Innovation plays a key role in meeting the challenges of the future, but despite the unprecedented investment in innovation, Portugal has seen a decline in the various indicators that assess the country’s performance. This study aims to answer questions about the state of innovation in Portugal, based on the relevant global and European innovation indicators, comparing the country’s performance with that of Ireland, Belgium, and the Czech Republic. Using secondary data collected from the reports of the last four years, explanatory research was conducted based on statistical and graphical methods in order to establish causal relationships. The areas where the main changes have taken place are presented, highlighting the aspects in which Portugal stands out for superior or poor performance, providing a benchmark for the definition of policies to foster innovation in Portugal. The results demonstrate that institutions, business sophistication, and knowledge and technology score negatively, while creativity stands out as a strength. Environmental sustainability, firms’ investment in innovation, and the impact of innovation on sales are aspects that Portugal needs to improve; human capital and the attractiveness of the R&D system deserve positive remarks. It is fundamental to understand how Portugal is preparing for the future and what the country can learn from others. This study is limited by the specific period in analysis, which could affect causal relationships, and the historical perspective could provide guidelines to the understanding of the relative position of the country. This study contributes new perspectives and knowledge about the state of innovation in Portugal, providing clues to entrepreneurs, policy makers, and the scientific community.