Oman, as per Global Innovation Index (2019) report, scores "below expectations" in innovation relative to countries classified under high income. Oman in 2019 ranked 80 out of 129 countries in innovation index, which takes into consideration factors, such as, political environment, education, infrastructure and business sophistication. Innovation, technology-based growth and economic diversification are hindered by an economic growth that relies on infrastructure expansion, which heavily depends on a high percentage of 'low-skilled' and 'low-wage' foreign labour. Another challenge to innovation is the dutch disease phenomenon, which creates an oil and gas investment lock-in, while relying heavily on imported products and services in other sectors. Such a locked-in system hinders local business growth and global competitiveness in other sectors, and thus impedes economic diversification. The inefficiences and bottlenecks in business operations that are a result of heavy dependence on natural resources and 'addiction' to imports in Oman suggest a 'factor-driven economy'. A third hindrance to innovation in Oman is an economic structure that is heavily dependent on few large firms, while granting few opportunities for SMEs to enter the market, which impedes healthy market-share competition between firms. The ratio of patent applications per million people was 0.35 in 2016 and the MENA region average was 1.50, while the 'high-income' countries' average was approximately 48.0 during the same year.