed and Foreign-Financed R&D Expenditure are big drivers of its high performing innovation ecosystem. In Strategy&’s 2018 Global Innovation study of the world’s 1000 largest corporate R&D spenders, seven out of the top ten companies were US based. Government incentives play a big role in this.
Zurich: Zurich’s strength in Environmental Stability correlates with its 2016 win as the world’s most sustainable city in the Arcadis Sustainable cities Index. The city’s robust energy-related policy decisions are big contributors. Recent energy policy developments included preventing the building of new nuclear power plants, to reduce energy consumption, increase energy efficiency and to promote renewable energies.
Dubai Innovation Index 2018 27 FUNDING
For New York, both investment and round sizes have substantially increased while the exit environment for venture- backed companies has increasingly improved.
Dubai: In ‘Public Funding’, Dubai is ranked 11th, however this is a substantial drop from 3rd place last year and can be attributed to low government financed R&D. ‘Private Investment’ has improved by two ranks this year as a result of significantly increased venture capital deals (28th to 14th). While ‘Banking’ improved slightly but has consistently experienced low scores in Ease of Getting Credit SKILLS AND TALENT and Domestic Credit to the Private Sector over the years. These findings are confirmed by our discussions with the private sector who commend the growing start-up space but worry about the obstacles in SME funding. In 2014 investments in Emirati tech start-ups first broke $100M and in 2017 reached over $1B – the rapid growth of Dubai’s start-up landscape is undeniable with the city’s connectivity attracting VCs from around the world such as Techstar Dubai. For start-ups, finding early stage UAE investors is getting easier, but after Series B+ level there seems to be a gap. A successful ecosystem must have a diverse range of investors covering all stages and all industries/specialities. In addition, there is need for transparency and data availability - groups like Arabnet, MENAPEA, and start-ups like Magnitt are making headway in this area.
Education, a key area of New York: focus for global economies While New York ranks 27th in ‘Public Funding’, it ranks first in both ‘Private Investment’ and ‘Banking’, with Venture Capital Deals nurturing the talent and Ease of Getting Credit being key strengths. Note that this has proven to be a trend. More mature cities, ranked higher overall in needed for the future. the DII, generally have strong ‘Private Investment’ and ‘Banking’ capabilities compared to ‘Public Funding’. In contrast, lower ranked cities such as Riyadh, Nairobi and Johannesburg demonstrate strong reliance on ‘Public Funding’ but shortages in ‘Banking’ and ‘Private Funding’.
For New York in particular, the city has quickly emerged as a prominent hub for innovation and entrepreneurship. Over the last few years, both investment and round sizes have substantially increased while the exit environment for venture-backed companies has increasingly improved. Since Google’s 2007 acquisition of NYC’s DoubleClick, there has been a surge of talent and startup Dubai: activity, leading to a large number of acquisitions and IPOs. Although Dubai is renowned for its ability to attract highly skilled international talent, our ‘Education’ indicators such as Graduates in Science and Engineering, Assessment in Reading, Mathematics and Science and Number of Top World Universities need special attention. The Dubai government has already demonstrated the importance assigned to building the city’s education/knowledge capabilities through its numerous policy and strategy documents driven by Vision 2021 and the National Innovation Strategy. This being said six out of ten pupils studying at Dubai private schools still opt to study business at university. Some experts believe this is because Business degrees are the top courses that are predominantly offered in the UAE. While the school market is maturing, the university market is still very young and requires more prioritization of diversified research funding to really begin competing at the world stage.
Moscow: Moscow has also demonstrated itself as a good benchmark for Education, the sector in which a key area of focus for global economies has been towards nurturing the talent needed for the future. Relevant to this, the Russian Capital, supported by top Russian educational innovators, held the Global Education Leaders’ Partnership conference to discuss education for the ‘Complex Person’ addressing 21st century challenges of complexity. Promising to innovation, the conference heard discussions on the impact of digitalisation, strategic uncertainty and need for sustainability.
Hong Kong: Hong Kong has done well in the Education arena with top scores in Graduates in Science & Engineering and Number of Top World Universities which include the likes of The University of Hong Kong, The Hong Kong University of Science & Technology and The Chinese University of Hong Kong.
Dubai Innovation Index 2018 29 4.4 Dubai’s Innovation Performance Scores vs. Top Cities
Table 8: Dubai’s Innovation Performance Rank, 2015-2018
2015 2016 2017 2018 Rank Trend Rank Trend Rank Trend Rank
Innovation 17 15 19 Performance 15
TANGIBLE OUTCOME
CULTURE The Emirati city has impressively increased in rank from 19th last year What strengthens NYC’s to 10th this year in ‘New innovation ecosystem is Business Density’. its understanding of the importance of community.
Dubai: In terms of Tangible Outcomes this year, Dubai has seen a small decline attributed largely to the decline in New Products & Services (Manufacturing and Services Value Added) and a low score in Growth & Revenue Generation (particularly in Market Capitalisation and Total Stock Value). This reflects the UAE’s relatively young stock market. Dubai: Simultaneously, the Emirati city has impressively improved in rank Dubai’s ‘Culture’ pillar rank makes it to the top 15. The city may look to improve in ‘The Global Entrepreneurship & Development from 19th last year to 10th this year in ‘New Business Density’. This also Index’ which takes into account entrepreneurial attitudes, abilities and aspirations. This requires nourishing a culture where risk corresponds with the city’s rise in The Ease of Doing Business Index acceptance, start-up skills, technology absorption and opportunity perception can thrive. indicating improved regulations for business and stronger IP rights – a more entrepreneurial culture should follow. The Department of Economic VCs and entrepreneurs based in the UAE have increased advantages of being connected with industry leaders, regulators, Development says the number of business licenses issued this October customers, and potential partners. Even in our hyper-connected world that in many ways can transcend physical boundaries, face- was 25% more than last year. Analysts recognize Dubai as an attractive to-face proximity and serendipity still play an important part in business and Dubai has built this capability successfully. hub for entrepreneurs with access to many industry leaders and tech savvy consumers. The new wave of favourable policies announced this New York: year will add to this. Among them, the decision to offer visas of up to 10 years for investors, entrepreneurs, leading specialists and students New York has an impressive record with regards to its Entrepreneurial Culture. It has ranked first in ‘The Global Entrepreneurship & focused on science, technology, medicine, and culture. These kinds of Development Index’ for the past four years, although it ranks 10th in ‘Number of Days to Start a Business’. policies are important and encouraging to expat entrepreneurs who In creating a strong start up hub, NYC has dozens of co-working spaces to support entrepreneurs across all stages of startup life desire to invest their efforts in a city they can call home. including WeWork, Knotel, AlleyNYC, Spark Labs, Neue House among many others. What strengthens NYC’s innovation ecosystem is its understanding of the importance of community. NYC’s venture capitalists New York: have taken this idea to the next level by building specialized communities around specific themes that are core to their funds. In contrast, New York excels in Growth and Revenue Generation The purpose being to help founders connect with other founders, executives and investors and increase brand awareness and (particularly in Market Capitalisation and Total Stocks Value) – this comes recognition for the fund. as no surprise with the New York Stock Exchange being the world’s largest and one of the most mature stock exchanges by far. Thirteen of the top 20 $100 Billion Plus Market Cap Companies in the world are US firms.
Dubai Innovation Index 2018 31 5. Innovation through easy and difficult times – INTANGIBLE OUTCOME global case studies In light of the DII’s theme this year, we have collated success stories from around the world demonstrating the role of innovation in overcoming social, economic, political and other challenges… Tokyo’s top score in ‘Intellectual Capital’ is driven by a large number of patent and trademark applications.
How Milan used How a London app How Mexico City used collaboration and is encouraging local gamification and 4,000 Dubai: mission-led business in the face public transport users Dubai’s rankings in all three ‘Intangible Outcomes’ incentivisation to combat of multinational to fix its chaotic public pillars have declined this year and its weakest areas are negative environmental monopolisation… transport system… evidently ‘Intellectual Capital’ and ‘Collaboration’. This reflects the need for increased investment in research impact… and development from both the private and public sectors. Challenge: Challenge: Challenge: Reduce the impact of waste and The negative impact of Lack of organized structure for Regarding ‘Talent & Culture’, a low number of researchers pollution on the sea multinational monopolies on local public bus system, one of the largest and knowledge intensive jobs have brought rankings business in the world. Citizens had to rely on down. Innovative solution: word-of-mouth to work out how to Dubai should look to improving its talent pool – analysts In line with Milan’s strongest pillar, Innovative solution: get from point A to point B. worry about the effects of a talent crunch (or talent ‘Environmental Stability’, Milan’s DigitalTown’s Smart.London shortage), especially as leading start-ups try to scale- Impact Hub and the Mediterranean app, launched this year, offers a Innovative solution: up. In some ways, the government has already begun arm of the World Wildlife Fund solution by allowing Londoners The Laboratorio para la Ciudad addressing this. In line with the UAE’s Vision 2021 (WWF) collaborated last year to search, shop and connect (“Laboratory for the City”) – the prioritising the development of a knowledge-based to identify, accelerate and scale within their city and support experimental arm and creative think economy, it was announced that long-term visas will be innovative solutions for protecting their local businesses. Local tank of the Mexico City government, granted to specialised professionals including doctors, the environment. merchants can set up a store front reporting to the Mayor – organised scientists, and inventors. for free with minimal transaction a multi-stakeholder collaboration. Impact: fees. The app is a co-operative In partnership with 12 organisations In an initiative named ‘Impact Tokyo: ecosystem that allows residents including NGOs, the private sector Hub Milano Fellowship on Ocean to co-own the platform by buying and other government offices, they Tokyo’s top score in ‘Intellectual Capital’ is driven by Cleanup’, winners won a cash prize CityShares, a blockchain-based created a year-long working group a large number of patent and trademark applications. and incubator support from Impact solution (10 CityShares can be to improve urban mobility and Bloomberg reports that IPs are generating great Hub itself to develop and launch revenue growth for the city, increasing by 74% over the claimed for free). Holders of the transport in Mexico City through the their products. past five years. As a result, ensuring strong IP protections shares are granted voting rights development of the crowdsourcing and can claim a percentage of initiative Mapatón – a gamification and an enabling environment are in place has become Gr3n Recycling won the fellowship a main concern. Tokyo’s antitrust watchdog is currently the platform’s revenues. Other experiment to map the city’s bus last year for their new technology developing regulations to prevent monopolization that community tools include joining route. (DEMETO –Depolymerization may build monopolies on customer data and patents. discussions, managing events and by Microwave Technology) fundraising for the community. Impact: for increasing the amount of More than 4000 public transport Hong Kong: recyclable plastic from 10% to Impact: users participated in the citywide 100%. The technology ensures that Hong Kong takes the lead in the ‘Collaboration’ pillar. The model propels support game, gathering data to create an This year the city has increased its research collaboration all PET fibers are recyclable. The for local business and puts all open database on the 1500 plus deals with mainland China in particular. For example, second winner of the fellowship merchants on a level playing bus routes in the city. Companies Hong Kong Polytechnic University (PolyU) and Shenzhen was SEADS – Sea Defense Solution field where local players are not and civic hackers were then able University in China agreed to jointly set up a new – using barriers to redirect, collect debilitated by lack of marketing to use the data to create smart innovation institute this year. and recycle waste in rivers. and expansion funds. navigation apps.
Dubai Innovation Index 2018 33 6. Dubai’s overall Private Sector scores
We surveyed 1,649 Dubai-based companies to measure the innovation levels of Dubai’s private sector – how did they do? Micro: Analysis of Innovation in The survey results show that Dubai’s private sector has maintained Dubai’s Private continuous growth in its innovation Sector score, increasing by 4.7% from 2017 to 2018, following a 1.2% increase the year before. This is somewhat contrary to the macro scores and perhaps suggests the first signs of grassroots shift in innovation in the private sector.
Dubai Innovation Index 2018 35 Overall Private Sector Detailed Scores (0-100), 2015-2018
The private sector survey was sent out to organisations in Dubai, covering different industries and company sizes. Pillar 2015 2016 2017 2018 The survey gathered data at company and industry level to obtain insights into the innovation needs, challenges and successes of Dubai’s private sector as outlined in the framework in chapter 1. This, coupled with the macro analysis Enabler 56.34 61.82 65.75 67.26 from the previous chapter, provides a comprehensive view of Dubai’s overall innovation ecosystem. Capability 53.96 62.27 61.75 62.42
Organization Enabler 48.29 63.06 51.90 56.45
Strategy, Leadership & Culture 51.11 59.24 54.43 53.99
Overall Private Sector Innovation Score (0-100), 2015-2018 Innovation Management 65.15 63.01 70.62 70.03 2015 2016 2017 2018 Overall Private Skills and Talent 44.83 51.77 70.04 69.21 Sector Innovation 6.4% 1.2% 4.7% Score 57.10 Activity 58.72 61.40 69.76 72.10 60.79 61.52 64.40 Accessing New Ideas 62.3 69.19 67.21 72.88
Implementing new ideas 46.68 53.56 72.32 71.31
Performance 58.62 58.73 53.06 58.68
Impact - Tangible 57.79 60.05 51.57 60.11
Growth & Revenue Generation 43.79 48.82 40.84 48.89
New Products & Services 59.35 64.17 56.08 64.65
Technology Readiness 70.22 67.16 57.79 66.80
Impact - Intangible 59.45 57.40 54.54 57.25
Intellectual Capital 31.30 29.26 32.28 36.88
Collaboration 69.82 63.42 59.64 60.91
Talent & Culture 77.22 79.52 71.71 73.95
Dubai’s overall private sector scores have demonstrated An Enabler sub-pillar that experienced a drop in score this continuous improvement since 2015. Companies are putting year, as was the case in 2017, is ‘Strategy, Leadership & Culture’. increased efforts to stay on top of fast-paced innovation This reflects the need for companies to recognize that, in good breakthroughs and carrying out initiatives to stay relevant and times or bad, it is critical to have an ongoing innovation strategy competitive. enabled by the needed investments and a culture of innovation and creativity. This requires providing the space for trial & error Similar to the past two years, the Enabler score has improved and risk taking, shifting the paradigm from viewing innovation this year indicating strong endeavours by Dubai’s private sector as a luxury to understanding its necessity for sustained growth. to develop innovation management, skills, and ideas. The Performance sub-pillars that have increased most this After a significant drop last year, our 2018 Performance score year are those under ‘Tangible Impact’ – ‘Growth & Revenue has recovered back to 2016 levels. This reflects returns from Generation’, ‘New Products & Services’ and Technology increased efforts and awareness-raising activities to instill Readiness’. Companies in Dubai seem to increasingly see or innovation as an essential means for success in the past few expect to see revenues increase from growing technology years. adoption and innovation in products, services and business models.
Dubai Innovation Index 2018 37 7. Survey respondents
In terms of company size, the majority of respondents represent smaller firms, with 82.7% coming from companies with less than 100 MODE OF NUMBER OF OUTREACH: SURVEY RESPONDENTS: RESPONDENTS: employees. Similarly, the majority (84.5%) of firms ONLINE & earn less than AED 100 million in revenue. By polling PHONE DUBAI PRIVATE a wide range of company sizes, DII is able to gather 1649 COMPANIES SURVEY RESPONSES insights into innovation at all levels of the business world. This allows a clearer picture of the innovation landscape.
RESPONSES BY NO. OF EMPLOYEES RESPONSES BY INDUSTRIES
Innovation can mean different things in different industries, as such, the goal of DII is to represent a wide 42.4% 40.3% 11.5% 3.6% 1.0% 1.2% and broad range of industries. This allows insight across different industries, where they are excelling and where 1% Agriculture they have room for improvement. Construction and 13% Real Estate
Wholesale and Retail 29% 2% Education
1 20 21 100 101 2 0 2 1 00 01 1000 1000 Energy and o ee o ee o ee o ee o ee o ee 6% Utilities
3% Healthcare RESPONSES BY FIRM REVENUE
11% Hospitality 44.0% 40.5% 13.9% 1.0% 0.7% Transport and 7% Logistics $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Professional 8% 6% ICT Services
Media and 9% Manufacturing 10 10 100 100 00 00 i ion D ≥ 1 bi ion Marketing 6% i ion D i ion D i ion D 1 bi ion D D
Dubai Innovation Index 2018 39 8. DII 2018 Survey Snippets
Upon analysing the survey responses, several significant observations stand out in comparison to 2017 responses. First, increase in the number of respondents that agree their companies currently have a clear and defined innovation strategy. Second, more companies are now seeing customers as a source of new innovative ideas. Third, higher number of company leaders are now clearly seeing the importance of introducing new value offerings (e.g. moving from a product to as services model) and enhancing customer experience. Further, there is a jump in the number of companies that believe they have made radical or breakthrough changes when it comes to Data & Knowledge Management over the past few years.
Capability Questions... Activity Questions…
Q. To what extent do you agree with Q. To what extent do you agree your firm Q. To what extent do you agree that the Q. How challenging is it to take innovative the following statements about your has the right and sufficient skills for following sources have helped your firm ideas to market quickly and grow them? innovation strategy? innovation? access new ideas for innovation?
60%
51% 32% 68% 65% 20%
16% 21% 14% 20% 20% 13% 13% 19% 18% 20% 26% 17% 15% 17% 16% 10% 14% 14% 17% 15%
17% 18% 10% 12% 5% 4% 4% 1% 2% 3% 0% 0% 2017 2018 2017 2018 2017 2018 2017 2018 u to e e o ten u o an a an innovation t ate t on a ee xte na a tne ten o etito a tne u ie ee e innovation t ate i e a i ned o ee o eti e to bu ine t ate eit e a ee no di a ee x ibition a e
e ave u e u i e ented Di a ee e edia eve ou innovation t ate t u a e ne a e a a ine et t on di a ee o ia edia o t on ee e on e o ea tate ent o t on ee e on e o ea tate ent
Dubai Innovation Index 2018 41 Tangible Impact Questions… Intangible Impact Questions…
Q. Does your firm use digital and information Q. How often do you think you will implement any of Q. How significant have your firm’s innovations been in Q. How challenging is the following aspect in making communication technology (such as virtual teams, the following over the next three to five years? Data & Knowledge Management over the past 3-5 innovation happen within your firm: Finding the right video conferencing, remote working, collaboration years? external partners to collaborate with. and reporting, tools, etc.) to facilitate innovation?
45% 27% 26% 40% 61% 36% 50% 51% 20% 43%
25%
13% 30% 27% 25% 17% 17% 11% 10%
19% 17% 15% 15% 11% 7% 9% 6% 6% 7% 9% 5% 2% 1% 1% 1% 1%
2017 2018 2017 2018 2017 2018 2017 2018
Strongly agree New value oerings Radical (entirely new businesses based on big Very often (e.g. moving from a product to a services model) changes to technology and business model) Agree Often Breakthrough Sometimes Neither agree nor disagree Making the customer experience better (major changes to business model or technology) Rarely Disagree Incremental Lower-cost alternative models (small changes to existing products or services) Never Strongly disagree (e.g. fewer features at lower prices ) No plan in place to innovate in this area *% of ‘Strongly Agree’ responses for each statement Other *% of ‘Very Often’ for each statement
Dubai Innovation Index 2018 43 9. Innovation Scores by Company Size
This year, the survey results highlight ‘Large’ companies In order to garner deeper insight on Dubai’s private sector innovation Overall scores by company size over the years as the top overall innovation scorer. This is a significant scene, we have studied the performance of companies based on size. We 0 improvement from 2017 where ‘Large’ companies ranked defined size based on revenues, generally aligned with Dubai’s Department 8 last, which is possibly due to large companies leading the way to digital innovations investments. ‘SME’s’ have of Economic Development guidelines: Micro (less than 10m AED), SME (10- also demonstrated high growth at each level. We can 100m AED), Large (100-500m AED), Very Large (more than 500m AED). 2 see this as a renewed wave of optimism that SME’s and 0 large companies have embraced as they step up their 8 efforts to invest in innovation. Analysing the results, we can attribute these wins to increases in 11 out of the 12 sub-pillars, most significantly from the Performance 2 0 pillars and ‘Tangible Impact’ sub-pillars in particular. | | | | This reflects improved and/or expectation ofimproved 2015 2016 2017 2018 innovation-driven revenue growth coming from new i o 10 10 100 and innovative internal processes, products/services, a e 100 00 e a e 00 business models and/or digitisation. All company sizes have experienced strong improvements in these areas this year. Perhaps a reflection of previous years’ efforts Enabler scores by company size over the years - we saw improvements in most Enabler scores last year. This being said, ‘Micro’ and ‘Very Large’ companies 0 experienced lower Enabler scores this year. 8 The one sub-pillar that ‘Large’ and ‘SME’ companies decreased in was ‘Strategy, Leadership & Culture’. This 2 proved an area of decline for all company sizes this year. 0 It reflects difficulties in defining innovation in the firm, 8 reduced appreciation for the importance of innovation and lower revenue percentages spent on R&D. These 2 can be challenging to focus on during difficult times, 0 however is key to survival and sustainable growth. | | | | 2015 2016 2017 2018 ‘Very Large’ is the only company size to decrease in i o 10 10 100 overall score this year. Looking at the data further, we a e 100 00 e a e 00 can extrapolate that a decreased Enabler score has caused this. The most significant decline is in ‘Skills & Talent; and ‘Implementing New Ideas’. This highlights challenges in finding and retaining innovation talent and Performance scores by company size in developing and growing innovative ideas. over the years
0 In Performance ‘Very Large’ companies’ results have 8 maintained a score of 57, however most sub-pillars have improved with ‘Intellectual Capital’ jumping the most. 2 Looking across the years, between 2015 and 2018, all 0 company sizes have experienced increase in overall 8 scores and in Enabler scores. Interestingly, ‘Micro’ and ‘Very Large’ companies have experienced drops in their Performance scores whereas ‘SME’ and ‘Large’ 2 companies have seen a significant rise. 0 | | | | 2015 2016 2017 2018
i o 10 10 100
a e 100 00 e a e 00 *See Appendix VI for detailed scores by Company Size
Dubai Innovation Index 2018 45 10. Overall Innovation Scores by Industry
This year, 11 out of our 12 industries have demonstrated an increase in their Highest Scorers overall innovation scores; agriculture showed a slight decrease The ‘Hospitality’ industry witnessed the greatest increase in score this year, leading the ranks amongst its peers. This is largely attributed to improved responses relating to ‘New Products & Services’ and ‘Growth & Revenue Overall scores by industry over the years Generation’. With the number of international tourists visiting Dubai reaching 8.1 million in the first half of 2018 (increased from 8.06 million in 2017), the hospitality sector is continuously looking for ways to streamline their operations and enhance the customer experience. 80 (refer to page 37 for a detailed overview of Dubai’s 0 hospitality industry). 0 0 The ‘ICT’ industry once again maintains one of the 0 highest scores (refer to page 39). This comes as no 0 surprise as ICT is a dynamic sector and a key pillar of 20 the digital transformation ecosystem, contributing to 10 Dubai’s ambition to become a leading global smart city. 0 Organizations in the ICT industry heavily invest in digital e e I e technology, which is used to support innovative business ediaetin ne a tu in etai models and meet evolving customer requirements. i u tu du ation ti itie o e iona an o t o ita it ea t a e vi o i ti o e a e a ea tate on t u tion anu
201 201 201 2018 Lowest Scorers ‘Agriculture’ (refer to page 33) ranked last and was the only industry to decrease this year, although only by 1%. Contributing most to this decrease is lower ‘Collaboration’ and ‘Skills & Talent’ scores. This reflects the agriculture industry’s struggle to find and retain necessary talent and collaboration partners for innovation. This being said, our detailed industry review identifies Dubai’s efforts to build sustainable and technology-driven models both at the public and private sector levels. In time, the impact of these initiatives should become apparent.
Since 2015, all industries have seen growth in their innovation scores
The industry with the highest improvement since 2015 is ‘Professional Services’ (+18%) reflecting the focus of the sector to find ways of increasing operational efficiency and offering innovative services that cater to the changing requirements of various public and private sector companies. Refer to page 42 for a review of Dubai’s professional services industry.
Dubai Innovation Index 2018 47 10. Enabler and Performance Scores by Industry
Enabler scores by industry over the years Performance scores by industry over the years
80 0 0 0 0 0 0 0 0 0 0 20 20 10 10 0 0
e e I I e e ediaetin ediaetin ne a tu in etai ne a tu in etai i u tu e du ation ti itie o e iona an o t i u tu e du ation ti itie o e iona an o t o ita it ea t a e vi o i ti o e a e o ita it ea t a e vi o i ti o e a e a a ea tate ea tate on t u tion anu on t u tion anu
201 201 201 2018 201 201 201 2018
Highest & Lowest Scorers 2015-2018 Highest & Lowest Scorers 2015-2018
In line with overall scores, ‘Hospitality’ has also Over the past four years, all industries’ Enabler scores This year, all industries have experienced increases in In comparison to 2015, most industries have decreased experienced the greatest increase in Enabler score, have increased. ‘Professional Services’ has increased their Performance scores with ‘Media and Marketing’ in their Performance scores. Only ‘Professional Services’, ranking first for 2018. As the industry gears up for Expo since 2015 the most at 25%. Healthcare has increased the seeing the greatest rise at 18%. Once again ‘Hospitality’ ‘Hospitality’ and ‘Transport & Logistics’ have seen a rise 2020, players are using the opportunity to start new least at 10%. ranks highest and ‘Agriculture’ ranks lowest this year. at 5%, 2% and 1% respectively. ventures, meet international standards, provide unique customer experiences and cater to the needs of the projected 20 million visitors expected to visit Dubai during the 6 month exhibition.
‘Agriculture’ (refer to page 33) was the only industry that showed an Enabler score drop and ranks last. *See Appendix VI for detailed scores by Industry
Dubai Innovation Index 2018 49 A DETAILED REVIEW OF 12 INDUSTRIES Dubai’s performance against global benchmarks
For our detailed review, we conducted extensive online research and consulted industry experts to shed light on some of the innovation success stories and trends shaping these industries…
Dubai Innovation Index 2018 51 • This year the UAE’s Ministry of Climate • In a joint venture between agri-tech firm Crop Change and Environment (MOCCAE) signed One Holdings and Emirates Flight Catering, an MoU with Dubai South (DWC) to expand ‘the world’s largest vertical farm’ began the local aquaculture industry in efforts to construction of its 130,000 sqft, USD 40million increase sustainability of the UAE’s fisheries. facility this year. The facility represents a step As an initial step, MOCCAE will be supporting towards the Dubai’s long term vision of a DWC with the establishment of a fish farm. sustainable and self-sufficient city, (in 2015 This will include support and consultancy on the UAE imported around 85% of its food). aquaculture best practices. MOCCAE will also The endeavour aims to produce pesticide free act as research body for the UAE’s aquaculture crops equivalent to 900 acres of farmland. The industry, producing feasibility studies and vertical farming trend allows the production of recommendations for species cultivation and large quantities of vegetables using 99% less technology applications. water.
• Mohammad Bin Rashid Innovation Fund • Ecocoast, a Dubai-based specialist marine deployed AED5.5 million this year to contracting and coastal protection services UAE-based start-up Pure Harvest for the company, launched Ecolabs this year–the construction of their high-tech greenhouses. region’s first hub for innovative marine The greenhouses will address the UAE’s technologies. The hub designed to support food security issues by utilising climate and accelerate entrepreneurs in the marine management and hydroponic technologies. industry with solutions for its top challenges.
DUBAI’S DUBAI’S PUBLIC PRIVATE SECTOR SECTOR
11.1 Agriculture (1% of respondents) GLOBAL GLOBAL CASE TRENDS 23% -8% -1% +31% -4% -2% +7% -13% +1% STUDY
70 68 How the Netherlands 67 65 became a Global Agricultural • Data Analytics and Internet of Things (IoT) 63 – sensors (e.g. RFID) on fields and crops are 62 62 Powerhouse used to collect data such as soil moisture and 59 Today Dutch farms have become renowned for humidity, and data is transferred to the Cloud via their higher than average production output, they 55 53 55 55 are the world’s second exporter of food. The US IoT comes first but has 270 times the landmass of • Drones - for monitoring crop and livestock the small European nation. The Netherlands has health Overall Enablers Performance also been committed to sustainable agriculture in the past 20 years. This has meant significant • Robotics - for harvesting reductions in the use of water (90% less), 201 201 201 2018 • Blockchain - for traceability along the value pesticides on plants and antibiotics on livestock chain by connecting inputs, suppliers, producers (60% less). and buyers. This ensures quality of livestock and The agriculture sector consists of farming crops and rais- Credited for the country’s success, is Wageningen agricultural produce transactions University & Research (WUR), regarded as the ing livestock such as cattle, camels and fish. world’s top agricultural research institute. WUR has agreements with over 140 countries to share and implement their knowledge, attempting to solve such global challenges as food production on an Biggest contributors to decrease this year: • Collaboration • Skills & Talent overpopulated planet. Also key is the university’s Industry’s strongest sub-pillars: • Accessing New Ideas • Talent & Culture partnership with Food Valley – Holland’s ‘Silicon Valley’ of agriculture and home to over 200 agri/ Industry’s weakest sub-pillars: • Intellectual Capital • Growth & Revenue Generation food start-ups and experimental farms.
Dubai Innovation Index 2018 53 • A notable development for Dubai’s • Cazza, Dubai construction technologies firm, construction industry in 2018 was the is set to build the world’s first 3D-printed government’s announcement of a 3D-printing skyscraper by 2023 using a new construction strategy aimed at having 25% of the city’s technique called ‘crane printing’ - cranes new buildings 3D printed by 2025. specifically created for building 3D printed structures 80m and above. • The Museum of the Future (set to open in 2019), a unique incubator for futuristic • In November 2018, Property Finder, the Dubai- innovation and design, won the Best Public based real estate classifieds website, raised Category Project at the Tekla Global Building $120 million in a funding round led by General Information Modelling (BIM) 2018 Awards. Atlantic, a New York-headquartered global private equity firm. The company aims to invest • Professional services firm, JLL’s 2018 Global this money in developing the website further, Real Estate Transparency Index Report saw which attracts over 16 million page views per Dubai improve by eight positions. According month. to the report, Dubai is home to a host of government initiatives, enhanced regulatory procedures and an increasingly dynamic proptech sector.
DUBAI’S DUBAI’S PUBLIC PRIVATE SECTOR SECTOR
11.2 Construction & Real Estate (13% of respondents) GLOBAL GLOBAL CASE TRENDS +5% +2% +6% +10% +6% +4% -4% -7% +11% STUDY
67 65 Real Estate: Ukraine to Auction Seized • Ecommerce has increased need for warehouses 60 64 61 61 59 59 Assets through Blockchain and distribution centres. Delivery by drones, robots and autonomous vehicles in the future 57 57 In line with Ukraine’s vision to become a leading 55 will affect this. nation in blockchain technology use, 2017 saw 53 • Proptech e.g. virtual reality for property viewing efforts in merging this vision with improvements in and automated valuation models government efficiency and transparency. Smart buildings & smart cities Overall Enablers Performance The Ministry of Finance announced plans to Construction: use Distributed Labs’ eAuction, a blockchain • The sharing economy – sharing construction 201 201 201 2018 platform, in order to sell government assets. A machinery move made to develop an effective system for • Cloud based computing – for connecting selling seized properties and other assets as well machinery and workers, increasing accuracy and safety The companies engaged in preparation of land and construction, as increasing information transparency. alteration, and repair of buildings, structures, and other real prop- • Construction technologies – e.g. 3D printing, drones for building site surveying and mapping, erty constitutes the construction sector. VR/AR for clarifying designs. • Modular buildings- also known as prefabricated (prefab) homes are developed off-site at prefab Biggest contributors to increase this year: • Innovation Management •New Products & Services production lines and semi-assembled as sections called modules and joined together at site. Industry’s strongest sub-pillars: • Talent & Culture • Accessing New Ideas Advantages include better design and quality, and reduced costs, lead times, and risk of Industry’s weakest sub-pillars: • Intellectual Capital • Growth & Revenue Generation accidents.
Dubai Innovation Index 2018 55 • This year Dubai ruler Sheikh Mohammed • Dubai-based start-up Asafeer Education bin Rashid launched Madrasa, the largest Technologies won the Transforming Education free Arabic language e-learning platform. Prize at the Seedstars Summit in Switzerland last year. The start-up provides online storytelling The platform provides 5000 science, math, content focused on enhancing Arabic literacy biology, chemistry and physics videos to skills. In one month the platform has landed a students from kindergarten to grade 12. Over total of 49,866 hours of reading of over 1,000,000 the past year, the project saw over 52,000 stories. The start-up is also outward looking, teachers, engineers, researchers, university collaborating with 60 schools from the region. Finally, the start-up perceives itself as a platform students, government employees, technicians for solving societal challenges as well as those and graphic designers apply to volunteer their found in the traditional curriculum. This includes contribution to the platform in translation and developing gender neutral content and nurturing video production. The launch fills the gap in children’s emotional intelligence. Arabic educational material and comes as a • This December Dubai GEMS School hit an much needed resource for reigniting the Arab unparalleled record in the Gulf region by world’s passions for science and math in a time celebrating the certification of 129 of their teachers as Microsoft Innovative Educator when such skills are in high demand. Experts (MIEE). MIEE Experts help Microsoft to lead innovation in education by using Microsoft Educator Community platform in their classrooms. This platform allows teachers to use digital tools to enhance the existing teaching practices, and allows them to collaborate together more efficiently.
DUBAI’S DUBAI’S PUBLIC PRIVATE SECTOR SECTOR
11.3 Education (2% of respondents) GLOBAL GLOBAL CASE TRENDS +8% -1% +4% +17% -4% +4% +1% -5% +5% STUDY
67 67 64 ASTI, the Spanish Mobile Robotics • Preparing students for the future of work 64 as industries undergo rapid transformation 62 62 Engineering firm building a future 60 prepared workforce especially through automation and digitisation – 59 59 58 this requires whole new skillsets that graduates 57 57 ASTI, International intralogistics mobile robotics must be equipped with company based in Spain is a global player in the design, manufacture and maintenance of • Focus on social-emotional learning (SEL) – there autonomous vehicle systems. In a demonstration is increasing consensus between educators that Overall Enablers Performance of how the private sector can contribute to a test scores should not be the only indicator of country’s education ecosystem, the company student success 201 201 201 2018 launched ASTI Academy and College for nurturing • Rising student numbers, increased supply of HE a new generation of students trained in STEM. institutions and changing student expectations ASTI’s recognition of the changing world of work, Companies in this industry include business and secretarial schools, tech- – increasingly tech savvy students and rising where many traditional jobs may become moot, fees in many countries has led to higher student nical and trade schools, and providers of tutoring, exam preparation, and has deeply motivated this initiative. expectations and demands for flexible learning other institions such as universities which indulge in research. In efforts to lessen the gender gap in STEM, ASTI • Online learning such as MOOCs (Massive Open developed its own program for girls aged 14 plus Online Courses) are taking on an important role - STEM Talent Girl. The program provides ‘job Biggest contributors to increase this year: • Accessing New Ideas • New Products & Services for students who need flexibility and low costs. shadowing’ opportunities and master classes given Industry’s strongest sub-pillars: : • Talent & Culture • Accessing New Ideas by women leaders in the technology sector. Industry’s weakest sub-pillars: • Intellectual Capital • Growth & Revenue Generation
Dubai Innovation Index 2018 57 • This year marked the fourth phase of the • Sustainable City by Diamond Developers is the largest single-site Concentrated Solar Power first net zero energy residential development Project (CSP) at the Mohammaad Bin Rashid in Dubai – a city that generates more power Al Maktoum solar Park. The Park will begin than it consumes. The city, with an estimated production by 2020 in time for Expo 2020 value of USD354 million, perhaps acts as a Dubai – this will make it the first Expo to be simulation for the city of the future – electric fully powered by clean energy. smart cars, greenhouses, and solar-powered homes. • In another example of public sector efforts, Dubai Electricity and Water Authority (DEWA) • In November 2018, Enerwhere, a Dubai- installed 270,000 new smart meters this year based solar utility company raised $700,000 under its “Smart Applications via Smart Grid in capital via the equity crowdfunding and Meters” initiative. The Authority’s aim is platform Eureeca. Enerwhere is the world’s to install 1.2 million smart meters by 2020. first provider of MW-scale rentable solar The initiative corresponds with the city’s goals generators for commercial and industrial scale to build smart and sustainable infrastructure. applications. The money will be primarily used Smart grids enhance efficiency and energy to patent their technology and invest in solar conservation through consumption monitoring equipment such as battery storage, and remote and automatic decision-making. monitoring equipment. This aims to solidify their positioning as the region’s leading solar utility company.
DUBAI’S DUBAI’S PUBLIC PRIVATE SECTOR SECTOR
11.4 Energy & Utilities (6% of respondents) GLOBAL GLOBAL CASE TRENDS +8% -2% +5% +11% +3% +3% +1% -12% +9% STUDY
66 64 Scottish Power becomes first major • Zero-emission energy sources 63 63 62 UK energy company to generate all • Charging stations for electric transport 60 electricity from wind 59 59 • Drones – for plant and pipeline surveillance and 57 56 57 inspection 53 In 2018, Scottish Power became the first major • Digital twinning – create virtual copies of plants energy company in the UK to fully cease fossil and sites, allowing for predictive maintenance Overall Enablers Performance fuel-based energy production. The British and training simulations energy giant sold its plants and will now rely on windfarms. This represents the organisation’s • IoT – for predicting weather conditions at 201 201 201 2018 vision for cleaner and cheaper energy generation offshore operations with plans to invest £5.2 billion in the next 4 years • IoT and smart meters – for monitoring important The energy and utilities industry is the totality of industries involved in the pro- to double its renewable energy capabilities. Its site data such as flow rate, temperature, pressure duction and sale of energy, including fuel extraction, manufacturing, refining and East Anglia One farm, to open in 2020, will be the etc. distribution and the utilities sector, which is a category of stocks for utilities such world’s largest windfarm. as gas and power. The utilities sector contains companies such as electric, gas • AI – for tracking seismic data and facies identification in the upstream 9exploration) and water firms and integrated providers. stage • 3D printing of parts – for reducing inventory Biggest contributors to increase this year: • Growth & Revenue Generation • Intellectual Capital
Industry’s strongest sub-pillars: • Talent & Culture • Accessing New Ideas
Industry’s weakest sub-pillars: • Intellectual Capital • Growth & Revenue Generation
Dubai Innovation Index 2018 59 • This year Dubai’s Department of Tourism • In a demonstration of public-private presented its new goals and strategies for partnership, September 2018 witnessed Dubai attracting 21-23 million visitors by 2022 and 23- Tourism, Atlantis Hotels, Emaar Hospitality 25 million by 2025. Currently, the Emirati city is Group and start-up platform Union launch the fourth most-visited city but aims to rise to the second annual ‘Futurism Challenge’. first place by 2025. Dubai ranks first this year The challenge provides acceleration and for international overnight visitor spend – this funding opportunities to innovative start-ups sets an ideal backdrop for the industry as a in the tourism sector. Of particular focus are whole. emerging technologies such as AI, digital ecosystem, AR/VR and Blockchain. • In terms of the food and beverage sector, the Dubai Municipality (DM) launched ‘Food Watch’ last year, an app and website for monitoring food from “farm to fork”. In this way, the Municipality and food companies may work together to improve safety and quality while residents will be able to tailor their food choices to any allergies or other dietary restrictions they may have. The project aims to improve food safety over Dubai, particularly for the upcoming Expo 2020.
DUBAI’S DUBAI’S PUBLIC PRIVATE SECTOR SECTOR
11.5 Hospitality (11% of respondents) GLOBAL GLOBAL CASE TRENDS +5% 0% +8% +8% +4% +5% -2% -9% +13% STUDY
69 66 66 Augmented Reality Menus on • Biometric authentication – for guest access to 63 Snapchat Reimagining Food Selection hotels without risk of losing keys or cards 61 61 60 59 • AI - for guiding tourists during their visit and 58 58 58 New York based start-up, Kabaq 3D Food Technologies, was founded with a vision to providing itinerary recommendations. 53 reinvent the restaurant customer’s journey. • Virtual reality – for unique thematic customer Their approach is centred around emerging experiences technology applications and in particular the use Overall Enablers Performance • Chatbots – for customer service enhancement of augmented reality (AR) that enhances food selection and ordering processes. Their AR menu • The sharing economy – accommodation sharing 201 201 201 2018 is created from images of the item and allows such as Airbnb consumers to preview it from any angle – prices • Internet of Things (IoT) and big data – for and nutrition information can also be incorporated. This sector is a broad category of fields within the service industry that identifying operational inefficiencies and The technology uses Snapchat AR Lenses but can includes lodging, theme parks and additional fields within the tourism enhancing customer experience using predictive be used in other apps such as Facebook Camera. industry, along with food and beverages. anal e.g. personalised greetings, activity Most recent projects include, Dunkin’ Donuts, Domino’s Pizza and Subway. • Hospitality without technology – for guests who Biggest contributors to increase this year: • New Products & Services • Growth & Revenue Generation want a tech detox Industry’s strongest sub-pillars: • Accessing New Ideas • Talent & Culture
Industry’s weakest sub-pillars: • Intellectual Capital • Growth & Revenue Generation
Dubai Innovation Index 2018 61 • In May 2017, Dubai Creative Clusters Authority • Dubai-based start-up, SouKare.com is an (DCCA – regulatory body for Dubai free zones) e-commerce platform for health products. and the Ministry of Health and Prevention The website raised US$400,000 this year (MoHaP) signed a partnership agreement to in seed funding attracting GCC investors support the growth of Dubai’s Healthcare with its unique customer service approach. and Pharmaceuticals sectors. The agreement The platform commits to delivering all in- outlines the responsibilities of the two entities stock items in Dubai within 90 minutes using to cooperate on nurturing sector skills and optimised processes and dedicated bikers. overcoming challenges faced by plants and • Another example of healthcare innovation investors. in Dubai’s private sector is DrFive, an online • In April 2018, Dubai Health Authority (DHA) platform for patients to find and review announced its plans for an innovation centre Dubai doctors. The Dubai-based platform has with a mission to grow public-private partnered with South Korean company JLK collaboration for healthcare technology. Inspections this year to launch an AI-based stroke diagnosis system for the MENA region. • In May 2018, DHA launched the Innovation and Artificial Intelligence strategy and the AWTAAD initiative, aimed at training over 120 DHA employees (including doctors, nurses and IT professionals) in healthcare project management.
DUBAI’S DUBAI’S PUBLIC PRIVATE SECTOR SECTOR
11.6 Healthcare (3% of respondents) GLOBAL GLOBAL CASE TRENDS +3% -2% +4% +6% +2% +1% -3% -11% +10% STUDY
66 65 64 Stanford Medicine & Google • Personalisation - Healthcare, like other 63 62 Harnessing the Power of Data in industries, is getting personal. mHealth (mobile 60 61 60 health) can offer personal toolkits for predictive, 60 59 58 Health. participatory, primary and preventative care. 52 • IoT and wearables e.g. the Apple Watch includes The amount of healthcare data has exploded sensors that can detect sudden drops in heart in the past few years. Stanford Medicine and rate Overall Enablers Performance Google have partnered to reimagine how data • AI for diagnosis and early detection science can be used to improve medical research 201 201 201 2018 and patient care. • Predictive analytics for hospitals for optimising patient appointments and staff and room With the utilisation of Google Genomics, Stanford allocations The healthcare industry comprises of providers of diagnostic, preventive, reme- Medicine will be able to securely store and dial, and therapeutic services, including private doctors, hospitals, clinics, com- analyse massive genomic datasets and thus • Telemedicine – virtual healthcare provision panies and organizations. It also includes medical equipment and pharmaceuti- develop its new Clinical Genomics Service on the • Robotics – for physical therapy and surgery cal manufacturers and health insurance firms. Google Cloud Platform. These developments are simplification expected to help medical practitioners analyse • Medical tourism – for lower cost specialised genomes, diagnose diseases and provide remedial treatment and travel-based therapy solutions in a much shorter time. Biggest contributors to increase this year: • Growth & Revenue Generation • Intellectual Capital
Industry’s strongest sub-pillars: • Accessing New Ideas • Innovation Management
Industry’s weakest sub-pillars: • Intellectual Capital • Growth & Revenue Generation
Dubai Innovation Index 2018 63 • Telecom provider, Etisalat, announced its plans • Dubai has attracted USD21.6 billion worth of to launch super-speed 5G network in time for FDI in high-end technology transfers in the the Dubai Expo 2020. Du and Etisalat have also last 3 years, majority from the EU and U.S. introduced eSIM technology for latest iPhone models this year. • Thales, a multinational French tech company, • The Smart Dubai Office and Dubai’s Supreme announced in April of this year its plans to Legislation Committee launched Dubai soon open a cybersecurity hub in Dubai. Data Policies this year to ease access to The new hub will drive awareness and information. The initiative aims to publish all open and shared data through Dubai Pulse app implementation of best practice cyber security and an online portal by 2021. and innovation in the region. The hub will also • In an age of accelerated technological collaborate with academics and local startups progress and transformation, Dubai unveiled and offer them legal, technical and consultancy its Cyber Security Strategy last year in efforts services. This hub will make use of Thales to provide a digital ecosystem protected from cyber threats, and supportive of cyber local expertise and global network to help innovation. businesses safely and securely make digital • In October, Smart Dubai and IBM announced transformations. their collaboration to offer the first • Microsoft will be opening the region’s first government-backed blockchain platform, in line with Dubai’s Blockchain Strategy. It aims cloud data centre in Dubai this year. The at supporting companies to develop their data centre comes as a reaction to the GCC’s blockchain solutions. increasing demand for digitization. • This year also saw 22,000 graduates from the ‘One Million Arab Coders’ initiative, preparing the Arab world for future skills.
DUBAI’S DUBAI’S PUBLIC PRIVATE SECTOR SECTOR
11.7 ICT (6% of respondents) GLOBAL GLOBAL CASE TRENDS +5% +4% +2% +7% +6% +4% 0% -8% +7% STUDY
69 66 66 • Demand for emerging technologies - such as 64 Cloud computing company, 62 63 ServiceNow, most innovative company cloud computing, IoT and edge computing, 61 61 60 advanced data analytics, blockchain, AI and 59 58 in the world 56 machine learning This year’s Forbes Most Innovative Company is • Ethics in tech - concerns around the risks and ServiceNow, a US-based cloud computing company founded by Fred Luddy. After losing most of his disruptiveness of new technologies – lack of fortune due to accounting fraud at his previous regulations Overall Enablers Performance employer fourteen years ago, Luddy started • Increase in tech start-ups, VCs and accelerators ServiceNow that same year. The company is now 201 201 201 2018 a USD30 billion market cap. Its business model is centred around employees ‘working better’ through streamlined, intuitive and automated processes that enable working effectively across a company’s many departments– (HR, Marketing, Legal etc.). The IT sector consists of companies that develop hardware and software or pro- ServiceNow’s most innovative features are the vide other services related to technology responsible for internet, information, simplicity and customizability of its products – its renewal rates are at an impressive 98%. and communication based innovations. Also key has been Luddy’s smooth transition from CEO. Ego put to the side, Luddy set out to find a Biggest contributors to increase this year: • Strategy, Leadership & Culture • New Products & Services replacement who would be more suited to the firm’s expansion needs, all the while providing mentoring Industry’s strongest sub-pillars: • Talent & Culture • Accessing New Ideas and other forms of guidance to his successors. Industry’s weakest sub-pillars: • Intellectual Capital • Growth & Revenue Generation
Dubai Innovation Index 2018 65 • Dubai Industrial Strategy 2030 aims to • GE Additive (GE’s new business focused on improve manufacturing value-added, advanced technologies) signed an MoU last develop knowledge and innovation, increase year with Mubadala Development Company Dubai’s attraction for global business in the and Dubai Future Foundation to launch the manufacturing sector, encourage sustainable MENA region’s first microfactories – an and efficient manufacturing and make Dubai a upcoming trend in the manufacturing sector. centre for the global Islamic products market. These plans aim to accelerate the adoption To achieve this vision, 75 initiatives have been of digital manufacturing and additive design outlined including increasing investment such as 3D printing and rapid prototyping. incentives and developing local knowledge and The model aims to provide opportunities skills. for collaborative, crowdfunded product development. Internal and external teams • In pre-emption of an increased industrial can collaborate to develop ideas into sector, 2018 saw Dubai Industrial Park (DIP) working prototypes and eventually small- announce its AED135 million infrastructure scale production – a transitional need before expansion plan. The plan includes mass production.Hopes for the venture enhancements to road networks and ground include increasing innovation in design and work and is set to cover 16 million square feet manufacturing and creating potential for the and 14 km of road network. development of new industries and start-ups.
DUBAI’S DUBAI’S PUBLIC PRIVATE SECTOR SECTOR
11.8 Manufacturing (9% of respondents) GLOBAL GLOBAL CASE TRENDS +4% +3% +3% +7% +8% 0% -2% -8% +9% STUDY
67 67 Innovation in manufacturing: second The manufacturing industry has been significantly 63 64 influenced by the progresses of industry 4.0 which 61 62 ‘speed factory’ opens in Atlanta 60 encompasses end-to-end digitization and data 59 59 58 58 integration of the value chain. The PwC Strategy& 54 This year, Adidas opened its second futuristic Industry 4.0 2018 report highlighted how Digital ‘Speedfactory’ in Atlanta, America. Based on Champions of the manufacturing industry are the concept of Industry 4.0, the factory brings adopting technologies such as: Overall Enablers Performance together flexible, customisable automated • Additive design - 3D printing – for faster and technologies with a limited human workforce. cheaper production and mass customization 201 201 201 2018 Technologies include 3D printing, robotic arms • IoT – particularly for distribution-centric and computerised knitting. The world renowned businesses where fast-moving operations are sneaker company claims this new model brings crucial. Data from IoT can be used to identify shoes to market three times faster than traditional bottlenecks and quality deficiencies The manufacturing sector consists of firms engaged in chemical, mechanical, or means. physical transformation of materials, substances, or components into consumer • Predictive machinery maintenance technologies or industrial goods. • Another trend is sustainable manufacturing – e.g. reducing negative environmental footprint through energy conservation and recycling. Biggest contributors to increase this year: • Intellectual Capital • Growth & Revenue Generation
Industry’s strongest sub-pillars: • Talent & Culture • Implementing New Ideas
Industry’s weakest sub-pillars: • Intellectual Capital • Growth & Revenue Generation
Dubai Innovation Index 2018 67 • This year, Dubai free zone authority, TECOM • Dubai-based start-up Magnitt.com, is the Group, announced the launch of a new type of largest start-up investment data platform in the MENA region. The site provides a license for media and education freelancers. start-up community, connecting entrepreneurs with The licence, named the GoFreelance permit, key stakeholders including mentors, VCs and is designed to enhance Dubai’s media and talent. The platform also provides monthly technology sectors, attracting talent from publications reporting on industry trends and around the world. insights in the MENA start-up ecosystem. It has filled a gap in the region for start-ups to know • Among the city’s regulatory steps this year what funding is available and for investors to was the National Media Council’s (NMC) make informed decisions. As a start-up itself, introduction of mandatory licencing for this year Magnitt raised almost USD1 million in a seed funding round led by a number of VCs media influencers and websites who carry out including 500 Startups. brand advertising and sponsorship activities. The decision by the NMC acts as a step by • SACO Technologies, a leading media solutions company, partnered with Emaar Properties the public sector to ensure regulations keep earlier this year to install a massive LED up with changing needs. The move aims to screen on Burj Khalifa, running up 770 meters legitimise information sources while building of the 828-metre-tall tower. The innovative trust between collaborators and protecting technology was developed in Montreal, but the financial rights of the license holder. So far, many of the components were sourced and manufactured locally in Dubai. Because of this 650 licenses have been issued to social media project, the tower earned multiple Guinness influencers. World Records including the largest and tallest LED-illuminated façade.
DUBAI’S DUBAI’S PUBLIC PRIVATE SECTOR SECTOR
11.9 Media and Marketing (6% of respondents) GLOBAL GLOBAL CASE TRENDS +7% -6% +6% +9% 0% +2% +1% -18% +18% STUDY
67 66 66 The Washington Post: Using Selected marketing trends: 64 64 Technology to Accelerate Newsroom • Blockchain technologies for digital advertising 60 60 60 60 60 59 Innovation impact measurement 100 year-old American news publication, The • Influencer marketing –brands using social media 50 Washington Post, has evolved over the last few influencers for advertising and sponsorship years in the face of technological advancements purposes and changing consumer habits and expectations. Overall Enablers Performance Particularly, after its acquisition by Amazon • Increased use of voice search which only founder Jeff Bezos in 2013, the company has provides top few answers – this means digital 201 201 201 2018 invested in a multitude of technologies to enhance marketers must optimise content accordingly its storytelling capabilities and help reporters act on breaking news faster. For example, the Selected media trends: company used the Rio summer Olympics to • Blockchain for piracy prevention Media includes every broadcasting and narrowcasting medium such as newspa- experiment with automating stories. Accounting pers, magazines, TV, radio, billboards, direct mail, telephone, fax, and internet for lessons learned, they were able to cover over • ‘Streaming Video-Ondemand’ (SVOD) and ‘Over 500 stories during the US elections that followed. the top’ (OTT) subscription e.g. Netflix and and marketing comprises of business of promoting and selling products or ser- The Post has also developed proprietary code to Amazon Prime – these new models are primarily vices, including market research and advertising. generate augmented reality stories for its app. ad-free and bypass telecommunications Using Amazon Web Services (AWS), the Post was broadcast television platforms that traditionally able to develop its own publishing platform and Biggest contributors to increase this year: • Intellectual Capital • Growth & Revenue Generation now offers the platform to other media companies act as a controller or distributor Industry’s strongest sub-pillars: • Talent & Culture • Implementing New Ideas for purchase under the name Arc Publishing – it already supports over 90 publishers. Industry’s weakest sub-pillars: • Intellectual Capital • Growth & Revenue Generation
Dubai Innovation Index 2018 69 • In a revolutionary move by the Dubai Future • Dubai-based fintech startup and social Foundation and Dubai Courts this year the enterprise, NOW Money, raised USD700,000 three levels of litigation (Court of First of seed-funding this year. Its unique business Instance, Court of Appeals and Supreme Court) model is centred around providing relevant (accounts and were merged into a single court called the C3 online banking services remittance sending) to the UAE’s low income Court. The first of its kind, the system will be migrant population. The company aims to made up of three judges each representing one eventually reach the rest of the region’s 86% of the levels. The C3 Court is said to simplify unbanked population. procedures, reduce costs and decrease average litigation time from 305 days to 30 days per • September 2018 saw Dubai-based Mashreq Bank became the first private bank in UAE case. These are much needed strides for the to implement an automation platform, Blue improved efficiency of the system. Prism’s Digital Workforce, that integrates • Dubai’s biggest bank, Emirates NBD, emerging technologies such as AI and authorised the use of Google Pay this year for machine learning to enhance customers’ debit and credit card holders, enabling a faster digital experience and increase the bank’s and easier payment experience. This comes operational efficiency. This was made possible by partnering with Virtusa Corporation, an with a AED1 billion investment in banking and American IT services company. payments technologies.
DUBAI’S DUBAI’S PUBLIC PRIVATE SECTOR SECTOR
11.10 Professional Services (8% of respondents) GLOBAL GLOBAL CASE TRENDS +5% +8% +4% +11% +9% +3% -6% +5% +7% STUDY
68 66 65 Machine Learning Helping • Artificial intelligence - for analyzing large documents and extracting relevant information 62 60 58 Professional Services Companies Increase Efficiency • Just in time knowledge – having the right 57 knowledge at the right time 55 55 54 Machine Learning or AI software companies 54 52 such as HighQ in London and Kira Systems in • As new industries and technologies emerge and Toronto are increasingly playing a major role in disappear – relevant and in-demand knowledge Overall Enablers Performance the professional services industry. When the UK’s (legal and other) will change at the same pace Serious Fraud Office (SFO) began its four-year • Natural language processing (NLP) – technology 201 201 201 2018 investigation of Rolls Royce it employed Ravn’s that speaks naturally and recognizes emotions. software to analyse 30 million documents for Has been used to uncover people’s feelings relevant information for the case. This would about certain topics through open-ended otherwise have been impossible. The SFO is now surveys working on cases with over 65mn documents. AI Accounting, legal and other such services provided by a formally certified mem- and natural language processing (NLP) are also being used to support due diligence and smart ber of a professional body constitute professional services. contracts. Professional services firms are more and more investing in the field whether through their own incubators, VC funding or strategic alliances. Biggest contributors to increase this year: • Growth & Revenue Generation • Technology Readiness
Industry’s strongest sub-pillars: • Talent & Culture • Accessing New Ideas
Industry’s weakest sub-pillars: • Intellectual Capital • Growth & Revenue Generation
Dubai Innovation Index 2018 71 • Dubai Future Foundation’s Autonomous • Virgin Hyperloop One is setting up its Transportation Strategy announced this year office in Dubai this year in preparation for is targeting a 25% transformation of total the development of the Dubai-Abu Dhabi transportation into autonomous mode by 2030. hyperloop. With this new mode of transport, DFF estimates the strategy to save AED22 billion trips from Dubai to Abu Dhabi will total a in annual economic costs through decreased transportation costs, decreased carbon emissions mere 12 minutes, a stark improvement from the and decreased traffic causing lower individual approximately 1.5 hours it currently takes by productivity. car. • Last year also witnessed Dubai’s Road & Transport • In another example of transportation Authority (RTA) open its Enterprise Command and evolution in Dubai, air services provider Dnata Control Centre (EC3). The centre functions as a hub acquired majority shares in bd4travel (Big for smart planning addressing Dubai’s transport Data for Travel) this year in order to drive challenges through big data, AI and other smart its AI capabilities for personalising customer technologies. EC3 acts to support the management shopping experiences. and planning of crises, events, transit means and data compilation, analysis and security. So far, the • Concerning logistics entrepreneurship in Dubai, centre has already trialed autonomous shuttles and renowned start-up Fetchr solved the issue of flying drone taxis. no addresses in emerging markets. Helping • This year RTA signed MoUs with three international overcome the obstacles faced by the region’s startups in the areas of autonomous transportation, eCommerce sector. The Fetchr app tracks the asset tracking and artificial intelligence. customer’s phone GPS location in order to • December 2018 saw RTA announce the 2019 launch increase accuracy and speed in delivery. Last of an ‘e-hail’ app to book its taxis, similar to Careem year, the start-up raised USD41 million from the and Uber. The new model is brought about through likes of Majid Al Futtaim and New Enterprise a partnership between Careem and RTA and is the Associates in what has been named the first of its kind for a government transport authority. region’s largest ever series B funding round.
DUBAI’S DUBAI’S PUBLIC PRIVATE SECTOR SECTOR
11.11 Transport and Logistics (7% of respondents) GLOBAL GLOBAL CASE TRENDS +11% -3% +5% +15% 0% +2% +3% -11% +12% STUDY
67 New Technology, Hot Transport: 65 65 65 64 Form Quenching, creating • Autonomous mobility 61 60 60 EnvironmentallyFriendly Lightweight 59 • Sustainability – e.g. green vehicles, 57 57 Vehicles disincentivizing car ownership and the sharing economy 53 Impression Technologies Ltd (ITL), a project initiated in Imperial College, has developed a Logistics: patented high strength lightweight aluminium • Robotics and automation - for forklifts in Overall Enablers Performance pressing technology called hot form quench warehouses (HFQ). The technology promises a cost effective way for manufacturers to produce lighter • Internet of Things and mobile apps - for 201 201 201 2018 vehicles with decreased energy consumption. inventory management, barcode scanning, HFQ is currently used by a number of vehicle fleet management, shipment tracking, order manufacturers including Aston Martin and Lotus management etc. The transportation & logistics industry forms the backbone of modern global Cars. HFQ is also being used for aerospace, rail • Transportation Management System - for all and industrial sectors. supply chains. Airlines and airports, shipping companies, logistics service pro- logistics communication and processes including route scheduling and optimisation, freight viders and other transportation companies are all part of the process to keep ITL has been supported by key engineering and innovation bodies in the UK such as the auditing etc. people and products on the move. Engineering and Physical Sciences Research • Artificial Intelligence - for predictive analysis of Council, Innovate UK and the Office for Low customer demand and real time decision making Emission Vehicles. In 2016 ITL secured £6 million on availability, costs, inventories, vehicles etc. Biggest contributors to increase this year: • Growth & Revenue Generation • Technology Readiness in funding from the Advanced Manufacturing Supply Chain Initiative and other VCs. This year ITL • Blockchain - to build trust by tracking shipments Industry’s strongest sub-pillars: • Talent & Culture • Accessing New Ideas raised £3 million from Mercia Technologies and IP and supply chain Industry’s weakest sub-pillars: • Intellectual Capital • Growth & Revenue Generation Group plc.
Dubai Innovation Index 2018 73 • In partnership with the Dubai Government, • 2018 witnessed Dubai-based luxury resale Procter & Gamble unveiled the I-Dubai Center start-up The Luxury Closet secure USD8.7 for retail innovation this year. This marks P&G’s million in growth funding. The raised capital first research center dedicated to emerging will be used to expand the company’s supply in Middle East and build its global buyers markets with goals to improve product network. A leader in the region’s circular availability through new distribution, mobile economy, The Luxury Closet’s sustainable and e-commerce processes and technologies. business model means well-off luxury item • Dubai Airport Free Zone Authority (DAFZA) owners can pass on their items to fashion and Wasl Asset Management Group formed conscious bargain hunters. a joint venture last year to set up a USD735 • Popular website for buying and selling million free zone for e-commerce. Based in anything, Dubizzle, was fully acquired by Umm Ramool area, close to Dubai International South African investor Naspers. The Dubai- Airport, the location is said to provide based website was valued at USD 400 million. strategic logistical advantages to e-commerce • The US’ Nike opened it’s biggest MENA store companies through access to air, land and sea in Dubai Mall this year in partnership with the routes. UAE’s Sun & Sand Sports. The store acts as a trailblazer for the unique and personalised customer experience trend in the region. The space has a unique community hub for customers and athletes to connect and a customisation corner printing artwork on Nike merchandise.
DUBAI’S DUBAI’S PUBLIC PRIVATE SECTOR SECTOR
11.12 Wholesale and Retail (29% of respondents) GLOBAL GLOBAL CASE TRENDS 0% +3% +4% +1% +10% +1% -1% -11% +12% STUDY
67 66 “Amazon Go” Opens in Seattle: • Payments revolution – for easier and faster 64 Changing the face Of Supermarket cashless payments e.g. the introduction of Alipay 61 in Dubai has helped accelerate Chinese tourism 59 59 60 59 59 58 58 Retail with Technology • Consumers are willing to pay extra for This year, 52 Amazon’s future-looking convenient personalised services, like same-day or quicker store, Amazon Go, made news headlines around shipments the world in its efforts to reimagine the retail Overall Enablers Performance customer experience without checkouts. The new • Blockchain to discourage counterfeiting ‘Just Walk Out Shopping’ model makes shopping • Hyperlocal ondemand delivery model - for faster 201 201 201 2018 quicker, easier and more efficient with customers and easier delivery of all types of products merely presenting their Amazon Go apps at the • Pop-up stores – for businesses to connect hi-tech gates, picking up their desired items and with customers on the ‘shop floor’ for short going on their merry way. The wholesale sector comprises establishments engaged in wholesaling mer- periods of time and at different locations. It is an effective marketing tool and allows testing of the chandise, generally without transformation, and rendering services incidental to market and selling of seasonal items the sale of merchandise. • Social networks act as a source of inspiration for purchases Biggest contributors to increase this year: • Growth & Revenue Generation • Intellectual Capital • Retailers are using artificial intelligence to track Industry’s strongest sub-pillars: • Accessing New Ideas • Talent & Culture consumer shopping habits and preferences
Industry’s weakest sub-pillars: : • Intellectual Capital • Growth & Revenue Generation
Dubai Innovation Index 2018 75 12. Views from Dubai’s Entrepreneurs, Established Business, and Government
Throughout the course of our research, we heard directly from Dubai- based entrepreneurs, VCs, established businesses and government leaders MARKETS TECHNOLOGY about their experiences within the innovation ecosystem. Consistent with We are seeing the re-invention of retail Clearly technology is absolutely the recommendations in this report, the following provides a sample of from the inside. In the wider GCC it will important .. all of our stores are still take some time, but here in Dubai equipped with the latest technology what we heard… the model is already changing ... we have … foot trackers, heatmaps, etc … with to compete on the basis of customer internet and social media we can predict understanding, global insights, speed, and customer demand…a lot of technologies FROM DUBAI’S responsiveness … these are the basis for are also shaping efficiencies … in the ESTABLISHED loyalty. back office, the logistics chain, with SKILLS & TALENT ACCESS TO MARKETS AND suppliers … innovation is also a lot about GOVERNMENTS BUSINESS… saving money using technology and Access to talent in this region is a main other means.” pain point and more difficult than access Access to markets is another pain to funding. Especially finding talent with point. Markets in the region are very MARKETS the right skillset and mindset that is willing fragmented and regulations differ CULTURE to work harder for less money. greatly between them. Having local We are seeing the re-invention of retail FROM DUBAI’S support (your choice investors) from the inside. In the wider GCC it will Values and innovation have to go wherever you are is highly advantageous still take some time, but here in Dubai hand in hand. Our values do adapt to ENTREPRENEURS & – they can open doors that you cannot the model is already changing ... we have the external business situation. A lot SMES… FUNDING otherwise enter. to compete on the basis of customer of things have changed in 50 years. understanding, global insights, speed, and We had to sit down and think.…we The number of start-up venture capitalists Start-ups with cross-border operations responsiveness … these are the basis for recognized the need for new values such has increased significantly but scale up in the region add a lot of value for loyalty. as innovation and working as a team. funding is very difficult to find external companies looking to acquire. A few years ago nobody was talking about innovation, digitalization and SKILLS & TALENT FUNDING technology, and today we have whole heartedly endorsed these. Hiring and firing is very expensive - this SMEs continue to suffer from lack of makes entrepreneurs very risk averse in capital which is stifling innovation. Being their recruiting. This is an obstacle for small, they are also discriminated against startups who need to be able to start and by financial institutions and larger B2B fail fast. industry players.
FUNDING ACCESS TO MARKETS AND SKILLS & TALENT GOVERNMENTS The more banks are educated and are able The talent market in the region is very small – for this reason, talent is easily poached, to identify and differentiate between the Harmonising policies and regulations even if you have invested in training them. Retention is difficult so companies must build different needs and potentials of start-ups, across the UAE is underway however loyalty through strongly ingrained company culture and DNA. SMEs and scale-ups the more they will be doing this across the region is much willing to invest more unlikely. FROM DUBAI’S GOVERNMENT ACCESS TO MARKETS AND GOVERNMENTS LEADERS… SKILLS & TALENT Regarding delayed payments, Beehive FUNDING SKILLS & TALENT (peer to peer lending) and CitiBank offer Regarding costly hiring fees (such as FROM DUBAI’S visas, insurance etc.), this is important Inherent emerging market risk and lack of VCs can support startups in finding the invoice discounting options to support for the UAE because of no corporate tax VENTURE exits can deter investors. As exits increase right talent locally and globally. payment delay cases. CAPITALISTS… and digital transformation matures, more capital will flow in.
SKILLS & TALENT
Policy makers must focus on creating linkages between market and universities/ educational institutions.
Dubai Innovation Index 2018 77 13. 2018 outlook on last year’s recommendations
The DII 2017 identified 4 key areas for Dubai to focus on in order to bridge the major gaps in the ecosystem and foster innovation. This year we look back at these recommendations to assess level of growth and effort put into these areas.
Recommendations
2017 Recommendation 1 - Collaborate with Educational Institutes
2018 to 2019 outlook… Next steps…
‘Collaboration’ in the private sector has increased • For a young education sector, Dubai has made marginally this year, by 2%. Companies most often great strides. However, in order to compete on the collaborate with customers, employees and external world stage, Dubai-based universities should look partners, compared to collaboration with Academia – to improving teaching and research quality and this is an area in need of growth. productivity.
At the Macro level, ‘Collaboration’ has decreased by • For example, the most highly weighted metrics that 1 rank. Our framework measures macro collaboration feed the QS World University Rankings are ‘citations using two indicators, one of which Dubai has ranked per faculty’ and ‘academic reputation’ – these are last - ‘Scientific & Technical Articles’. This indicates a areas that Dubai can focus on improving. need for more research-based collaboration. • Building mature R&D capabilities may now also become a priority. Where funding has been largely • Dubai policy makers understand the importance of dedicated to physical R&D infrastructure and preparing local talent for the future world of work. facilities, it must now be transferred to high quality This is a matter of global concern and where great R&D production. strides must be made quickly. • Furthermore, if the public, private and education • The GCC has been known to struggle with local sectors increase collaboration and the quality of youth preference for traditional business and finance degrees over STEM. This relates to perceptions that collaboration, research can become much more such fields of study will best prepare them for public targeted, focused and practical for the nation’s sector roles that are currently more attractive than needs. private sector employment. Better pay, working • Promoting such collaboration may include hours and benefits contribute to this perception. government incentives, support opportunities and • Initiatives encouraging the pursuit of STEM careers funding for both academic institutes and private are a step in the right direction. One example is the industries. We touch on this further in our 2018 L’Oreal-UNESCO for Women in Science Middle East recommendations #2. Fellowship developed in partnership with Zayed University. • In another example of industry-education collaboration, this year witnessed the UK’s University of South Wales and the UAE’s Falcon Aviation develop a programme for training aircraft engineers in the skills most needed by the sector.
Dubai Innovation Index 2018 79 2017 Recommendation 2 - Focus on New Product Development 2017 Recommendation 3 - Enhance Collaboration with the Global Ecosystem
2018 to 2019 outlook… Next steps… 2018 to 2019 outlook… Next steps…
At the Macro level, Dubai’s ‘New Products and • Dubai should continue supporting research As mentioned previously, Macro level ‘Collaboration’ • Dubai already has the advantage of a highly diverse Services’ sub-pillar has fallen by 10 ranks to #15 (both capabilities and improving its Intellectual Property has decreased by 1 rank this year. The ‘Collaboration’ population. To take it further, cross-disciplinary and ‘Services and Manufacturing Value Added’ indicators processes to support all types of IP protection (both sub-pillar is made up of two indicators, ‘Number of cross-border collaboration is essential to encourage have decreased significantly). patent and trademark). JV/Strategic Alliance Deals’ which increased by 11%, new ways of thinking. and ‘Number of Scientific & Technical Articles’ which From an ‘Intellectual Capital’ perspective, the sub- • For increasing manufacturing and services value decreased by 17% - more work needs to be done in • Dubai should focus on collaborating internationally pillar has decreased by 1 rank. The ‘Number of added (a measure of city productivity), further this area for Dubai compared to other global cities. in the academic and research sphere to learn from Trademark Applications’ have decreased by 33% analysis may attribute the decrease to the city’s global best practices and convert knowledge into • This year saw Dubai Electricity and Water Authority while the ‘Number of PCT Patent Applications’ have reliance on low skilled expatriates and heavily innovative outputs. increased by 42% (DEWA) partner with the Dubai Supreme Council overstaffed public sectors. Increasing adoption of of Energy and the US Department of Energy to • For firms, collaborating internationally means emerging technologies and improving education/ At the Micro level however, New Products & Services host two Solar Decathlon Middle East (SDME) ensuring well-defined objectives, business case and skills levels will have a role to play in increasing increased by 15.3%. This reflects the private sector’s competitions for innovative ideas in smart and enabling mutual benefits. improved perception of their potential to increase productivity and improving these indicators. sustainable living. Around 700 students and faculty revenues from growing technology adoption and members from 28 international universities took part. • For policy makers, championing collaboration means innovation in products, services and business models. playing a role in educating firms on how best to • In another illustration of global collaboration this collaborate, linking firms who want to collaborate • Although most of Dubai’s new product indicators year, Dubai Future Foundation’s AREA 2071 hosted and providing a supportive regulatory environment. have fallen in rank this year, the city has seen Microsoft’s “M12 Innovation Summit: Leveraging progress from an infrastructure enabling perspective. Data and AI”, providing a platform to connect global • Supporting startups to access global markets would • With facilities such as Dubai Science Park’s Pharmax startups with MENA stakeholders.The summit also also add great value. It is currently a real challenge plant, the city is building capabilities to become a brought to fruition an MoU between AREA 2071, for many entrepreneurs. pharmaceutical manufacturing hub for developing Microsoft and AI Ventures Lab Partner Netways, local generic medicines aimed at reducing drug to promote entrepreneurial opportunities for Area prices. 2071’s tech startups. • Furthermore, the UAE Cabinet announced its approval of long-term visas for investors, entrepreneurs, researchers and other technical specialists.
Dubai Innovation Index 2018 81 14. DII 2018 Recommendations
As Dubai navigates through a global downturn, the city’s ecosystem should continue to support innovation, even in difficult times. Building a strong ecosystem will allow it to emerge stronger, with more resilience 2017 Recommendation 4 - Provide More Funding Opportunities and sustainability. Our recommendations this year explore the building blocks needed to do that, taking into account the gaps we have identified throughout this report. 2018 to 2019 outlook… Next steps…
This year, Dubai’s (Macro) ‘Banking’ and ‘Private • As extrapolated from our data, along with 1 – Cultivate an Innovation Culture Sector Funding’ have both improved. ‘Venture Capital insights from start-ups, SMEs and VCs, much can Deals’ and ‘Ease of Getting Credit’ have also increased be commended on Dubai’s improving funding in rank. However, comparative to other cities, Dubai’s environment, particularly early stage funding. • Establishing innovation as a fundamental element of Dubai’s ‘Ease of Getting Credit’ remains low with a ranking of character and personality is essential. At all levels, within However, post-series B funding remains an area of households, communities, schools, workplaces, public dialogue 26. concern. etc., trying and learning from failure should be encouraged even if it means breaking away from traditional routes. Coupled with At the Micro level, our survey highlighted improvement • These challenges may be attributed to the associated emphasis on values of collaboration, community and ethics, in the percentage of companies taking advantage of risk with emerging markets, lack of exits and lack of cities can ensure that innovation is a means for solving national funding and incentive schemes. This is a definite step data transparency. challenges. in the right direction. At the macro level: • While some of these obstacles need time to improve • The banking sector remains hesitant to invest in • must tailor policies to drive an entrepreneurial as the city matures, others can be addressed through Policy makers entrepreneurs due to perceived high risks in an culture. Such a culture calls for collaboration and risk taking. This emerging market and slowing economy. This means a the government filling the funding gap themselves or means innovators need to perceive the risk as worth taking while small percentage of SMEs have access to funding and policies encouraging private investor funding through also feeling a level of ‘safety’ should their efforts fail. It is key that both local and expat start-ups, SMEs and multinationals are able credit facilities. Therefore, growing Dubai’s lending reducing perceived risks, raising awareness and to fail, get back up and start again. Policy makers and regulators and capital-raising sub-sector has become a priority. increasing information transparency. need to regularly assess the ecosystem’s ability to do this. Lessons The fintech industry is positioning itself as one of learned from failure are proven to help innovators in their next these key capital-raising sub-sectors. endeavours. This may be translated into reducing setup costs and red tape for high potential start ups, extending visas for failed • The city has made progress and aligned its focus entrepreneurs, incentivising increased capital risk sharing and on the fintech industry through accelerators such improving bankruptcy laws to protect entrepreneurs. The national as Fintech Hive and Dtec. This emerging industry statistics office may also play a role in gathering and reporting reliable data on innovation activity for monitoring purposes. is increasingly establishing itself as a catalyst for improving and increasing funding opportunities At the micro level: in Dubai. In a positive milestone, MENA Research • Both private and public sector entities should look to nurturing Partners calculated that 35% of total investment in a culture of innovation within their organisations through MENA fintech startups over the past 10 years were various organisational best practices. Developing such a culture is essential for corporate success. With fast-paced industries made in 2017 – majority in the UAE. churning disruptive business models and technologies, companies • From a venture capitalist perspective, this year no longer have the luxury to be reactive no matter how big or witnessed mumzworld secure USD20mn in Series B how established they are. In such a landscape companies must seek market/customer inputs, and develop new and original funding, The Luxury Closet raised USD8.7mn in Series products/services. Leadership should demonstrate the importance C funding and Shedul raised 5mn in Bridge funding. of innovation, providing inspiration and motivation. Innovation must be integrated into the organisational strategy, establishing • Public funding from entities such as the Mohammad clear innovation objectives and allocating dedicated resources. Bin Rashid Innovation Fund include a AED5.5 million Employers may also define processes (and KPIs) pertaining to disbursement to agriculture start-up Pure Harvest. idea acceleration, authorisation of low cost experimentation and cross-departmental collaboration. Spreading awareness on fail fast • While a push to increase maturity is needed, Dubai’s methodologies and developing rewards & recognition incentives funding ecosystem is improving and allowing are also valuable practices. opportunities to thrive such as Wamda’s Fellowship Programme and Expo 2020’s USD100mn fund for ideas related to the themes of opportunity, mobility e.g. Finnish students receive 12 years of compulsory ‘entrepreneurship education’ as a cross-curricular theme with and sustainability. learning outcomes of acting with initiative, experimentation and enterprise. The Finnish government released ‘Entrepreneurship Education Guidelines’ which promote job shadowing, teacher- entrepreneur speed dates and specialized teacher training and resources.
Dubai Innovation Index 2018 83 3 – Enable Adoption of Emerging Technologies
At the macro level: • To increase adoption of emerging technologies and other smart solutions, Policy makers can play a role in addressing the potential risks that may come from disruptive technologies. This requires strong risk analysis and regulatory adaptation that does not delay progress in the fast-changing digital sphere. Finding the balance can be challenging. To address this, governments may approach policy making in different ways that make regulations responsive and agile. For example, ‘Regulatory sandboxes’ are being used around the world for new and emerging industries. They provide a testing ground for new business models and new regulations to experiment in without having to undergo long and costly processes. Governments may also take on agendas that spread awareness and training on new technologies, emphasizing their value to industries and individuals similar to our example below.
At the micro level: • The private sector should be clear about their digital strategy with strong understanding of potential disruptions to their industries and how they will affect the organisation’s market position. A recent article by the Harvard Business Review identified the challenges for organisations to find time, money and people to keep up with technological changes. It stressed the value of internal ‘scouting’ activity. Technology adoption starts with discovery and identification. Having platforms (blogs, workshops, etc.) available for everyone to share and highlight key trends is important. Many of the firm’s people are already informed and up to date in their respective fields – empowering them is key.
e.g. After unveiling its Services & Digital Economy Technology Roadmap, Singapore’s Infocomm Media Development Authority (IMDA) announced its decision to set up the Digital Services Laboratory (DSL) this year. The programme aims to accelerate the services sector’s digitalisation transformation through connecting different stakeholders such as Research centres, universities, technology providers and end user companies. IMDA also announced its ‘GoCloud’ initiative to support SMEs with cloud adoption and ‘Pixel’ to provide workshops and mentors in design thinking, user experience and digital storytelling.
4 – Enable the Scaling up of Start-ups 2 – Build on Research Ecosystem At the macro level: At the macro level: • The public sector must explore holistic policies that reduce the risks and costs of starting up and scaling up. For Dubai, this means addressing obstacles such as high rent and legal requisites demanding increase of office • Top research ecosystems require talent, incentivisation, funding and open information. The public sector should space as number of employees rise. Incentives for later stage funding from banks and VCs is also essential – lack ensure that Dubai’s academic institutions are moving more towards STEM courses/curriculums and producing of funding is identified as a key challenge for scale ups around the world. Governments can support scale ups quality research tailored to the city’s needs. Best practices include setting clear goals for research initiatives and by raising awareness of their offerings and providing networking opportunities to enable access to large clients. Governments around the world deploy ‘public procurement of innovation’ (PPI) or ‘indirect incentivisation of establishing a governance model to guide and monitor research efforts effectively. This may also include the procurement’ (IIP) to encourage public and private sector entities to procure products and services from local introduction of performance-based funding that focuses on research productivity and citation impact as well start ups and scale ups. as other criteria and quality standards. Further adding value to the ecosystem would be increasing exploitation of local academia to solve complex social and economic challenges. This means investing in applied research At the micro level: that bridges the gap between basic R&D in some of the leading research countries in the world and commercial • The private sectorcan take on community driven values and support local businesses, particularly those applications. Local researchers must be nurtured and empowered with sufficient funding, time and data to demonstrating high innovation potential. Along with using scale up services/products, private sector companies decrease reliance on imported knowledge, increasing the city’s competitive advantage in the world. may also provide mentoring, networking and training opportunities. Scale ups also often lack the skills or access to talent required for their expansion needs – collaboration with educational institutions can play an important role. On the global scene, universities have offered courses and training to scale ups in the areas that prove most challenging when transforming from a small to large business e.g. finance, risk, accessing markets etc. At the micro level:
• The private sector should look into spending more on R&D and taking part in the commercialization of e.g. Malaysia Digital Economy Corporation has set up the Global Acceleration and Innovation Network (GAIN) knowledge. Building university-industry collaboration is invaluable, transferring knowledge effectively through programme to support the scaling of local technology SMEs. The programme centers around four areas formal collaborative agreements such as R&D contracting, policies, IP management, and other activities. Informal necessary for expansion – increase in brand visibility, access to markets, access to funding and mentoring contracts can mean utilising research results published by universities in public journals or hiring research for enhancing capabilities. A number of success stories can be found on their website including the likes of Fusionex Corp SDN BHD and Sedania Group, tech companies who have been able to expand their market reach students. with GAIN’s support. e.g. Professional services firm, PwC, has worked extensively in supporting scale ups through their PwC Accelerator arm in Luxembourg. The company uses its internal networks and resources to support fast-growing e.g. The German Ministry of Education leads the German scientific research framework, coordinating and tech SMEs and SMBs to reach international markets, decrease business risks and grow revenues.In the UK, governing the implementation of research aligned with the country’s economic priorities. Research outputs are PwC’s Scale-up Programmes provide masterclasses and introductions to executives, industry experts and monitored diligently and shared with the public regularly. potential partners and investors. This year, they launched a programme dedicated to female founded business in the tech industry.
Dubai Innovation Index 2018 85 15. Illustrative list of collaboration, funding and support opportunities in Dubai
Public Funding Public Funding Public Funding Public Funding Public Funding Public Funding
• Future • Arzan Venture • Mena Venture • Accelerate SME • Beehive • Area 2071 Endowment Fund- Capital Investments (MVI) UAE by Thomson Dh1 Bn Reuters • Dubai Internet • BECO Capital • WOMENA City (DIC) • Mohammed Bin • ArabNet • Eureeca Innovation Hub Rashid Innovation • Cocoon Venture • Women’s Angel competition-
Fund- Dh2 Bn Investor Network Startup Battle • Dubai SME • Dubai Silicon (WAIN) • Zoomaal • The Expo Live Oasis Venture • Astrolabs • Dubai 10X
Innovation Impact Capital Fund • There are a • Impact Hub Dubai Grant Programme- number of • DIFC FinTech Hive • Endeavour individuals in funding up to • Startup Grind Dubai and UAE • Dubai Future $100k per project • Envestors Dubai(in who invest in Accelerators partnership • Khalifa Fund startups. A • EquiTrust • Flat6labs with Google for for Enterprise comprehensive list startups) Development • GINCO Venture can be accessed • In5 Capital at: https:// • The Bureau Dubai • Dubai Green Fund angel.co/dubai/ • Savour-the • Glowfish Capital investors. MENA region’s • The Coworking first food vertical Pop-Up • Gulf Islamic accelerator Investments • The Cribb • Techstars Dubai • IC Global Partners Accelerators x • The Dubai Technology • iMENA Group GINCO Entrepreneur • Jabbar Internet • TURN8 growth Centre (Dtec) Group accelerator • Youth x Hub • MBC Ventures • Womentum- accelerating • Middle East MENA’s female- Venture Partners led startups (MEVP) • YoStartups • Precinct Partners • 1776 Dubai • STC Ventures
• The Abraaj Group
• TURN8
• VentureSouq
• Wamda Capital
• 500 Startups
Dubai Innovation Index 2018 87 Appendix I: References
SOURCE
EXECUTIVE SUMMARY
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Appendix MACRO ANALYSIS
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Ali, J. (2018, September 14). Not all Gulf states on same page in intellectual property. Retrieved January 2, 2019, from https:// gulfnews.com/business/analysis/not-all-gulf-states-on-same-page-in-intellectual-property-1.2276677
Albawaba. (2018, April 29). SWVL Raises $8 Million Funding, the Biggest in Tech Start-Up History in Egypt. Retrieved January 7, 2019, from https://www.albawaba.com/business/swvl-raises-8-million-funding-biggest-tech-start-history- egypt-1123428
Amladi, D. (2018, December 21). These five Oxfam innovations are changing the way people fight poverty. Retrieved January 2, 2019, from https://www.oxfamamerica.org/explore/stories/these-oxfam-innovations-are-helping-people-fight-poverty/
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Choudhury, S. R. (2017, August 30). One tiny city state is pushing hard to be a center for innovation. Retrieved January 2, 2019, from https://www.cnbc.com/2017/08/30/singapore-is-pushing-hard-to-be-a-center-for-innovation.html
Cislo, C. (2018, January 16). Brain Power Pays Off With Japan’s Intellectual Property Exports. Retrieved January 2, 2019, from https://www.bloomberg.com/news/articles/2018-01-15/brain-power-pays-off-with-japan-s-intellectual-property-exports
Cooke, J. (2018, April 18). The impossible possible city. Retrieved January 2, 2019, from https://www.curbed. com/2018/4/18/17233228/mexico-city-urban-planning-laboratorio-para-la-ciudad
Costello, E. (2017, September 29). Hong Kong looks to tax concessions to attract foreign investors. Retrieved January 2, 2019, from https://www.internationalinvestment.net/internationalinvestment/news/3503993/hong-kong-looks-tax- concessions-attract-foreign-investors
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Davies, K. (2018, November 15). Estonia leads the way in Business Life’s latest innovation rankings. Retrieved January 2, 2019, Markman, A. (2016, June 15). Innovate During Tough Times. Retrieved January 2, 2019, from https://www.inc.com/art- from http://www.calvertjournal.com/news/show/10787/estonia-leads-the-way-in-business-lifes-latest-innovation-rankings markman/-innovate-during-tough-times.html
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Impact Hub. (2018, June 7). How WWF & Impact Hub Are Working Together To Save The Seas. Retrieved January 2, 2019, People’s Daily Online. (2018, March 28). Shanghai aims at being Belt and Road investment and financing center. Retrieved from https://impacthub.net/wwf-impact-hub-working-together-save-seas/ November 7, 2018, from http://en.people.cn/n3/2018/0328/c90000-9442876.html
Innovation and Technology Bureau. (2018, July). Innovation Hong Kong. Retrieved January 2, 2019, from https://www.itb.gov. Research Italy. (2016, April 14). ICapital 2016: Turin is the second innovative European city. Retrieved January 2, 2019, from hk/en/publications/InnovationHK.pdf https://www.researchitaly.it/en/success-stories/icapital-2016-turin-is-the-second-innovative-european-city/
Johnson&Johnson. (2018, May 1). J&J Announces 15 New Collaborations. Retrieved January 2, 2019, from https://www.rdmag. Reuters. (2018, November 22). Egyptian tech transport start up Swvl heads to Southeast Asia. Retrieved January 7, 2019, com/news/2018/01/j-j-announces-15-new-collaborations from http://www.egypttoday.com/Article/3/60818/Egyptian-tech-transport-start-up-Swvl-heads-to-Southeast-Asia
Jewell, C. (2018, September). Saudi Arabia embraces AI-driven innovation. Retrieved January 2, 2019, from https://www.wipo. Rizvi, A. (2018, June 24). Business still the most popular subject among graduates in Dubai. Retrieved January 2, 2019, from int/wipo_magazine/en/2018/05/article_0002.html https://www.thenational.ae/uae/education/business-still-the-most-popular-subject-among-graduates-in-dubai-1.743313
Khamis, J. (2016, August 28). ‘Dubai has one of lowest unemployment rates’. Retrieved January 2, 2019, from https:// Sadaqat, R. (2018, November 30). New long-term UAE visa system will improve confidence. Retrieved January 2, 2019, from gulfnews.com/going-out/society/dubai-has-one-of-lowest-unemployment-rates-1.1886727 https://www.khaleejtimes.com/business/local/new-long-term-uae-visa-system-will-improve-confidence
Knight, M. (2018, June). Hong Kong Must Use Its Competitive Advantages To Close The Skills Gap. Retrieved January 2, 2019, Saleh, A., Abu Al Adel, D., & Al Samid, S. (2017, December/January). R&D and Innovations in the GCC Countries: Recent from https://focus.kornferry.com/leadership-and-talent/hong-kong-must-use-its-competitive-advantages-to-close-the-skills- Updates. Retrieved January 2, 2019, from https://www.tamimi.com/law-update-articles/rd-and-innovations-in-the-gcc- gap/ countries-recent-updates/
Leung, M. (2018, October 20). Hong Kong steps up research collaboration with China. Retrieved January 2, 2019, from Saljoughian, P. (2018, September 5). Why I’m Bullish on the Rapidly Growing New York Startup Ecosystem. Retrieved https://www.universityworldnews.com/post.php?story=20181019141716929 January 2, 2019, from https://medium.com/parsa-vc/why-im-bullish-on-the-rapidly-growing-new-york-startup-ecosystem- 510a11e6a265 León, L. R. (2017, October 27). Latin America’s innovation potential remains largely untapped. Retrieved January 2, 2019, from http://www.tradeforum.org/news/Latin-Americas-innovation-potential-remains-largely-untapped/ SCIS. (2017, September 27). Urban innovation in practice: Success stories. Retrieved January 2, 2019, from https://smartcities- infosystem.eu/newsroom/news/1 urban-innovation-practice-success-stories Loeb, W. (2018, November 1). Amazon Is The Biggest Investor In The Future, Spends $22.6 Billion On R&D. Retrieved January 2, 2019, from https://www.forbes.com/sites/walterloeb/2018/11/01/amazon-is-biggest-investor-for-the-future/#1a197e251f1d Staples, A. (2018, June 17). The changing face of UAE business. Retrieved January 2, 2019, from https://gulfnews.com/ business/the-changing-face-of-uae-business-1.2238130 Madan, A. (2018, March 25). The Changing Landscape of Disruptive Technologies. Retrieved January 2, 2019, from https:// home.kpmg/ca/en/home/insights/2018/03/the-changing-landscape-of-disruptive-technologies.html Strategy&. (2018, October 30). The 2018 Global Innovation 1000 study. Retrieved January 2, 2019, from https://www. strategyand.pwc.com/innovation1000 Mari, A. (2018, June 29). São Paulo City Drives Innovation Agenda. Retrieved January 2, 2019, from https://www.forbes.com/ sites/angelicamarideoliveira/2018/06/29/sao-paulo-city-drives-innovation-agenda/#5bed3e065744 The Economist. (2018, August 30). The new geography of innovation: Why startups are leaving Silicon Valley. Retrieved from https://www.economist.com/leaders/2018/08/30/why-startups-are-leaving-silicon-valley
Dubai Innovation Index 2018 91 MACRO ANALYSIS MICRO ANALYSIS
Thiruchelvam, S. (2018, April 20). How China became a leader in intellectual property. Retrieved January 2, 2019, from CONSTRUCTION & REAL ESTATE https://www.raconteur.net/risk-management/how-china-became-leader-intellectual-property
Thomson Reuters Zawya. (2018, May 10). Gateway Gulf concludes with focus on technology-led future growth. Retrieved Abbas, W. (2018, July 3). UAE real estate market: Crystal clear. Retrieved January 2, 2019, from https://www.khaleejtimes. January 2, 2019 from https://www.zawya.com/mena/en/press-releases/story/Gateway_Gulf_concludes_with_focus_on_ com/business/real-estate/uae-real-estate-market-crystal-clear- technologyled_future_growthnbsp-ZAWYA20180511041101/ Althauser, J. (2017, September 9). Ukraine to Auction Seized Assets Through Blockchain Showing It Fights Corruption. Townsend, S. (2018, November 15). Careem and Souq struggle to scale up in some MENA markets, founders say. Retrieved Retrieved January 2, 2019, from https://cointelegraph.com/news/ukraine-to-auction-seized-assets-through-blockchain- January 2, 2019, from https://www.thenational.ae/business/technology/careem-and-souq-struggle-to-scale-up-in-some- showing-it-fights-corruption mena-markets-founders-say-1.792059 Forbes. (2018, January 22). 10 Technologies That Will Change Real Estate In 2018. Retrieved January 2, 2019, from Trajkovska, B. (2018, December 11). Berlin’s startup ecosystem at a glance. Retrieved January 2, 2019, from https://www.eu- https://www.forbes.com/sites/forbesrealestatecouncil/2018/01/22/10-technologies-that-will-change-real-estate-in- startups.com/2018/12/berlins-startup-ecosystem-at-a-glance/ 2018/#611478467e9f
UAE Government Portal. (2018, November 12). National Strategy for Advanced Innovation. Retrieved January 2, 2019, from Kamel, D. (2018, November 26). Property Finder closes $120m investment round led by General Atlantic. Retrieved January https://government.ae/en/about-the-uae/strategies-initiatives-and-awards/federal-governments-strategies-and-plans/ 2, 2019, from https://www.thenational.ae/business/technology/property-finder-closes-120m-investment-round-led-by- national-strategy-for-advanced-innovation general-atlantic-1.796070
UAE Government Portal. (2018, November 8). Steps and initiatives to encourage innovation. Retrieved January 2, 2019, from Khaleej Times. (2018, November 19). Museum of the Future structure completed in Dubai. Retrieved January 2, 2019, from https://government.ae/en/about-the-uae/the-uae-government/government-of-future/innovation-in-the-uae/steps-and- https://www.khaleejtimes.com/nation/dubai/museum-of-the-future-structure-completed-in-dubai initiatives-to-encourage-innovation-in-the-uae- Rodriguez, J. (2018, July 11). Top 8 Construction Trends in 2018. Retrieved January 9, 2019, from https://www.thebalancesmb. Wenderoth, M. (2018, April 11). China Is Innovating Faster Than You Imagine. Retrieved January 2, 2019, from https://www. com/top-construction-industry-trends-4125856 forbes.com/sites/michaelcwenderoth/2018/04/11/china-is-innovating-faster-than-you-imagine/#4ed2177e273d Visit Dubai. (n.d.). Dubai to push 3D-printed construction industry. Retrieved January 2, 2019, from https://www.visitdubai. World Energy Council. (2018). Switzerland Energy Index: Trends and Outlook. Retrieved January 2, 2019, from https:// com/en/business-in-dubai/why-dubai/news-and-insights/dubai-3d-printed-buildings trilemma.worldenergy.org/#!/country-profile?country=Switzerland&year=2018 Wilson, N. (2018, November 13). Affordable Housing: From Postwar ‘Prefab’ To Modern Modular Construction (Part 2). Yi, Y. (2018, December 5). 19 cooperation agreements signed at China-Italy innovation week in Milan. Retrieved January 2, Retrieved January 9, 2019, from https://www.forbes.com/sites/nigelwilson/2018/11/13/affordable-housing-from-postwar- 2019, from http://www.xinhuanet.com/english/2018-12/05/c_137652319.htm prefab-to-modern-modular-construction-part-2/#416acadb6084
Yining, D. (2018, November 28). Baidu signs AI deal with Shanghai government. Retrieved January 2, 2019, from https://www. shine.cn/biz/economy/1811285819/
EDUCATION
MICRO ANALYSIS BBVA. (2017, October 31). How a family logistics company became a multinational technology firm. Retrieved January 4, 2019, from https://www.bbva.com/en/podcast-learning-how-to-learn-is-more-important-than-ever-jimmy-wales/
AGRICULTURE Childress, S. (2018, January 8). 3 Biggest Education Innovation Questions For 2018. Retrieved January 4, 2019, from https:// www.forbes.com/sites/schoolboard/2018/01/08/3-biggest-education-innovation-questions-for-2018/#7e2cc82b4b13 Deprez, T. (2018, October 24). Ecocoast unveils its innovation lab. Retrieved January 2, 2019, from http://www.ecocoast.com/ Emirates 24/7. (2018, October 16). Dubai Ruler launches free education platform. Retrieved January 4, 2019, from blogs/news-release-ecocoast-unveils-its-innovation-lab/ https://www.emirates247.com/news/emirates/sheikh-mohammed-launches-madrasa-largest-free-arabic-e-learning- Hussein, H., & Alfaham, T. (2018, November 26). MOCCAE, Dubai World Central sign agreement to boost aquaculture. platform-2018-10-16-1.674336 Retrieved January 2, 2019, from http://wam.ae/en/details/1395302723357 Jao, N. (2017, May 4). Dubai-based ‘edtech’ startup breaks new ground in youth education. Retrieved January 4, 2019, from Newman, D. (2018, May 14). Top Six Digital Transformation Trends In Agriculture. Retrieved January 2, 2019, from https:// https://news.itu.int/dubai-based-edtech-startup-breaks-new-ground-in-youth-education/ www.forbes.com/sites/danielnewman/2018/05/14/top-six-digital-transformation-trends-in-agriculture/#62a091a1ed2e
Page, T. (2018, July 10). ‘World’s largest vertical farm’ to feed Middle East’s high-fliers. Retrieved January 2, 2019, from https://edition.cnn.com/travel/article/dubai-vertical-farm-emirates-catering/index.html ENERGY & UTILITIES Proagrica. (n.d.). How big data will change agriculture. Retrieved January 9, 2019, from https://proagrica.com/news/how- big-data-will-change-agriculture/ Dartnell, J. (2018, January 28). DEWA to launch 1.2m smart meters in Dubai. Retrieved January 4, 2019, from https://www. tahawultech.com/cnme/hardware/dewa-launch-1-2m-smart-meters-dubai/ Viviano, F. (2017, September). How the Netherlands Feeds the World. Retrieved January 2, 2019, from https://www. nationalgeographic.com/magazine/2017/09/holland-agriculture-sustainable-farming/ England, R. (2018, October 16). A major UK energy supplier is now 100 percent wind power. Retrieved January 4, 2019, from https://www.engadget.com/2018/10/16/major-uk-energy-supplier-100-percent-wind-scottish-power/
Eureeca. December 11, 2018. Harnessing the power of solar: Enerwhere seeks $700,000 in funding from second equity crowdfunding round on Eureeca. Retrieved January 2, 2019, from http://blog.eureeca.com/crowdfunding/enerwhere- funding-round
Dubai Innovation Index 2018 93 MICRO ANALYSIS ICT
Chaykowski, K., & Coatney, M. (2018, May 29). From Broke To Billionaire: How Fred Luddy Built The World’s Most ENERGY & UTILITIES Innovative Company. Retrieved January 4, 2019, from https://www.forbes.com/feature/innovative-companies-service- now/#546f5cf9c603 Forbes, A. (2018, May 10). 6 Energy Industry Trends in 2018. Retrieved January 4, 2019, from https://www.ge.com/power/ transform/article.transform.articles.2018.may.5-energy-industry-trends-in-2018 Cherrayil, N. K. (2018, November 07). Microsoft to open UAE data centres by early next year. Retrieved January 16, 2019, from https://gulfnews.com/technology/microsoft-to-open-uae-data-centres-by-early-next-year-1.2187826 Garfield, L. (2018, January 29). The United Arab Emirates is building a $354 million city with driverless cars, greenhouses, and solar-powered villas. Retrieved January 4, 2019, from https://www.businessinsider.com/dubai-sustainable-city-uae-2018- Chitkara, R., Gloger, M., & McCaffrey, M. (2018). Technology Trends 2018-19. Retrieved January 4, 2019, from https://www. 1/#in-2013-diamond-developers-started-building-sustainable-city-which-is-expected-to-be-completed-by-the-end-of-2018-1 strategyand.pwc.com/trend/2018-technology
Probert, A. (2018, March 21). Dubai to Create World’s Largest Single-Site Solar Park. Retrieved January 4, 2019, from https:// Khaleej Times. (2018, October 30). Etisalat launches eSIM for iPhones. Retrieved January 14, 2019, from https://www. greenerideal.com/news/dubai-to-host-worlds-largest-single-site-solar-park/ khaleejtimes.com/technology/etisalat-launches-esim-for-iphones
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Dubai Innovation Index 2018 95 MICRO ANALYSIS MEDIA & MARKETING
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Haine, A. (2017, August 23). UAE-based fintech start-up Now Money secures $700,000 US investment. Retrieved January Harris, M. (2018, January 22). Amazon Go: Convenience and concern at new checkout-free corner shop. Retrieved January 4, 4, 2019, from https://www.thenational.ae/business/money/uae-based-fintech-start-up-now-money-secures-700-000-us- 2019, from https://www.theguardian.com/us-news/2018/jan/22/amazon-go-convenience-store-corner-shop investment-1.622335 PwC. 2018. Global Consumer Insights Survey 2018. Retrieved January 2, 2019, from https://www.pwc.com/gx/en/industries/ Kira Systems. (2016, March 8). Deloitte Forms Alliance with Kira Systems to Drive the Adoption of Artificial Intelligence in the consumer-markets/consumer-insights-survey.html Workplace. Retrieved January 4, 2019, from https://info.kirasystems.com/news/deloitte-forms-alliance-with-kira-systems-to- drive-the-adoption-of-artificial-intelligence-in-the-workplace Trade Arabia. (2017, October 23). P&G unveils I-Dubai Center for retail innovation. Retrieved January 4, 2019, from http:// tradearabia.com/news/RET_331968.html Market Watch. (2018, September 11). Mashreq Becomes the First Private Bank in the UAE to Implement Solutions that Utilize Artificial Intelligence and Machine Learning. Retrieved January 6, 2019, from https://www.marketwatch.com/press-release/ Welham B. (2018, December 4). Largest Nike store in the Middle East opens in Dubai Mall. Retrieved January 17, 2019, mashreq-becomes-the-first-private-bank-in-the-uae-to-implement-solutions-that-utilize-artificial-intelligence-and-machine- from https://gulfbusiness.com/pictures-largest-nike-store-middle-east-opens-dubai-mall/ learning-2018-09-11
Wintermeyer, L. (2018, August 16). Regulatory Innovation Driving Better Financial Services For Consumers. Retrieved PROGRESSING THROUGH 2017 RECOMMENDATIONS January 4, 2019, from https://www.forbes.com/sites/lawrencewintermeyer/2018/08/16/regulatory-innovation-driving-better- financial-services-for-consumers/#333eba0d29f6 Arab News. (2018, November 27). L’Oréal honors GCC women scientists. Retrieved January 2, 2019, from http://www. arabnews.com/node/1412096/corporate-news
TRANSPORT & LOGISTICS Arabian Gazette. (2018, December 16). Wamda Launches Fellowship Programme in Dubai for Aspiring Entrepreneurs. Retrieved January 2, 2019, from https://arabiangazette.com/wamda-x-fellowship-programme-launched-dubai-aspiring- Bridge, S. (2018, August 20). Virgin Hyperloop One eyes Dubai for first office outside US. Retrieved January 4, 2019, from entrepreneurs/ https://www.arabianbusiness.com/technology/403030-virgin-hyperloop-one-eyes-dubai-for-first-office-outside-us Dtec. (2018, October 13). MAGNiTT’s Q3 2018 Venture Investment report highlights the latest trends in venture capital Bridge, S. (2018, December 27). Dubai’s RTA inks tech deals with European, US startups. Retrieved January 4, 2019, from funding across the MENA region for the first 9 months of 2018. Retrieved January 2, 2019, from https://dtec.ae/news- https://www.arabianbusiness.com/technology/410382-dubais-rta-inks-tech-deals-with-european-us-startups venture/magnitts-q3-2018-venture-investment-report-highlights-the-latest-trends-in-venture-capital-funding-across-the- mena-region-for-the-first-9-months-of-2018/
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DII 2018 RECOMMENDATIONS
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Dubai Innovation Index 2018 99 Appendix II: Methodology
Methodology and Assumptions – Macro
MACRO DATA
1. Data Sources Example of Scaling:
Data was obtained from multiple sources and sources were selected on the basis of: Step 1: In preparation for scaling, indicator needs to be converted to its absolute value (not a percentage).E.g. Gross Expenditure in Research and Development (GERD) financed by abroad (% GDP). Trusted sources: A qualitative judgement was made to mark a source as trusted based on the use of source Here, GDP (country) represents the denominator. Hence, to obtain the GERD value for the country, the data in other studies. Widely used data sources such as World Bank, UNESCO were selected, whereas unreliable figure from the data source is first multiplied by GDP (country) sources such as blog posts were ignored.
Availability of data for selected country/city set: Selection of source data was made in accordance with ensuring that data points were available for maximum number of countries/cities selected for comparison.
Recentness of data: To ensure valid comparison, data sources were carefully examined and selected to ensure the latest available data is obtained for each indicator. Step 2: Value Scaling: Depending on the nature of the value (i.e., either it is population dependent or economic performance dependent), an appropriate scaling factor is used.As GERD is dependent on 2. Data Indicator Types economic performance, the total GERD figure obtained is then scaled down to its city value by using GDP as Composite Indices: These data indicators are indices in themselves derived through mathematical combination its scaling factor. of a number of individual data indicators. E.g. 2.3.2 Energy Sustainability, which is a composite index measuring 3 dimensions, Energy Security, Energy Equity and Environmental Sustainability. Scaling exceptions:
Hard Data: These data indicators are hard factual data obtained from a direct trusted source. For example, Referring back to the data indicator types, due to the nature, source and method of collection and Unemployment as a % of total labour force (World Bank). evaluation of Composite Index data, these data types have not been put through the data scaling process:
3. Methodology for Computation of Scores
Computation of scores from the raw data collected across categories of Enablers and Performance of innovation can be described in 3 steps, Data Scaling, Data Normalisation and Data Averaging.
3.1 Data Scaling: Scaling country data to city data
Data obtained from various sources pertains to a particular country (except data gathered from QS Composite Indices: It is extremely challenging to scale indicators classified under this data type. The World University Rankings). To introduce homogeneity of data indicators and aid fair comparisons across primary reason for this is that composite indices comprise of a number of hard data or survey data cities, the country data gathered from these sources was scaled to city level using either city GDP or city elements. In order to put these data indicators through a logical scaling process, the root of each data population as a scaling factor for respective cities. Since different indicators reflect data from different indicator that forms a part of the overall index would have to be identified and scaled to city level by the years, an appropriate scaling factor was used depending on the source year of the data in question. Eg: For base measure of each specific individual indicator. Due to the complexity of this task and lack of availability Gross Expenditure in Research and Development (% GDP) [Data source: 2015], the city and country GDP of of the data required to conduct this scaling exercise, composite data indicators are taken as is and are not 2015 was used to scale the indicator down to city level. scaled. Moreover, since the cities selected are assumed to be one of the largest economic performers of the country, it is safe to deduce the composite indicator directly applies to the selected cities.
Descriptions of data sources, classification of indicators by data types (hard data or composite index) and scale factor used is detailed out in Appendices 3.
Dubai Innovation Index 2018 101 MACRO DATA
3.2 Data Normalisation 5. Assumptions & Limitations of the framework:
In order to account for and eliminate the effect of different units and scales of the variety of data indicators Area of Framework Limitation/Assumption Mitigation on the scores for enabler and performance pillars and overall scores, a normalisation method is applied.
Once the scale values have been computed, all values of a particular indicator are normalized across cities • Data gaps due to lack of available • Search for better data source on a 0 – 100 scale using the min-max normalization method. data • Consider removing indicator (this Min-Max normalization method takes data that is measured in its engineering units and transforms it • Although the data gap is not taken however, can affect scores for the same into account in the final average. A reason mentioned) to a value between 0 and 100 (i.e. the scale defined in this case). It is advantageous as it preserves the city’s score can still be skewed if the relationships among original data values and does not introduce any bias. The lowest (min) value is set data was available the previous year • Some data which has been unavailable in previous years and was found this to 0 and the highest (max) value is set to 100. The normalized value is thencalculated using the following or vice versa Raw Data Collection year has been kept as N/A so as not to formula: skew the results so much
• Not all city GDP and Population data • Ensure use of same source with are from one source due to lack of same city definition per city over all sources available yearse.g. Toronto – Metropolitan Area - citypopulation.de
• Data is gathered at country level • Continue to search for alternative and scaled down to city level rather sources Example, consider different city populations with values 10, 14, 16, 17, 20. than gathered at city level directly due to lack of sources available The minimum value is 10
The maximum values is 20 • For some scaled indicators, such • We have reassessed such indicators and The data has a range of 10 as Unemployment, applying a made changes accordingly this year country level percentage to city (see updates in Appendix IV) For a city population reading of 16, the normalized value is 60 GDP/population may not provide a realistic picture, or may require an • Continue to reassess and search for city adjustment factor (e.g. because % specific sources that would not need to Data Scaling of unemployment in a capital city be scaled differs greatly to that of the rest of the country)
• When converting to absolute terms • We have reassessed such indicators and (e.g. multiplying a country level made changes accordingly this year percentage by city GDP), relativity/ (see updates in Appendix IV) cross-economy comparability is 3.3 Data Averaging: Simple averages not weighted averages disabled • Continue to reassess and search for city specific sources that would not need to In order to arrive at the overall innovation score, as well as the scores for each specific pillar and sub-pillar be scaled under enablers and performance, the method of averaging normalized values has been followed.
We use the simple average method instead of the weighted average method because of the advantages of • The scoring is a non-weighted • Ensure that it is clear to reader that average although it is unlikely that the former over the latter, such as: Data Averaging indicators are unweighted each factor contributes equally to innovation
• Simplification of process
• Challenges in justifying weights due to variety of indicators
• Lack of concrete evidence to justify specific weights
4. Missing data consideration:
For certain indicators where data for a particular Country/City is unavailable, the missing data is not considered while calculating average scores. This approach is followed to ensure fairness in comparison and overcome underestimation of scores due to absence of data. It is ensured that missing data is not considered as 0 value.
Dubai Innovation Index 2018 103 How do we measure a city’s innovation levels? Macro Indicators Table 1: DII Macro IndicatorsSources and indexing methodologies can be found in the appendix
Ref. No Data measure Ref. No Data measure Ref. No Data measure Ref. No Data measure
0_1 Enablers 3_3_1 Logistics Performance 6_2_1 Maximum Working Days per Week No. of JV-Strategic Alliance Deals (fractional 2_3_2 counting) 1 Political Economic and Social Environment 3_3_2 Ease of Doing Business Index Paid Annual Leave (average for workers with 1, 5 6_2_2 and 10 years of tenure, in working days) Graduates in Science and Engineering, % 1_1 Political Environment 4 Skills and Talent 6_2_3 Cost of Redundancy Dismissal, salary weeks No. of Universities in Top 200 World University Political Stability and Absence of Violence/ 4_1 Education 4_2_3 1_1_1 Rankings Terrorism 0_2 Performance 4_1_1 Literacy Rate, Adult total (% of people ages 15+) 4_2_4 Assessment in Reading, Mathematics & Science 1_1_2 Rule of Law Index (Order and Security) 1 Tangible Impact Government Expenditure on Education per 4_1_2 5 Funding 1_1_3 Government Effectiveness Pupil, Secondary, % GDP per capita 1_1 New Products and Services 5_1 Public 1_2 Economic Growth 4_1_3 School Life Expectancy, years 1_1_1 Manufacturing Value Added (annual % growth) 5_1_1 Claims on Central Government, etc. (%GDP) 1_2_1 Rate of Real GDP Annual Growth for Cities 4_1_4 Number of Libraries/1000 population 1_1_2 Services etc., Value Added (annual % growth) 5_1_2 Central government debt, total (% of GDP) 1_2_2 GDP per Capita Change (%) 4_2 Higher Education 1_2 Growth and Revenue Generation GERD Financed by Government (% of total 1_2_3 Unemployment, total (% total labor force) 4_2_1 School Enrollment, Tertiary (% gross) 1_2_1 Market Capitalization 5_1_3 GERD) 1_3 People/Social Environment 4_2_2 Graduates in Science and Engineering, % 1_2_2 Total Value of Stocks Traded
1_3_1 Happy Planet Index No. of Universities in Top 200 World University 1_2_3 New Business Density 4_2_3 Rankings 1_3_2 Human Development Index (HDI) 1_2_4 Gross Value Added at Factor Cost (current US$) 4_2_4 Assessment in Reading, Mathematics & Science 1_3_3 Population ages 15-64 1_3 Technology Readiness 5 Funding 2 Infrastructure 1_3_1 ICT Access 5_1 Public 2_1 ICT 1_3_2 ICT Goods Exports (% total goods exports) 5_1_1 Claims on Central Government, etc. (%GDP) 2_1_1 Computer Software Spending 1_4 Creative Outputs 5_1_2 Central government debt, total (% of GDP) 2_1_2 ICT Goods Import (% total goods imports) Cultural & Creative Services Exports., % total 1_4_1 GERD Financed by Government (% of total trade 2_2 Institutions 5_1_3 GERD) 1_4_2 Global Entertainment & Media Output 2_2_1 GERD Financed by Abroad 5_2 Private Investment 1_4_3 Creative Goods Exports, % 2_2_2 GERD: Performed by Business Enterprise 5_2_1 Inward FDI Flow (US$ Million) 2 Intangible Impact 2_3 Environmental Stability Value of Greenfield Investments by Destination 5_2_2 2_1 Intellectual Capital 2_3_1 GDP (PPP) per kg of oil equivalent (Energy Use) (US$ Million) 2_1_1 PCT Patents, Applications/million pop Energy Sustainability Index (Energy 2_3_2 Number of Venture Capital Deals (fractional Performance) 5_2_3 Number of Trademark Applications Issued to counting) 2_1_2 Residents by the National Office 2_3_3 Environmental Performance 5_3 Banking 2_2 Talent & Culture 3 Government 5_3_1 Ease of Getting Credit 2_2_1 Knowledge-intensive Jobs 3_1 Policies 5_3_2 Domestic Credit to Private Sector 2_2_2 Researchers headcount 3_1_1 Total Tax Rate, % profits 6 Culture Labor Force Participation Rate, total (% of total 3_1_2 Trade Tariffs, %Duty 6_1 Entrepreneurial 2_2_3 population ages 15+) (modeled ILO estimate) - World Bank 2013 3_2 Regulation The Global Entrepreneurship & Development 6_1_1 Index 3_2_1 Regulatory Enforcement 2_3 Collaboration 6_1_2 Number of Days to Start a Business 3_2_2 Regulatory Quality 2_3_1 Scientific & Technical Articles 6_2 Incentives 3_3 Business Environment
Dubai Innovation Index 2018 105 Methodology and Assumptions – Micro
MICRO DATA
In order to complement the macro level data analysis, Dubai Chamber of Commerce and Industry (DCCI) 5. Survey Methodology conducted an innovation-based survey for Dubai’s private sector at the micro level. The survey comprised of 27 Questions tagged as measures of Innovation Capability, Activity, Tangible Impact and Intangible Impact and 6 Demographic questions to segregate the sources of responses. 1. Data Sources The survey audience was limited to private sector companies in Dubai and was targeted towards firms across all A survey consisting of 27 questions (categorized as Capability, Activity and Performance questions) was industries in Dubai registered with Dubai Chamber of Commerce and Industry. conducted through telephone interviews and e-surveys. Each question is marked on a scale of 1 (low innovation) to 5 (high innovation) the average score for each question is calculated (without considering N/A responses). The survey was conducted across two platforms, one was an online platform powered by Qualtrics and the other was through phone interviews conducted by a leading market research company in Dubai. 2. Scaling and Averaging The average score for each question is calculated (without considering N/A responses). Since all data collected is 6. Assumptions and limitations of the framework: across the same scale and unit, normalisation is not required here. However, to allow for comparison with macro data, the innovation scale of 1 – 5 described above is transformed to a 0 – 100 scale. The average score for each question is then calculated by multiplying the no. of responses with the assigned score across the 0 – 100 scale, Area of Framework Limitation/Assumption Mitigation and averaged out across total no. of responses. • We assume that respondents will • N/A Example: respond the same whether they are surveyed through telephone or Innovation Scale 0 (1) 25 (2) 50 (3) 75 (4) 100 (5) online
Question 1 Total Responses = No. of responses 531 503 334 158 105 • Some industries have a lot more • N/A 1631 respondents than others
• Categorising companies into • N/A industries (sometimes this was not straightforward, especially if Data Collection companies had multiple types of services or products) 3. Total Innovation Micro Score • It is acknowledged that since • It was attempted to curb this We use the simple average method to calculate the Capability, Activity and Performance scores by averaging the respondents answered the survey by including a disclaimer in the calculated scores of questions under each category. on behalf of the firm and questions introduction that all survey responses were linked to the firm’s capability to would be treated in anonymity and the Next, the total innovation micro score is calculated by first taking the average of Impact Tangible and Impact innovate, activities in innovation and results would only be used to increase Intangible scores to get the Performance score and then taking the aggregate of capability, activity and impact the tangible and intangible impact of support for industries struggling to their efforts in innovation, a certain innovate and continue efforts to sustain scores to get the overall score. degree of bias could be expected innovation at high performing industries from respondents. in innovation.
4. Innovation Ratio
Lastly, the innovation ratio is calculated using the following formula:
Dubai Innovation Index 2018 107 How do we measure a company’s innovation Appendix III: Stress Testing the DII levels? Micro Indicators In 2018, we decided to review the soundness Table 2: DII Micro IndicatorsSources and indexing methodologies can be found in the appendix of the DII framework and the relevancy of the
Ref. No Data measure Ref. No Data measure report to its readership
For the last 3 years, DII has used the same framework for measuring innovation. 0_1 Enablers 1_1_2 Level of innovation in internal processes Three reports on, we wanted to ensure that the DII is still up to date and valid in its methodology while also exploring 1 Capability 1_2 New Products & Services newly emerged innovation topics to include and looking at how we can take it forward. 1_1 Organization Enabler 1_2_1 % of revenue from new products and services We approached this investigation by assessing at the soundness of the framework and its usability:
1_1_1 Government funding schemes/policies 1_2_2 Level of innovation in products and services 1. Interviews with innovation thought leaders 1_1_2 Estimated % of future revenue growth 1_2_3 Level of innovation in customer experience 2. Review of innovation benchmarks 1_2 Strategy, Leadership and Culture Estimated level of innovation in future business 3. Review of the data scaling and indexing methodologies 1_2_4 models (e.g. new value offerings, customer 4. Data analysis to measure correlation between enablers and performance 1_2_1 Attitude towards importance of innovation experience, cost maximization) 5. Review of whether the report is meeting the needs of its audience 1_2_2 % investment in R&D and technology 1_3 Technology Readiness 1_2_3 Clarity of innovation definition Through these different analyses, we have been able to identify a number of insights. We were able to implement some of 1_3_1 Level of innovation in digital technology the recommendations this year such as clarifying the limitations of the framework and including an analysis of global best 1_3 Innovation Management 1_3_2 Level of innovation in ICT practices in the Micro section for comparative purposes (tick marks ✓ have been added next to implemented insights). Maturity of innovation strategy (design to However, the majority of our observations and recommendations will be explored and decided on for next year’s report 1_3_1 Usage of digital and ICT technology to implementation) facilitate innovation (e.g. virtual teams, video based on ease of implementation and extent of effect on continuity. 1_3_3 Attitude towards importance of having an conferencing, remote working, collaboration 1_3_2 innovation strategy and reporting tools)
Attitude towards importance of rewarding 2 Intangible Impact 1_3_3 innovation 2_1 Intellectual Capital 1_3_4 Existence of innovation KPIs 2_1_1 No. of IPs assigned and/or pending Ease of finding internal and external funding for 1_3_5 Level of innovation in data and knowledge innovation 2_1_2 management 1_4 Skills and Talent 2_2 Collaboration 1_4_1 Ease of finding and retaining innovation talent Level of collaboration with customers, external 1_4_2 Current level of innovation talent 2_2_1 partners, academia and employees to develop, test and implement innovative ideas 2 Activity 2_2_2 Ease of finding collaboration partners 2_1 Accessing New Ideas 2_3 Talent & Culture Level of access of new ideas for innovation from different sources (customers, external partners, Attitude towards recognizing and rewarding 2_1_1 2_3_1 employees, news and media, social media, innovation initiatives exhibitions) Attitude towards encouraging senior executives 2_3_2 2_2 Implementing New Ideas to participate in innovative projects Attitude towards seeking comparisons, 2_2_1 Ease of implementation of innovative ideas 2_3_3 benchmarks and best practices 2_2_2 Level of success in implementing new ideas Attitude towards fostering an environment 2_3_4 0_2 Performance where failure and risk are reasonably tolerated
1 Tangible Impactt Attitude towards disassembling silos within the 2_3_5 firm and encouraging internal collaboration 1_1 Growth & Revenue Generation
Estimated % of revenue growth from innovation 1_1_1 (e.g. introduction of new products, services, business models, internal processes, etc.)
Dubai Innovation Index 2018 109 Interviews with innovation thought leaders: Review of the data scaling and indexing methodologies: We interviewed four leaders in the innovation field to ensure the framework’s alignment with latest thing around No significant changes needed, there are advantages and limitations to different methodologies, better not to defining and measuring innovation... 3 change so as to maintain comparability over the year… • Professor David Gann, Professor of Technology and Innovation Management and Vice President of Innovation at Imperial College London Insights 1 • Bruno Lanvin, Co-editor of the Global Innovation Index (GII) 2018, and Executive Director, Global Indices, There are a number of limitations to the methodology that are difficult to resolve due to lack of available data or lack of INSEAD time. • Richard Boxshall, Senior Economist, PwC Middle East Variation between city definitions must be stated clearly in report for gathering population and GDP data • Michael Joseph, Internal PwC Expert specialized in Strategy, Defense, Foresight, Innovation, & Influence The survey must ensure there is no bias between telephone interviews and online platforms
• Sayed Shah, Internal PwC Expert specialized in Economic Development, Innovation & Entrepreneurship The micro analysis’ lack of comparison to other cities around the world limits the comprehensiveness of the recommendations Insights Look into bringing the Macro and Micro together more effectively Ensure the framework measures future shaping and readiness for disruptive innovations at both the macro and micro levels Differences in survey responses across industries (i.e. number of firms that answered per industry) should be taken into Emphasise STEM in the macro framework account/controlled for
Emphasise R&D in the micro framework Look into rationalising/standardising the definitions of SME and large organisation i.e. why is SME currently defined as less than 10 million AED in revenue Add emerging technologies as one of the focus areas in the micro framework
Scaling up innovative startups and providing the ecosystem for this to happen has become an area of importance
Challenge-led and mission-oriented funding has become a popular tool for many innovative cities
Data analysis to measure correlation between enablers and performance: 4 Review of innovation benchmarks: We had planned to carry out a causation analysis to understand if the enabler and performance indicators We reviewed the original benchmarks used for developing the DII Framework to check if they had changed over are reflecting causation as would be expected (e.g. an increase in innovation enabler (input) indicators is also the years. We then looked for new benchmarks to compare the DII against… reflecting an increase in innovation performance (output) indicators and vice-versa) then use this information to • Professor David Gann, Professor of Technology and Innovation Management and Vice President of decide which indicators should be considered for removal or replacement. This exercise however requires at least Innovation at Imperial College London 5 years of data. Definitive conclusion for causation cannot be proven with only 4 years of data. • Bruno Lanvin, Co-editor of the Global Innovation Index (GII) 2018, and Executive Director, Global Indices, We instead created a correlation matrix from which we can identify which indicators correlate the 2 most (correlation of enabler indicators with performance indicators). We have then analysed these indicators INSEAD to suggest whether the correlation is coincidental (this is most likely, due to only 4 years of data, and also because • Richard Boxshall, Senior Economist, PwC Middle East a number of different reasons which can result in an increased of innovation output) or true. • Michael Joseph, Internal PwC Expert specialized in Strategy, Defense, Foresight, Innovation, & Influence
• Sayed Shah, Internal PwC Expert specialized in Economic Development, Innovation & Entrepreneurship
Insights
No significant changes to frameworks of original benchmarks used to develop the DII framework in 2015 Review of whether the report is meeting the needs of its audience: The DII’s framework generally covers most of the pillars used in both the old and new benchmarks but can differ at the We added three questions to our survey to measure the report’s success with its readership… indicator level 5
Productivity as a pillar is not available in the DII but comes up in 4 of the benchmarks Insights The Dubai Government Excellence Program has a ‘shaping future’ pillar which could be a useful indicator for the DII’s micro measures. It relates to the concept of readiness When asked what they look for in a report like the DII, the most chosen answer was ‘lessons learned from innovation in the private sector in Dubai’ Gender diversity has been assigned importance in 3 of the benchmarks and is supported by the literature as a driver of innovation. However, this is not reflected in the DII. Respondents highlighted need for conferences, workshops and training on how to innovate
Challenge-led and mission-oriented funding has become a popular tool for many innovative cities Bring about more collaboration with both local government entities and global players Provide more guidance on funding for SME innovation
When asked what they look for in a report like the DII, the most chosen answer was ‘lessons learned from innovation in the private sector in Dubai’
Guidance on access to funding and support to enable innovation activities within SMEs
More coverage on specific STEM technologies like Blockchain (Private, Permissioned, Hybrid) Distributed Ledgers
Dubai Innovation Index 2018 111 Appendix IV: Macro Data Indicators -Definitions, Types, Sources and Scaling Factors
Ref. Scaling Ref. Scaling Data measure Description Source Year Type Data measure Description Source Year Type No factor No factor 0_1 Enablers 1_2_3 Unemployment, Unemployment refers to the share World Bank, World 2017 Hard Data None total (% total of the labor force that is without Development Indicators 1 Political Economic and Social Environment labor force) work but available for and seeking employment. 1_1 Political Environment 1_3 People/Social Environment 1_1_1 Political Stability Index that captures perceptions of World Bank, Worldwide 2016 Composite None and Absence the likelihood that the government Governance Indicators, Index 1_3_1 Happy Planet The HPI measures the extent to New Economics 2016 Composite None of Violence/ will be destabilized or overthrown 2017 update. (http:// Index which countries deliver long, happy, Foundation, Happy Plant Index Terrorism by unconstitutional or violent means, info.worldbank.org/ sustainable lives for the people that Index 2016 including politically motivated governance/wgi/index. live in them. The index uses global violence and terrorism. Scores are aspx#home) data on life expectancy, experienced standardized. well-being and ecological footprint to calculate this. 1_1_2 Rule of Law Combination of qualitative assessment Refer Rule of Law Index 2018 Composite None Index (Order and of questions around: Crime is Sources Table Index 1_3_2 Human The HDI is a summary measure UNDP Human 2018 Composite None Security) effectively controlled, Civil conflict Development of average achievement in key Development Index 2018 Index is effectively limited, People do not Index (HDI) dimensions of human development: resort to violence to redress personal a long and healthy life, being grievances knowledgeable and have a decent standard of living. The HDI is the 1_1_3 Government Index that captures perceptions World Bank, Worldwide 2016 Composite None geometric mean of normalized indices Effectiveness of the quality of public and civil Governance Indicators, Index for each of the three dimensions. services and the degree of their 2017 update. (http:// independence from political pressures, info.worldbank.org/ 1_3_3 Population ages Total population between the ages 15 World Bank staff 2017 Hard Data None the quality of policy formulation and governance/wgi/index. 15-64 to 64 is the number of people who estimates based on implementation, and the credibility aspx#home) could potentially be economically age/sex distributions of the government’s commitment to active. Population is based on the of United Nations such policies. Scores are standardized. de facto definition of population, Population Division's which counts all residents regardless World Population 1_2 Economic Growth of legal status or citizenship--except Prospects: 2017 Revision 1_2_1 Rate of Real GDP Annual percentage growth rate Calculated using city GDP 2017 Hard Data None - for refugees not permanently settled Annual Growth of GDP for cities at market prices from various sources Done by in the country of asylum, who are for Cities based on constant local currency. Cities generally considered part of the Aggregates are based on constant population of the country of origin. 2005 U.S. dollars. GDP is the sum 2 Infrastructure of gross value added by all resident producers in the economy plus 2_1 ICT any product taxes and minus any 2_1_1 Computer Computer software spending includes IHS Global Insight, 2017 Hard Data GDP ratio subsidies not included in the value of Software the total value of purchased or Information and the products. It is calculated without Spending leased packaged software such as Communication making deductions for depreciation of operating systems, database systems, Technology Database. fabricated assets or for depletion and programming tools, utilities, and (https://www.ihs.com/ degradation of natural resources. applications. It excludes expenditures index.html) 1_2_2 GDP per Capita Change in GDP per capita from 2013- Calculated using city 2017 Hard Data None - for internal software development Change (%) 2014 GDP and population from Done by and outsourced custom software various sources Cities development. The data are a combination of actual figures and estimates. Data are reported as a percentage of GDP.
Dubai Innovation Index 2018 113 Ref. Scaling Ref. Scaling Data measure Description Source Year Type Data measure Description Source Year Type No factor No factor 2_1_2 ICT Goods Information and communication World Bank, World 2016 Hard Data None 3 Government Import (% total technology goods imports include Development Indicators, 3_1 Policies goods imports) telecommunications, audio and video, http://data.worldbank. computer and related equipment; org/indicator/TM.VAL. 3_1_1 Total Tax Rate, % Total tax rate measures the World Bank: World 2017 Hard Data SAME electronic components; and other ICTG.ZS.UN profits amount of taxes and mandatory development indicators: information and communication contributions payable by businesses http://data.worldbank. technology goods. Software is after accounting for allowable org/indicator/IC.TAX. excluded. deductions and exemptions as a TOTL.CP.ZS share of commercial profits. Taxes 2_2 Institutions withheld (such as personal income 2_2_1 GERD Financed Total domestic intramural expenditure UNESCO Institute for 2015 Hard Data GDP ratio tax) or collected and remitted to by Abroad on R&D during a given period as a Statistics, UIS online tax authorities (such as value added percentage of GDP. Intramural R&D database (2007–17). taxes, sales taxes or goods and expenditure is all expenditure for R&D (http://data.uis.unesco. service taxes) are excluded. performed within a statistical unit org) 3_1_2 Trade tariffs, An applied tariff is a customs Global Competitiveness 2016 Hard Data SAME or sector of the economy during a %duty duty that is levied on imports of index 2017, specific period, whatever the source merchandise goods. This indicator is International Trade of funds. calculated as a weighted average of Centre; Trade 2_2_2 GERD: Gross expenditure on R&D performed UNESCO Institute for 2016 Hard Data GDP ratio all the applied tariff rates, including Competitiveness Map Performed by business enterprise as a Statistics, UIS online preferential rates that a country Data by Business percentage of GDP. database (2007–17). applies to the rest of the world. The Enterprise (http://data.uis.unesco. weights are the trade patterns of the org) importing country’s reference group (2012 data). 2_3 Environmental Stability 3_2 Regulation 2_3_1 GDP (PPP) Purchasing power parity gross International Energy 2015 Hard Data None per kg of oil domestic product (PPP$ GDP) per Agency, World Energy 3_2_1 Regulatory Combination of qualitative assessment Refer Rule of Law Index 2018 Composite SAME equivalent kilogram of oil equivalent of energy Balances online data Enforcement of questions around: government Sources Table Index (Energy Use) use. Energy use or total primary service (2014–15). (http:// regulations are effectively enforced, energy supply (TPES) is calculated www.iea.org/stats/) Government regulations are applied as the production of fuels + inputs and enforced without improper from other sources + imports – influence, Administrative proceedings exports – international marine bunkers are conducted without unreasonable +/– stock changes. It includes coal, delay, Due process is respected in crude oil, natural gas liquids, refinery administrative proceedings, The feedstocks, additives, petroleum Government does not expropriate products, gases, combustible without adequate compensation renewables and waste, electricity, and heat. Domestic supply (also called 3_2_2 Regulatory Index that captures perceptions of the World Bank, Worldwide 2016 Composite SAME ‘energy apparent consumption’) Quality ability of the government to formulate Governance Indicators, Index differs from final consumption in and implement sound policies and 2017 update. (http:// that it does not take account of regulations that permit and promote info.worldbank.org/ distribution losses. The supply (or use) private-sector development. Scores governance/wgi/index. of energy commodities is converted are standardized. aspx#home) to kilograms or tons of oil equivalent (koe, toe) using standard coefficients for each energy source.
2_3_2 Energy Energy performance indicators World Energy Council, 2017 Composite SAME Sustainability consider supply and demand, the Energy Trilemma Index, Index Index (Energy affordability of and access to energy, 2017 https://www. Performance) and the environmental impact of worldenergy.org/data/ a country’s energy use. Measures trilemma-index/ 3 dimensions: Energy Security, Energy Equity and Environmental Sustainability
2_3_3 Environmental Environmental Performance Index epi.yale.edu//epi/country- 2018 Composite SAME Performance measures across: Is the average rankings Index Health Impacts, Air Quality, Water and Sanitation, Water Resources, Agriculture, Forests, Fisheries, Biodiversity and Habitat and Climate and Energy
Dubai Innovation Index 2018 115 Ref. Scaling Ref. Scaling Data measure Description Source Year Type Data measure Description Source Year Type No factor No factor 3_3 Business Environment 4 Skills and Talent
3_3_1 Logistics A multidimensional assessment of World Bank and Turku 2016 Composite None 4_1 Education Performance logistics performance, the Logistics School of Economics, Index 4_1_1 Literacy Rate, Adult (15+) Literacy Rate (%) Total Global Information 2016 Hard Data None Performance Index (LPI) compares Logistics Performance Adult total (% of is the percentage of the population Technology Report 2016 the trade logistics profiles of 160 Index 2016; Arvis et al., people ages 15+) age 15 and above who can, with - Networked Readiness countries and rates them on a scale 2016, Connecting to understanding, read and write a Index (http://reports. of 1 (worst) to 5 (best). The ratings Compete 2016: Trade short, simple statement on their weforum.org/global- are based on 6,000 individual Logistics in the Global everyday life. Generally, ‘literacy’ also information-technology- country assessments by nearly 1,000 Economy–The Logistics encompasses ‘numeracy’, the ability to report-2016/networked- international freight forwarders, who Performance Index and make simple arithmetic calculations. readiness-index/) rated the eight foreign countries their its Indicators. (http:// This indicator is calculated by dividing company serves most frequently. The lpi.worldbank.org/; the number of literates aged 15 years LPI’s six components include: (1) the (https://openknowledge. and over by the corresponding age efficiency of the clearance process worldbank.org/ group population and multiplying the (speed, simplicity, and predictability handle/10986/24598) result by 100. of formalities) by border control agencies, including customs; (2) 4_1_2 Government Government spending on education UNESCO Institute for 2014 Hard Data None the quality of trade- and transport- Expenditure on divided by the total number of Statistics, UIS online related infrastructure (ports, railroads, Education per secondary students, as a percentage database (2011–16). roads, information technology); (3) Pupil, Secondary, of GDP per capita. Government (http://data.uis.unesco. the ease of arranging competitively % GDP per expenditure (current and capital) org/) priced shipments; (4) the competence capita includes government spending on and quality of logistics services educational institutions (both public (transport operators, customs and private), education administration, brokers); (5) the ability to track and and subsidies for private entities trace consignments; and (6) the (students/households and other frequency with which shipments reach private entities). the consignee within the scheduled or expected delivery time. Details of 4_1_3 School Life Total number of years of schooling UNESCO Institute for 2016 Hard Data None the survey methodologyare in Arvis Expectancy, that a child of a certain age can Statistics, UIS online et al.’s Connecting to Compete 2014: years expect to receive in the future, database (2008–17). Trade Logistics in the Global Economy assuming that the probability of his (http://data.uis.unesco. (2014). Scores are averaged across all or her being enrolled in school at any org) respondents. particular age is equal to the current enrolment ratio for that age. 3_3_2 Ease of Doing Ease of doing business ranks World Bank, Ease of 2017 Composite None Business Index economies from 1 to 189, with first Doing Business Index Index 4_1_4 Number of The total number of libraries in https://www.oclc.org/ 2017 Hard Data None place being the best. A high ranking 2018: Reforming to Libraries/1000 a country/1000 population (it global-library-statistics. (a low numerical rank) means that the Create Jobs. (http:// population represents administrative units en.html regulatory environment is conducive www.doingbusiness.org/ and not service points, since not to business operation. The index reports/global-reports/ all sources report service points averages the country's percentile doing-business-2018) consistently). rankings on 10 topics covered in the 4_2 Higher Education World Bank's Doing Business. The ranking on each topic is the simple 4_2_1 School Gross enrolment ratio. Tertiary (ISCED UNESCO Institute for 2016 Hard Data None average of the percentile rankings Enrollment, 5 and 6). Total is the total enrollment Statistics, UIS online on its component indicators. 1=most Tertiary (% in tertiary education (ISCED 5 and database (2008–17). business-friendly regulations) gross) 6), regardless of age, expressed as a (http://data.uis.unesco. percentage of the total population of org) the five-year age group following on from secondary school leaving.
4_2_2 Graduates in The share of all tertiary graduates UNESCO Institute for 2016 Hard Data None Science and in manufacturing, engineering, Statistics, UIS online Engineering, % and construction over all tertiary database (2010–17). graduates. (http://data.uis.unesco. org)
Dubai Innovation Index 2018 117 Ref. Scaling Ref. Scaling Data measure Description Source Year Type Data measure Description Source Year Type No factor No factor 4_2_3 No. of No. of universities in top 200 world QS World University 2019 Hard Data None - 5_2_2 Value of A form of foreign direct investment UNCTAD (http://unctad. 2017 Hard Data GDP ratio Universities in university rankings - ranked using six Ranking 2019 (https:// Done by Greenfield where a parent company starts a org/en/Pages/DIAE/ Top 200 World indicators i.e., academic reputation, www.topuniversities. Cities Investments by new venture in a foreign country by World%20Investment%20 University employer reputation, student-to- com/university-rankings/ Destination (US$ constructing new operational facilities Report/Annex-Tables. Rankings faculty ratio, citations per faculty, world-university- Million) from the ground up. In addition to aspx) international faculty ratio and rankings/2019) building new facilities, most parent international student ratio. companies also create new long-term jobs in the foreign country by hiring 4_2_4 Assessment The Organisation for Economic OECD Programme for 2015 Hard Data None - new employees in Reading, Co-operation and Development International Student Scores Mathematics & (OECD) Programme for International Assessment (PISA) of UAE 5_2_3 Number of Thomson Reuters data on private Thomson Reuters, 2017 Hard Data GDP ratio Science Student Assessment (PISA) develops (2010–15). (www.pisa. are from Venture Capital equity deals, per deal, with Thomson One Banker three yearly surveys that examine oecd.org/) Dubai Deals (fractional information on the location of Private Equity database; 15-yearold students’ performance in and counting) investment, investment company, International Monetary reading, mathematics, and science. others investor firms, and funds, among other Fund, World Economic The scores are calculated in each from details. The series corresponds to a Outlook Database 2017 year so that the mean is 500 and the specific query on venture capital deals from (PPP$ GDP). (https:// standard deviation 100. The scores Cities 1 January 2014 to 31 December 2014, www.thomsonone. for China come from Shanghai; those (SAME) with the data collected by investment com; https://www.imf. for India from Himachal Pradesh and location, for a total of 19,309 deals org/external/pubs/ft/ Tamil Nadu (average); those for the in 73 countries in 2014. The data are weo/2017/02/weodata/ United Arab Emirates from Dubai; reported per billion PPP$ GDP. index.aspx) and those for the Bolivarian Republic 5_3 Banking ofVenezuela from Miranda. 5_3_1 Ease of Getting The ranking is the simple average World Bank, Ease of 2017 Composite None 5 Funding Credit of the percentile rankings on the Doing Business Index Index 5_1 Public component indicators of the ease of 2018: Reforming to getting credit index: strength of legal Create Jobs. (http:// 5_1_1 Claims on Claims on central government (IFS International Monetary 2017 Hard Data None rights index (range 0–10); and depth www.doingbusiness.org/ Central line 52AN or 32AN) include loans to Fund, International of credit information index (range reports/global-reports/ Government, etc. central government institutions net of Financial Statistics and 0–6). doing-business-2018) (%GDP) deposits. data files, and World Bank and OECD GDP 5_3_2 Domestic Credit Financial resources provided to the International Monetary 2016 Hard Data GDP ratio estimates. to Private Sector private sector, such as through loans, Fund, International purchases of non-equity securities, Financial Statistics and 5_1_2 Central Debt is the entire stock of direct International Monetary 2016 Hard Data None and trade credits and other accounts data files; and World government government fixed-term contractual Fund, Government receivable, that establish a claim Bank and OECD GDP debt, total (% of obligations to others outstanding on Finance Statistics for repayment. For some countries, estimates; extracted from GDP) a particular date. It includes domestic Yearbook and data files, these claims include credit to public the World Bank’s World and foreign liabilities such as currency and World Bank and enterprises. Development Indicators and money deposits, securities other OECD GDP estimates database (2008–16). than shares, and loans. It is the gross (http://data.worldbank. amount of government liabilities org/) reduced by the amount of equity and financial derivatives held by the 6 Culture government. Because debt is a stock 6_1 Entrepreneurial rather than a flow, it is measured as of a given date, usually the last day of 6_1_1 The Global The main contribution of the Global Entrepreneurship 2018 Composite None the fiscal year. Entrepreneurship GEDI Institute is the GEI index, a Index 2018 Index & Development breakthrough advance in measuring 5_1_3 GERD Financed Gross expenditure on R&D finance by UNESCO Institute for 2013- Hard Data None Index the quality and dynamics of by Government government as a percentage of GDP. Statistics (http://data. 2016 entrepreneurship ecosystems at a (% of total uis.unesco.org/Index. national, regional and local level. GERD) aspx?queryid=244) 6_1_2 Number of Time required to start a business is World Bank, Doing 2017 Hard Data None 5_2 Private Investment Days to Start a the number of calendar days needed Business project 2017 5_2_1 Inward FDI Flow Amount of Total Foreign investment UNCTAD (http://unctad. 2017 Hard Data GDP ratio Business to complete the procedures to legally (doingbusiness.org) (US$ Million) inflows org/en/Pages/DIAE/ operate a business. If a procedure can World%20Investment%20 be speeded up at additional cost, the Report/Annex-Tables. fastest procedure, independent of aspx) cost, is chosen
Dubai Innovation Index 2018 119 Ref. Scaling Ref. Scaling Data measure Description Source Year Type Data measure Description Source Year Type No factor No factor 6_2 Incentives 1_1_2 Services etc., Annual growth rate for value added World Bank national 2017 Hard Data None Value Added in services based on constant local accounts data, and OECD 6_2_1 Maximum Maximum working days per week World Bank, Ease of 2017 Hard Data None (annual % currency. Aggregates are based on National Accounts data Working Days Doing Business Index growth) constant 2005 U.S. dollars. Services files/World Development per Week 2018: Reforming to correspond to ISIC divisions 50-99. Indicators Create Jobs. (http:// They include value added in wholesale www.doingbusiness.org/ and retail trade (including hotels reports/global-reports/ and restaurants), transport, and doing-business-2018) government, financial, professional, 6_2_2 Paid Annual Paid annual leave in working days World Bank, Ease of 2017 Hard Data None and personal services such as Leave (average (average for workers with 1, 5 and 10 Doing Business Index education, health care, and real estate for workers with years of tenure) 2018: Reforming to services. Also included are imputed 1, 5 and 10 years Create Jobs. (http:// bank service charges, import duties, of tenure, in www.doingbusiness.org/ and any statistical discrepancies working days) reports/global-reports/ noted by national compilers as well as doing-business-2018) discrepancies arising from rescaling. Value added is the net output of a 6_2_3 Cost of The redundancy cost indicator is the World Bank, Ease of 2017 Hard Data None sector after adding up all outputs and Redundancy sum of the cost of advance notice Doing Business Index subtracting intermediate inputs. It is Dismissal, salary requirements added to severance 2018: Reforming to calculated without making deductions weeks payments due when terminating a Create Jobs. (http:// for depreciation of fabricated assets redundant worker, expressed in weeks www.doingbusiness.org/ or depletion and degradation of of salary.The average value of notice reports/global-reports/ natural resources. The industrial origin requirements and severance payments doing-business-2018) of value added is determined by applicable to a worker with 1 year the International Standard Industrial of tenure, a worker with 5 years of Classification (ISIC), revision 3. tenure, and a worker with 10 years of tenure is used to assign the score. 1_2 Growth and Revenue Generation
1_2_1 Market Market capitalization (also known as World Federation of 2016 Hard Data GDP ratio Capitalization ‘market value’) is the share price times Exchanges database; 0_2 Performance the number of shares outstanding. extracted from the Listed domestic companies are World Bank’s World the domestically incorporated Development Indicators 1 Tangible Outcome companies listed on the country’s database (2008–16). stock exchanges at the end of the (http://data.worldbank. 1_1 New Products and Services year. Listed companies do not include org/) 1_1_1 Manufacturing Annual growth rate for manufacturing World Bank national 2017 Hard Data None investment companies, mutual Value Added value added based on constant accounts data, and OECD funds, or other collective investment (annual % local currency. Aggregates are National Accounts data vehicles. growth) based on constant 2005 U.S. dollars. files/World Development Manufacturing refers to industries Indicators 1_2_2 Total Value of Total value of shares traded during the World Federation of 2014- Hard Data GDP ratio belonging to ISIC divisions 15-37. Stocks Traded period. This indicator complements Exchanges database 2017 Value added is the net output of a the market capitalization ratio by sector after adding up all outputs and showing whether market size is subtracting intermediate inputs. It is matched by trading. calculated without making deductions for depreciation of fabricated assets 1_2_3 New Business Number of new firms, defined as World Bank, Doing 2016 Hard Data Population or depletion and degradation of Density firms registered in the current year of Business 2018, ratio natural resources. The origin of reporting, per thousand population Entrepreneurship value added is determined by the aged 15–64 years old. (2008–16). (http://www. International Standard Industrial doingbusiness.org/ Classification (ISIC), revision 3. data/exploretopics/ entrepreneurship)
Dubai Innovation Index 2018 121 Ref. Scaling Ref. Scaling Data measure Description Source Year Type Data measure Description Source Year Type No factor No factor 1_2_4 Gross Value Gross value added at basic prices World Bank national 2016- Hard Data GDP ratio 1_4_2 Global The Global entertainment and media Calculations were 2016 Hard Data GDP ratio Added at Basic (formerly GDP at factor cost) is accounts data, and OECD 2017 Entertainment & outlook (the Outlook) provides global derived from PwC’s Prices (current derived as the sum of the value National Accounts data Media Output analysis for consumer and advertising Global Entertainment US$) added in the agriculture, industry files/World Development spend with like-for-like, five-year and Media Outlook, and services sectors. If the value Indicators historical and forecast data across 13 2017–2021; United added of these sectors is calculated industry segments in 59 countries. Nations, Department of at purchaser values, gross value The Outlook allows one to compare Economic and Social added at factor cost is derived by and contrast regional growth rates Population Division, subtracting net product taxes from and consumer and advertising spend. World Population GDP. Data are in current U.S. dollars The segments covered by the Outlook Prospects: The 2017 are: TV subscriptions and license Revision (population); 1_3 Technology Readiness fees; TV advertising; Internet access; World Economic Outlook 1_3_1 ICT Access The ICT access index is a composite International 2017 Composite None radio; out-of-home advertising; Database, October 2017 index that weights five ICT indicators Telecommunication Index video games; filmed entertainment; (current US$ GDP); (20% each): (1) Fixed telephone Union, Measuring the newspaper publishing; consumer Middle East & North lines per 100 inhabitants; (2) Mobile Information Society magazine publishing; business-to- Africa in the World Bank’s cellular telephone subscriptions per 2017, ICT Development business markets; Internet advertising; DataBank. (2017). (http:// 100 inhabitants; (3) International Index 2017 (2016–17). and consumer and educational book www.pwc.com/outlook; Internet bandwidth (bit/s) per Internet (http://www.itu.int/en/ publishing and music. The score http://esa.un.org/unpd/ user; (4) Percentage of households ITU-D/Statistics/Pages/ and rankings for the Global Media wpp/; https://www.imf. with a computer; and (5) Percentage publications/mis2017. Expenditures for the 59 countries org/external/pubs/ft/ of households with Internet access. aspx) considered in this report are based weo/2017/02/weodata/ It is the first sub-index in ITU’s on advertising and consumer digital index.aspx; http://data. ICTDevelopment Index (IDI). and non-digital data in US$ millions at worldbank.org/region/ average 2012 exchange rates for the middle-east-and-north- 1_3_2 ICT Goods Information and communication World Bank indicator 2016 Hard Data None year 2012. These results are reported africa)Affairs, Exports (% total technology goods exports include 2016 normalized per thousand population, goods exports) telecommunications, audio and video, 15–69 years old, for the year 2013. computer and related equipment; electronic components; and other 1_4_3 Creative Goods Total value of creative goods exports, United Nations, Comtrade 2016 Hard Data None information and communication Exports, % net of re-exports (current US$) over database; 2009 UNESCO technology goods. Software is total trade. ‘Total trade’ is defined as Framework for Cultural excluded the sum of total imports code G100 Statistics, Table 3, goods and code S200CS commercial International trade of 1_4 Creative Outputs services (excluding government cultural goods and services) plus total exports of code services based on the 1_4_1 Cultural & Creative services exports (% of total World Trade 2016 Hard Data None G100 goods and code S200CS 2007 Harmonised System Creative Services exports) according to the Extended Organization, Trade in commercial services (excluding (HS 2007); World Trade Exports., % total Balance of Payments Services Commercial Services government services), divided by 2. Organization, Trade in trade Classification EBOPS 2002—that is, database, based on the According to the fifth edition of the Commercial Services EBOPS code 264 Information services; sixth (2009) edition International Monetary Fund’s Balance database, itself based on code 278 Advertising, market research of the International of Payments Manual, the category the sixth (2009) edition and public opinion polling; code 288 Monetary Fund’s Balance ‘goods’ covers general merchandise, of the International Audiovisual and related services; and of Payments and goods for processing, repairs on Monetary Fund’s Balance code 897 Other, personal, cultural and International Investment goods, goods procured in ports by of Payments and recreational services as a percentage Position Manual and carriers, and nonmonetary gold. The International Investment of total trade. The score for the United Balance of Payments ‘commercial services’ category is Position Manual and States of America (USA) includes database; Bureau of defined as being equal to ‘services’ Balance of Payments the category Film and TV tape Economic Analysis (BEA) minus ‘government services, not database (2011–16). distribution in the absence of available released October 2017 included elsewhere’. (http://comtrade.un.org/; data for code 288 Audiovisual and (2007–16). http://www.uis.unesco. related services. The category Film (http://stat.wto.org/ org/culture/Documents/ and tape distribution is specific to StatisticalProgram/ framework-cultural- the USA and does not have a code. WSDBStatProgramSeries. statistics-culture-2009- However, these transactions have aspx; http://www.oecd. en.pdf; http://stat.wto. been classified by the USA under org/std/its/EBOPS-2010. org/StatisticalProgram/ the EBOPS item 266 (Royalties and pdf; https://www.bea. WSDBStatProgramSeries. licence fees). gov/iTable/iTable.cfm) aspx; http://www.oecd. org/std/its/EBOPS-2010. pdf)
Dubai Innovation Index 2018 123 Ref. Scaling Ref. Scaling Data measure Description Source Year Type Data measure Description Source Year Type No factor No factor 2 Intangible Outcomes 2_2_2 Researchers Researchers per million population, Researchers per million 2016 Hard Data Population headcount fulltime equivalence. Researchers in population, fulltime ratio 2_1 Intellectual Capital R&D are professionals engaged in equivalence. Researchers the conception or creation of new in R&D are professionals 2_1_1 PCT Patents, The capacity of firms to develop The capacity of firms to 2017 Hard Data None knowledge, products, processes, engaged in the Applications/ new products will determine their develop new products methods, or systems and in the conception or creation million pop competitive advantage. One indicator will determine their management of the projects of new knowledge, of the rate of new product innovation competitive advantage. concerned. Postgraduate PhD products, processes, is the number of patents. This One indicator of the students (ISCED97 level 6) engaged in methods, or systems and indicator measures the number of PCT rate of new product R&D are included. in the management of patent applications innovation is the number the projects concerned. of patents. This indicator Postgraduate PhD measures the number of students (ISCED97 level PCT patent applications 6) engaged in R&D are included. 2_1_2 Number of Number of trademark applications at Number of trademark 2016 Hard Data GDP ratio Trademark the national trademark office, based applications at the 2_2_3 Labor Force Labor force participation rate is the Labor force participation 2017 Hard Data None Applications on equivalent class counts. ‘Class national trademark office, Participation proportion of the population ages 15 rate is the proportion Issued to count’ refers to the number of classes based on equivalent class Rate, total and older that is economically active: of the population ages Residents by the specified in a trademark application or counts. ‘Class count’ (% of total all people who supply labor for the 15 and older that is National Office registration. Data are scaled by PPP$ refers to the number of population ages production of goods and services economically active: GDP (billions). classes specified in a 15+) (modeled during a specified period. all people who supply trademark application ILO estimate) - labor for the production or registration. Data are World Bank 2013 of goods and services scaled by PPP$ GDP during a specified period. (billions). 2_3 Collaboration 2_2 Creation of Culture 2_3_1 Scientific & Number of scientific and technical Number of scientific and 2017 Hard Data None 2_2_1 Knowledge- Knowledge-intensive jobs correspond Knowledge-intensive 2016 Hard Data Population Technical journal articles (per billion PPP$ GDP) technical journal articles intensive Jobs to the International Labour jobs correspond to the ratio Articles (per billion PPP$ GDP) Organization (ILO) aggregate International Labour category “Managers, professionals, Organization (ILO) 2_3_2 No. of JV- Thomson Reuters data on joint Thomson Reuters data 2017 Hard Data GDP ratio and technicians,” as provided in aggregate category Strategic ventures/strategic alliances deals, on joint ventures/ the ILOSTAT Database. For a few “Managers, professionals, Alliance Deals per deal, with details on the country strategic alliances deals, countries, when aggregate data were and technicians,” (fractional of origin of partnerfirms, among per deal, with details not available, authors have manually as provided in the counting) others. The series corresponds to on the country of calculated the share of knowledge- ILOSTAT Database. For a query on joint venture/strategic origin of partnerfirms, intensive jobs (as a percentage of a few countries, alliance deals from 1 January 2014 to among others. The total employment) summing the when aggregate data 31 December 2014, for a totalof 1,623 series corresponds to a following ISCO- 88 categories: (1) were not available, deals announced in 2014, with firms query on joint venture/ Legislators, senior officials and authors have manually headquartered in 104 participating strategic alliance deals managers; (2) Professionals; and calculated the share of economies. Each participating from 1 January 2014 to (3) Technicians and associate knowledge-intensive nation of each company in a deal (n 31 December 2014, for professionals. jobs (as a percentage countries per deal) gets, per deal, a totalof 1,623 deals of total employment) a score equivalent to 1/n (with the announced in 2014, with summing the following effect that all country scores add up firms headquartered ISCO- 88 categories: to 1,623). The data are reported per in 104 participating (1) Legislators, senior billion PPP$ GDP. economies. Each officials and managers; participating nation of (2) Professionals; and (3) each company in a deal Technicians and associate (n countries per deal) professionals. gets, per deal, a score equivalent to 1/n (with the effect that all country scores add up to 1,623). The data are reported per billion PPP$ GDP.
Dubai Innovation Index 2018 125 MACRO – Performance to Enabler Ratio Calculations and Rankings
Updates to the Framework 2018
Macro framework: Table 4: Performance to Enabler Ratio Calculations and Rankings, 2015-2018
Ref No. Indices DII 2017 Changes
1_2_3 Unemployment, total (% total labor force) - World No longer scaled down to city level – kept as a Bank 2016 percentage to maintain comparability
1_3_3 Population Ages 15 - 64 (% of total) - World Bank No longer scaled down to city level – kept as a 2015 percentage to maintain comparability
1_2_2 GDP per Capita Change (%) Source was from Brookings Institute Since 2017, this indicator has been calculated using GDP and Population data from various sources
2_3_2 Energy Sustainability Index (Energy Performance Value was inputted in DII 2015 and 2016 Score) - Energy Trilemma Index 2015 Rank was inputted in DII 2017 and 2018
4_1_4 Number of Libraries - Globalstats Number of libraries now divided by population Not per 100o of population and not scaled
4_2_1 School Enrollment, Tertiary (% Gross) - World Bank *N/A in GII and UNESCO – Chosen sources 2013 / 2014 *37.00 in World Bank *Source in appendix: World Bank, The Global Information Technology Report/The Global Financial Centres Index, UNESCO
4_2_3 No. of Universities in Top 200 World University Kept as 3 (same as 2017): Rankings - QS World University Ranking 2016 For Dubai’s rank, the branches of universities (LBS, BU and Michigan State) is taken as the top universities. The rest of the data is taken from topuniversities.com
5_2_3 Venture Capital Deals/tr PPP$ GDP -Global Venture Capital Deals/bn PPP$ GDP -Global Innovation Index 2016 Innovation Index 2016 Changed to ‘bn’ instead of ‘tr’ as per the GII
1_2_4 Gross Value Added at Factor Cost (current US$) - Changed to Gross Value Added at Basic Prices (GVA) World Bank 2015 (current US$) as per World Bank changes (values are similar but name has changed)
2_3_2 JV Strategic Alliance Deals/tr PPP$ GDP - Global JV Strategic Alliance Deals/bn PPP$ GDP -Global Innovation Index 2014 Innovation Index 2016 Changed to ‘bn’ instead of ‘tr’ as per the GII
Micro framework:
Every year, we make small updates to the survey to make it simpler, more concise and more reflective of what we are trying to measure.
Dubai Innovation Index 2018 127 MACRO – Enabler and Performance Rankings MICRO - Detailed Innovation Scores by Company Size over the years
Table 5: Enabler Rankings, 2015-2018 Table 6: Performance Rankings, 2015-2018 Pillar Micro (<10 million AED) SME (10-100 million AED)
Year 2015 2016 2017 2018 2015 2016 2017 2018
City ‘15 ‘16 ‘17 ‘18 City ‘15 ‘16 ‘17 ‘18 Overall Score 56.61 59.55 61.38 62.51 56.92 61.40 61.58 65.72
Hong Kong 2 3 3 1 New York 4 3 4 1 Enabler 55.59 60.63 66.82 66.03 56.76 62.53 65.33 68.32 London 1 2 2 2 Seoul 2 6 3 2 Capability 52.46 61.18 62.01 61.20 54.68 62.78 61.66 63.60 Singapore 3 4 1 3 Hong Kong 5 4 2 3
New York 4 1 4 4 Tokyo 3 1 1 4 Organization Enabler 46.08 62.58 48.84 51.58 49.36 63.93 53.68 60.05
Stockholm 5 7 5 5 Shanghai 7 10 7 5 Strategy, Leadership & Culture 48.90 58.21 54.80 58.01 52.12 59.93 54.36 52.11 Copenhagen 6 6 6 6 London 1 5 5 6 Innovation Management 64.44 61.14 72.11 68.01 63.88 63.48 69.73 71.57 Sydney 9 11 12 7 Singapore 6 7 6 7
Zurich 8 8 9 8 Beijing 8 14 8 8 Skills and Talent 48.04 50.36 72.28 67.19 41.96 52.30 68.88 70.68
Seoul 7 13 7 9 Stockholm 11 8 9 9 Activity 58.73 60.08 71.63 70.87 58.83 62.29 69.00 73.04 Berlin 12 9 10 10 Zurich 10 9 10 10 Accessing New Ideas 59.07 68.09 69.28 72.24 66.77 70.08 66.72 73.15 Toronto 10 12 8 11 San Francisco 16 12 11 11
Paris 13 5 11 12 Paris 9 2 14 12 Implementing New Ideas 50.85 52.06 73.98 69.50 41.61 54.49 71.28 72.92
Tallinn N/A N/A 13 13 Copenhagen 13 11 12 13 Performance 58.64 57.39 50.12 55.46 57.25 59.13 54.08 60.53 Tokyo 11 14 18 14 Toronto 14 13 16 14 Tangible Impact 57.90 59.04 49.28 57.32 56.46 60.63 52.31 61.93 Dubai 16 16 15 15 Kuala Lumpur 12 20 19 15
San Francisco 14 10 14 16 Berlin 19 16 18 16 Growth and Revenue Generation 44.64 47.54 37.96 46.69 41.34 49.36 41.76 49.89
Madrid 15 15 16 17 Tallinn - - 20 17 New Products and Services 57.41 63.22 55.97 61.56 60.89 65.00 55.78 66.51 Warsaw N/A N/A 17 18 Warsaw - - 13 18 Technology Readiness 71.64 66.35 53.92 63.72 67.14 67.52 59.38 69.40 Doha 18 20 19 19 Dubai 15 17 15 19
Kuala Lumpur 17 18 21 20 Sydney 17 15 17 20 Intangible Impact 59.39 55.74 50.95 53.61 58.04 57.63 55.84 59.13
Milan 20 19 23 21 Moscow 20 24 22 21 Intellectual Capital 29.89 26.57 20.59 29.13 27.77 30.12 38.07 39.72 Riyadh 19 17 20 22 Madrid 25 21 23 22 Collaboration 74.29 62.88 58.27 58.17 65.71 63.26 59.66 63.37 Moscow 22 21 22 23 Mexico City 24 23 25 23
Turin N/A N/A N/A 24 Milan 28 22 26 24 Talent and Culture 73.98 77.76 74.00 73.52 80.63 79.52 69.80 74.31
Mexico City 23 22 24 25 Doha 23 18 21 25
Shanghai 24 23 25 26 Turin N/A N/A N/A 26
Beijing 25 24 26 27 Riyadh 21 19 24 27
Accra N/A N/A N/A 28 Sao Paulo 22 26 29 28
Bangalore N/A 27 30 29 Bangalore - 28 27 29
Johannesburg 26 25 27 30 Accra N/A N/A N/A 30
Sao Paulo 27 26 28 31 Nairobi - 25 28 31
Nairobi N/A 28 29 32 Johannesburg 26 27 30 32
Dubai Innovation Index 2018 129 MICRO - Detailed Innovation Scores by MICRO - Innovation Scores by Industry Company Size over the years 2018 - highest and lowest scoring industries for each sub-pillar
Highest scoring industry
Lowest scoring industry Pillar Large (100-500 million AED) Very Large (>500 million AED)
Year 2015 2016 2017 2018 2015 2016 2017 2018 Table 13: Breakdown of Private Sector Innovation Enabler Scores(0-100) by Industry, 2018
Strategy, Accessing Overall Score 59.09 63.76 61.18 66.36 58.53 63.55 64.50 63.04 Overall Organization Innovation Skills & Implementing Industry Capability Leadership Activity New Enabler Enablers Management Talent New Ideas & Culture Ideas Enabler 59.05 64.78 64.21 68.15 57.09 64.28 67.93 65.86
Capability 57.89 65.48 60.98 62.87 55.78 64.77 63.62 61.36 Agriculture 65.32 59.12 52.92 50.82 70.24 62.50 71.53 75.35 67.71
Organization Enabler 48.12 65.56 54.53 61.71 55.47 59.40 47.60 53.41 Construction and Real 66.87 62.20 55.77 53.91 70.69 68.43 71.54 72.29 70.79 Strategy, Leadership & Culture 57.68 63.08 54.02 46.44 53.90 61.30 54.07 53.64 Estate
Innovation Management 67.55 66.99 68.39 71.70 68.39 70.40 76.74 72.37 Education 66.56 61.94 51.67 57.23 68.45 70.42 71.18 74.03 68.33 Skills and Talent 46.93 54.49 67.00 71.62 36.64 57.16 76.09 66.02
Energy and Activity 60.21 64.08 67.44 73.43 58.41 63.79 72.24 70.37 66.17 61.05 54.98 53.55 68.16 67.50 71.29 72.71 69.88 Utilities Accessing New Ideas 65.55 72.21 64.34 74.20 66.15 69.63 67.29 72.27
Implementing New Ideas 46.93 55.95 70.54 72.65 40.21 57.96 77.20 68.47 Hospitality 69.11 63.97 58.80 54.02 71.32 71.75 74.25 75.12 73.38
Performance 59.17 61.73 55.12 62.79 61.40 62.10 57.64 57.40 Healthcare 66.21 61.98 54.20 56.75 69.99 66.98 70.44 72.25 68.63 Tangible Impact 59.60 62.13 53.47 63.99 60.09 62.64 54.78 56.80
Growth and Revenue Generation 47.15 52.91 43.73 53.49 45.55 51.38 43.13 43.54 ICT 69.08 64.44 54.01 61.70 72.25 69.79 73.72 74.13 73.31 New Products and Services 63.22 65.15 56.27 69.23 62.63 66.17 59.73 62.16
Technology Readiness 68.42 68.33 60.42 69.25 72.10 70.37 61.49 64.70 Manufacturing 67.21 62.48 55.71 51.31 71.96 70.95 71.93 71.57 72.30
Intangible Impact 58.75 61.32 56.77 61.59 62.72 61.56 60.50 58.00 Media and 66.61 62.34 51.75 58.35 68.91 70.36 70.88 70.10 71.65 Intellectual Capital 31.14 34.93 40.51 48.28 40.67 37.96 31.09 36.47 Marketing
Collaboration 63.53 66.63 60.31 62.12 66.88 64.92 67.88 64.03 Professional 67.77 62.45 55.65 55.09 69.97 69.08 73.09 73.09 73.09 Talent and Culture 81.58 82.40 69.49 74.37 80.61 81.80 82.54 73.49 Services
Transport and 66.98 62.71 58.94 52.55 70.98 68.36 71.26 72.49 70.02 Logistics
Wholesale and 66.85 61.83 58.19 51.78 68.69 68.67 71.88 73.10 70.65 Retail
Dubai Innovation Index 2018 131 MICRO - Innovation Scores by Industry 2018 - highest and lowest scoring industries for each sub-pillar
Highest scoring industry
Lowest scoring industry
Table 14: Breakdown of Private Sector Innovation Performance Scores(0-100) by Industry, 2018
Overall Growth & New Tangible Technology Intangible Intellectual Talent & Industry Perfor- Revenue Products & Collaboration Impact Readiness Impact Capital Culture mance Generation Services
Agriculture 54.94 53.94 40.63 60.76 60.42 55.95 33.68 59.58 74.58
Construction and Real 58.62 59.09 48.50 63.63 65.13 58.14 36.73 62.14 75.55 Estate
Education 59.24 59.17 49.17 63.61 64.72 59.32 34.45 64.83 78.67
Energy and 57.34 58.31 47.38 63.21 64.33 56.37 33.10 61.90 74.10 Utilities
Hospitality 60.02 61.24 49.93 65.44 68.36 58.79 38.80 63.02 74.55
Healthcare 57.64 59.49 51.65 64.07 62.74 55.80 39.30 58.49 69.62
ICT 59.72 61.86 51.04 67.36 67.19 57.57 32.19 63.59 76.93
Manufacturing 59.00 59.86 48.14 64.89 66.55 58.13 39.96 60.98 73.45
Media and 58.94 61.51 51.16 65.76 67.61 56.36 37.39 58.30 73.40 Marketing
Professional 58.03 59.31 47.52 63.42 66.98 56.75 33.34 61.18 75.73 Services
Transport and 59.68 61.66 50.33 65.27 69.40 57.70 38.63 60.93 73.54 Logistics
Wholesale and 58.20 60.14 48.23 64.66 67.51 56.27 37.09 59.31 72.39 Retail
Dubai Innovation Index 2018 133 Dubai Innovation Index 2018