Malta has registered a 7.6-point year-on-year increase in its score on the European Innovation Scoreboard (EIS), the largest gain among all EU member states.

The jump in its score sees Malta overtake Italy, Spain, Czechia and Slovenia, placing it at the top of the ‘Moderate Innovators’ category.

The result underscores Malta’s improvement over the last years, in which its overall innovation score increased by 16.7 points since 2018 – one of the strongest improvements across the EU.

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.
• 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, and has already supported the first wave of Maltese high-growth ventures. It aims to attract private funds while offering early-stage companies access to critical seed investment.

The 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, and 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 for the Economy, Enterprise and Strategic Projects intends to expand co-investment efforts to attract larger VC funds and follow-on capital, while supporting scale-ups in accessing international growth funding. It will also promote Malta as a launchpad for frontier innovation in the EU and Mediterranean, and 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.”