Released this week, the annual Global Innovation Index evaluates a range of factors to rank more than 100 countries on their innovative capacity, with the design of helping countries foster conditions for long-term output growth, job growth and productivity. Each country’s regulatory environment, the quality of its universities, its IP infrastructure and the ease of starting a business are all among the factors carefully weighed by the WIPO each year when compiling the list. ‘In this current economic climate, uncovering new sources of growth and leveraging the opportunities raised by global innovation are priorities for all stakeholders,’ commented WIPO Director-General Francis Gurry. While research and development (R&D) expenditure grew at an average of 7 per cent per year in the lead-up to the global financial crisis, data used for the 2016 GII concluded that R&D investment grew just 4 per cent in 2014.  

Europe dominates

For the sixth consecutive year, Switzerland has retained its title as the most innovative economy in the world, followed by Sweden, the United Kingdom, the United States of America and Finland in the coveted Top 5. Only one Asian economy – Singapore – made it into this year’s Top 10, with Republic of Korea, Hong Kong and Japan gaining a mention further down at 11^th, 14^th and 16^th place respectively. Meanwhile, European countries nabbed 15 of the Index’s Top 25 spots, with Finland, Ireland, Denmark, the Netherlands and Germany all also making the Top 10.

China makes the cut

Most notable on this year’s list however is the inclusion of China, which has ascended from 29^th to 25^th place since the publication of the 2015 Index. Not only is the ranking a record high for the world’s second largest economy, it also marks the first time that a middle-income country has made it onto the upper echelons of a list historically dominated by highly developed economies. ‘That of course is in keeping with what we have seen in China in recent years, including the current enormous emphasis on innovation and the transition of the Chinese economy from ‘Made in China’ to ‘Created in China’, said Mr Gurry. He added that there was no reason to believe that China won’t keep moving up the Index over the next few years, noting that China’s improvement had been ‘consistent’ across a variety of variables.

Sources: International Business Times; WIPO