OECD Reviews of Innovation Policy: Egypt 2026

Executive summary

This report provides a systemic and evidence-based analysis of Egypt’s innovation landscape and tailored policy recommendations and aims to support national efforts to unlock the full potential of innovation as a driver of progress for Egyptian society.

Key findings

Egypt has made significant strides in developing strategies for science, technology, and innovation (STI), yet challenges persist in implementing, co-ordinating and achieving impact.

Economic growth has been robust, reflecting progress in macroeconomic stabilisation and investment reforms. The country is actively working to diversify its economy toward medium-high technology sectors, such as chemicals, electronics and machinery, as well as high-technology industries like pharmaceuticals and information technology (IT) services. However, Egypt still depends on low-value-added sectors including agriculture and basic manufacturing, as well as rent-based revenues from the Suez Canal, remittances and tourism. The recently adopted National Narrative for Comprehensive Development focuses on an economic model focused on further diversification into high productivity and export-oriented sectors, yet innovation could be further emphasised as a key driver.

Innovation performance is improving. Gross expenditure on research and development has reached 1.02% of GDP, and research publications are increasing in both volume and quality as evidenced by a high proportion of publications in top-cited journals. Egypt also boasts one of the largest start-up ecosystems in the Middle East and North Africa, including three unicorns. Ongoing business climate reforms aim at reducing informality and the prevalence of state-owned enterprises.

Despite these advances, investment in research, development and innovation remains low in traditional businesses – both small and medium-sized enterprises (SMEs) and large firms. Financial incentives such as grants and tax credits are not available to them, and business climate still has room for improvement.

Egypt’s universities and public research centres face structural challenges, including low researcher pay, brain drain and insufficient investment in advanced equipment.

The diffusion of knowledge needs to be further developed through stronger linkages between academia and business. Policies focused on pushing scientific results to the market have yielded modest results. The recently launched “Alliance and Development” initiative seeks to strengthen academia-industry collaboration by creating regional clusters around leading academic institutions and promoting co-creation models.

Egypt’s STI governance model mirrors structures in OECD Member countries but needs to improve co-ordination across government. Egypt Vision 2030 provides a strong strategic framework for national development in general, which is further declined into sectoral strategies. Its impact could be enhanced by a robust national evaluation systems and long-term funding mechanisms.

Additionally, statistical data collection for STI needs to be improved in order to enable evidence-based policymaking. The integration of foresight methodologies could enhance strategic planning, enabling Egypt to prioritise key industries and capture future growth opportunities.

Key challenges and recommendations

This document outlines 13 key challenges and corresponding recommendations to strengthen Egypt’s STI ecosystem and align it with its national development goals:

1. Promote and implement an innovation-driven development model in the Narrative for Comprehensive Development. More could be done to articulate a structured vision of how science, technology and innovation will underpin Egypt’s economic transformation, as a major driver of productivity growth.

2. Better co-ordinate the implementation of existing policies across government. A five-year coordinated action plan with performance indicators and designated institutions is recommended, alongside capacity building for policymakers, using international best practices.

3. Prepare the next long-term vision to 2050. A forward-looking STI Egypt 2050 Strategy needs to be based on stocktaking of the achievements of the Egypt 2030 Vision and a comprehensive foresight exercise and aligned with national targets.

4. Ensure whole-of-government co-ordination for STI policies. STI governance needs to be strengthened through the National Council for Education, Research, and Innovation (NCERI), establishing a robust secretariat. Research and innovation agencies need to be better coordinated.

5. Collect reliable STI data as an evidence base for policymaking. Invest in interoperable data systems, improve budget visibility and establish an STI data community to guide strategic decisions.

6. Leverage STI to address societal challenges. Flagship missions co-designed with stakeholders and coordinated policy packages are suggested to address challenges such as public health and the effect of climate change in Egypt.

7. Diffuse knowledge throughout the innovation system to maximise societal benefit. Strengthening the mandate of research centres is suggested, so they can act as research and technology organisations actively engaging in co-creation with industry. The “Alliance and Development” initiative should be strengthened and scaled up to create strong innovation clusters. Innovation vouchers and matching grants will also help foster co-creation and technology diffusion.

8. Support business innovation beyond start-ups. The government should continue to consolidate public support to start-ups while boosting support for R&D in traditional manufacturing and service firms. Continue improving the competitive environment for businesses.

9. Reinforce incentives for patenting and intellectual property protection. Egypt’s IP framework needs operational strengthening. Enhancing the Egyptian Authority for Intellectual Property (EAIP), clarifying IP ownership for inventions resulting from government funded research through an Egyptian “Bayh-Dole Act”, and aligning with international standards are essential to promote innovation and commercialisation.

10. Support creation of start-ups by academics (spin-offs). Support for university and research centre spin-offs is limited. Legal reforms to empower researchers as entrepreneurs and comprehensive support services are recommended to foster deep-tech ventures.

11. Further strengthen scientific research. In particular applied research needs improvement through targeted instruments. Further measures are needed to safeguard research integrity, develop flexible career paths and improve performance evaluations at all levels. Research funding needs to be aligned with priorities and research support services developed. Government Research Centres (RCs) should evolve towards a Research Technology Organisation model.

12. Develop a strategic approach to international STI collaboration. A system-wide strategy, institutional support, regional leadership, and data-tracking mechanisms are proposed to enhance Egypt’s global STI role.

13. Address brain drain and foster brain circulation. Incentives for retention, diaspora engagement, and international recruitment strategies are recommended to promote brain circulation and build domestic capacity.

Together, these recommendations aim to transform Egypt’s STI landscape into a cohesive, impactful and globally competitive system, supporting sustainable development and innovation-led growth.