Why Innovation Strategies in Georgia Often Don’t Turn Into Action — What Companies Say vs. What They Do

At first glance, data from Georgia’s National Statistics Office paints an optimistic picture. In 2024, 47% of companies said they prioritize quality, 36% focused on improving existing products or services, and 34% emphasized retaining their customer base (Geostat, 2025). These figures suggest that Georgian businesses have a clear awareness of innovation priorities — or at least claim to.

But in practice, these ambitions rarely turn into real innovation. In the same year, only 7% of companies introduced a new or significantly improved product, and the same share applied to service innovation. This sharp gap between strategic intent and actual implementation points to systemic barriers that prevent ideas from becoming reality.

Why does this disconnect exist? One core reason lies in the space between intention and execution — a space filled with barriers. Many companies may want to improve product quality or upgrade services, but they often lack the resources, technology, skilled staff, or financial confidence to act on these goals.

Moreover, Georgia lacks consistent support mechanisms for taking innovation from idea to action. Many enterprises settle for internal process optimizations that yield short-term efficiency but don’t lead to meaningful change or market breakthroughs.

In contrast, international practice shows much stronger alignment between strategy and execution. In EU countries, over half of active businesses not only define innovation goals but also implement them — through product development, digital transformation, or collaboration with research institutions. This is made possible by supportive ecosystems: grant programs, tax incentives, innovation hubs, and a strong educational foundation.

In Georgia, the lack of action also reflects a skills gap — in areas such as innovation planning, project evaluation, and risk management. These are rarely taught through formal education or professional development, leaving companies without the tools to move from idea to execution.

As a result, innovation remains more of a strategic statement than a lived reality. Companies may highlight quality or improvement as top goals in surveys, but innovation projects are only pursued when absolutely necessary — often as a response to market pressure, not proactive strategy.

If Georgia wants to use innovation as a real engine of economic growth, this gap between vision and execution must be addressed. Beyond access to tools and funding, what’s needed is practical support, skill-building, and an environment where innovative ideas are acted on, not just discussed.