This research investigates the relationship between industrial innovation inputs and outputs in Saudi Arabia, focusing on the country's alignment with Vision 2030. Despite significant investments in research and development, Saudi Arabia's industrial innovation performance has declined, revealing a gap between innovation inputs and outputs. Using data from the Global Innovation Index (GII) and employing Pearson correlation analysis, this study examines the correlation between crucial input indicators such as Operation Stability, Environmental Performance, and Market Capitalization and output indicators like Labor Productivity Growth and High-tech Manufacturing over 12 years. The findings indicate a moderate positive correlation (0.530) between innovation input and output on a national level, with a stronger correlation (0.837) in the industrial sector. Key challenges, including business instability and environmental issues, were identified as significant barriers to maximizing innovation outputs. The study highlights the need for targeted policies to enhance business stability, environmental sustainability, and industrial diversification. These improvements are crucial to optimizing industrial innovation performance, achieving Vision 2030 objectives, and enhancing Saudi Arabia's global innovation ranking.