Poland needs homegrown innovation. Private investment is key

Poland has long been a borrower of ideas rather than a creator. Its factories hum with imported technologies, its start-ups often mimic foreign models, and its researchers play catch-up on the global stage. Yet the country’s economy is unusually efficient at turning innovation dollars into growth

Polskie banki zwiększają zyski, w czym pomagają im wyższe dochody z odsetek. Wyniki byłyby jeszcze lepsze, gdyby nie wyższa składka na fundusz restrukturyzacji w BFG. (Fot. GettyImages)
The question is no longer whether Poland can innovate—it’s whether it can do so on its own terms, with homegrown ideas backed by serious private investment. Source: Getty Images
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The question is no longer whether Poland can innovate - it’s whether it can do so on its own terms, with homegrown ideas backed by serious private investment.

“Poland has relied heavily on innovations brought in through technology transfers from abroad. It is now crucial to foster domestic innovation,” said Geoff Gottlieb, an economist at the International Monetary Fund, in an interview with XYZ.

This analysis looks at where Poland stands on the global innovation map and what steps are needed to cultivate homegrown breakthroughs.

Poland’s innovation keeps pace with its development

Poland ranked 39th out of 139 countries in the 2025 Global Innovation Index (GII), published by the World Intellectual Property Organization (WIPO). The index evaluates nearly 80 indicators, spanning institutional quality, regulation, investment, education, infrastructure, and the practical functioning of the innovation ecosystem.

Poland has seen modest progress since 2015, though its position has largely plateaued. In 2011, it ranked 43rd, slipped to 49th in 2013, rose slightly to 46th in 2015, and in the period from 2016 to 2025 has hovered between 38th and 41st place.

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Innovation levels closely track economic development. Comparing GII scores with GDP per capita (measured in purchasing power parity), Poland’s score of 38 points aligns closely with the 40–41 points implied by its GDP. The innovation gap is therefore under 10%, meaning Poland’s performance is broadly consistent with what its level of development would predict.

Innovation mirrors Poland’s development model

Some countries punch well above their economic weight in innovation. China, India, Vietnam, and Thailand all rank above the trend line in the Global Innovation Index, despite lower per capita incomes than Poland. China, in particular, has become markedly more innovative than Poland, while the other three countries perform at roughly comparable levels.

South Korea is another striking example, ranking fourth in the latest GII. This comparison is often drawn because Poland’s per capita income growth trajectory is sometimes likened to South Korea’s. Yet the similarities largely end there. Poland’s development model is fundamentally different from that of Korea - and from that of Asia’s most innovative economies more broadly. It relies heavily on imported capital and technology, meaning innovation keeps pace with income rather than outstripping it.

Poland gets a strong return on innovation spending…

Innovation can be judged not just by absolute results, but by how effectively spending translates into impact. By this measure, Poland performs well. The Global Innovation Index shows that the country’s innovation outcomes relative to its expenditure sit above the trend line for all economies, indicating efficient use of resources.

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…but it needs to spend more

Poland’s problem is not inefficiency - it is underinvestment. The country simply does not allocate enough resources to developing domestic innovation. Closing this gap, particularly by boosting private-sector investment, is where economic policy should focus.

Where Poland has the most room for improvement

Financing for businesses, particularly start-ups, remains a weak spot. In the 2025 Global Innovation Index, Poland scored poorly on several key measures:

  • Loans to the private sector as a share of GDP: 85th place
  • Stock market capitalization as a share of GDP: 54th place
  • Venture capital investments relative to GDP (PPP): 52nd place

The country also lags in broader investment metrics, including overall economic investment relative to GDP and spending on education.

The challenge is how to boost investment amid strained public finances. Current government spending on innovation must at least be maintained. “I think it is really important not to reduce spending by cutting investment from the national budget,” said Geoff Gottlieb of the International Monetary Fund. Equally crucial is increasing private-sector investment. Success here could propel Poland into the ranks of truly innovative economies.

Key Takeaways

  1. Moderate innovation, in step with development. Poland’s innovation performance roughly matches its level of economic development but does not outpace peers with similar incomes. For the past decade, it has hovered around 40th in the Global Innovation Index. This reflects a development model reliant on imported technology and capital, rather than on domestic investment and homegrown innovation.
  2. Efficiency is strong, but spending is too low. Poland makes effective use of its innovation funds. Despite limited investment, the country achieves relatively strong results - suggesting that increasing expenditure could yield rapid gains.
  3. The investment challenge. The key hurdle is boosting investment amid tight public finances, particularly in financing businesses and start-ups. To join the ranks of the world’s most innovative economies, Poland must sustain public spending while mobilizing private capital.

Published in issue No. 382