Innovation minister Hem Vanndy and EU ambassador Igor Driesmans preside over a workshop on Cambodia Enterprise Innovation Index Guidelines on March 3. Hong Raksmey
Cambodia’s entrepreneurial landscape is set to undergo a major transformation with the introduction of the Cambodia Enterprise Innovation Index (CEII).
Unveiled at a workshop held at the Hyatt Regency Phnom Penh on March 3, this groundbreaking initiative by the Ministry of Industry, Science, Technology and Innovation marks a pivotal step towards strengthening the country’s innovation ecosystem.
Cambodian index will play a pivotal role in national strategies. It serves as a methodologically robust and contextually appropriate instrument for evaluating the innovation capabilities of enterprises.
By concentrating on both innovation inputs and outputs, the CEII provides essential insights that will inform policymaking, strategic investments and innovative business practices.
In his opening remarks, innovation minister Hem Vanndy underscored the essential role of innovation in fostering economic growth, enhancing competitiveness and promoting sustainable development.
The CEII Guidelines, supported by the EU-funded CAPFISH-Capture project, was developed by the innovation ministry. Hong Raksmey
“Innovation is recognised as a crucial catalyst for accelerating economic and digital social development, contributing to the creation of new growth models for Cambodia,” he said.
The CEII Guidelines, supported by the EU-funded CAPFISH-Capture project, developed by the ministry and endorsed by the National Council of Science, Technology and Innovation (NCSTI), provide a comprehensive framework for assessing the innovation capabilities of enterprises across the country.
The guidelines aim to promote innovation culture within small, medium and large enterprises, ultimately contributing to Cambodia's Vision 2030 and 2050.
“The CEII is a critical tool that will assist the government in formulating incentive schemes to support enterprises effectively,” said Igor Driesmans, EU ambassador.
“The active engagement of all relevant stakeholders is essential to ensuring the successful implementation of this tool, ultimately achieving its intended objectives,” he added.
He believed that Cambodia’s potential for innovation is immense. The country’s young and dynamic population, coupled with increasing access to digital technology, creates an environment ripe for transformation.
Driesmans stressed that the EU sees this potential, and that is why it remains committed to supporting Cambodia’s efforts to build a more inclusive, sustainable and innovative economy.
“The EU supports policies that promote technology transfer, enhance incentives for productivity growth and strengthen domestic industries,” he said.
“These efforts are essential as Cambodia prepares to graduate from the Least Developed Country (LDC) status,” he added.
Sok Narin, UNIDO representative in Cambodia, explained that promoting a culture of innovation is essential for Cambodia to achieve sustainable economic growth and competitiveness in the global market.
“Together, we can empower our enterprises to thrive and reach the ambitious goals of Vision 2050, which aims for Cambodia to become an upper-middle-income country by 2030 and a high-income country by 2050,” he said.
Narin noted that Sustainable Development Goal 9 recognises the strong interplay between industry, innovation and infrastructure.
He cited the Global Innovation Index in 2021, where Cambodia ranks 109th out of 132 countries.
According to the UNIDO Industrial Development Report 2024, many developing countries will fail to achieve many Sustainable Development Goals, with 80 per cent failing to reach the innovation targets of Goal 9.
For this ambitious project to succeed, one thing is clear: entrepreneurs should actively participate, even if the results aren't perfect.
The CEII will be an essential tool in evaluating the innovation capabilities of businesses, offering insights that will help shape national policy, investment strategies and business practices.
But the data gathered will only be valuable if entrepreneurs embrace the index openly, sharing both their successes and their shortcomings.
The index focuses on both innovation inputs — like R&D investment, skills development and access to technology — and outputs, such as new products, services and market expansions.
Vanndy noted that there has been no in-depth study in Cambodia.
“Cambodia wants a good index so it can share clear data on a global scale. This work is not only important for us personally, but it also contributes to the Global Innovation Index being clearer and more accurate from Cambodia,” he said.
He continued that he recognised that the index may produce good or bad result, but explained that it will serve as a “mirror” for all businesses.
“I ask all stakeholders to be open. We want to know the true state of entrepreneurship, which requires all entrepreneurs to participate voluntarily and transparently,” he said.
The ministry will soon begin implementing the CEII work, and I encourage all stakeholders from all sectors to actively support the CEII to build sustainable development in all sectors in Cambodia, characterised by prosperity and innovation,” he added.
Participants at the workshop engaged in discussions on the importance of enterprise innovation in Cambodia's economic development, exploring the methodology behind the CEII Guidelines and their potential impact on strategic decision-making.
The workshop also facilitated dialogue and feedback from stakeholders to refine the implementation of the CEII and ensure its successful use.
“The CEII Guidelines involve contributions from various stakeholders across the public, private and education sectors,” explained Vanndy.
“This collaborative process ensures that the CEII is a practical and accurate measurement instrument, suitable for the Cambodian business context and aimed at promoting an innovation-friendly culture.” He added.
