Every year INSEAD team up with WIPO and Cornell University to produce an index of the most innovative nations on earth. The index, now in it’s 10th year, aims to rate the infrastructure that supports innovation in a country, whether it’s a strong research base, accessible finance for startups or an educated workforce.
For the 7th year in a row the Swiss top the table, with Sweden and the Netherlands rounding out the top three. Switzerland takes its place at the top due to their strong performance across the board, but especially in the environment they provide to businesses, and their ability to transform resources into innovations.
The most innovative nations
The index is calculated by looking at a nation’s innovative output, including patents and knowledge diffusion, but also what it puts into the innovation process, including its R&D spending, regulatory environment and education sector.
Perhaps unsurprisingly, developed countries occupy the majority of the top spots, with China the only exception inside the top 25. They scored particularly highly in the number of patent applications, R&D expenditure and the performance of its universities.
This year the report placed particular emphasis on innovation in agriculture, with a number of sub-Saharan countries outperforming their current level of development.
“We are already witnessing the rapid, worldwide emergence of ‘digital agriculture,’ which includes drones, satellite-based sensors and field robotics,” the authors say. “Now there is an urgent need for ‘smart agriculture’ to optimise supply and distribution chains and foster creative new business models that minimise pressure on land, energy and other natural resources, while addressing the needs of the world’s poorest.”
The index is largely dominated by European countries, with 15 of the top 25 economies from the old continent. They score especially strongly in areas such as research, infrastructure and human capital, with the top spot in nearly half of all of the indicators being taken by European economies.
The report issues a warning that private investment in innovation is receding, with emerging markets still struggling to recapture the levels of finance seen pre-crisis. Meanwhile productivity levels around the world remain low, suggesting there is still much to be done. The authors urge both public and private investment into innovation if the global economy is to thrive in the coming years.
