PowerPoint Presentation 3 by region All regions with at least one economy in the upper half (
Transcript of PowerPoint Presentation 3 by region All regions with at least one economy in the upper half (
Fourth edition Five Knowledge Partners
The GII is a collaborative effort
Eight month consultative approach
Advisory Board of nine international experts
Statistical Audit by the Joint Research Centre of the European Commission, which developed, jointly with the OECD, the Handbook on constructing composite indicators (2008)
Five analytical chapters provided by Knowledge Partners
‘An innovation is the implementation of a new or significantly improved product (good or service), process, or method in
business practices, workplace organization, or external relations.’ (Oslo Manual, 2005)
125 economy profiles
80 data tables with indicators from public and private sources (59 hard statistics, 15 composite indicators, 6 survey questions)
Transparent and fully replicable computation methodology
Regional overviews, and performances within income group (World Bank classifications)
Global coverage
Broad scope
Effort to capture innovation in emerging markets
Innovation indicators
Traditional indicators …
• Education expenditure• Tertiary enrolment• Gross expenditure on R&D• Scientific and technical journal
articles• Domestic credit to private sector• National office and PCT patent
applications• Scaling by population
complemented by novel metrics
• School life expectancy• Tertiary inbound/outbound
mobility• R&D financed by abroad/business• Venture capital, joint venture,
strategic alliance deals• Microfinance gross loan portfolio• PCT patent filings with at least
one foreign inventor• Scaling by GDP in PPP$
INPUTRoyalty and license fees’ payments
Foreign Direct Investment net inflowsComputer & comm. service imports
High-tech imports
OUTPUT… receipts… outflows… exports… exports
Knowledge absorption v. knowledge diffusion‘Innovations: new to the world, new to a sector, new to a firm’
Most studies agree that the commercial introduction of innovations developed elsewhere constitutes an innovation.
Top 10 GII 2011 Sweden tops the Output Sub-Index, only
economy in the top 10 on all 4 indices Singapore tops the Input Sub-Index China only emerging economy in the top 30 Among lower-middle-income economies, China
tops the three indices Input (43), Output (14) and GII (29)
Among upper-middle income economies, Malaysia tops the ranking on GII (31) and Input (27), Brazil on Output (32)
Among low-income economies: Ghana leads on GII (70) and Input (65), Bangladesh on Output (65)
1. Switzerland
2. Sweden
3. Singapore
4. Hong Kong (SAR), China
5. Finland
6. Denmark
7. United States
8. Canada
9. Netherlands
10. United Kingdom
Top 3 by region All regions with at least one economy in the
upper half (<63) Although less developed, East Asia and the
Pacific (EAS) at par with Europe and Central Asia (ECS)
Europe led by Nordic and EU15 economies, EU12 economies doing better than Mediterranean economies
Best scores on Institutions (mean > 50/100) and Market sophistication (mean > 30/100)
US (7), Canada (8)
Switzerland (1), Sweden (2), Finland (5)
Singapore (3), Hong Kong, (SAR, China, 4), New Zealand (15)
Israel (14), Qatar (26), United Arab Emirates (34)
Chile (38), Costa Rica (45), Brazil (47)
India (62), Sri Lanka (82), Bangladesh (97)
Mauritius (53), South Africa (59), Ghana (70)
Top 3 by incomeHI High-income
Switzerland (1)Sweden (2)Singapore (3)
UM Upper-middle-incomeMalaysia (31)Chile (38)Lithuania (40)
LM Lower-middle-incomeChina (29)Moldova (39)Jordan (41)
LI Low-incomeGhana (70)Kyrgyzstan (85)Kenya (89)
High-income economies ahead in the rankings Some lower-middle income economies are highly
efficient Low-income economies are catching-up on their
enabling environments
1. Innovation leaders are found outside OECD countries2. All regions show potential as hubs of innovation,
companies and organizations need to look at global networks
3. Biggest progress in Institutions and Market sophistication
Key result 1Innovation has become global
1. China is the only developing economy in the top 30 (ranked 29th)
2. East Asia and the Pacific (EAS) and the Middle East and North Africa (MEA) have similar income structures, the former prevails in the rankings, at par with Europe and Central Asia (ECS)
3. Latin America and Caribbean economies show average performance in the rankings, South Asia and Sub-Saharan Africa with some challenges to take-off
Key result 2Some emerging economies stand out
1. Top 10 of the Efficiency Index top10 includes six densely populated economies: Nigeria, China, Pakistan, Brazil, India and Bangladesh
2. Those with challenges in converting their enabling capabilities into results: Malaysia, Chile, Lithuania and South Africa (top 40 on Input, lower on Output)
3. South Asian economies highly efficient (Bangladesh, India, Pakistan, Sri Lanka): Input Sub-Index ranks within 87th and 123rd, Output Sub-Index ranks within 44th and 69th
Key result 3Innovation efficiency matters
1. Many different roles for different actors: action and cooperation
2. Governments must adopt policies friendlier towards technological catch-up and the absorption of knowledge
3. Relevance of venture capital , joint ventures, strategic alliances, dynamic stock markets, increased employment in knowledge-intensive services, etc.
Key result 4Need for multi-stakeholder action
1. This is not the 'ultimate ranking' but part of a journey to better understand, measure and facilitate innovation
2. Some linkages are confirmed in the data: deficits in the Human capital and research pillar lead to mediocre performances on Scientific outputs
3. But need for better statistics, with greater economy-coverage1. Prominence of trade-related variables over output variables2. Importance of count variables over value variables3. Weakness of creative output pillar due to lack of statistics4. Challenges in comparisons year to year
Key result 5Challenges in measuring innovation
Back Up Slides
Switzerland (1, HI): Strengths and weaknesses
Trademark registrations filed through the Madrid System
1 Strength of investor protection 119
Total value of stocks traded 1 Ecological footprint and biocapacity
105
Press freedom 1 Creative services exports 97Applied tariff rate 1 Gross capital formation 76Computer software spending 1 Time to start a business 75Patent applications filed through the PCT
1 Growth rate of GDP per person engaged
69
Scientific and technical journal articles
2 Imports of goods and services 58
University/industry collaboration on R&D
2 Online participation 56
Quality of research institutions 2 Tertiary outbound mobility 49Employment in knowledge-intensive services
3 GERD financed by abroad 48
Singapore (3, HI): Strengths and weaknesses
Joint ventures / strategic alliances deals
1 Ecological footprint and biocapacity
115
Rigidity of employment 1 Share of renewables in energy use
109
Employment in knowledge-intensive services
1 Growth rate of GDP per person engaged
106
Government effectiveness 1 Press freedom 98State of cluster development 1 Expenditure on education 95Imports of goods and services 1 Creative services exports 79Royalty and license fees payments
1 Trademark registrations filed at the national office
79
Regulatory quality 1 Depth of credit information 66High-tech exports 1 Pupil-teacher ratio 65Exports of goods and services 1 Creative goods exports 54
China (29, LM): Strengths and weaknesses
Patent applications filed at the national office
1 Press freedom 122
Assessment in reading , maths, science (Shangai)
1 Total tax rate 115
Total value of stocks traded 1 Expenditure on education 115Utility model applications filed at the national office
1 Imports of goods and services
112
Firms offering formal training 1 Time to start a business 104Gross capital formation 2 Employment in knowledge-
intensive services 95
High-tech exports 3 School life expectancy 87Growth rate of GDP per person engaged
3 Exports of goods and services
87
High-tech imports 4 Tertiary outbound mobility 85Creative goods exports 4 Regulatory quality 83
Malaysia (31, UM): Strengths and weaknessesGERD performed by business enterprise
1 Gross capital formation 114
Depth of credit information 1 Foreign direct investment net inflows
106
High-tech imports 1 Press freedom 103GERD financed by business enterprise
1 Ecological footprint and biocapacity
91
Legal rights strength to get credit 1 Cost to start a business 83Tertiary graduates in engineering 2 Share of renewables in energy
use82
High-tech exports 2 GDP per unit of energy use 81Strength of investor protection 4 Scientific and technical journal
articles79
Exports of goods and services 6 Public expenditure on education per pupil
78
Joint ventures / strategic alliances deals
8 GERD financed by abroad 73
Brazil (47, UM): Strengths and weaknesses
Creative services exports 1 Imports of goods and services 125Ecological footprint and biocapacity
7 Time to start a business 123
Firms offering formal training 13 Exports of goods and services 122Computer and communications service exports
15 Total tax rate 120
Computer and communications service imports
16 Foreign direct investment net outflows
117
High-tech imports 19 Tertiary outbound mobility 117Trademark registrations filed at the national office
23 Rigidity of employment 106
Market capitalization 23 Gross capital formation 105ICT and business model creation
23 Gross tertiary outbound enrolment
103
Share of renewables in energy use
24 Legal rights strength to get credit
97
India (62, LM): Strengths and weaknesses
Computer and communications service exports
4 Pupil-teacher ratio 115
Creative goods exports 9 Total tax rate 114Gross capital formation 9 Cost to start a business 111Total value of stocks traded 13 ICT use 109Market capitalization 19 Political stability 108Legal rights strength to get credit
19 ICT access 108
Growth rate of GDP per person engaged
21 Exports of goods and services 107
Daily newspapers circulation 22 Tertiary outbound mobility 106Intensity of local competition 27 Imports of goods and services 105Creative services exports 29 School life expectancy 103
Ghana (70, LI): Strengths and weaknessesShare of renewables in energy use 10 Applied tariff rate 111
Legal rights strength to get credit 19 Creative goods exports 110
Foreign direct investment net inflows 20 Governments online service 109
Growth rate of GDP per person engaged 23 ICT use 106
Press freedom 25 Electricity consumption 103Tertiary graduates in science 31 Electricity output 102Strength of investor protection 34 School life expectancy 101Public expenditure on education per pupil 34 ICT access 101
Joint ventures / strategic alliances deals 35 Tertiary school enrolment 100
Microfinance institutions gross loan portfolio 38 Domestic credit to private
sector 95