Portugal has continued to improve its innovation performance, reaching 93.2 percent of the European Union average in 2026, according to the latest European Innovation Scoreboard published by the European Commission.

The country remains classified as a “Moderate Innovator,” but has strengthened its position through sustained progress in research, digitalisation and public investment.

Portugal now ranks 15th among EU Member States and 19th when neighbouring countries are included in the comparison, according to Executive Digest.

The report shows Portugal is performing above the average for countries in the Moderate Innovator category, which collectively achieve 86.4 percent of the EU average.

Steady progress since 2019

Portugal’s innovation performance has increased by 13 percentage points since 2019, exceeding the European Union’s average improvement of 11.6 percentage points over the same period. Compared with 2025, the country also recorded a further increase of 1.4 percentage points.

One of Portugal’s strongest areas continues to be public support for business research and development. According to the European Commission, this remains one of the country’s leading advantages, with Portugal expected to rank first in the EU27 in this indicator during 2026.

Scientific research also continues to perform well. The report highlights growth in international scientific co-publications and Portugal’s ability to attract doctoral students from abroad, reinforcing the country’s research capacity and international collaboration.

Research and digitalisation drive growth

Digitalisation remains another area of strength. Portugal ranks eighth in the European Union for digital performance, although the Commission notes that businesses have been slower to adopt advanced technologies such as cloud computing and artificial intelligence.

Despite these improvements, the report identifies several structural weaknesses that continue to affect the country’s innovation capacity.

Private investment remains one of the biggest challenges, with Portuguese businesses spending relatively little on innovation per employee. The Commission says this reflects an ongoing gap between strong public policy support and the ability of companies to increase innovation investment on a broader scale.

Productivity remains a challenge

The economic impact of innovation has improved, particularly through increased sales of innovative products and services, suggesting that innovation is becoming more commercially valuable for Portuguese companies.

However, employment growth linked to innovation remains below 2019 levels, indicating that stronger commercial results have yet to translate into significant job creation.

Labour productivity also continues to weigh on Portugal’s overall competitiveness. While environmental performance has improved, the Commission says productivity remains below the EU average, largely because of weak labour productivity.

The European Commission concludes that Portugal is moving in a positive direction, supported by investment in science, research and digital transformation. However, it says further progress will depend on companies becoming more successful at converting knowledge, research and innovation into new products, business growth and long-term economic competitiveness.