Cambodia Investment Review
The Ministry of Industry, Science, Technology & Innovation (MISTI), in partnership with the Food Technology, Research and Innovation Platform (FTRIP), has introduced the Cambodia Enterprise Innovation Index (CEII) Guidelines, a framework designed to strengthen the innovation capabilities of Cambodian businesses. The initiative aims to enhance national competitiveness, foster entrepreneurship, and drive economic growth.
Strengthening Cambodia’s Innovation Ecosystem
The CEII Guidelines provide businesses of all sizes with a structured approach to evaluating and improving their innovation capacities. By addressing both inputs—such as investments in research and development—and outputs like new products and services, the framework seeks to create an environment where innovation thrives.
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Speaking at the launch event, Minister Hem Vanndy emphasized the importance of innovation for Cambodia’s economic transformation. “Enhancing enterprises’ innovation capability presents a crucial opportunity to elevate Cambodia’s national prestige by improving our position in the Global Innovation Index. This will foster sustainable and inclusive socio-economic growth and create a favorable environment for our journey toward innovation-driven development,” he said.
With growing digital connectivity and increasing access to technology, Cambodia has the potential to transition into an innovation-driven economy. H.E. Igor Driesmans, Ambassador of the European Union to Cambodia, highlighted the country’s strengths, stating, “Cambodia has enormous potential, supported by its young, dynamic population and rapidly growing digital infrastructure. These factors provide a strong foundation for economic transformation.”
The CEII was developed under the EU-funded CAPFISH-Capture project and implemented by UNIDO. It was officially endorsed by the Science, Technology, and Innovation National Council in August 2024, positioning it as a key policy tool to guide business innovation strategies.
Opportunities for Entrepreneurs and Startups
For Cambodia’s growing network of entrepreneurs and small businesses, the CEII represents a structured pathway to innovation-led growth. By adopting the guidelines, startups and established enterprises alike can assess their innovation capabilities and refine strategies to improve productivity, attract investment, and expand into new markets.
Sok Narin, UNIDO Cambodia Representative, noted that a strong innovation ecosystem is a catalyst for economic resilience. “When there is a better innovation index, a country becomes a favorable destination for both domestic and international investment. New technologies and innovations can drive job creation and the growth of emerging industries by enhancing efficiency, productivity, and profitability across various sectors,” he said.
Challenges to Innovation in Cambodia
Despite its potential, Cambodia faces several challenges in fostering a fully developed innovation-driven economy.
Addressing these challenges is critical to unlocking the full potential of Cambodian entrepreneurship. The CEII, by providing businesses with data-driven insights, aims to help the Royal Government of Cambodia refine policies that support innovation-friendly regulations, accelerate industrialization, and promote economic diversification.
As the country moves forward, entrepreneurs and business leaders will play a crucial role in leveraging innovation to drive sustainable growth, ensuring that Cambodia remains competitive in the evolving regional and global economy.
