INSEAD's Global Innovation Index 2012: Switzerland retains first-place position in innovation

For the second year running, Switzerland, Sweden, and Singapore lead in overall innovation performance according to the Global Innovation Index 2012 (GII), published by INSEAD and the World Intellectual Property Organization (WIPO).

The report ranks 141 countries/economies on the basis of their innovation capabilities and results. It benefits from the experience of Knowledge Partners Alcatel-Lucent, Booz & Company, and the Confederation of Indian Industry (CII), as well as an Advisory Board of eleven international experts.

The yearly index is published by INSEAD eLab, a research centre at the leading international business school, and the World Intellectual Property Organization (WIPO), a specialized agency of the United Nations. 

The study shows that the dynamics of innovation continue to be affected by the emergence of new successful innovators, as seen by the range of countries across continents in the top twenty GII ranking, as well as the good performances of emerging countries such as Latvia, Malaysia, China, Montenegro, Serbia, Republic of Moldova, Jordan, Ukraine, India, Mongolia, Armenia, Georgia, Namibia, Viet Nam, Swaziland, Paraguay, Ghana, Senegal; and low-income countries Kenya and Zimbabwe.

“The GII is a timely reminder that policies to promote innovation are critical to the debate on spurring sustainable economic growth,” WIPO Director General Francis Gurry said.  “The downward pressure on investment in innovation exerted by the current crisis must be resisted. Otherwise we risk durable damage to countries’ productive capacities. This is the time for forward-looking policies to lay the foundations for future prosperity.”

Top 10 Leaders in the overall Global Innovation Index 2012

The list of overall GII top 10 performers has changed little from last year.  Switzerland, Sweden, and Singapore are followed in the top ten by Finland, the United Kingdom, the Netherlands, Denmark, Hong Kong (China), Ireland, and the United States of America.  Canada is the only country leaving the top 10 this year, mirroring weakening positions on all main GII innovation input and output pillars. The report shows that the U.S.A. continues to be an innovation leader but also cites relative shortfalls in areas such as education, human resources and innovation outputs as causing a drop in its innovation ranking.

Regional leaders and the BRIC countries

The leaders in their regions are: Switzerland in Europe, the US in Northern America, Singapore in South East Asia and Oceania, Israel in Northern Africa and Western Asia, Chile in Latin America and the Caribbean, India in Central and Southern Asia, and Mauritius in Sub-Saharan Africa. Among low-income economies the leader is Kenya.

Soumitra Dutta, Roland Berger Professor of Business and Technology at INSEAD and the founder of the GII noted, “The GII seeks to update and improve the way innovation is measured.   Today’s definitions must capture an environment which is context-driven, problem-focused and interdisciplinary. The 2012 variables were broadened in an effort to find the right mix which captures innovation as it happens today.”

The report notes a need for the BRIC countries (Brazil, the Russian Federation, India, and China) to invest further in their innovation capabilities to live up to their expected potential. China’s performance on the key knowledge and technology outputs pillar is outpaced only by Switzerland, Sweden, Singapore, and Finland. However, the report notes that both China and India have weaknesses in their innovation infrastructure and environment. The report also notes that Brazil has suffered the largest drop among the BRICs. “Innovation is becoming the spearhead of competition – at a regional level, on a national level, and for companies,” said Ben Verwaayen, CEO of Alcatel-Lucent. “How to deal with that challenge will determine the destiny of competiveness for all players.”

Top 10 Leaders in the overall Global Innovation Efficiency Index 2012

Complementing the overall GII ranking, the Global Innovation Efficiency Index shows which countries are best in transforming given innovation inputs into innovation outputs. Countries which are strong in producing innovation outputs despite a weaker innovation environment and innovation inputs are poised to rank high in this “efficiency” index.

In the Global Innovation Efficiency Index, China and India lead the top 10 league of countries. Four of the top 10 countries in the Efficiency Index are lower-middle income countries.

More information available at www.globalinnovationindex.org