Malta’s innovation performance has improved dramatically over the past seven years, confirming that the government’s long-term economic strategy is delivering results. According to the latest European Innovation Scoreboard (EIS), Malta has registered a +16.7-point increase in its overall innovation score since 2018, one of the strongest improvements across the European Union.
In the most recent 2024 edition, Malta also recorded a +7.6-point increase year-on-year, the largest gain among all EU member states. Significantly, Malta has now moved ahead of Slovenia, Spain, Czechia, and Italy, placing it at the top of the “Moderate Innovators” category.
Stronger across every dimension
Malta’s progress is the result of sustained efforts across key innovation pillars:
- Education and talent: A rise in tertiary graduates, STEM skills, and adult learning.
- Digitalisation: Widespread adoption of cloud, AI, and high-speed connectivity.
- Green innovation: Strong uptake of energy-efficient technologies and eco-innovation.
- Intellectual property: Steady growth in trademarks, designs, and digital services exports.
These trends align directly with Malta Vision 2050, which prioritises resilience, digital leadership, and a future-ready workforce.
Addressing past weaknesses: Venture capital and startup support
Historically, Malta lagged in the finance and support dimension of the EIS, particularly in venture capital availability. Recognising this, the government launched a €10 million public venture capital co-investment fund in 2024. The fund:
- Matches private capital on a pari passu basis up to €500,000 per startup.
- Has already supported the first wave of Maltese high-growth ventures.
- Attracts private funds while offering early-stage companies access to critical seed investment.
This landmark initiative complements a wider suite of support measures:
- Malta Enterprise offers the Start-up Finance Scheme (up to €1.5 million per startup).
- Seed Investment Scheme (35% investor tax credit).
- Participation incentives in recognised accelerator programmes.
- The MDIA Pathfinder Programme funds R&D-based startups in advanced technologies.
- DihubMT acts as a national Digital Innovation Hub, helping SMEs and startups implement emerging technologies like AI, IoT, and blockchain.
Creating new economic niches
A key driver of Malta’s innovation rise is its successful effort to establish new, high-value economic sectors, including:
- Blockchain and digital asset services, supported by Europe’s first comprehensive DLT legislation.
- Artificial Intelligence and data economy ventures, backed by national infrastructure and AI strategy.
- Video game development and eSports, with local studios emerging and a growing ecosystem of creative talent, coders, and streamers.
These sectors not only attract foreign investment but also create new pathways for Maltese graduates, creatives, and entrepreneurs to thrive in the global digital economy.
Way forward: Building on momentum
Looking ahead, the Ministry will:
- Expand co-investment efforts to attract larger VC funds and follow-on capital.
- Support scale-ups in accessing international growth funding.
- Promote Malta as a launchpad for frontier innovation in the EU and Mediterranean.
- Embed innovation further into national planning, regulation, and education.
Commenting on these results, Minister for the Economy, Enterprise and Strategic Projects, Silvio Schembri said, “This 16.7-point gain in our innovation score since 2018 is proof that Malta’s long-term economic direction is working. We took bold steps to address weaknesses, build new sectors, and unlock local talent. Our policies are not only improving Malta’s innovation profile—they’re creating the jobs, companies, and opportunities of tomorrow. The message is clear: Malta means innovation.”
About the European Innovation Scoreboard
The EIS is the EU’s flagship tool for benchmarking innovation performance across Member States. It evaluates countries across 32 indicators and ranks them as Innovation Leaders, Strong, Moderate, or Emerging Innovators. Malta now leads the “Moderate Innovators” group and is on a clear path toward joining the top tier.
Photo: MEEP
