Innovation policy of Arab countries: Оn the way towards a developed digital economy

Aim. The work aimed to develop an approach to assessing the impact of the implemented innovation policy on the indicators of digital transformation and the innovation climate in Arab countries, especially developing ones. Objectives. The work seeks to analyze the problems faced by Arab countries, especially developing ones, in the formation and development of innovation policy; to determine the key indicators of digital transformation and innovation climate; to create assessments of the impact of innovation policy on the indicators identified.

Methods. The study was based on the descriptive and comparative approaches used in the analysis, as well as on the quantitative statistical approach (calculation of the effect size) used to compare the impact of innovation strategies, policies and programs on digital transformation indicators relative to groups of developed countries and countries in the early stages of generating the innovation policy and strategy.

Results. The study revealed that the elements of innovation policy have a significant impact on the indicators of digital transformation and innovation climate in countries. The effect size between these groups of developed and developing Arab countries is large. Three realistic options for forming innovation policy were proposed in order to level out this effect, and their expected results for developing Arab countries were determined.

Conclusions. High income developed Arab countries implementing innovation policies have proven their ability to accept the digital transformation of the economy and achieve high indicators in the values of global strategic innovation indicators. Developing Arab countries have the opportunity to improve the innovation climate, economic and social conditions, increase the level of international and regional competitiveness, using the elements of the developed scheme for creating the innovation policy in accordance with the possibilities. Based on the study results, policymakers are invited to review and refine the strategies and programs being implemented, as well as to attempt to introduce innovative measures to accelerate the process of digital transformation and create a highly competitive innovation climate.

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