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As the new edition of the Global in emerging economies continues the Caribbean face more positive
Innovation Index 2017 goes to print, to be the main driver of the eco- prospects, following the stabilization
however, a new, if modest, growth nomic upswing. Economic growth of commodity prices benefitting
momentum is in place. The world’s is predicted to be relatively strong low- and middle-income economies
leading economic institutions pre- in middle- and certain low-income worldwide. Africa will experience a
dict a pick-up of global economic economies such as China, India, modest pick-up, boosted also by new
activity in 2017 and 2018, following Indonesia, and Thailand; a few infrastructure projects.5
4
1: The Global Innovation Index 2017
Figure 1: Global investment and business R&D falling short more perpetual low-growth scenario,
in which growth cannot be sustained
and increased over time. This report
Figure 1a: Investment growth, 2005–15
is concerned with two related bottle-
20
necks in particular.
15 First, investment and productiv-
ity increases are still at historic lows.
10 And these low levels are at the ori-
5
gin of the lower growth than was
enjoyed in pre-crisis years.6 Despite
Percent
rienced before the economic crisis might derail the scenario of a durable an effect of global growth. A more
remain distant for close to all coun- upswing. neglected aspect of economic inte-
tries. Some large emerging econo- Many monetary, fiscal, and other gration, however, is that both trade
mies, such as China, are seeing their factors are at stake, as well as unprec- and FDI are key channels of the dif-
high growth rates reduced, and other edented levels of geopolitical and fusion of technology, know-how, and
advanced economies, such as Japan, economic uncertainty. The leading innovation more broadly.13 A reversal
see persistently low growth rates. economic institutions are wary of a of globalized economic activity, and
5
Global expenditures on R&D (GERD) follow- which data are available). These include tradi- the crisis. Finally, in a number of countries—
ing the 2008–09 financial crisis have varied tionally high R&D spending economies, such such as Spain, Portugal, and Finland—R&D
considerably (see Tables 1.1 and 1.2 on the as the United States of America, the United expenditures (both total and business) have
following page). Some countries—such as Kingdom, Germany, and the Netherlands, as not recovered yet, with GERD and BERD still
China, India, Mexico, the Russian Federation, well as relatively newer actors such as Chile below pre-crisis levels in 2015.
and Poland—did not decrease their R&D and Slovakia.
efforts during the crisis and have intensified In yet other countries (e.g., Colombia and Note
them further after the crisis, with business Norway), GERD did not fall during the crisis, Thanks to Antanina Garanasvili, PhD Candidate in
expenditures on R&D (BERD) also following but BERD did. Governments pushed R&D Economics, University of Padova and Queen Mary,
University of London, and our colleagues from the
the same trend. Other countries saw declining investments to compensate for lower busi-
UNESCO Institute for Statistics (UIS) Martin Schaaper
GERD and BERD during the crisis, but above ness R&D during the crisis; their efforts were and Rohan Pathirage for help in producing Box 1.
pre-crisis levels in 2015 (the latest year for rewarded with higher GERD and BERD after
the associated networks of produc- more initiatives aimed at satisfying consistently been higher than GDP
tion and innovation, could have economists’ omnipresent calls for growth, also a ref lection of low gen-
adverse consequences for economic more infrastructure investment in eral GDP growth in that period. Still,
catch-up and technological leapfrog- economies across the board. about eight years after the crisis, the
ging, which have been historically To lay the foundation for future worst-case scenario of permanently
so critical for successful development growth, policy actions that foster reduced R&D growth has to date
cases such as China, Korea, and more human capital, research and develop- been avoided, thanks to these anticy-
recently Viet Nam.14 ment (R&D), and other innovation clical innovation policies and the role
Fortunately, trade, FDI, and pro- inputs and outputs, as captured by the of R&D champions such as China,
ductivity growth are also forecast to GII, are now required. Indeed, avail- Germany, and Korea, which have
be recovering in 2017 and further able economic evidence shows that consistently spent large and growing
increasing in 2018, in conjunc- an increase in R&D can effectively sums on R&D.
tion with output growth and the translate into an increase of GDP in Yet, although permanently sub-
cyclical recovery currently being the medium and longer term.17 dued R&D growth has been avoided,
experienced.15 Our study of global R&D data R&D growth is still inferior today
Policy initiatives to sustain invest- yields the following insights. Global than it was in 2011–13 immediately
ment, human capital, innovation, R&D growth fell in the aftermath of following the crisis, and much lower
and productivity growth could send the global financial crisis of 2009 (see than in 2005–08 when it averaged
a strong signal and be an important Figure 1b and Box 1).18 Governments around 6%. As governments have
antidote to uncertainty. stepped in to stimulate R&D effec- phased out some of their stimulus
tively. Business R&D investments programmes, and as spending cuts are
returned to faster growth in 2010. applied, tighter government R&D
Crafting the foundations for innovation- Encouragingly, by 2013 the share of budgets in selected high-income
driven growth as an antidote to business in total R&D had returned countries and slower spending
uncertainty to its pre-crisis levels. Broadly speak- growth in key emerging countries
Laying the foundations for innova- ing, our analysis indeed indicates explain part of this slowdown.20
THE GLOBAL INNOVATION INDEX 2017
tion-driven growth is paramount. that for the last four years, up until Disconcertingly, and in addition
Although not at levels seen after 2015 (when the most recent data are to f lattening public R&D, based on
the crisis, some government spend- available), global R&D intensity— our estimates, business R&D growth
ing initiatives are underway again measured as global R&D expendi- seems to be losing momentum, with
in major economies; an uptick in tures relative to global GDP—was growth rates decreasing from about
investment will be felt in 2016 and at 1.7%, and thus at levels similar to 6% in 2013 to 5% in 2014 and about
2017.16 Still, there is room for even 2000–08.19 GERD growth has also 4.5% in 2015 (see Figure 1b).21 In
6
1: The Global Innovation Index 2017
Table 1.1: Gross domestic expenditure on R&D (GERD): Table 1.2: Business enterprise expenditure on R&D (BERD):
Crisis and recovery compared Crisis and recovery compared
Countries with no fall in GERD during the crisis that have expanded since Countries with no fall in BERD during the crisis that have expanded since
CRISIS RECOVERY CRISIS RECOVERY
2008 2009 2010–12* 2013 2014 2015 2008 2009 2010–12* 2013 2014 2015
China 100 126 165 212 231 253 Poland 100 104 149 236 281 312
Poland 100 113 145 167 187 207 China 100 126 169 222 244 265
Costa Rica† 100 134 140 166 179 n/a Costa Rica† 100 114 102 174 216 n/a
Turkey 100 111 134 157 172 n/a Turkey 100 101 132 168 193 n/a
Colombia† 100 100 118 174 167 166 Korea, Rep. 100 105 135 162 172 173
Korea, Rep. 100 106 133 155 166 168 Ireland 100 117 118 122 128 n/a
Mexico 100 105 113 117 127p 134p Mexico 100 112 111 107 115 122p
Norway 100 100 102 108 112 123 France 100 102 109 114 115 117p
Russian Fed. 100 111 107 114 118 118 Russian Fed. 100 110 102 109 112 111
India† 100 106 120 n/a n/a n/a India† 100 102 118 n/a n/a n/a
Countries with fall in GERD during the crisis but above pre-crisis levels in 2015 Countries with fall in BERD during the crisis but above pre-crisis levels in 2015
CRISIS RECOVERY CRISIS RECOVERY
2008 2009 2010–12* 2013 2014 2015 2008 2009 2010–12* 2013 2014 2015
Slovakia 100 97 153 188 206 286 Colombia 100 73 106 139 172 179
Chile 100 93 103 126 125 130p Netherlands 100 93 119 129 135 138p
Israel 100d 96d 104d 115d 122d 124d Estonia 100 98 199 150 118 131p
Netherlands 100 99 111 116 121 124p Israel 100d 97d 105d 116d 124d 128d
Austria 100 97 108 117 121 123p Norway 100 97 100 107 114 125p
Brazil† 100 99 112 124 121 n/a United Kingdom 100 97 101 107 113 118p
Germany 100 99 108 112 116 118p Germany 100 97 106 108 113 115
Singapore 100 82 95 101 114 n/a United States 100j 96j 96j 103j 107j 112j,p
United Kingdom 100 99 100 103 108 112p Chile 100 68 84 110 103 110p
United States 100j 99j 100j 104j 107j 111j,p Japan 100 88 93 99 104 103
GERD below crisis levels in 2015 BERD below crisis levels in 2015
CRISIS RECOVERY CRISIS RECOVERY
2008 2009 2010–12* 2013 2014 2015 2008 2009 2010–12* 2013 2014 2015
Cuba† 100 125 91 107 91 n/a Australia 100 96 97 98 n/a n/a
Romania 100 75 78 66 67 89 Sweden 100 90 88 92 87 97p
Iceland 100 98 90 68 79 89 Singapore 100 70 81 84 97 n/a
Spain 100 99 95 88 87 89 Canada 100g 99g 96g 90g 88g,p n/a
South Africa 100 93 86 89 n/a n/a Spain 100 93 90 85 84 85
Croatia† 100 88 76 81 78 86 Portugal 100 100 92 80 77 78p
Portugal 100 106 97 85 83 83p South Africa 100 84 69 70 n/a n/a
Finland 100 97 97 88 84 77 Finland 100 93 91 81 77 69
Panama† 100 70 80 45 n/a n/a Luxembourg 100 96 71 57 60 60
Uruguay† 100 115 51 32 16 n/a
THE GLOBAL INNOVATION INDEX 2017
Source: OECD MSTI, February 2017; data used: Gross domestic expenditure on R&D (GERD) at constant 2010
PPP$, base year = 2008 (index 100). Source: OECD MSTI, February 2017; data used: Business enterprise expenditure on R&D (BERD) at constant
*Average values for the 2010 through 2012 period. † Country data source is the UNESCO UIS database: 2010 PPP$, base year = 2008 (index 100).
UNESCO-UIS Science & Technology Data Center, update from March 2017. Data used: GERD in '000 PPP$ (in *Average values for the 2010 through 2012 period. † Country data source is the UNESCO UIS database:
constant prices, 2005). UNESCO-UIS Science & Technology Data Center, update from March 2017. Data used: GERD, performed by
d = defence excluded (all or mostly); j = excludes most or all capital expenditure; p = provisional data. Business enterprise (in '000 PPP$, constant prices, 2005).
d = defence excluded (all or mostly); p = provisional data; g = excluding R&D in the social sciences and
humanities; j = excludes most or all capital expenditure.
7
World’ focuses on innovation in • One in three people in the world century; refrigeration in the 1850s;
agriculture and food systems and the is malnourished in one form or pasteurization in 1863; Mendel’s sci-
many scientific, technological, and another.28 entific plant breeding and the com-
other innovative advances made in bined harvester (early 20th century);
this field. and the green revolution in the 1950s,
which took millions out of hunger.29
8
1: The Global Innovation Index 2017
Box 2: Innovation, agriculture, and the UN 2030 Agenda for Sustainable Development
In September 2015, the Member States As this report shows, the achievement identifying resource needs and priorities. On
of the United Nations (UN) adopted the of Goal 2 (‘End hunger, achieve food security the basis of the GII, numerous workshops are
2030 Agenda for Sustainable Development, and improved nutrition and promote sustain- taking place in different countries to bring
incorporating 17 Sustainable Development able agriculture’) will greatly benefit from innovation actors together with the aim of
Goals (SDGs) and 169 targets that are being innovation. The goal recognizes the role of improving data availability, boosting the coun-
implemented at the national level by the UN new technologies in boosting agricultural try’s innovation performance, and design-
Member States to shape global development productivity and the need for public and ing strategic policy actions. Partnerships
in the period 2015–30. private investments in spurring technological are ongoing between the GII publishers and
The Agenda applies to all countries uni- change in this field. many UN partner organizations—such as the
versally and aims at fostering social, environ- The SDGs and their associated targets International Telecommunication Union (ITU),
mental, and economic development. All the provide the basis for monitoring and review- the International Labour Organization (ILO),
SDGs rely to a greater or lesser extent upon ing countries’ progress in implementing sus- the United Nations Educational, Scientific
innovation for their means of implementation: tainable development at the global, regional, and Cultural Organization (UNESCO), and
Goal 9 (‘Build resilient infrastructure, promote and national levels. This process of review the United Nations Industrial Development
inclusive and sustainable industrialization and depends on a framework of statistical indica- Organization (UNIDO)—as well as private data
foster innovation’) makes explicit reference to tors being developed through an interna- providers to improve the required innovation
innovation and refers to several innovation tional consultative process led by the UN metrics.
factors referenced in the GII, such as infrastruc- Statistical Commission. In the process of implementing the 2030
ture, access to credit, access to information Disaggregated data are important for Agenda, the GII can provide countries with a
and communication technologies (ICTs) and monitoring and reviewing countries’ prog- data-based tool for policy making and con-
environmentally friendly technologies, sci- ress in implementing the SDGs as well as tribute to this shared endeavour of working
entific research, and technology capabilities. for assessing strengths and weaknesses and towards sustainable development globally.
As a result, agricultural pro- agricultural innovation systems (see irrigation systems, slowing down
ductivity has enjoyed periods of Chapters 7, 9, 10, and 11). their structural transformation and
extraordinary growth. From the First and foremost, lagging agri- development processes.31
1960s until the 1990s, the expansion cultural productivity growth in low- Indeed, in several developing
of land under cultivation and higher and middle-income countries and countries, productivity growth is
input use—especially in the form of lagging agricultural R&D spending still the result of expansions of cul-
fertilizers and high-yield varieties— (public and/or private) across all tivated land and more intensive use
accounted for the bulk of agricultural economies (Chapter 3) need to be of inputs; technological change is
output growth (Chapter 3). Advances reversed. To reach that goal, both the having a much smaller impact in
in genetic engineering gave rise to a public and private sectors will need these countries (Chapter 3). Arable
wave of technological innovations to keep the R&D pipeline f lowing; land, however, cannot be expanded
and led the transition towards com- investments to ensure that innova- further because of growing urbaniza-
mercial agriculture in many regions. tive technologies and techniques are tion and environmental requirements
The green revolution enabled devel- brought to fruition are required. (Chapter 3). Concerns in these areas
oping economies to import cheaper Second, innovations need to are already materializing (see the cases
grains and grow crops with high- be better diffused throughout the of Russia and Uganda in Chapters 9
yield seed varieties, with tremendous agricultural and food sector, in and 11, respectively).
benefits for the economy and society particular in developing countries.
(see Chapters 5 and 10).30 Unfortunately, waves of technologi- A wave of smart agricultural
THE GLOBAL INNOVATION INDEX 2017
value chain, including in services and cess innovations. Digitization of retail to convince local players that prog-
processes and logistics, equipment-sharing, ress is feasible and desirable should be
New technologies aside, the brunt and life-long learning are examples undertaken.
of agricultural innovation is found of ways organizational innovations More traditionally, policy mak-
in improved processes and services can increase agricultural productivity ers have a responsibility to provide
that occur along the agricultural (Chapter 9). Complex organizational funding mechanisms to stimulate
value chain, be it in high-income changes—such as changes intended innovation in agriculture and food
10
1: The Global Innovation Index 2017
production. The mechanisms can be between feeding the poor with mod- India (see Chapter 5). A f lurry of new
in several forms: ern intensive agriculture and creating start-ups is on the rise, on par with
ground-breaking new crop varieties other high-technology sectors, and
• For example, as seen in Brazil (see Chapter 8), while also looking at with ideas that can have an immedi-
(see Chapter 7), policy makers environmental issues and health. ate impact on societal well-being.
can create sectoral agricultural Cooperation and consultation Fourth, both the private sector
funds to foster technologies in remain a key ingredients needed to and government can also help infuse
areas such as agronomy, veteri- get popular support for the resulting excellence and innovative attitudes in
nary medicine, biotechnology, policies and to leave room for out-of- other vital sectors into the agriculture
econom ics, and ag r icu lt ura l the-box thinking. sector. In India, such an approach has
sociology; and to promote tech- helped enhance the impact of infor-
nological updates in the agri- Fostering skills and inspiring mation technology (IT) in unlocking
culture industry and stimulate agricultural entrepreneurship value for the grassroots level in areas
the expansion of investments in One of the key obstacles to the rapid such as mobile payments or health (see
tropical agricultural biotechnol- adoption of innovative approaches in Chapter 5). Over the last five years,
ogy and in the diffusion of new agriculture and food production still the Indian agriculture sector has also
technologies. is to be found in inadequate infor- attracted leading IT companies and
mation, a lack of skills, and, some- investors; available technology and
• The creation of focused research
times, the lack of acceptance of new digital solutions are expanding at an
institutes (e.g., the Institute of
products or ways to produce them. impressive pace.
Innovation in Biotechnology in
Experiences from various parts of
Sao Paolo) is also a possibility
the world in this year’s GII chapters Scaling up local initiatives and
(see Chapter 7 on Brazil).
indicate how priorities need to be ensuring technology diffusion
• Providing tax relief to enhance pursued in this area. Local (sub-national) initiatives are
far mer s’ incomes and of fer- First, agricultural extension also important: grassroots innova-
ing preferential access to land efforts to disseminate knowledge tions that can often be scaled up
and market support for promis- about new technologies and tech- are happening in low- and middle-
ing agricultural techniques and niques, and to demonstrate their busi- income economies’ farming. In
technologies is also a good way ness case, are required. These services such contexts, links between public
forward. include training in technology and research institutions, firms, and the
managerial skills and in the diffusion grassroots level are key.
Crafting balanced legal frameworks of information such as metrological Efforts to enhance the efficiency
Improving national legal and regu- data. This would provide adequate of the innovation system should focus
latory frameworks in and around information to farmers, ensure that on reducing lags between successful
agriculture—for example, by pro- key workers along the value chain R&D efforts and the widespread
moting the uptake of patents and have sufficient relevant skills, and adoption of agricultural innovations.
plant varieties; promoting the use encourage the adoption of new prod- In a number of countries (see Chapters
of trademarks, which can support ucts and processes. 9, 10, and 11), several factors—
innovation; adopting public safety Second, farmers need to be including the lack of complementary
laws on biodiversity and genetically empowered by providing access to investments and capacity—hamper
modified varieties; and more gen- digital technology and the new ser- spillovers from public research to
erally streamlining regulations and vice platforms that have immense enterprises. Accelerating technol-
reducing bureaucracy around farm- potential to positively impact agri- ogy transfers through the establish-
ers—all contribute to a more condu- culture (see Chapters 3 and 5). ment of clear rules of engagement
THE GLOBAL INNOVATION INDEX 2017
cive environment (see Chapter 10). Third, entrepreneurship within in university-industry interactions,
Governments and policy makers the agriculture sector needs to be including the commercialization
also have the delicate task of providing recognized and inspired to a much of IP derived from these, is a good
a proper balance between inefficient more significant extent. In India, for option.33 Supporting the demand for
agriculture in need of more technol- example, venture capital has started innovation with farmers and com-
ogy, better fertilizers, and so on and f lowing to agricultural projects mercial farming operations is equally
advanced bio-farming, as well as through programmes such as Startup important.
11
Trade,
Business Research & Ecological competition, Knowledge Knowledge Online
environment development sustainability & market scale absorption diffusion creativity
More accurately measuring agricultural and which countries lead and lag in 92.5% of the world’s population and
innovation to simulate progress agricultural innovation. 97.6% of the world’s GDP (in current
Agriculture today is radically dif- A transition towards sustainable US dollars).
ferent from agriculture a couple of growth is paramount if the world Four measures are calculated: the
decades ago: more digital, smarter, is to cope successfully with the overall GII, the Input and Output
and more integrated. A better under- global challenges it is facing today. Sub-Indices, and the Innovation
standing of agricultural innovation Agriculture and food systems can Efficiency Ratio (Figure 2).
in general, but these new forms of play a tremendous role in this, but
innovation in particular, is now cru- a concerted effort towards more • The overall GII score is the
cial (Chapter 2 and Annex 4). Data granular agriculture-specif ic data simple average of the Input and
are needed to better inform decision collection is needed to understand Output Sub-Index scores.
makers about gaps and opportuni- what works and what does not, and
• The Innovation Input Sub-
ties in agricultural capacity, and how governments and public poli-
Index is comprised of five input
to monitor and evaluate require- cies can help promote innovation in
pillars that capture elements of
ments and progress, recognizing agriculture and food.
the national economy that enable
the broader agricultural innovation
innovative activities: (1) Insti-
THE GLOBAL INNOVATION INDEX 2017
• The Innovation Output Sub- are not particularly sensitive to the 1. Switzerland
I ndex provides infor mation missing values. As noted by the audit, 2. Sweden
about outputs that are the results this more stringent threshold has 3. Netherlands
of innovative activities within notably improved the confidence in 4. United States of America
the economy. There are two the country ranks for the GII and the 5. United Kingdom
output pillars: (6) Knowledge two sub-indices, and thus the reliabil- 6. Denmark
and technology outputs and (7) ity of the GII rankings (see Annex 3). 7. Singapore
Creative outputs. The rules on missing data and mini- 8. Finland
mum coverage per sub-pillar will be 9. Germany
• The Innovation Eff iciency
progressively tightened, leading to 10. Ireland
Ratio is the ratio of the Output
the exclusion of countries that fail to
Sub-Index score over the Input
meet the desired minimum coverage Furthermore, stability remains
Sub-Index score. It shows how
in any sub-pillar (see Annex 2 for across the top 25 economies with
much innovation output a given
more details). only a few exceptions. China moves
country is getting for its inputs.
up by three places, becoming the
Each pillar is divided into three 22nd most innovative economy in the
sub-pillars and each sub-pillar is The Global Innovation Index 2017 results world after entering the top 25 in the
composed of individual indicators, The GII 2017 results have shown GII 2016. Israel gains four positions
for a total of 81 indicators this year. consistency in areas such as top this year, ranking 17th and swap-
Further details on the GII frame- rankings and the innovation divide. ping spots with New Zealand (21st).
work and the indicators used are However, there also have been some Other economies move up by two
provided in Annex 1. It is important new high-level developments as or more places: Japan (14th), France
to note that each year the variables described below. (15th), and Norway (19th). Australia
included in the GII computation are moves down four spots, ranking 23rd
reviewed and updated to provide Stability at the top, led by Switzerland, this year. Hong Kong (China) and
the best and most current assessment Sweden, and the Netherlands Canada each lose two or more posi-
of global innovation. Other meth- In 2017, the GII remains relatively tions, ranking 16th and 18th respec-
odological issues—such as missing stable at the top. Switzerland leads the tively. The Czech Republic regains
data, revised scaling factors, and new rankings for the seventh consecutive its place in the top 25, gaining three
countries added to the sample—also year, while Sweden maintains its 2nd positions from last year and moving
impact year-on-year comparability of place. The Netherlands ranks 3rd, to 24th. Belgium leaves the top 25
the rankings (details of these changes although most of this improvement is this year, ranking 27th.
to the framework and factors impact- the result of methodological changes Box 3 discusses the measure of
ing year-on-year comparability are and improved data availability. The innovation quality among GII 2017
provided in Annex 2). USA remains stable at the 4th spot, economies. Box 4 delves into the
Most notably, a more stringent while the UK moves down two innovation divide between the top
criterion for the inclusion of coun- positions to take 5th place. Denmark 25 ranked economies (24 of which
tries in the GII was adopted in 2016, improves another two positions are high-income) and the group of
following the Joint Research Centre this year, ranking 6th. Singapore, middle- and low-income economies.
( JRC) recommendation of past GII Finland, and Ireland move down,
audits (see Annex 3 in this report occupying the 7th, 8th, and 10th
and in previous years). Economies spots, respectively. Germany, which 2017 results: The world’s top innovators
and countries were included in the entered the top 10 in 2016, contin- The following section describes and
GII 2017 only if 66% of data were ues its advancement, moving up one analyses the prominent features of the
THE GLOBAL INNOVATION INDEX 2017
available within each of the two position from last year and occupy- GII 2017 results for the global lead-
sub-indices and if at least two of sub- ing the 9th spot. Hence, despite some ers in each component of the GII and
pillars in each pillar could be com- movement, the top 10 does not see the best performers in light of their
puted. This more stringent criterion any new entrant this year. income level.35 A short discussion
for inclusion in the GII ensures that Figure 3 shows movement in the of the rankings at the regional level
country scores for the GII and for the top 10 ranked economies over the last follows.36
two Input and Output Sub-Indices four years:
13
Note: Year-on-year GII rank changes are influenced by performance and methodological considerations; see Annex 2.
Tables 1 through 3 on pages Education (28th), and Information (11th). It improves in the Innovation
14–19 present the rankings of and communication technologies Input Sub-Index (2nd), with gains in
all economies included in the GII (ICTs, 30th). Switzerland ranks 1st all pillars but Market sophistication
2017 for the GII and the Input and in Knowledge creation and in a num- (10th). Among the largest improve-
Output Sub-Indices. ber of important indicators, including ments, Sweden gains 11 positions in
patent families in 2 or more offices, Innovation linkages (6th), 10 posi-
The top 10 in the Global Innovation Index PCT patent applications, and high- tions in Knowledge impact (10th),
Switzerland has earned the num- and medium-high-tech manufac- 7 positions in ICTs (13th), and 6
ber 1 position in the GII for the tures. With its favourable business positions in Knowledge absorption
seventh consecutive year. It has environment and solid innovation (7th). Its largest drops are in Tertiary
maintained this top spot since 2011, capabilities, Switzerland remains education (28th), Ecological sus-
as well as its number 1 position in highly successful in transforming its tainability (20th), Trade, competi-
the Innovation Output Sub-Index resources into more numerous, and tion, and market scale (28th), and
and in the Knowledge and technol- more varied, innovation outputs. Creative goods and services (18th).
ogy outputs pillar since 2012. Its lead Despite this strong performance, At the indicator level, Sweden keeps
seems largely uncontested. For the Switzerland presents a few areas of its 1st position in PCT patent appli-
first time it ranks among the top 10 weakness, especially on the input cations, while achieving a big leap
in all pillars and is the 3rd economy in side. These include ease of starting in labour productivity growth. It
the world in innovation quality (see a business, graduates in science and improves the most in government’s
Box 3). Thanks to its improvements engineering, gross capital formation, online service, e-participation, and
THE GLOBAL INNOVATION INDEX 2017
in Institutions (8th), Infrastructure ease of getting credit, and growth rate JV-strategic alliance deals, while
(6th), and Creative outputs (3rd), of GDP per worker. benef iting from the new measure
its Innovation Efficiency Ratio has Sweden holds the second high- averaging FDI net in-f lows (see
improved from 5th to 2nd. As in previ- est position in the GII, remaining the Annex 2). Areas of weakness include
ous years, it ranks among the top 25 in top Nordic economy and ranking pupil-teacher ratio, GDP per unit of
all sub-pillars, with only three excep- among the top 10 in all pillars with energy use, ease of getting credit,
tions: Business environment (33rd), the exception of Creative outputs FDI net inf lows, trademarks by
14
Table 1: Global Innovation Index rankings
1: The Global Innovation Index 2017
Country/Economy Score (0–100) Rank Income Rank Region Rank Efficiency Ratio Rank Median: 0.62
Switzerland 67.69 1 HI 1 EUR 1 0.95 2
Sweden 63.82 2 HI 2 EUR 2 0.83 12
Netherlands 63.36 3 HI 3 EUR 3 0.93 4
United States of America 61.40 4 HI 4 NAC 1 0.78 21
United Kingdom 60.89 5 HI 5 EUR 4 0.78 20
Denmark 58.70 6 HI 6 EUR 5 0.71 34
Singapore 58.69 7 HI 7 SEAO 1 0.62 63
Finland 58.49 8 HI 8 EUR 6 0.70 37
Germany 58.39 9 HI 9 EUR 7 0.84 7
Ireland 58.13 10 HI 10 EUR 8 0.85 6
Korea, Rep. 57.70 11 HI 11 SEAO 2 0.82 14
Luxembourg 56.40 12 HI 12 EUR 9 0.97 1
Iceland 55.76 13 HI 13 EUR 10 0.86 5
Japan 54.72 14 HI 14 SEAO 3 0.67 49
France 54.18 15 HI 15 EUR 11 0.71 35
Hong Kong (China) 53.88 16 HI 16 SEAO 4 0.61 73
Israel 53.88 17 HI 17 NAWA 1 0.77 23
Canada 53.65 18 HI 18 NAC 2 0.64 59
Norway 53.14 19 HI 19 EUR 12 0.66 51
Austria 53.10 20 HI 20 EUR 13 0.69 41
New Zealand 52.87 21 HI 21 SEAO 5 0.65 56
China 52.54 22 UM 1 SEAO 6 0.94 3
Australia 51.83 23 HI 22 SEAO 7 0.60 76
Czech Republic 50.98 24 HI 23 EUR 14 0.83 13
Estonia 50.93 25 HI 24 EUR 15 0.79 19
Malta 50.60 26 HI 25 EUR 16 0.84 8
Belgium 49.85 27 HI 26 EUR 17 0.67 47
Spain 48.81 28 HI 27 EUR 18 0.70 36
Italy 46.96 29 HI 28 EUR 19 0.73 31
Cyprus 46.84 30 HI 29 NAWA 2 0.74 28
Portugal 46.05 31 HI 30 EUR 20 0.71 33
Slovenia 45.80 32 HI 31 EUR 21 0.68 44
Latvia 44.61 33 HI 32 EUR 22 0.74 26
Slovakia 43.43 34 HI 33 EUR 23 0.75 25
United Arab Emirates 43.24 35 HI 34 NAWA 3 0.49 104
Bulgaria 42.84 36 UM 2 EUR 24 0.80 15
Malaysia 42.72 37 UM 3 SEAO 8 0.68 46
Poland 41.99 38 HI 35 EUR 25 0.67 48
Hungary 41.74 39 HI 36 EUR 26 0.73 30
Lithuania 41.17 40 HI 37 EUR 27 0.59 84
Croatia 39.80 41 HI 38 EUR 28 0.66 52
Romania 39.16 42 UM 4 EUR 29 0.69 39
Turkey 38.90 43 UM 5 NAWA 4 0.84 9
Greece 38.85 44 HI 39 EUR 30 0.56 87
Russian Federation 38.76 45 UM 6 EUR 31 0.61 75
Chile 38.70 46 HI 40 LCN 1 0.60 77
Viet Nam 38.34 47 LM 1 SEAO 9 0.84 10
Montenegro 38.07 48 UM 7 EUR 32 0.63 62
Qatar 37.90 49 HI 41 NAWA 5 0.61 68
Ukraine 37.62 50 LM 2 EUR 33 0.83 11
Thailand 37.57 51 UM 8 SEAO 10 0.75 24
Mongolia 37.13 52 LM 3 SEAO 11 0.74 27
Costa Rica 37.09 53 UM 9 LCN 2 0.69 43
Moldova, Rep. 36.84 54 LM 4 EUR 34 0.78 22
THE GLOBAL INNOVATION INDEX 2017
Country/Economy Score (0–100) Rank Income Rank Region Rank Median: 43.15
Singapore 72.25 1 HI 1 SEAO 1
Sweden 69.72 2 HI 2 EUR 1
Switzerland 69.60 3 HI 3 EUR 2
Finland 68.93 4 HI 4 EUR 3
United States of America 68.87 5 HI 5 NAC 1
Denmark 68.68 6 HI 6 EUR 4
United Kingdom 68.25 7 HI 7 EUR 5
Hong Kong (China) 66.95 8 HI 8 SEAO 2
Netherlands 65.79 9 HI 9 EUR 6
Canada 65.57 10 HI 10 NAC 2
Japan 65.45 11 HI 11 SEAO 3
Australia 64.61 12 HI 12 SEAO 4
New Zealand 64.14 13 HI 13 SEAO 5
Norway 63.99 14 HI 14 EUR 7
France 63.41 15 HI 15 EUR 8
Korea, Rep. 63.34 16 HI 16 SEAO 6
Germany 63.33 17 HI 17 EUR 9
Austria 62.92 18 HI 18 EUR 10
Ireland 62.86 19 HI 19 EUR 11
Israel 61.01 20 HI 20 NAWA 1
Iceland 60.10 21 HI 21 EUR 12
Belgium 59.53 22 HI 22 EUR 13
United Arab Emirates 57.96 23 HI 23 NAWA 2
Luxembourg 57.36 24 HI 24 EUR 14
Spain 57.28 25 HI 25 EUR 15
Estonia 56.99 26 HI 26 EUR 16
Czech Republic 55.72 27 HI 27 EUR 17
Malta 54.91 28 HI 28 EUR 18
Italy 54.43 29 HI 29 EUR 19
Slovenia 54.40 30 HI 30 EUR 20
China 54.22 31 UM 1 SEAO 7
Cyprus 53.92 32 HI 31 NAWA 3
Portugal 53.80 33 HI 32 EUR 21
Lithuania 51.92 34 HI 33 EUR 22
Latvia 51.25 35 HI 34 EUR 23
Malaysia 50.94 36 UM 2 SEAO 8
Poland 50.20 37 HI 35 EUR 24
Greece 49.73 38 HI 36 EUR 25
Slovakia 49.66 39 HI 37 EUR 26
Brunei Darussalam 49.27 40 HI 38 SEAO 9
Hungary 48.36 41 HI 39 EUR 27
Chile 48.31 42 HI 40 LCN 1
Russian Federation 48.21 43 UM 3 EUR 28
Croatia 47.96 44 HI 41 EUR 29
Bulgaria 47.61 45 UM 4 EUR 30
Saudi Arabia 47.33 46 HI 42 NAWA 4
Mauritius 47.13 47 UM 5 SSF 1
Qatar 46.96 48 HI 43 NAWA 5
South Africa 46.85 49 UM 6 SSF 2
Montenegro 46.83 50 UM 7 EUR 31
Romania 46.36 51 UM 8 EUR 32
Colombia 45.75 52 UM 9 LCN 2
TFYR of Macedonia 44.53 53 UM 10 EUR 33
Mexico 44.52 54 UM 11 LCN 3
THE GLOBAL INNOVATION INDEX 2017
Country/Economy Score (0–100) Rank Income Rank Region Rank Median: 25.60
Switzerland 65.78 1 HI 1 EUR 1
Netherlands 60.92 2 HI 2 EUR 2
Sweden 57.92 3 HI 3 EUR 3
Luxembourg 55.43 4 HI 4 EUR 4
United States of America 53.93 5 HI 5 NAC 1
United Kingdom 53.52 6 HI 6 EUR 5
Germany 53.46 7 HI 7 EUR 6
Ireland 53.41 8 HI 8 EUR 7
Korea, Rep. 52.06 9 HI 9 SEAO 1
Iceland 51.42 10 HI 10 EUR 8
China 50.87 11 UM 1 SEAO 2
Denmark 48.71 12 HI 11 EUR 9
Finland 48.06 13 HI 12 EUR 10
Israel 46.75 14 HI 13 NAWA 1
Malta 46.29 15 HI 14 EUR 11
Czech Republic 46.24 16 HI 15 EUR 12
Singapore 45.14 17 HI 16 SEAO 3
France 44.94 18 HI 17 EUR 13
Estonia 44.87 19 HI 18 EUR 14
Japan 43.99 20 HI 19 SEAO 4
Austria 43.27 21 HI 20 EUR 15
Norway 42.29 22 HI 21 EUR 16
Canada 41.73 23 HI 22 NAC 2
New Zealand 41.59 24 HI 23 SEAO 5
Hong Kong (China) 40.81 25 HI 24 SEAO 6
Spain 40.34 26 HI 25 EUR 17
Belgium 40.17 27 HI 26 EUR 18
Cyprus 39.75 28 HI 27 NAWA 2
Italy 39.50 29 HI 28 EUR 19
Australia 39.06 30 HI 29 SEAO 7
Portugal 38.30 31 HI 30 EUR 20
Bulgaria 38.08 32 UM 2 EUR 21
Latvia 37.97 33 HI 31 EUR 22
Slovenia 37.21 34 HI 32 EUR 23
Slovakia 37.20 35 HI 33 EUR 24
Turkey 35.48 36 UM 3 NAWA 3
Hungary 35.13 37 HI 34 EUR 25
Viet Nam 34.92 38 LM 1 SEAO 8
Malaysia 34.49 39 UM 4 SEAO 9
Ukraine 34.19 40 LM 2 EUR 26
Poland 33.78 41 HI 35 EUR 27
Moldova, Rep. 32.33 42 LM 3 EUR 28
Thailand 32.22 43 UM 5 SEAO 10
Romania 31.95 44 UM 6 EUR 29
Kuwait 31.91 45 HI 36 NAWA 4
Croatia 31.63 46 HI 37 EUR 30
Armenia 31.60 47 LM 4 NAWA 5
Mongolia 31.55 48 LM 5 SEAO 11
Lithuania 30.42 49 HI 38 EUR 31
Costa Rica 30.20 50 UM 7 LCN 1
Russian Federation 29.31 51 UM 8 EUR 32
Montenegro 29.30 52 UM 9 EUR 33
Chile 29.09 53 HI 39 LCN 2
Qatar 28.84 54 HI 40 NAWA 6
THE GLOBAL INNOVATION INDEX 2017
Box 3: Innovation quality: The USA, Japan, the UK, China, and India at the top of their income groups
Measuring the quality of innovation-related average score of top 3 universities); (2) inter- receive abroad (indicator 6.1.5, citable docu-
input and output indicators is as essential as nationalization of local inventions (indicator ments H index). Figure 3.1 shows how the
tracking their magnitude. To this end, three 5.2.5, patent families filed in three offices, scores on these three indicators add up,
additional indicators were introduced into changed to patent families filed in two and captures the top 10 highest performing
the GII in 2013: (1) quality of local universi- offices in the GII 2016); and (3) the number high- and middle-income economies.
ties (indicator 2.3.4, QS university ranking of citations that local research documents
Figure 3.1: Metrics for quality of innovation: Top 10 high- and top 10 middle-income economies
3 Switzerland
4 Germany
5 United Kingdom
6 Sweden
7 Korea, Rep.
8 Netherlands
9 Denmark
10 Finland
Average (48 economies)
16 China
27 India
Middle-income economies
28 Russian Federation
29 Brazil
30 Argentina
32 South Africa
34 Mexico Q 2.3.4 QS university ranking average score of top 3 universities
38 Malaysia
Q 5.2.5 Patent families filed in at least 2 offices
41 Turkey
Q 6.1.5 Citable documents H index
43 Thailand
Average (62 economies)
Sum of scores
origin, and printing and publishing points (see page 26 in the GII 2016), and technology outputs (2nd). The
manufactures. which are now better accounted for.37 Netherlands has improved its rank-
THE GLOBAL INNOVATION INDEX 2016
The Netherlands reaches the As a result, this year the Netherlands ings in a number of other areas as
3rd position this year, ranking 2nd ranks 6th in FDI net inf lows and well, including Education (18th),
in the Innovation Output Sub-Index 1st in outf lows. As discussed in Innovation linkages (7th), and
and 4th in the Innovation Efficiency more detail in Box 4, newly avail- Knowledge impact (17th), in part
Ratio. Indeed, the Netherlands had able data positively affect two pil- because of gains in GERD financed
lost five positions last year as a result lars of the Netherlands—Business by abroad and expenditure in edu-
of large f luctuations in selected data sophistication (1st) and Knowledge cation. Areas of weakness include
21
Top 10 high-income economies: The Korea keeps the top spot in patent families, India is 2nd in innovation quality for
USA, Japan, Switzerland, and Germany a reduction in its scores for university rank- the second consecutive year. India’s positive
in the lead ings, combined with a significant improve- performance is the result of maintaining its
Among the high-income group, five econo- ment in patent families for Sweden, can 2nd position in both university rankings and
mies—the United States of America (USA), explain this switch. The Netherlands (8th, citable documents among middle-income
Japan, Switzerland, Germany, and the United up by two) scores better in patent families, economies. The country shows a small
Kingdom (UK)—have remained among the compensating for a fall in university rank- reduction in the score of patent families,
top five in innovation quality since the incep- ings. Denmark and Finland enter the top which, however, does not affect its quality
tion of this metric. This year the USA moves 10 this year, replacing France and Canada. of innovation ranking.
to the 1st position, taking the place of Japan. While the latter two show high scores in With slight reductions in all three indi-
The USA achieves this ranking as a result of both university rankings and citable papers, cators, the Russian Federation moves to
continuous top scores in particular quality improved scores for patents filed from both the 3rd position among the upper-middle-
indicators and an improvement in its score Denmark and Finland is the main reason for income economies and 28th overall, posi-
in patent families. The USA takes the top this change. tioned between India and Brazil. Brazil’s
position in citable papers, sharing this spot performance also shows slight reductions
with the UK for the fifth consecutive year. In Top 10 middle-income economies: in scores for all three indicators, resulting
2017 the USA also remains the world leader China and India lead; the Russian in a ranking of 29th among middle-income
in the quality of its universities, outranking Federation and Argentina re-join the economies.
the UK for the second consecutive year. Also group Argentina, 5th among middle-income
contributing to the USA’s improvement, A large gap remains between high-income economies and 30th overall, shows reduced
Japan shows a reduction in the scores for and middle-income economies. Without scores in university rankings and patent
both university rankings and citable docu- China, the difference in average scores families and a marginal improvement in
ments this year. between these two groups in both the citable documents, yet its overall score puts
This year, for the first time, Switzerland university rankings (1.13) and citable docu- it ahead of South Africa (6th among middle-
ranks 3rd in the quality of innovation met- ments (0.64) is expanding, while in patents income and 32nd overall) and Mexico (7th
ric. Although showing a slightly weaker filed the distance is narrowing (0.14). and 34th).
performance than last year in the quality of China moves up one spot to 16th posi- The inclusion of the Russian Federation
universities and a constant one in citable tion in innovation quality, retaining for the and Argentina in the middle-income group
documents, the country enjoys a top score fifth consecutive year its position as the top led to the downward movement of Mexico,
in patent families, helping it to achieve an middle-income economy and getting closer Malaysia, Turkey, and Thailand—economies
overall quality score above those of both to high-income economies. This movement that have been in the middle-income top
the UK and Germany. These two countries, can be attributed to higher scores in univer- 10 since the innovation quality metric was
on the other hand, show stable scores in sity rankings (4th) and citable documents introduced. In addition, this inclusion also
citable documents this year, but a reduction (14th). Although other middle-income moved Colombia and Ukraine out of this
in those for patent families and university economies still depend greatly on their uni- list, although the performance of these
rankings, respectively. versity rankings to move ahead in the quality economies has diverged greatly from that
Sweden improves its rankings, moving of innovation, China—and to some extent of previous years.
up two positions to replace the Republic of South Africa—display a balance between
Korea (Korea) at the 6th position. Although the three components of the quality index.
Tertiary education (49th), General other pillars. It improves its position Tertiary education (54th), Ecological
infrastructure (30th), Ecological sus- in Human capital and research (13th), sustainability (61st), and Intangible
THE GLOBAL INNOVATION INDEX 2017
tainability (39th), Credit (35th), and Business sophistication (8th), and assets (38th). In the latter, the country
Investment (26th). Creative outputs (10th), while losing improves by seven positions this year,
The United States of America eight positions in Infrastructure (21st) a welcome improvement as this is the
(USA) maintains its 4th position this and three in Knowledge and technol- only output sub-pillar where the USA
year. The USA keeps its top ranking ogy outputs (7th). At the sub-pillar does not rank in the top 25. The USA
in pillar 4—Market sophistication— level, the USA ranks in the top 25 with holds the top rank in many indicators,
and ranks among the top 25 in all just four exceptions: Education (41st), including QS university ranking,
22
1: The Global Innovation Index 2017
The top 25 GII ranks are occupied by a ranking. In addition, top marks for intellectual outputs. Conversely, this distance is larger
stable set of high-income countries that property payments, ICT services imports, and this year in both Market and Business sophis-
consistently lead in innovation. One major country-code TLDs help explain this rise. tication. This change is in addition to China
change took place last year: China, as the Some changes occur this year in the scoring higher in Business sophistication and
only middle-income economy included in composition of the top 25 group. For one, Knowledge and technology outputs than its
this group of innovation leaders, took up the Belgium drops out of the top 25 this year peers in the 11–25 group.
25th position in 2016. China remains in this while the Czech Republic moves back by
top group and keeps moving ahead (22nd relying on a better performance in high- and Middle-income economies: China,
this year). China’s innovation ranking in 2017 medium-high-tech manufactures, as well the only middle-income economy
reflects scores in Business sophistication and as improved scores for domestic credit to among the top 25 group; Bulgaria and
Knowledge and technology outputs that are private sector and FDI net outflows. Malaysia still at great distance
above the average of the rest of the 11–25 The distance between the top 25 and Aside from China, which has been among
group. In particular, top scores in some the groups that follow is still apparent. Figure the top 25 since 2016, this year Bulgaria
indicators—domestic market scale, firms 4.1 shows the average scores for six groups: and Malaysia are the two middle-income
offering formal training, patents by origin, (1) the top 10, composed of all high-income economies nearest to that group, with
utility models by origin, high-tech exports economies; (2) ranks 11 through 25, which Malaysia slipping back to 37th and Bulgaria
less re-exports, industrial designs by origin, are also all high-income economies with overtaking it. Bulgaria (36th) is now the clos-
and creative goods exports—are all factors the sole exception of upper-middle-income est upper-middle-income economy to the
contributing to this improved ranking. Over China; (3) other high-income economies; top 25. In particular, Bulgaria performs better
the past two years, in both absolute and rela- (4) upper-middle-income economies; (5) this year in Information and communication
tive terms in relation to other countries, China lower-middle-income economies; and (6) technologies (ICTs) with an improved perfor-
has shown the strongest improvement in low-income economies. mance in government’s online service and
patent applications by origin, university rank- e-participation as well as in variables in other
ings, citable documents H index, utility model The difference between the top 10 pillars, including research talent in business
applications by origin, gross expenditure on innovation leaders and others in the enterprise and growth rate of PPP$ GDP per
R&D, and PCT international applications by top 25 worker. Malaysia, on the other hand, main-
origin. In addition, China this year displays a Overall, the top 10 perform better than the tains strengths in graduates in science and
strong performance in three indicators intro- 11–25 group in all pillars. The gap between engineering, high-tech imports and exports,
duced in the GII 2016: global R&D companies, these two groups is larger this year in both and creative goods exports, among other
domestic market scale, and research talent in of the output-side pillars of the index. This indicators. Both of these economies con-
business enterprise. contrast shows also that variations in perfor- tinue to operate close to those high-income
Stability is a feature among the top 10 mance are narrower in two of the input-side economies outside of the top 10, which is
economies this year, with Switzerland at pillars, Institutions and Market sophistication. especially evident in Business sophistication,
number 1 for the seventh consecutive year. In contrast, these gaps have expanded in Knowledge and technology outputs, and
Although some variations in rankings are Human capital and research, Infrastructure, Creative outputs.
noticed, such as the Netherlands regaining and Business sophistication. With the exception of these two
3rd place (thanks in part to methodological A number of high-income economies countries, the gap between the group of
reasons explained in the country description in the 11–25 range—Hong Kong (China) 11–25 ranked economies (as well as high-
on page 20), no economy moves in or (16th), Canada (18th), Norway (19th), and income economies) and the upper-middle-
out of this group in 2017. The Netherlands’ New Zealand (21st)—perform above the top income group remains wide, especially in
noteworthy upward movement relies mostly 10 average in various pillars (i.e., Institutions, Institutions, Human capital and technology,
on its consistently high performance in areas Infrastructure, and Market sophistication). and Infrastructure; the gap is less wide in
such as Business sophistication, Creative out- This year, for the first time, China displays Creative outputs. With respect to last year,
puts, and Knowledge and technology out- a score higher than the top 10 average partially influenced by methodological con-
puts. Within Knowledge diffusion, available in Knowledge and technology outputs. siderations, the divide between these groups
data for intellectual property receipts and ICT Furthermore, China shows that the gaps are increases in Institutions and, to a lesser extent,
services exports rank the Netherlands in the narrower between the top 10 average scores in Market sophistication. Yet the gap seems
top 10. FDI net outflows is also a strength and and its scores in Institutions, Human capital to be lessening in Infrastructure and Human
THE GLOBAL INNOVATION INDEX 2017
partly responsible for this improvement in and research, Infrastructure, and Creative capital and research.
Only a few upper-middle-income econ- sophistication pillars, areas in which this 19 economies) and Latin America and the
omies—Romania (42nd), Turkey (43rd), the group also continues to perform above the Caribbean (31.7; 18 economies) have similar
Russian Federation (45th), Viet Nam (47th), average of the lower-middle-income group. scores while the difference in average scores
Montenegro (48th), and Ukraine (50th)—are This suggests that efforts to strengthen insti- between Central and Southern Asia (28.5; 9
among the top 50 this year. tutions and enable the necessary factors to economies) and Sub-Saharan Africa (24.8; 25
promote stronger business environments economies) is expanding. When contrasted
Low-income economies moving closer continue to expand among these countries. with the 2016 results, these averages show
to middle-income ones Latin America and the Caribbean to be the
Continuing with the trend identified in earlier The persistence of regional innovation region with the widest average improve-
editions, the group of low-income economies divides: Regional scores ment, followed by Central and Southern
keeps closing the gap that separates them The regional rankings based on the GII scores Asia, Northern Africa and Western Asia, and
from the middle-income group. However, shows that the Northern America region— Europe. Conversely, Sub-Saharan Africa
this gap remains significant in Infrastructure, consisting of the USA and Canada—is still shows the largest average score reduction,
Market sophistication, Creative outputs, and at the top (57.5; 2 economies), followed by followed by South East Asia, East Asia, and
Knowledge and technology outputs. This Europe (47.1; 39 economies) and South East Oceania and Northern America.
year there is no difference between these Asia, East Asia, and Oceania (44.0; 15 econo-
groups in the Institutions and Business mies). Northern Africa and Western Asia (34.3;
Institutions
Average scores
100
Top 10 (high income)
Creative Human capital 11–25 (high income plus China)
75
outputs and research Other high income
50
Upper-middle income
Lower-middle income
25 Low income
venture capital deals, citable docu- 2016). The country improves in all Investment. It improves substantially
ments, computer software spending, pillars except for Market sophistica- also in Education and Creative goods
and IP receipts; it also gains the 1st tion, where it retains the 6th spot, and and services, moving up by nine
position in global R&D companies, Knowledge and technology outputs positions in both sub-pillars. Despite
state of cluster development (see also (16th), where it loses two positions. these improvements, Singapore
the Special Section on Clusters, which At the sub-pillar level, Demark shows a relatively weak position in
shows that the USA has largest num- improves the most in Education (4th), Education, where it ranks 76th. In
ber of clusters in the world), ICTs and ICTs (14th), Ecological sustainability this sub-pillar, Singapore is weak
organizational model creation, and (11th), Innovation linkages (17th), in all indicators except PISA results.
cultural and creative services exports. Knowledge diffusion (17th), and Room for improvement also exists in
This year the country also ranks 1st in Intangible assets (25th). Denmark growth rate of GDP per worker, ICT
the quality of innovation aggregate, ranks in the top 3 in a number of services exports, and trademarks and
overtaking Japan (see Box 3). indicators, including expenditures on industrial designs by origin. Apart
The United Kingdom (UK) education, researchers, ICT use, and from these areas of opportunity,
moves to 5th place this year. The scientific and technical articles. It also Singapore maintains its 1st place in
UK improves its position in a number improves its position in many areas FDI net outf lows, while losing it in
of input pillars, namely Institutions such as government expenditure per high- and medium-high-tech manu-
(9th), Human capital and research pupil, PISA scales, GDP per unit factures, high-tech exports, market
(6th), and Business sophistication of energy use, university/industry capitalization, and FDI net inf lows.
(13th).38 At the sub-pillar levels, the research collaboration, JV-strategic Singapore ranks 1st also in other eight
UK’s largest gains are in Political alliance deals, ICT services exports, indicators: government effectiveness,
environment (18th), Education and ICTs and organizational model regulatory quality, cost of redun-
(22nd), and Knowledge absorption creation. Opportunities for further dancy dismissal, PISA scales, tertiary
(28th). The country loses ground improvement still exist, notably in inbound mobility, ease of protecting
in both output pillars—Knowledge Tertiary education (19th), General minority investors, applied tariff rate,
and technology outputs (13th) goes infrastructure (44th), Trade, compe- and IP payments.
down by four, with the largest drop tition, and market scale (37th), and Finland moves down to the
in Knowledge diffusion (38th); and Knowledge impact (34th). Relatively 8th position this year from 5th in
Creative outputs (4th) by one. At weak indicators include graduates in 2016. Finland keeps its 4th place in
the indicator level, expenditure on science and engineering, gross capital the Input Sub-Index, but loses three
education, government expenditure formation, utility models by origin, positions in the Output Sub-Index
by pupil, IP payments, ICT services growth rate of GDP per worker, and (13th). It maintains its 1st rank in
imports and exports, growth rate of trademarks by origin. Human capital and research, while
GDP per worker, and national feature Singapore still holds the top improving in Infrastructure (8th). In
films see some of the largest improve- rank in the South East Asia, East Asia, all other pillars, however, Finland
ments. By contrast, items such as PISA and Oceania region while dropping loses between one and four posi-
results, ICT use, and patent families by one position (see Box 6). It keeps tions. At the sub-pillar level, 12 out
lose most positions (see also Box 3). its top spot in the Innovation Input of 21 sub-pillars move down. The
The UK maintains its 1st spot in Sub-Index and gains three positions largest drops are in Creative goods
citable documents, and gains the 1st in the Innovation Output Sub-Index and services (40th), Political environ-
rank in government’s online services, (17th). Singapore ranks in the top 5 in ment (8th), and Knowledge diffusion
e-participation, and ICT and business all input pillars and 1st in Institutions. (14th). The largest gains are in ICTs
model creation. In terms of innovation outputs, (9th) and Knowledge impact (32nd).
Denmark ranks 6th in this Singapore loses one position in Finland also loses positions in a num-
THE GLOBAL INNOVATION INDEX 2017
year’s GII, improving in both the Knowledge and technology outputs ber of indicators, including venture
Innovation Input and Output Sub- (11th) while gaining one in Creative capital deals, GERD performed by
Indices, where it ranks respectively outputs (32nd). At the sub-pillar business, IP receipts and payments,
6th and 12th. Denmark has the most level, Singapore holds its 1st spot in ICTs and business model creation,
notable forward shift in the top 10 Political environment, Regulatory ICTs and organizational model cre-
(progressing continuously, from 10th environment, and Tertiary educa- ation, cultural and creative services
overall in the GII 2015 and 8th in tion, and gains the top rank in exports, and national feature films.
25
Ireland ranks in the top 25 across all Institutions (3rd) and Market sophis- 10 sub-pillar rankings for Canada this
pillars, but loses positions in Market tication (2nd), but falls in three out year are Political environment (6th,
sophistication (25th), Business sophis- of five input pillars, with the largest a strength), Regulatory environ-
tication (10th), Knowledge and tech- drop in Human capital and research ment (10th), Business environment
nology outputs (5th), and Creative (28th). In 9 of the 15 input sub-pillars, (7th), General infrastructure (7th),
outputs (13th). At the sub-pillar level, Hong Kong (China) ranks in the top Credit (8th), and Investment (2nd,
Ireland places in the top 2 in two 10, holding top spots in Regulatory also a strength). Canada improves in
26
1: The Global Innovation Index 2017
Education in 2017, in part because of industrial designs by origin and ICT advances its ranking in Knowledge
stronger rankings in expenditure on and organizational model creation. creation (13th) and Knowledge dif-
education, government expenditure Luxembourg also keeps the top posi- fusion (21st), ranking 1st in scientific
by pupil, and PISA results. tion in the Innovation Efficiency and technical articles and improving
Ratio rankings. in PCT patent applications, growth
The top 10 in the Innovation Output Sub- The Republic of Korea rate of GDP per worker, ISO 9001
Index (Korea) attains the 9th position in quality certificates, IP receipts,
The Innovation Output Sub-Index the Innovation Output Sub-Index ICT services exports, and FDI net
variables provide information on ele- this year, up by two positions. Korea outf lows.
ments that are the result of innovation gains six positions in Creative
within an economy. Although scores outputs, ranking 15th this year. It Top performers by income group
on the Input and Output Sub-Indices improves in Creative goods and ser- Viewing economies among their
might differ substantially, leading to vices (35th) and maintains the top income-group peers can illustrate
important shifts in rankings from one spot in industrial designs by origin. important relative competitive
sub-index to the other for particular Although the country drops one spot advantages and help decision makers
countries, the data confirm that efforts in Knowledge and technology outputs glean important lessons for improved
made to improve enabling environ- (6th), it improves in one of its areas of performance that are applicable on
ments are rewarded with better greatest strength—Knowledge cre- the ground. The GII also assesses
innovation outputs. The top 10 econ- ation (2nd)—where it maintains its results relative to the development
omies in the Innovation Output Sub- top rankings in patents by origin and stages of countries.
Index this year are Switzerland, the PCT patent applications and advances Table 4 shows the 10 best-ranked
Netherlands, Sweden, Luxembourg, to the top spot in utility models by economies in each index by income
the USA, the UK, Germany, Ireland, origin. Korea also improves its rank group. Switzerland, Sweden, and the
Korea, and Iceland. in Human capital and research (2nd), Netherlands are among the high-
The 10 economies leading the where it holds its 1st place in R&D. income top 10 on the three main indi-
Innovation Output Sub-Index Although its gross R&D expendi- ces, and the top 3 in the Innovation
remain broadly consistent with ture goes down by one position, Output Sub-Index. Compared to last
their rankings in 2016, with several Korea manages to retain its 2nd and year, Hungary and Estonia leave the
shifts and one substitution: three 3rd positions in GERD performed group, making space for the Czech
economies move upward within the by business and GERD financed by Republic and Korea.
top 10 (the Netherlands, the USA, business, respectively. The country’s Among the 10 highest-ranked
and Germany), while five econo- areas of relative weakness include upper-middle-income economies,
mies move downward (Sweden, ICT services exports and printing nine remain from 2016 (see also
Luxembourg, the UK, Ireland, and and publishing manufactures on the Box 4): China (22nd this year),
Iceland). Korea enters the top 10 on side of outputs; and tertiary inbound Bulgaria (36th), Malaysia (37th),
the Output side, while Finland exits mobility, GDP per unit of energy use, Romania (42nd), Turkey (43rd),
the top 10 in 2017. Seven of these knowledge-intensive employment, Montenegro (48th), Thailand (51st),
economies are ranked in the GII top and FDI inf lows on the inputs side. Costa Rica (53rd), and South Africa
10; the profiles of the other three Iceland ranks 10th in the (57th). The newcomer to this group
economies are discussed below. Innovation Output-Sub Index in of the 10 best upper-middle-income
Luxembourg ranks 4th in the 2017. This year, Iceland gains four performers is the Russian Federation
Innovation Output Sub-Index in 2017 positions in Knowledge and technol- (45th), which displaces Mauritius
and 12th in the overall GII. On the ogy outputs (18th) and reaches 2nd (64th). China, Malaysia, Bulgaria,
output side, Luxembourg loses four place in Creative outputs. Iceland and Romania are among the 10
THE GLOBAL INNOVATION INDEX 2017
positions in Knowledge and technol- maintains the top spot in Creative best-ranked upper-middle-income
ogy outputs (15th), while gaining 1st goods and services and Online cre- economies across all three main indi-
place in Creative outputs. In this pillar, ativity, ranking 1st in three of the ces and in the Innovation Efficiency
it maintains its strengths in cultural indicators across these sub-pillars: Ratio.
and creative services exports, national national feature films, printing and The same analysis for lower-
feature films, and generic top-level publishing manufactures, and generic middle-income countries shows
domains (TLDs) and improves in top-level domains (TLDs). Iceland that eight of the top 10 countries
27
Global Innovation Index Innovation Input Sub-Index Innovation Output Sub-Index Innovation Efficiency Ratio
Note: Economies with top 10 positions in the GII, the Input Sub-Index, the Output Sub-Index and the Innovation Efficiency Ratio within their income group are highlighted in bold.
28
1: The Global Innovation Index 2017
from 2016 remain in the top 10 Sub-Index score. It assesses the effec- Clustering innovation leaders, innovation
this year. These include Viet Nam tiveness of innovation systems and achievers, and innovation performers at and
(47th), Ukraine (50th), the Republic policies. It must be noted, however, below development relative to GDP: The GII
of Moldova (54th), Armenia (59th), that economies might also reach a bubble chart
India (60th), Morocco (72nd), relatively high Innovation Efficiency The GII helps also identify countries’
the Philippines (73rd), and Kenya Ratio as a result of particularly low performance in innovation relative to
(80th). New this year to the top 10 input scores. Because of this, effi- their level of GDP. Figure 4 on pages
lower-middle-income countries are ciency ratios must be analysed jointly 30–31 presents the GII scores
Mongolia (52nd) and Tunisia (74th), with GII, Input, and Output scores, plotted against GDP per capita in
which displace Georgia (68th) and and with the development stages of PPP$ (in natural logs). The econo-
Tajikistan (94th). Seven of the top 10 the economies in mind. mies that appear close to the trend
lower-middle-income countries have The 10 countries with the high- line show results that are in accor-
rankings in the top 10 for each of est Innovation Efficiency Ratios are dance with what is expected based
the three indices and the Innovation countries that combine certain lev- on their level of development. The
Efficiency Ratio, with the exceptions els of innovation inputs with more further up and above the trend line a
of Morocco, Tunisia, and Kenya. robust output results (see Table 1): country appears, the better its inno-
There has also been a strong Luxembourg, Switzerland, China, vation performance is when com-
consistency among low-income the Netherlands, Iceland, Ireland, pared with that of its peers at the same
countries, with eight out of 10 Germany, Malta, Turkey, and Viet stage of development. Red-coloured
economies remaining in the top 10. Nam. Compared to previous years, bubbles in the figure correspond to
The United Republic of Tanzania is new middle-income economies the efficient innovators (a major-
the top-ranked low-income country joined the top 10 most efficient ity of them are situated above the
(96th), having moved up nine spots economies: China, which entered the trend line), while the blue-coloured
in the overall GII since 2016, and top 10 last year, is accompanied this bubbles represent those countries
with improvements in the Innovation year by Turkey and a lower-middle- in the lower half of the Innovation
Input (109th) and Output (76th) income economy, Viet Nam, which Efficiency Ratio.
Sub-Indices (see Box 5). Following makes the most spectacular progress In the group of innovation leaders
in the ranking of low-income coun- this year (see Box 6). we find the same top 25 economies
tries are Rwanda (99th), Senegal Economies from Europe; South as in 2016, with two exceptions: the
(100th), which displaces the now- East Asia, East Asia, and Oceania; Czech Republic is moving back into
lower-middle-income economy and Northern Africa and West Asia this group while Belgium is moving
Cambodia (101st), Uganda (102nd), take up the first 20 positions in this out. All of these are high-income
Mozambique (107th), Nepal (109th), ratio ranking. Among high-income economies, with the sole exception of
Ethiopia (110th), Madagascar (111th), economies, Sweden, the Czech China, which belongs to the upper-
Malawi (115th), and Benin (116th), Republic, Korea, Kuwait, Estonia, middle-income group. These econo-
which displaces Mali (118th). and the UK are in the group of mies are located in four regions, with
Ranking well across all main indices the 20 most efficient economies in the majority in South East Asia, East
of the GII, the United Republic of innovation. Among upper-middle- Asia, and Oceania and in Europe, and
Tanzania, Senegal, Mozambique, income economies, Bulgaria and the the rest in Northern America and in
Nepal, and Malawi are among the Islamic Republic of Iran are in the Northern Africa and Western Asia.
top 10 low-income countries. All top 20 in terms of efficiency. From All of the economies in this group
economies in the low-income top the lower-middle-income group, have a GII score above 50. These
10, except Rwanda and Uganda, the top 20 most efficient economies economies show mature innovation
are in the low-income top 10 in the include Ukraine and Armenia. No systems with solid institutions and
THE GLOBAL INNOVATION INDEX 2017
Innovation Efficiency Ratio. low-income economies are in the top high levels of market and business
20 this year in innovation efficiency sophistication, allowing investment
Maximizing innovation resources and rankings. in human capital and infrastructure
synergies: The Innovation Efficiency Ratio to translate into quality innovation
The Innovation Efficiency Ratio is outputs.
calculated as the ratio of the Output Economies that perform at least
Sub-Index score over the Input 10% above their peers for their level
29
traits translate into proper resource Senegal Low income 2017, 2015, 2014, 2013, 2012 (5)
allocation for education, higher levels Tajikistan Lower-middle income 2017, 2016, 2013 (3)
of economic growth, and income for Malta High income 2017, 2016, 2015 (3)
workers, they are not homogenous Madagascar Low income 2017, 2016 (2)
the group of innovation achievers. Tanzania, United Rep. Low income 2017 (1)
This group has grown since the 2016 Note: World Bank Income Group Classification (July 2016): LI = low income; LM = lower-middle income; UM = upper-middle income; and HI = high income.
Importantly, Kenya, Rwanda, includes 39 countries from different GII rankings (except for the EU,
Senegal, Uganda, Mozambique, and regions and income groups: 9 are which is placed at the end).
Malawi stand out for being innova- from the high-income group (6 of
tion achievers at least five times in these are from the Northern Africa Northern America (2 economies)
the previous six years. Madagascar and Western Asia region), 17 are from Northern America, the UN-defined
has done so in the two most recent the upper-middle-income group, 11 region that includes both the USA
years and both Burundi and the are from the lower-middle-income and Canada, holds two of the top
30
1: The Global Innovation Index 2017
Figure 4: GII scores and GDP per capita in PPP$ (bubbles sized by population)
70
CH
Innovation
leaders SE
NL
US
GB
60
FI SG
DK IE
KR DE
IS
JP FR
IL CA HK
CN NZ A
AT NO
CZ AU
EE MT
50 BE
ES
CY IT
PT SI
LV
SKK
AE
BG MY
PL
HU LT
GII score
40 HR
GRR
VN ME TRR RO
R CCLL
UA TH RU QA
Innovation MD
MN CR
achievers ZA MX SA KW
IN AM
PA
GE RS MK MU UUYY BH
CO
MAA PE BR BR
BR
AR BN
PH TN IR
DO KZ OM
KE PY BA JO
PY AZ LB
30 JM LK ID BW BY TT
EC
TJ TZ A
AL
KG GT NA
RW SN
KH
UG HN SV
EG
BO
ET NP
MZ CI DZ
MW MG PK Innovation underperformers
BJ
BFF ML CM BD relative to GDP
ZW NG
BI NE
ZM
20
TG
GN
Efficient innovators
YE
Inefficient innovators
10
400 1,600 6,400 25,600 102,400
THE GLOBAL INNOVATION INDEX 2017
Note: ‘Efficient innovators’ are countries/economies with Innovation Efficiency ratios ≥ 0.66; ‘Inefficient innovators’ have ratios < 0.66; the trend line is a polynomial of degree three with intercept (R² = 0.6431).
31
Table 6: Heatmap for GII top 10 economies and regional and income group averages (1–100)
Business sophistication
Market sophistication
technology outputs
Creative outputs
Knowldege and
Human capital
Infrastructure
and research
Institutions
Efficiency
Output
Input
GII
Country/Economy
Switzerland 67.69 89.47 63.29 65.10 67.51 62.61 69.60 69.06 62.50 65.78 0.95
Sweden 63.82 88.31 63.71 69.13 64.87 62.58 69.72 62.51 53.33 57.92 0.83
United Kingdom 63.36 88.24 54.70 63.32 59.02 63.69 65.79 62.88 58.97 60.92 0.93
United States of America 61.40 86.25 57.21 61.04 83.45 56.41 68.87 54.38 53.48 53.93 0.78
Finland 60.89 88.44 63.32 67.14 70.19 52.18 68.25 46.49 60.54 53.52 0.78
Singapore 58.70 91.43 66.13 63.19 70.17 52.50 68.68 43.93 53.48 48.71 0.71
Ireland 58.69 94.36 63.67 69.15 71.20 62.88 72.25 47.33 42.94 45.14 0.62
Denmark 58.49 92.18 66.41 64.35 61.59 60.12 68.93 48.79 47.32 48.06 0.70
Netherlands 58.39 83.53 60.13 61.55 60.00 51.44 63.33 51.06 55.85 53.46 0.84
Germany 58.13 87.62 55.07 62.06 55.05 54.51 62.86 55.88 50.94 53.41 0.85
Average 37.12 63.05 34.03 46.19 47.23 34.97 45.10 25.77 32.53 29.15 0.63
Region
Northern America 57.53 88.62 55.26 61.54 78.56 52.13 67.22 46.52 49.14 47.83 0.71
Europe 47.10 75.57 46.41 56.10 51.72 42.93 54.54 35.24 44.05 39.65 0.72
South East Asia, East Asia, and Oceania 44.03 69.62 41.40 52.80 57.37 41.08 52.46 33.73 37.50 35.61 0.68
Northern Africa and Western Asia 34.33 59.33 32.43 46.35 44.87 28.62 42.32 22.80 29.89 26.34 0.61
Latin America and the Caribbean 31.73 54.51 26.84 43.56 45.11 31.11 40.23 17.35 29.13 23.24 0.58
Central and Southern Asia 28.53 47.28 24.25 37.52 43.78 27.29 36.02 20.57 21.51 21.04 0.59
Sub-Saharan Africa 24.88 52.19 18.53 30.45 36.21 27.88 33.05 14.77 18.64 16.71 0.51
Income level
High income 48.85 79.28 48.34 58.64 55.46 44.41 57.23 36.65 44.30 40.47 0.70
Upper-middle income 34.13 59.47 31.50 45.74 45.69 31.05 42.69 21.14 30.00 25.57 0.60
Lower-middle income 28.80 47.61 22.34 35.91 43.48 27.02 35.27 19.75 24.92 22.34 0.62
Low income 23.38 49.11 17.44 28.32 33.13 28.99 31.40 14.17 16.55 15.36 0.49
Institutions
Infrastructure
Market sophistication
Business sophistication
Q Northern America
Q Europe
Knowledge and technology outputs Q South East Asia, East Asia, and Oceania
Q Northern Africa and Western Asia
Q Latin America and the Caribbean
Q Central and Southern Asia
Q Sub-Saharan Africa
Q European Union
Creative outputs
THE GLOBAL INNOVATION INDEX 2017
0 20 40 60 80 100
Score
25 economies in this year’s GII. in the top 10 economies in both the Sub-Saharan Africa (25 economies)
Both the USA and Canada are high- Innovation Input Sub-Index (5th) For several editions, the GII has
income economies and rank in the and the Innovation Output Sub- noted that the Sub-Saharan Africa
top 10 economies in terms of GDP. Index (5th). Canada is 18th overall region performs relatively well
The USA ranks 4th overall this and is in the top 25 economies in the on innovation (see Box 5). Since
year, unchanged from 2016, and is Innovation Input Sub-Index (10th) 2012, Sub-Saharan Africa has had
and the Innovation Output Sub- more countries among the group of
Index (23rd), unchanged from last innovation achievers than any other
year. region. It will be important for Africa
Box 5: Sub-Saharan Africa: The innovation momentum in the most promising region continues
Since 2012 and to this day, the number of Business sophistication, efforts to improve measured by GDP per capita). Countries also
Sub-Saharan Africa countries in the group of Human capital and research as well as have the opportunity to be ‘pillar outperform-
innovation achievers has been the highest Infrastructure have also translated into higher ers’ if they outperform their peers on more
among all regions.¹ Strengths in the region regional scores in these pillars. Although than half of the seven GII pillars. Countries that
remain in areas considered crucial for the larger economies such as South Africa, meet both of these benchmarks are referred
expansion of innovation locally. Factors such Botswana, Namibia, and Kenya help foster to as ‘innovation outperformers’.
as improved business environments offer the the expansion in Infrastructure, others such as Although the number of countries fea-
necessary stimulus to maintain the positive Senegal, Mauritius, Rwanda, and Zimbabwe tured in the GII this year is similar to last
development seen in Sub-Saharan Africa over are helping to do so in Human capital and year’s, the number of countries identified
the past years. research. as innovation achievers is slightly higher.²
Boosted by economies such as Mauritius, This box showcases the regional innova- Figure 5.1 shows the performance of all 25
Botswana, South Africa, Namibia, Rwanda, tion performance of Sub-Saharan Africa coun- economies in Sub-Sahara Africa. This year
and Burkina Faso, this year Sub-Saharan Africa tries by considering both the overall GII scores over 50% of innovation achievers come from
has its highest scores in Institutions and and those of the seven individual GII pillars. Sub-Saharan Africa, allowing this region to
Market sophistication, where these countries Countries are termed ‘innovation achievers’ continue to lead in this metric. A total of
perform on par or better than some of their and said to outperform their peers if their nine economies—Kenya, Rwanda, Uganda,
peers in Europe and South East Asia, East Asia, GII scores are higher than expected based Mozambique, Malawi, Senegal, Madagascar,
and Oceania. In addition to developments in on their level of economic development (as Burundi, and the United Republic of Tanzania
47
42
37 Innovation achiever
ZAF Performing at level of development
MUS
32
GII score
12
14,762
THE GLOBAL INNOVATION INDEX 2017
Note: BDI = Burundi; BEN = Benin; BFA = Burkina Faso; BWA = Botswana; CIV = Côte d’Ivoire; CMR = Cameroon; ETH = Ethiopia; GIN = Guinea; KEN = Kenya; MDG = Madagascar; MLI = Mali; MOZ = Mozambique; MUS =
Mauritius; MWI = Malawi; NAM = Namibia; NER = Niger; NGA = Nigeria; RWA = Rwanda; SEN = Senegal; TGO = Togo; TZA = Tanzania, United Republic of; UGA = Uganda; ZAF = South Africa; ZMB = Zambia; ZWE = Zimbabwe.
Box 5: Sub-Saharan Africa: The innovation momentum in the most promising region continues (continued)
(Tanzania)—perform better than their level of more than half of the seven GII pillars and thus and Mozambique—are labelled innovation
development would predict (see Figure 5.1 are also labelled pillar outperformers.⁴ outperformers within the Sub-Saharan Africa
for details). The innovation achiever econo- Most of these innovation achiever region.⁶ Table 5.1 shows the full list of achiev-
mies are shown in red and located above the economies outperform in Institutions, ers and outperformers in this region.
upper-bound, farthest from the trend line. Infrastructure, and Market sophistication; they However, although the region’s relatively
A total of eight economies are identified as outperform this year also in Human capital strong performance in innovation signals
performing at development (yellow). In the and research and in Business sophistication, strengths, differences between the innova-
same way, the remaining eight are signalled but not as much as they could.⁵ Uganda tion levels of some of its economies still
as performing below development (blue).³ outperforms in all seven pillars, followed show large disparities. Because, since the big
Kenya, Mozambique, Malawi, Rwanda, by Kenya and Rwanda that do so in six. dip experienced in parts of the region last
Uganda, and Senegal stand out for being South Africa and Tanzania outperform in five; year, economies in Africa aim for economic
innovation achievers at least five times in the while Mauritius, Mozambique, and Niger only recovery in 2017 and in the years following,
past six years. Kenya, the chief innovation in four. Malawi outperforms in three, while and while commodity prices are recovering,
achiever in the region, has been credited Madagascar and Burundi do so in two and it will be important for other less-developed
as such every year since 2011—including in therefore are the only innovation achievers economies to keep improving their innova-
2017. With the exception of Malawi, these that are not pillar outperformers. tion performance to maintain the momen-
economies, along with Mauritius, South Africa, This year four of the innovation achievers tum of the region’s innovation efforts.
Tanzania, and Niger, outperform their peers in mentioned above—Kenya, Rwanda, Uganda,
Table 5.1: Sub-Saharan Africa: Innovation achievers, pillar outperformers, and innovation outperformers, 2011–17
Innovation
Economy Income group Years as an innovation achiever (total) Years as a pillar outperformer (total) outperformer
Kenya Lower-middle income 2017, 2016, 2015, 2014, 2013, 2012, 2011 (7) 2017, 2016, 2015, 2014, 2013, 2012, 2011 (7) Yes
Rwanda Low income 2017, 2016, 2015, 2014, 2012 (5) 2017, 2016, 2015, 2014, 2013, 2012, 2011 (7) Yes
Uganda Low income 2017, 2016, 2015, 2014, 2013 (5) 2017, 2016, 2015, 2014, 2013 (5) Yes
Mozambique Low income 2017, 2016, 2015, 2014, 2012 (5) 2017, 2016, 2015, 2014, 2013, 2012 (6) Yes
Malawi Low income 2017, 2016, 2015, 2014, 2012 (5) 2016, 2015, 2014, 2012, 2011 (5) No
Senegal Low income 2017, 2015, 2014, 2013, 2012 (5) 2017, 2015 (2) No
Madagascar Low income 2017, 2016 (2) 2012 (1) No
Burundi Low income 2017 (1) No
Tanzania, United Rep. Low income 2017 (1) 2017, 2014 (2) No
THE GLOBAL INNOVATION INDEX 2017
Note: World Bank Income Group Classification (July 2016): LI = low income; LM = lower-middle income; UM = upper-middle income; and HI = high income. This table includes GII 2017. Economies identified as an innovation
achiever and a pillar outperformer for two or more consecutive years, including 2016 and 2015, are also considered innovation outperformers.
Notes
Notes for this box appear at the end of the chapter.
36
1: The Global Innovation Index 2017
year, while Zimbabwe is added (see Innovation Input Sub-Index and Creative outputs, gains are seen in
Annex 2). Innovation Output Sub-Index, Intangible assets and Online creativ-
respectively, with a place in the top ity, primarily in ICTs and business
Latin America and the Caribbean (18 50 economies across five pillars: model creation, Wikipedia edits, and
economies) Institutions (41st), Infrastructure video uploads on YouTube. Although
Latin America and the Caribbean (47th), Market sophistication (50th), Business environment and Tertiary
includes only upper- and lower- Business sophistication (46th), and education still have room for improve-
middle-income economies, with Knowledge and technology outputs ment, Brazil is also relatively weak in
three exceptions: Chile, Uruguay, (49th). Its improvements in 2017 Credit and Knowledge impact. Some
and Trinidad and Tobago, which lie in Knowledge and technology indicators where the economy could
are all high-income economies. Still outputs, where it gains 10 positions, improve further include PISA results,
leading the region in the GII rank- and Human capital and research graduates in science and engineering,
ings for another year, Chile (46th) (61st), where it advances one spot. tertiary inbound mobility, gross capi-
loses two positions, and is followed In Knowledge and technology out- tal formation, JV-strategic alliance
by Costa Rica (53rd, down by eight) puts, major improvements are in deals, and growth rate of GDP per
and Mexico (58th, up by three). Knowledge diffusion (34th), with worker. Persistence will be needed
Following these countries, and better rankings in IP receipts and in a time of political and economic
ranking in the top half of the GII this FDI net outf lows, and in a number uncertainty to benefit from the
year, is Panama (63rd). The top 100 of individual indicators, including economic uptick as described at the
economies overall include Colombia PCT patent applications, scientific outset of the chapter.
(65th), Uruguay (67th), Brazil (69th), and technical articles, and growth
Peru (70th), Argentina (76th), rate of GDP per worker. In Human Central and Southern Asia (9 economies)
Dominican Republic (79th), Jamaica capital and research, Chile improves Economies of the Central and
(84th), Paraguay (85th), Trinidad and mainly in Education (65th), gaining Southern Asia region have seen fur-
Tobago (91st), Ecuador (92nd), and eight positions since last year and see- ther improvements in their rankings
Guatemala (98th). The remaining ing its ranking in every indicator in since 2016, with seven economies
economies in the region rank below this sub-pillar improve. Tertiary edu- improving their rankings and with
100 in the GII this year: El Salvador cation (55th) also gains one position, India moving into the top half of the
(103rd), Honduras (104th), and the as Chile becomes the 5th economy GII this year.
Plurinational State of Bolivia (106th). in the world in tertiary enrolment. India maintains its top place in
Although important regional Despite the improvements, Chile the region, moving up six spots—
potential exists, the GII rankings of still shows areas of weakness in pil- from 66th last year to 60th this year
countries in Latin America relative lar 2, Human capital and research, in overall. The Islamic Republic of Iran
to other regions have not steadily a total of four indicators including becomes 2nd in the region, mov-
improved. In recent years and in government expenditure in educa- ing from 78th to 75th and leaving
2017, no economies from this region tion (60th), pupil-teacher ratio (83rd), its 78th spot to Kazakhstan, which
are identified as innovation achievers tertiary inbound mobility (96th), and drops three positions from 2016. The
(see Box 4 in the 2015 edition of the global companies by R&D (43rd). remaining economies rank in order
GII). Brazil is ranked 69th in the GII within the region as follows: Sri Lanka
As previously mentioned, the 2017, the same position as last year. shows a one-position improvement
minimum data coverage threshold Brazil’s strongest pillar ranking is in this year (90th); this is followed by
rule was adjusted this year to retain Business sophistication (43rd), where Tajikistan (94th), Kyrgyzstan (95th),
only those economies with suffi- it sees one of its highest rankings in Nepal (109th), Pakistan (113th),
cient data coverage in the GII. As a IP payments (8th). Brazil’s biggest and Bangladesh (114th). Despite the
THE GLOBAL INNOVATION INDEX 2017
result, Nicaragua and the Bolivarian improvements are in Human capital improvements in data coverage in
Republic of Venezuela drop from the and research (50th, up by 10) and the region, Bhutan does not meet
GII 2017 (see Annex 2). Creative outputs (83rd, up by 7). In the 66% data coverage threshold (see
Chile ranks 46th in the GII this Human capital and research, Brazil Annex 2) and is thus excluded from
year, at the top spot in the region, improved its rank in all sub-pillars, in the 2017 GII.
but down two positions since 2016. particular in expenditure on educa- India remains 1st in the region
It is ranked 42nd and 53rd in the tion and QS university ranking. In and 6th among lower-middle-income
37
100
80
O India
O Upper-middle income
O Lower-middle income
60
GII 2017 score
40
20
0
Quality of High- & Research Graduates State Gross Global Growth ICT High-tech GERD Intellectual Patent
scientific medium-high talent in in science & of capital R&D rate of services exports performed property families
publications tech business engineering cluster formation companies PPP$ exports by receipts in 2+
manufactures enterprise development GDP/worker business offices
economies. India has also outper- year, including government’s online results, and tertiary inbound mobil-
formed on innovation relative to its services, e-participation, logistics ity Indian scores are lower than the
GDP per capita for many years in a performance, gross capital formation, average for lower-middle-income
row (see Figure 4). India ranks 60th high-tech imports, and industrial economies. The same is true for
overall in the GII this year, is also designs. Also worth mentioning is other Human capital and research
among the top 50 economies in two the six-position gain in global R&D indicators, including researchers and
pillars: Market sophistication (39th) companies, where India ranks 14th, tertiary enrolment, and for FDI net
and Knowledge and technology considerably better than the respec- inflows. On the output side, a number
outputs (38th). It improves its rank- tive groups of lower- and upper-mid- of indicators—such as scientific and
ings in five pillars: Institutions (up 4 dle-income economies on average. technical articles and trademarks by
spots), Infrastructure (up 14 spots), Other such areas in which India does origin—are lower than upper-mid-
Business sophistication (up 2 spots), far better than most middle-income dle-income economy averages. Other
Knowledge and technology outputs economies include graduates in sci- indicators on the output side that
(up 5 spots), and Creative outputs (up ence and engineering, gross capital show room for improvement include
9 spots). By contrast, Human capi- formation, state of cluster develop- indicators measuring new businesses
tal and research (64th) and Market ment, GERD performed by business, and industrial design filings.
sophistication lose one and six posi- research talent, and patent families in In the same way as other coun-
tions respectively. At the sub-pillar two or more offices on the input side; tries (on Viet Nam, see Box 6), India
level, India enjoys its largest gains in and quality of scientific publications, has worked intensively to improve its
areas such as Knowledge absorption, growth rate of GDP per worker, innovation performance, including
Knowledge impact, and Intangible high-tech and ICT services exports, by hosting innovation workshops
THE GLOBAL INNOVATION INDEX 2017
assets. Despite remaining a weak sub- high-tech manufactures, and IP and instituting important work in
pillar, India improves in Education, receipts on the output side (Figure 6). recent years with the use of the GII,
where it advances four positions India still has more potential. and by instituting a high-level Task
because of better relative government Business environment (121st) is an Force on Innovation to suggest ways
expenditure by pupil. area where the country can improve the country can improve its innova-
At the indicator level, India on most indicators. On the input side, tion eco-system.39 In this context,
improves in a number of areas this in environmental performance, PISA India has considerably improved its
38
1: The Global Innovation Index 2017
data coverage in the 2016 and 2017 East Asia, East Asia, and Oceania the GII, the Innovation Input Sub-
editions of the GII. Work is ongoing region are ranked within the top Index, and the Innovation Output
to overcome other data issues—for 100 in the GII. With the exception Sub-Index: Singapore (7th), Korea
example, issues with R&D-related also of Cambodia and of Brunei (11th), Japan (14th), Hong Kong
indicators, such as GERD performed Darussalam, which enters the GII (China) (16th), and New Zealand
by business data dating from 2011 (see this year thanks to improved data (21st). China ranks next (22nd),
India’s Country/Economy Profile for coverage, all other economies in the being the third most efficient econ-
missing or outdated variables). region are also in the top 100 in the omy in the world; Australia follows
Innovation Input Sub-Index, the (at 23rd).
South East Asia, East Asia, and Oceania (15 Innovation Output Sub-Index, and Malaysia moves down two
economies) the Innovation Efficiency Ratio. positions to 37th, due mostly to a
This year all economies but The top f ive economies in the 10-position drop in Institutions
Cambodia (101st) within the South region rank in the top 25 overall for (53rd), a drop driven by lower
Ten out of the 15 economies in the South Through this resolution, the Vietnamese areas of excellence are emerging, while oth-
East Asia, East Asia, and Oceania region are government has assigned responsibilities to ers are still works in progress. For example,
members of the Association of Southeast ministries, agencies, and local governments Viet Nam shows the best score of the group
Asian Nations (ASEAN).¹ These economies to undertake actions to improve Viet Nam’s in expenditure on education and is also
are Brunei Darussalam, Cambodia, Indonesia, performance, and the Ministry of Science and performing well in ICT use, gross capital
Lao People’s Democratic Republic, Malaysia, Technology (MOST) has been tasked with formation, and FDI net inflows; at the same
Myanmar, the Philippines, Singapore, coordinating these efforts. A MOST workshop time, it has some of the lowest scores in
Thailand, and Viet Nam. In 2015, intra-ASEAN in cooperation with the World Intellectual tertiary enrolment, state of cluster develop-
exports represented the 26% of exports by Property Organization (WIPO) was organized ment, university/industry research collabora-
ASEAN countries.² Electrical machinery and in Hanoi in March 2017 to address missing tion, and knowledge-intensive employment.
equipment is the single most exported com- and outdated data and to help leverage Viet Malaysia ranks second in the ASEAN group
modity within ASEAN.³ Nam’s innovation strengths and overcome in expenditure on education, state of cluster
Since the 1980s, Singapore—along with related weaknesses. development, university/industry research
Hong Kong (China), the Republic of Korea, In the broader ASEAN analysis, both dif- collaboration, and ICT use, but has low scores
and, to some extent, Malaysia—has been ferences and similarities in innovation perfor- in PISA scores in reading, maths, and science;
labelled one of the Asian Tigers. Singapore mance are evident across ASEAN economies. tertiary enrolment; and knowledge-intensive
has managed to sustain its high economic Figures 6.1 and 6.2 show the scores of these employment.
growth rate to become one of the richest economies in selected innovation input and Third, the distance between the top
economies in the world. Correspondingly, it output indicators. Three findings emerge performer and the other ASEAN economies
has ranked in the top 10 since the first edition from these figures. First, a certain stability in output indicators is much larger than the
of the GII. In comparison, the other ASEAN exists at the top of the ASEAN rankings. distance in inputs. It takes time for economies
members are less rich and advanced. Singapore has the highest scores among to create the conditions and accumulate
However, some of the ASEAN ASEAN members in all selected indicators, the capabilities required to convert a fertile
economies—in particular, Indonesia, the except for expenditure on education (topped innovation environment and solid innova-
Philippines, Thailand, and Viet Nam—are by Viet Nam), gross capital formation (topped tion inputs into tangible innovation outputs
now considered to be ‘new Asian Tigers’ on by Brunei Darussalam), ICT service exports and outcomes. Among ASEAN economies,
the rise. These economies participate more (topped by the Philippines), and trademarks Singapore is the top performer in the selected
and more in a number of regional and global by origin (topped by Thailand). Cambodia is innovation outputs, with two exceptions: ICT
value chains, including some in relatively relatively new in terms of economic catch- services exports, where the Philippines leads;
high-tech sectors. These countries have also up. Although improving, it lags behind in and trademarks by origin, where Viet Nam
THE GLOBAL INNOVATION INDEX 2017
become active in improving their innova- most of the input indicators selected here, presents the highest score in the group.
tion performance, sometimes in showcasing although it is second in FDI net inflows Malaysia has the second highest scores in
best practice use of the GII findings, paired among ASEAN economies, foreshadowing patents by origin, scientific and technical
with remarkable innovation results. In 2017, welcome development ahead. articles, and ICT services exports. Thailand’s
for example, the Vietnamese government Second, each economy is making an strengths are in citable documents and
mandated Resolution 19-2017/NQ-CP.⁴ effort to build its innovation system: in each, trademarks by origin, where it places 2nd.
100
80
60
GII 2017 score
40
20
0
Expenditure Tertiary State University/industry ICT use Gross capital Foreign direct Knowledge-intensive
on education enrolment of cluster research collaboration formation investment employment
development net inflows
50
40
30
GII 2017 score
20
10
0
Patents by origin Quality of scientific publications Scientific and ICT services export Trademark application
technical publications class count by origin
Notes
1 Among other objectives, ASEAN aims to acceler- 2 Data from ASEANstats, available at http://asean. 4 For more information, see Viet Nam’s Ministry
ate economic growth and socioeconomic devel- org/storage/2016/11/Table18_as-of-6-dec-2016. of Planning and Investment website at
opment, promoting active collaboration and pdf. http://www.mpi.gov.vn/en/Pages/tinbai.
mutual assistance on matters of common inter- aspx?idTin=35994&idcm=121.
3 Data from ASEANstats, available at http://asean.
est, including trade. Details are available at http://
org/storage/2016/11/Table23_as-of-6-dec-2016.
asean.org/asean/about-asean/overview/.
pdf.
40
1: The Global Innovation Index 2017
rankings in Business environment output indicators, including inten- Israel is the only economy in the
(50th, down by 22) and a 19- sity of local competition, GERD region to rank in the top 10 for any
position fall in Business sophistica- financed by business, patent families pillar (5th, Business sophistication,
tion (48th)—driven mainly by its in two or more off ices, patents by up one spot; and 9th, Knowledge
rank in Knowledge workers, where origin, and PCT patent applications. and technology outputs, up three).
Malaysia moved from 35th to 93rd Opportunities for further improve- The country ranks 20th and 14th
this year (see also Box 6). The lat- ment still exist, including in ease of in the Innovation Input Sub-Index
ter move is affected by the use of getting credit, growth rate of GDP and Innovation Output Sub-Index,
two more recent data points for per worker, new businesses, and cul- respectively, seeing the most gains
firms offering formal training (from tural and creative services exports. in Tertiary education (62nd, up 11
25th to 79th) and GERD financed spots), Knowledge absorption (9th,
by business (from 11th to 75th). Northern Africa and Western Asia (19 up 7 spots), and Knowledge diffu-
Malaysia is also among the middle- economies) sion (8th, up 6 spots). Israel keeps
income economies that are the clos- Israel (17th) and Cyprus (30th) its 1st place in researchers, venture
est to the top 25 this year (see Box 4 achieve the top two spots in the capital deals, GERD performed
on the innovation divide). region for the fifth consecutive year, by business, and research talent in
Viet Nam, by contrast, gains 12 improving by four and one positions, business enterprise. It also gains top
positions this year, ranking 47th. respectively. Third in the region is 3 positions in gross expenditure
Viet Nam maintains its top place the United Arab Emirates (35th) on R&D (1st), university/industry
among lower-middle-income econ- which moves up six places from research collaboration (3rd), ICT
omies and enters the world’s top 10 last year, the most striking upward services export (1st), and Wikipedia
in the Innovation Efficiency Ratio move in the region. In the case of edits (3rd). Weaknesses for Israel are
(see Box 6). Thailand (51st) and the United Arab Emirates, data col- found in the input side of the GII
Mongolia (52nd) follow Viet Nam, laboration has also increased data and are more prominent in variables
ranking in the top half of the GII availability, reducing missing values such as gross fixed capital formation.
this year as well. Brunei Darussalam, from 17 last year to 11 this year. On the output side, two areas show
the Philippines, and Indonesia rank Important data points, however, are possibilities for improvement: the
71st, 73rd, and 87th, respectively. still missing, making it difficult to growth rate of GDP per worker and
Cambodia closes the rankings for evaluate certain pillars, most nota- trademarks by origin.
the region, coming in at 101st. bly in Education, where three out of
Japan has risen in the GII rank- five variables are not available, and Europe (39 economies)
ings each year for the last four years, Knowledge workers, with two out In this year’s edition of the GII,
moving up to 14th in 2017. Japan of five indicators missing. 15 of the top 25 economies come
ranks 11th overall in the Innovation Sixteen of the 19 economies in from Europe. This region is home
Input Sub-Index and 20th overall in the Northern Africa and Western to the top 3 economies of the GII
the Innovation Output Sub-Index, Asia region are in the top 100, 2017: Switzerland (1st), Sweden
up by four positions since 2016. including Turkey (43rd), Qatar (2nd), and the Netherlands (3rd).
This year Japan improves its rank in (49th), Saudi Arabia (55th), Kuwait Following these regional leaders
Institutions (13th) and Knowledge (56th), Armenia (59th), Bahrain among this group of top 25 are the
and technology outputs (12th), (66th), Georgia (68th), Morocco UK (5th), Denmark (6th), Finland
where it advances in all sub-pillars. (72nd), Tunisia (74th), Oman (77th), (8th), Germany (9th), Ireland (10th),
Japan ranks in the top 10 economies Lebanon (81st), Azerbaijan (82nd), Luxembourg (12th), Iceland (13th),
for six sub-pillars: Research and and Jordan (83rd). Of all the econo- France (15th), Norway (19th),
development (3rd), Information and mies in the region, Kuwait sees the Austria (20th), the Czech Republic
THE GLOBAL INNOVATION INDEX 2017
communication technologies (5th), most improvement in its overall GII (24th), and Estonia (25th). It should
Trade, competition, and market ranking, having moved up 11 spots. be noted that most of the economies
scale (3rd), Knowledge absorption Israel moves up four places, in this region have the fewest miss-
(8th), Knowledge creation (9th), and from 21st to 17th in 2017, remain- ing values, leading them to display
Knowledge diffusion (10th). Japan ing number 1 in the Northern the most accurate GII rankings (see
ranks 1st in a number of input and Africa and Western Asia region. Annex 2). This includes the following
41
Table 7: Top cluster of countries or cross-border regions within the top 100 addressing this challenge will require
a mix of technological and non-tech-
Rank Cluster name Territory(ies)
nological solutions: organizational
1 Tokyo–Yokohama Japan
changes, public and private invest-
2 Shenzhen–Hong Kong (China) China/Hong Kong (China)
ment in R&D, and more effective
3 San Jose–San Francisco, CA United States
technology transfer mechanisms are
4 Seoul Korea, Rep.
all important elements of agri-food
10 Paris France
innovation systems.
12 Frankfurt–Mannheim Germany
Historically, innovation in agri-
18 Eindhoven Netherlands/Belgium
culture has proven not only feasible
21 London United Kingdom
but highly successful. Today, a new
22 Tel Aviv Israel
innovation drive is required among
24 Stockholm Sweden high-, middle-, and low-income
31 Zurich Switzerland/Germany economies. In high- and middle-
34 Helsinki–Espoo Finland income economies, a new innovation
35 Singapore Singapore wave is on the horizon: innovations
36 Basel Switzerland/France/Germany from other sectors are spilling over
39 Copenhagen Denmark to agricultural and food systems,
43 Bengaluru India making them smart and digital. In
44 Sydney Australia low-income economies, the focus
45 Rotterdam–The Hague Netherlands is on reducing the bottlenecks of
47 Montreal, QC Canada agri-food innovation systems, while
52 Barcelona Spain speeding up innovation convergence
54 Brussels–Leuven Belgium with more productive economies. In
57 Moscow Russian Federation all economies, public policy is fun-
58 Milan Italy damental to promoting an enabling
65 Lausanne Switzerland/France environment that encourages tech-
71 Vienna Austria nology uptake, entrepreneurship and
82 Aachen Germany/Netherlands/Belgium skills, and innovation. The remaining
92 Kuala Lumpur Malaysia chapters of the report provide more
Source: Derived from Annex 2 of the Special Section on Clusters.
details on this year’s theme from aca-
demic, business, and particular coun-
try perspectives from leading experts
and decision makers.
This chapter has also presented
authors identify the largest inventive important component of the GII the main GII 2017 results, distill-
clusters as measured by PCT patent- and other innovation measurement ing main messages and noting some
ing activity, possibly up to the street efforts. important evolutions that have taken
level thanks to advanced mapping place since last year. Three main
techniques. Table 7 presents some of findings stand out. First—and in a
the leading innovation clusters that Conclusions turn of events—a novel and more
result from this analysis. The theme for this year’s GII is sustained growth momentum is cur-
In the coming years, attempts ‘Innovation Feeding the World’. This rently in place. Second, more rapid
to foster data on local innovation chapter has provided an overview of economic growth can lay the founda-
THE GLOBAL INNOVATION INDEX 2017
clusters should receive increased the current trends, strategies, and tion for innovation-driven economic
attention, and consideration of clus- policies for innovation in agriculture development, but more investment
ters may possibly become a more and food systems. Within agri-food would be needed to boost productiv-
systems, innovation needs to be a ity growth, which is still at historic
priority to achieve sustainable pro- lows. To this end, R&D efforts from
ductivity growth and address the both the public and private sector
global food challenge. Successfully would also need to be intensified.
43
their innovation performance, and 2015). 13 Cornell et al., 2016; WIPO, 2015, 2017
new innovation actors from vari- (forthcoming). On slowing technology
4 In addition to these 9 Sub-Saharan Africa diffusion see also Andrews et al., 2015; Decker
ous regions are climbing in the GII countries, 26 countries (35 total) were et al., 2016; Haltiwanger, 2011; Haltiwanger et
identified as pillar outperformers this year. al., 2014; OECD, 2015.
rankings. These come from Europe (9); South East Asia,
Over the last years, the GII has East Asia, and Oceania (6); Latin America 14 See Lee, 2016, for the case of Korea, for
and the Caribbean (5); Northern Africa and instance.
established itself as a leading refer- Western Asia (4); and Central and Southern
ence on innovation, becoming a Asia (2). 15 IMF, 2017; UNCTAD, 2017; WTO, 2017.
The productivity forecast draws on The
‘tool for action’ for decision makers 5 This can be partially attributed to the higher Conference Board, Total Economy Database
wishing to improve their countries’ overall average scores in both of these (adjusted version), May 2017 release, available
indicators displayed by the region, which at http://www.conference-board.org/data/
innovation performance. Numerous makes it harder for individual countries to economydatabase/.
workshops in different countries have perform above that level.
16 OECD, 2009, 2017a.
brought innovation actors together, 6 For a country to be labelled an ‘innovation
outperformer’ it has to be identified as an 17 IMF, 2016.
helped improve data availability, and
‘innovation achiever’ and it must also score 18 These estimates are based on preliminary
contributed to designing effective above its income group average in four calculations using GDP, GERD, and BERD
innovation policies. These exchanges or more GII pillars for two or more years, figures at constant $PPP 2005 prices from
including the two most recent—2015 the UNESCO-UIS Science & Technology Data
on the ground also generate feedback and 2016. In 2017, 10 economies were Center, updated March 2017. Economies
that, in turn, improves the GII and identified as innovation outperformers. The included: Afghanistan, Albania, Algeria,
other countries identified as innovation
assists the journey towards improved outperformers this year are Viet Nam, the
Angola, Antigua and Barbuda, Argentina,
Armenia, Australia, Austria, Azerbaijan,
innovation measurement and policy. Republic of Moldova, India, Armenia, Ukraine, Bahamas, Bahrain, Bangladesh, Barbados,
This valuable feedback will continue and Tajikistan. See Escalona Reynoso et al. Belarus, Belgium, Belize, Benin, Bermuda,
(2015) for more details. Bhutan, Bolivia (Plurinational State of),
to be integrated into future iterations Bosnia and Herzegovina, Botswana, Brazil,
of this lead chapter of the GII in the Brunei Darussalam, Bulgaria, Burkina Faso,
years to come. Burundi, Cabo Verde, Cambodia, Cameroon,
Notes for Chapter 1 Canada, Central African Republic, Chad,
Chile, China, China (Hong Kong Special
1 Conference Board, 2017; IMF, 2017; OECD, Administrative Region), China (Macao Special
2017a. According to the World Bank (2017), Administrative Region), Colombia, Comoros,
Notes for Box 5 the world economy will grow at 2.7% in 2017, Congo, Costa Rica, Croatia, Cuba, Cyprus,
1 In 2011 most innovation achievers were up by 0.4% from 2016, with a downward Czech Republic, Côte d’Ivoire, Democratic
located in the South East Asia, East Asia, and revision of 0.1% from June 2016. For 2018, Republic of the Congo, Denmark, Djibouti,
Oceania region. In 2012 and 2013 Europe and the OECD (2017a) and IMF (2017) forecast a Dominica, Dominican Republic, Ecuador,
Sub-Saharan Africa shared the same number growth rate of 3.6% without recent revisions. Egypt, El Salvador, Equatorial Guinea, Eritrea,
of innovation achievers: six and four in each The World Bank (2017) predicted global Estonia, Ethiopia, Fiji, Finland, France, Gabon,
year, respectively. GDP growth at 2.9%, and recently revised it Gambia, Georgia, Germany, Ghana, Greece,
downward by 0.1%. Grenada, Guatemala, Guinea, Guinea-Bissau,
2 This can be partially attributed to Guyana, Haiti, Honduras, Hungary, Iceland,
improvements to data coverage. A stricter 2 IMF, 2017.
India, Indonesia, Iran (Islamic Republic of),
cut-off rule that increases the minimum 3 IMF, 2017; OECD, 2017a; World Bank, 2017. Iraq, Ireland, Israel, Italy, Jamaica, Japan,
required threshold for all countries in the Jordan, Kazakhstan, Kenya, Kiribati, Kuwait,
GII to at least 66% of all indicators in each 4 IMF, 2017, with Russian GDP growth recently Kyrgyzstan, Lao People’s Democratic
of the sub-indices was introduced this year revised upwards. Republic, Latvia, Lebanon, Lesotho, Liberia,
(see Appendix IV: Technical Notes for more Libya, Lithuania, Luxembourg, Madagascar,
details). This procedure translates into more 5 World Bank, 2017.
Malawi, Malaysia, Maldives, Mali, Malta,
precise measurements of the innovation 6 Adler et al., 2017; OECD, 2017a; WIPO, 2015; Marshall Islands, Mauritania, Mauritius,
performance of each country and thus into World Bank, 2017. Mexico, Micronesia (Federated States
a better identification of those that can of), Mongolia, Montenegro, Morocco,
be identified as innovation achievers. As a 7 World Bank, 2017. Mozambique, Namibia, Nepal, Netherlands,
result of this improvement, however, two New Zealand, Nicaragua, Niger, Nigeria,
8 Adler et al., 2017; Cornell et al., 2016.
THE GLOBAL INNOVATION INDEX 2017
economies from this region identified as Norway, Oman, Pakistan, Palau, Palestine,
innovation achievers in previous years are no Estimates indicate that worldwide
productivity growth slowed down in 2015 Panama, Papua New Guinea, Paraguay,
longer in the GII ranks: Gambia (2014) and Peru, Philippines, Poland, Portugal, Puerto
Ghana (2011). and remained at the same modest rate of
1.5% in 2016 (Conference Board, 2016, 2017). Rico, Qatar, Republic of Korea, Republic
of Moldova, Romania, Russian Federation,
9 The Conference Board, Total Economy Rwanda, Saint Kitts and Nevis, Saint Lucia,
Database (adjusted version), May 2017 Saint Vincent and the Grenadines, Samoa, Sao
release, available at http://www.conference- Tome and Principe, Saudi Arabia, Senegal,
board.org/data/economydatabase/. Serbia, Seychelles, Sierra Leone, Singapore,
Slovakia, Slovenia, Solomon Islands, South
Africa, Spain, Sri Lanka, Sudan, Suriname,
44
1: The Global Innovation Index 2017
Swaziland, Sweden, Switzerland, Taiwan 34 On informal actors, see Kraemer-Mbula and Cornell University, INSEAD, and WIPO. 2015.
(China), Tajikistan, Thailand, The Former Wunsch-Vincent, 2016. The Global Innovation Index 2015: Effective
Yugoslav Republic of Macedonia, Timor-Leste, Innovation Policies for Development, eds. S.
Togo, Tonga, Trinidad and Tobago, Tunisia, 35 Economies are grouped according to the Dutta, B. Lanvin, and S. Wunsch-Vincent.
Turkey, Turkmenistan, Tuvalu, Uganda, World Bank classification (July 2016) gross Ithaca, Fontainebleau, and Geneva: Cornell,
Ukraine, United Arab Emirates, United national income (GNI) per capita, calculated INSEAD, and WIPO.
Kingdom of Great Britain and Northern using the World Bank Atlas method. The
Ireland, United Republic of Tanzania, United groups are: low income, US$1,025 or ———. 2016. The Global Innovation Index 2016:
States of America, Uruguay, Uzbekistan, less; lower-middle income, US$1,026 to Winning with Global Innovation, eds. S. Dutta,
Vanuatu, Venezuela (Bolivarian Republic of), US$4,035; upper-middle income, US$4,036 to B. Lanvin, and S. Wunsch-Vincent. Ithaca,
Viet Nam, Yemen, Zambia, Zimbabwe. US$12,475; and high income, US$12,476 or Fontainebleau, and Geneva: Cornell, INSEAD,
more. and WIPO.
19 The top three spenders relative to GDP are
Israel, Korea, and Japan, with Israel overtaking 36 Since 2012, the regional groups have been Decker, R., J. Haltiwanger, R.S. Jarmin, and J. Miranda.
Korea in 2015. Based on our estimates, China based on the United Nations Classification: 2016. ‘Where Has All the Skewness Gone?
is the only emerging economy with R&D EUR = Europe; NAC = Northern America; LCN The Decline in High-Growth (Young) Firms
intensity above the global average. Other = Latin America and the Caribbean; CSA = in the U.S.’, European Economic Review 86
middle-income economies, such as Malaysia, Central and Southern Asia; SEAO = South (July): 4-23.
Brazil, India, and South Africa, present lower East Asia, East Asia, and Oceania; NAWA =
Northern Africa and Western Asia; and SSF = Dutta, S., D. Benavente, B. Lanvin, and S. Wunsch-
R&D intensities, between 1.3% and 0.7%. Vincent. 2013. ‘The Global Innovation Index
Sub-Saharan Africa.
20 Cornell et al., 2016; OECD, 2017b. 2013: Local Dynamics Keep Innovation Strong
37 To address their inherent volatility (see in the Face of Crisis’. In The Global Innovation
21 Despite these aggregate figures, some previous GII editions) and thus reduce the Index 2013: The Local Dynamics of Innovation,
surveys indicate that top world R&D swings in the ranking induced by FDI flows, eds. S. Dutta and B. Lanvin. Ithaca and
companies raised their R&D expenditures in this year the GII takes 3-year averages of FDI Fontainebleau: Cornell, INSEAD. 3-67.
2015 and 2016 (European Commission, 2016; net inflows and outflows (see Annex 2).
Strategy&, 2016). Dutta, S., R. Escalona Reynoso, A. Bernard, B. Lanvin,
38 Note that any assessment of how the UK’s and S. Wunsch-Vincent. 2015. ‘The Global
22 WIPO, 2016. At the same time, worldwide planned withdrawal from the European Innovation Index 2015: Effective Innovation
patent applications under WIPO’s Patent Union affected the country’s GII rank would Policies for Development’. In The Global
Cooperation Treaty (PCT) saw a 1.4% increase be speculative, at best. First, most of the data Innovation Index 2015: Effective Innovation
in 2015; a significant fall in growth compared predate the actual related referendum. As is Policies for Development, eds. S. Dutta, B.
with previous years (WIPO, 2016). the case with other high-income countries, Lanvin, and S. Wunsch-Vincent. Geneva,
37% of the UK’s indicators are from 2016; Ithaca, and Fontainebleau: Cornell, INSEAD,
23 OECD, 2009, 2017b; WIPO, 2015. the remaining 63% reflect 2015 and earlier and WIPO. 3–63.
24 A recent IMF analysis shows that, if advanced years. Second, the causal relations between
plans or the actual withdrawal from the EU Escalona Reynoso, R., A. L. Bernard, M. Saisana, M.
economies increased private R&D by 40% on Schaaper, F. Guadagno, and S. Wunsch-
average, they could increase their GDP by 5% and the 2016 GII indicators are complex and
uncertain in size and direction. Vincent. 2015. ‘Benchmarking Innovation
in the long term (IMF, 2016). Performance at the Global and Country
25 FAO, 2016. 39 See the Preface to this report by the Levels’. In The Global Innovation Index 2015:
Confederation of Indian Industry. Effective Innovation Policies for Development,
26 FAO et al., 2015. eds. S. Dutta, B. Lanvin, and S. Wunsch-
40 Government of India, Press Information Vincent. Geneva, Ithaca, and Fontainebleau:
27 FAO et al., 2015. Bureau, 2017. Cornell, INSEAD, and WIPO. 65–80.
28 Malnutrition manifests itself in various forms 41 See also Dutta et al., 2013; Hollanders, 2013; European Commission. 2016. ‘The 2016 EU Industrial
beyond undernutrition, such as micronutrient Primi, 2013. R&D Investment Scoreboard’. Authors Héctor
malnutrition, obesity, calorie deficiencies, Hernández, Alexander Tübke, Fernando
anemia, or diabetes (IFPRI, 2016). See also Hervás, Antonio Vezzani, Mafini Dosso, Sara
Chapter 6. Amoroso, and Nicola Grassano. Seville, Spain:
29 Pingali, 2012. References and sources European Commission, Joint Research Centre.
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THE GLOBAL INNOVATION INDEX 2017
Conference Board. 2016. Global Economic Outlook Development, and World Food Programme).
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45
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