The reinforcement of innovation, in particular through research and development (R&D) activities, is a key point for Luxembourg and is part of a broader context of economic diversification. Although the R&D ecosystem has benefited from great openness to the international market and from an increase in government spending over the past decade, indicators from international competitiveness rankings show a certain stagnation in its performance, or even a decline. Apart from indicators related to the small size of the country and the relative newness of its research system, some trends, in particular the decline in total R&D expenditure (in relation to the GDP), raise questions. Following a previous publication on the major trends of Luxembourg's competitiveness, this report invites Luxembourg's stakeholders to think about ways of consolidating an innovative ecosystem with a foundation that can still be improved upon. It is a preliminary document to the upcoming workshop on Luxembourg's competitiveness organised by the Chamber of Commerce and to be held at the end of January 2022, with a focus on eco-innovation (or innovation linked to the environment).