Portugal bet on innovation, but it’s still playing catch-up
Many smaller innovation ecosystems work for years to earn the kind of political attention Portugal is receiving. In July 2026, European Commissioner for Startups, Research and Innovation Ekaterina Zaharieva concluded a high-level visit to Portugal, meeting national and local leaders, addressing the 1st National Science and Innovation Conference, visiting Lisbon’s Beato Innovation District, and…
Portugal has been receiving increasing attention for its innovation ecosystem, with European Commissioner for Startups, Research and Innovation Ekaterina Zaharieva visiting the country in July 2026. The European Commission highlighted Portugal's potential as part of the solution to keeping top technical talent within Europe. The country is leading the EU in Horizon Europe funding, having secured €1.3 billion.
The European Innovation Scoreboard still classifies Portugal as a Moderate Innovator, but its score has improved and it now ranks below EU average and behind some Southern European peers.
The innovation landscape in Portugal is expanding beyond Lisbon, with cities like Porto, Algarve, and Alentejo making significant strides. Porto has been recognized as a "Key Innovator" by the European Commission due to its university-linked innovations and EU-funded projects. The city is also gaining international recognition for its startup infrastructure, ranking among the top 60 emerging startup ecosystems globally.
Alentejo, another runner-up in the innovation ecosystem, has attracted over €25 billion in investment and is becoming part of Europe's digital infrastructure. However, merely having infrastructure does not guarantee a thriving startup ecosystem; universities, technical training, applied research, early-stage capital, technology transfer, and local talent are crucial factors.
While Portugal has the potential to become an innovation capital, the success of this transformation depends on addressing talent and commercialisation on a regional level. Porto and Algarve's growth stories show promise, but Alentejo's pattern of attracting large capital without translating to sustainable startups remains a concern.
The future of Portugal's innovation economy hinges on whether this broader model can be replicated consistently across regions, focusing on attracting and retaining talent while ensuring the commercial viability of ventures.
Written by urgent.news from EU-Startups's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
