Malta has emerged as the clear leader in Southern Europe for employment in highly knowledge-intensive sectors, according to newly published findings. Fully 9.4 per cent of adults in the country work in so-called “brain business jobs,” a category that includes roles in technology, ICT, advanced business services, and creative industries. This places Malta well ahead of larger regional economies such as France, Italy, and Spain.

Cyprus follows at nine per cent and Portugal at 7.8 per cent, while the shares in France (6.4 per cent), Italy (5.5 per cent), and Spain (5.4 per cent) remain significantly lower.

Strong specialist workforce

The report notes that 8.7 per cent of Maltese adults are engineers or scientists. This is slightly below Portugal at 9.1 per cent, but above Cyprus at 8.5 per cent, and considerably stronger than Italy, which “has the lowest share of engineers and scientists in Europe.”

According to the analysis, Malta’s favourable tax and business environment has enabled it to convert its scientific and technical skills into a higher-than-expected share of knowledge-intensive employment. In contrast, higher-tax economies such as France underperform relative to the size of their talent base.

“Malta is by margin the country in Southern Europe which has the highest share of adults in brain business jobs, this is due to combining relatively high expert density with favorable tax and business policy”, says Nima Sanandaji, CEO of ECEPR.

Growth driven by advanced services and manufacturing

The share of adults in brain business roles in Malta has risen from 8.1 per cent three years ago, reflecting sustained sectoral expansion. The country’s strongest relative concentration is in head office and management activity, employing 6,450 people. Advanced electronics production has also become increasingly significant, with 2,550 workers employed in high-tech manufacturing.

Industry leaders argue that talent availability must be matched with competitive fiscal frameworks.

“Having many engineers and scientists in the population is closely linked to the share of advanced jobs. We also continue to see a trend in Europe where countries with the fastest growth in brain business jobs tend to have lower tax levels relative to GDP. Nations need to combine talent supply with competitive tax burdens, in order to grow with knowledge-intensive jobs,” said Klas Tikkanen, COO of Nordic Capital Advisors.

Economic stability linked to high-value roles

The report underscores the broader economic importance of high-value job creation in European labour markets. It notes that each percentage-point increase in the share of brain business employment correlates with a 0.24 percentage-point reduction in regional unemployment.

About the index

The Brain Business Jobs Index has tracked the distribution and growth of knowledge-intensive employment across Europe since 2017, drawing on data extending back to 2014. The study is widely monitored by policymakers and research institutions across the continent.