GII Regional Launch Washington, D.C. 17 September 2014
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1 GII Regional Launch Washington, D.C. 17 September 2014 Soumitra Dutta Anne and Elmer Lindseth Dean and Professor of Management Johnson School of Management Cornell Univesity Alexandra L. Bernard Project Manager Global Innovation Index Rafael Escalona Reynoso Lead Researcher Global Innovation Index Soumitra Dutta Founder and co-editor Cornell University Bruno Lanvin Co-editor INSEAD Sacha Wunsch-Vincent Co-editor WIPO
2 1 Introduction to the Global Innovation Index Main results of the GII The United States in the GII
3 1 Introduction to the Global Innovation Index 2014 Co-published by Cornell University, INSEAD and WIPO Three Knowledge Partners: the Confederation of Indian Industry, du, and Huawei Independent statistical audit by the Joint Research Centre of the European Commission International advisory board 3
4 Exploring innovation: Themes of the GII Some of the recent themes explored are: Accelerating growth and development (GII 2011) Stronger innovation linkages for global growth (GII 2012) The local dynamics of innovation (GII 2013) The Human Factor is the essential spark to innovation (GII 2014). 4
5 OECD Measuring Innovation The Oslo Manual (The Eurostat & OECD) Frascati Manual The Measurement of Scientific and Technical Activities Proposed Guidelines for Collecting and Interpreting Technological Innovation Data Methodological guidelines for the collection of data on R&D expenditures, patents, R&D human resources and innovation. Includes some experimental indicators. European Union Measuring Innovation: some existing indexes Innovation Union Scoreboard A comparative assessment and ranking of R&D and innovation performance (Member States and other selected non-members (Switzerland, China, USA, etc.). 3 main types of indicators and 8 innovation dimensions, and a total 25 different indicators. 5
6 Measuring Innovation: some existing indexes (Cont d) Bloomberg Bloomberg Innovation Quotient Ranks countries (0 to 100) on seven factors: R&D intensity, productivity, high-tech density, researcher concentration, manufacturing capability, tertiary efficiency and patent activity: 6th Asian Development Bank (ADB) & Economist Intelligence Unit (EIU) Creative Productivity Index Analyzes creativity and Innovation in Asia. 36 input indicators measure innovation capacity and incentives including: top 500 universities, urbanization rate, R&D spending, IP protection, and corruption and bureaucracy. 8 output indicators that include: number of patents filed, export sophistication, value added to agriculture, and the number of books and films produced. 6
7 Basic structure Global Innovation Index Innovation Efficiency Ratio Innovation Input Sub-Index Innovation Output Sub-Index 7
8 Basic structure Innovation Input Innovation Output (Cont d) 1. Institutions Sub-Index 2. Human capital and research 3. Infrastructure 4. Market sophistication 5. Business sophistication Sub-Index 6. Knowledge and technology outputs 7. Creative outputs Both Sub- Indexes with equal weight. 8
9 Input Sub-Index: Sub-pillars 1. Institutions 2. Human capital and research 3. Infrastructure 4. Market sophistication 5. Business sophistication Political environment Regulatory environment Business environment Education Tertiary education Research & development ICTs General infrastructure Ecological sustainability Credit Investment Trade & competition Knowledge workers Innovation linkages Knowledge absorption 9
10 Output Sub-Index: Sub-pillars 6. Knowledge and technology outputs 7. Creative outputs Knowledge creation Knowledge impact Knowledge diffusion Intangible assets Creative goods and services Online creativity 10
11 11
12 12
13 2 Main results of the GII 2014 GII Input Sub-Index 1. Singapore 2. Hong Kong (China) 3. United Kingdom 4. USA Output Sub-Index 1. Switzerland 2. Netherlands 3. Sweden 4. United Kingdom Efficiency Ratio 1. Moldova 2. China 3. Malta 4. Indonesia 1. Switzerland 2. United Kingdom 3. Sweden 4. Finland 5. Finland 5. Luxembourg 5. Viet Nam 5. Netherlands 6. Sweden 7. Switzerland 8. Canada 9. Denmark 10. Australia 6. Finland 7. USA 8. Germany 9. Iceland 10. Malta 6. Switzerland 7. Venezuela 8. Nigeria 9. Luxembourg 10. Côte d'ivoire 6. USA 7. Singapore 8. Denmark 9. Luxembourg 10. Hong Kong (China) 13
14 14
15 China India Brazil Russia Learners are 20 countries out-performing their peers relative to GDP per capita: Czech Republic, Republic of Moldova, China, Kenya, Uganda, Mongolia, Viet Nam, India, Jordan, Mozambique, Armenia, Rwanda, Senegal, Malaysia, Malawi, Thailand, Gambia, Ukraine, Burkina Faso and Georgia. 15
16 Learners are 20 countries out-performing their peers relative to GDP per capita: Learners by region Sub-Saharan Africa Kenya Uganda Mozambique Rwanda Senegal Malawi Gambia Burkina Faso Europe Czech Republic Armenia Ukraine Georgia Republic of Moldova South East Asia and Oceania China Mongolia Viet Nam Malaysia Thailand Central and Southern Asia India Northern Africa and Western Asia Jordan 16
17 17
18 3 The United States in the GII
19 The US: Standing at the top (among the top 5 economies) Indicator Cost of redundancy dismissal (1) Government's online service index (1) Stocks traded, total value (1) Venture capital deals (1) GMAT test takers (1) National office patent applications (1) Citable documents H index (1) Computer software spending (1) Royalties and license fees receipts (1) gtlds per thousand population (1) Video uploads on YouTube (1) 19
20 The US: Standing at the bottom (among the top 5 economies) Indicator Inbound mobility rate (49) GDP/TPES (59) Foreign direct investment (107) ISO 9001 certificates (110) Communications, comp. and information services exports (77) Madrid international registrations (47) Audio-visual and related services exports (24) National feature films (36) Printing and publishing output (38) 20
21 USA: Room for Improvement When contrasting the difference in scores between the USA and the top ranking economy in each of the 81 indicators, the following 10 indicators can be targeted to improve overall ranking:* Indicator USA GII Rank USA score Score of top Top score holder Public expenditure per pupil FIN School life expectancy IRL Logistics Performance Index score SGP Total investment SGP Domestic credit to private sector DNK Applied tariff rate CHE Non-agricultural market access weighted tariff SGP GERD - performed by Business FIN GERD - financed by Business CHE Growth rate of labour productivity HKG * With one exception, the data that is used to calculate these indicators comes neither from other indexes nor from the results of surveys. 21
22 GII Regional Launch Washington, D.C. 17 September 2014 Thank You Please visit: Soumitra Dutta Founder and co-editor Cornell University Bruno Lanvin Co-editor INSEAD Sacha Wunsch-Vincent Co-editor WIPO
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