Proposal of a new National Innovation Capacity index: cross-country comparison of MENA countries and comparative insights with Europe

Purpose This study aims to evaluate factors influencing National Innovation Capacity (NIC) and develop a robust methodology for its measurement in Middle East and North Africa (MENA) countries, providing evidence for policy-making on NIC-building. Design/methodology/approach A novel National Innovation Capacity index (NICI) for MENA countries is developed using the entropy weight method, based on data from 2006 to 2020. The study conducts a cross-country comparison to identify key drivers and differences in innovation capacity. Findings MENA countries seeking to enhance their NIC should primarily focus on fostering scientific excellence and strengthening international economic activities. Significant disparities in NIC levels and their determinants were observed across the region. Research limitations/implications Data availability for some MENA countries or specific indicators could be a limitation. Future research could expand country coverage, explore longitudinal dynamics in greater depth and conduct sensitivity analyses to further validate the robustness of the index. Practical implications The developed index and findings offer actionable insights for MENA policymakers to design targeted strategies for NIC development, focusing on scientific infrastructure and global economic integration. The NICI provides a more nuanced tool for policy-making than existing indices by offering an objective, data driven weighting of innovation drivers specific to the MENA context. Social implications Enhancing NIC in MENA, guided by these findings, can contribute to broader economic diversification, job creation and sustainable social development in the region. Originality/value While the entropy method is an established technique, this paper’s originality lies in its specific application to construct a comprehensive NICI tailored to the unique and heterogeneous context of MENA countries. This approach offers a significant conceptual and practical contribution by providing an objective, data-driven assessment that moves beyond descriptive benchmarking to offer novel policy levers and a deeper understanding of innovation dynamics in an underexplored region.