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According to the Global Innovation Index 2023 (GII) report, Vietnam ranked 46th out of 132 countries and economies , an increase of 2 places compared to 2022; and was also assessed as one of the 7 middle-income countries that have made the most progress in innovation over the past decade.

These indicators show that Vietnam is trending towards innovation-based development, while aiming for a higher position in the ASEAN regional innovation ladder.

According to a study recently published by the National Economics University ( Hanoi ), a major obstacle to achieving this goal is the relatively limited level of investment in research and development (R&D) in Vietnam. Throughout the period from 1993 to 2021, Vietnam's highest total R&D expenditure was only about US$1.6 billion (in 2012 and 2021), equivalent to 0.4% of GDP. This level of spending has not shown a significant upward trend and is not commensurate with the increasing importance and role of innovation. Meanwhile, in Singapore, the ratio of innovation spending to GDP averaged about 2.2% over the period from 2000 to 2020; or about US$8-9 billion per year, approximately six times higher than Vietnam.

Innovation sectors are constantly changing due to the rapid development of science and technology, but Vietnam has yet to develop a suitable strategy to shift investment flows toward productivity enhancement and growth model transformation.

Furthermore, comparing the results achieved in the innovation index ranking with the growth rate of R&D spending, it can be seen that the private sector and the foreign-invested sector have spent significantly on this activity, while spending from the state budget has remained almost unchanged, or even decreased, during the 2015-2020 period. With the role of "leverage" or seed capital, if the level of spending from the state budget increases and is used appropriately and effectively, innovation will certainly achieve more impressive results. This is an important foundation for the formation of large, high-quality research centers of international standards, capable of attracting leading scientists.

Another equally important task is to vigorously develop the science and technology market, effectively organize the exchange platform, and establish a mechanism for commercializing science and technology products based on the principle of ensuring maximum benefits for all stakeholders so that these relationships operate according to market principles, creating significant benefits for the economy.

To transform potential into real advantages, one still needs the right ingredients to make the dish. In a context where resources are not yet abundant, clearly identifying key sectors to focus investment on, with a scientifically planned, long-term roadmap, is extremely important.

ANH PHUONG

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