The impact of digital transformation on the innovative climate in the Sultanate of Oman

Subject. This article discusses the issues of transformation of institutional capabilities under the influence of technological advancements and formation of an innovative economy in the Sultanate of Oman. Objectives. The article aims to analyze the development of digital infrastructure and the high-tech sector in the Sultanate of Oman. Methods. For the study, I used a comprehensive methodological approach. Results. The article finds that nowadays, there is a noticeable increase in the activities of both startups and small businesses in Oman. However, the main problems in the field of information and communication technologies are related to the insufficient level of digital literacy and ensuring cybersecurity. It is necessary to scale up the innovation support system. Conclusions. Creating favorable conditions for startups, improving educational programmes related to high technologies, and addressing cybersecurity issues will enable the country to successfully integrate digital tools into the economy and ensure its further diversification.