Insead's report the global innovation index 2014

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lights from Co-editor Dutta Global Innovation Index 2014 - Highlights from Co-editor Lanvin Global Innovation Index 2014 Edition The Global Innovation Index 2014 (GII), in its 7th edition this year, is co-published by Cornell University, INSEAD, and the World Intellectual Property Organization(WIPO, an agency of the United Nations, UN). The core of the GII Report consists of a ranking of world economies innovation capabilities and results. Over the last seven years, the GII has established itself as a leading reference on innovation. Understanding in more detail the human aspects behind innovation is essential for the design of policies that help promote economic development and richer innovation-prone environments locally. Recognizing the key role of innovation as a driver of economic growth and prosperity, and the need for a broad horizontal vision of innovation applicable to developed and emerging economies, the GII includes indicators that go beyond the traditional measures of innovation such as the level of research and development. 2014 Launch With the support of the Australian Government, the GII 2014 was launched on July 18, 2014 in Sydney, Australia. The launch was associated with the meeting of international business leaders (known as B20) which is part of Australias preparations to host the annual Group of Twenty (G20) Leaders Summit on November 15-16, 2014, see In addition, regional launches will take place throughout the year in Asia, the Middle-East, North and Latin America. 2014 theme: The Human Factor in Innovation The theme of the 2014 GII, the Human Factor in Innovation, explores the role of the individuals and teams behind the innovation process. Statistically capturing this human contribution to innovation is a daunting challenge. Even more complex are the challenges faced by all those who try to properly nurture the human factor in innovation. The importance of both individual and collective efforts of creators and scientists in the innovation process has been well documented in the literature. The results of the GII provide additional evidence of this significance. A rich collection of analytical chapters within the GII 2014 shed light on different aspects required of human capital in order to achieve innovation, including the presence of skilled labour, the necessity of skills for successful innovation, higher education, the intersection of human capital, financial capital, and technological capital, retention of talent, and the mobilization of the highly educated. Source:


<ul><li> The Global Innovation Index 2014 The Human Factor in Innovation </li> <li> The Global Innovation Index 2014 The Human Factor in Innovation Soumitra Dutta, Bruno Lanvin, and Sacha Wunsch-Vincent Editors </li> <li> The Global Innovation Index 2014: The Human Factor in Innovation is the result of a collaboration between Cornell University, INSEAD, and the World Intellectual Property Organization (WIPO) as co-publishers, and their Knowledge Partners. The terms country, economy, and nationas used in this report do not in all cases refer to a territorial entity that is a state as understood by international law and practice. The terms cover well-defined, geographically self- contained economic areas that may not be states but for which statistical data are maintained on a separate and independent basis. Disclaimer: This publication is not intended to reflect the views of the Member States or the WIPO Secretariat. This work is licensed under the Creative Commons Attribution Non-commercial No-Derivatives 3.0 IGO License. The user is allowed to reproduce, distribute and publicly perform this publication without explicit permission, provided that the content is accompanied by an acknowledgement that WIPO, Cornell University, and INSEAD are the source. No part of this publication can be used for commercial purposes or adapted/ translated/modified without the prior permission of WIPO. Please write to treaties[dot]mail[at]wipo[dot]int to obtain permission. To view a copy of the license, please visit http:// When content, such as an image, graphic, trademark, or logo, is attributed to a third party, the user is solely responsible for clearing the rights with the right holders. Suggested citation: Cornell University, INSEAD, and WIPO (2014): The Global Innovation Index 2014: The Human Factor In innovation, Fontainebleau, Ithaca, and Geneva. ISSN 2263-3693 ISBN 978-2-9522210-6-1 Printed and bound in Geneva, Switzerland, by the World Intellectual Property Organization (WIPO) and in New Delhi, India, by the Confederation of Indian Industry (CII). </li> <li> iii THEGLOBALINNOVATIONINDEX2014Contents Preface:ReleasingtheGlobalInnovationIndex2014: v NurturingtheEssentialHumanFactorinInnovation By Soumitra Dutta, Cornell University; Bruno Lanvin, INSEAD; and Francis Gurry, World Intellectual Property Organization Foreword:TheHumanFactor:TheFundamentalDriver vii ofInnovation By Chandrajit Banerjee, Director General, Confederation of Indian Industry Foreword:TheConnectedHumanFactor: ix TheHeartofInnovation By Osman Sultan, Chief Executive Officer, du Foreword:Human-CentricInnovation xi By Ken Hu, Deputy Chairman, Huawei ContributorstotheReport xiii AdvisoryBoardtotheGlobalInnovationIndex xv ExecutiveSummary xvii RANKINGS GlobalInnovationIndex2014Rankings xxiv CHAPTERS Chapter1:TheGlobalInnovationIndex2014: 3 NurturingNewSourcesofGrowthbyDeveloping theHumanFactorinInnovation By Soumitra Dutta, Rafael Escalona Reynoso, and Alexandra L. Bernard, Cornell University; Bruno Lanvin, INSEAD; and Sacha Wunsch-Vincent, WIPO Annex 1: The Global Innovation Index Conceptual Framework 41 Annex 2: Adjustments to the Global Innovation Index 53 Framework and Year-on-Year Comparability of Results Annex 3: Joint Research Centre Statistical Audit of the 55 2014 Global Innovation Index By Michaela Saisana and Andrea Saltelli, European Commission Joint Research Centre (Ispra, Italy) Chapter2:TheHumanFactorinInnovation 69 By Martin Schaaper, UNESCO Institute for Statistics Contents Chapter3:EducatingInnovatorsandEntrepreneurs 77 By Richard Scott and Stphan Vincent-Lancrin, OECD Directorate for Education and Skills Chapter4:HigherEducationinIndia:GrowthwithChallenges 85 By Naushad Forbes, Confederation of Indian Industry and Forbes Marshall Ltd Chapter5:InnovativeActivitiesandSkills 93 By Leonid Gokhberg and Valentina Poliakova, National Research University Higher School of Economics, Russian Federation Chapter6:TheUnitedArabEmirates: FosteringaUnique 101 InnovationEcosystemforaKnowledge-BasedEconomy By Ahmad Bin Byat and Osman Sultan, du Chapter7:RetainingTopInnovators:AnEssentialElement 113 ofCompetitivenessforDevelopingCountries By David R. Walwyn, Department of Engineering and T echnology Management, University of Pretoria; and Sibusiso Sibisi, Council for Scientific and Industrial Research, South Africa Chapter8:TheMoroccanDiasporaanditsContributiontothe 123 DevelopmentofInnovationinMorocco By Nour-Eddine Boukharouaa, Moroccan Industrial and Commercial Property Office (OMPIC), chapter coordinator; Marwan Berrada, Ministry in Charge of Moroccans Living Abroad and Migration Affairs; Abdelhak Chaibi, Association R&amp;D Morocco; Salma Dinia, National Centre for Scientific and Technical Research (CNRST); Abdesselam El Ftouh, Hassan II Foundation for Moroccans Living Abroad; Adil El Maliki, Karima Farah, and Ilham Bennani, Moroccan Industrial and Commercial Property Office (OMPIC); Omar Elyoussoufi Attou, Ministry of Higher Education, Scientific Research and Executive Training; and Yassine Ouardirhi, Ministry of Industry, Trade, Investment and the Digital Economy APPENDICES AppendixI:Country/EconomyProfiles 135 AppendixII:DataTables 283 AppendixIII:SourcesandDefinitions 371 AppendixIV:TechnicalNotes 387 AppendixV:AbouttheAuthors 393 </li> <li> v THEGLOBALINNOVATIONINDEX2014Preface PREFACE ReleasingtheGlobalInnovation Index2014:NurturingtheEssential HumanFactorinInnovation PREFACE We are pleased to present the Global Innovation Index (GII) 2014. This year, the theme of the report is the Human Factor in Innovation. The GII 2014, in its 7th edition, is again co-published by Cornell University, INSEAD, and the World Intellectual Property Organization (WIPO, a specialized agency of the United Nations). The GII recognizes the key role of innovation as a driver of economic growth and well-being. It aims to capture the multi-dimensional facets of innovation and to be applicable to developed and emerging economies alike. In doing so, it helps policy makers and business leaders move beyond one-dimensional innovation met- rics towards a more holistic analysis of innovation driv- ers and outcomes. Over the last seven years, the GII has established itself as a leading reference on innovation. When launching this same report last year, United Nations Secretary- General Ban Ki-moon stressed that the GII is a unique tool for refining innovation policies for providing an accurate picture on the role of science, technology and innovation in sustainable development, and for assessing where more efforts are urgently needed. We like to think of the GII as a tool for action for decision makers with the goal of improving coun- tries innovation performances. Numerous workshops in different countries have brought innovation actors together around the GII results with the aim of improv- ing data availability, boosting the countrys innovation performance, and designing fresh policy actions that are targeted for effective impact. These exchanges on the ground also generate feedback that, in turn, improves the GII. The theme of this years GII, the Human Factor in Innovation, explores the role of the individuals and teams behind the innovation process. Statistically cap- turing this human contribution to innovation is a daunt- ing challenge. Even more complex are the challenges faced by all those who try to properly nurture the human factor in innovation. Great efforts have been made to foster the avail- ability of scientists and engineers in the developed and the developing world alike. But important gaps remain between rich and poor countries. Top talents continue to be scarce, and they cluster and grow around top infrastructure and institutions. Still, the availability and mobility of human capital worldwide has changed for the better in the past two decades, and with it the geog- raphy of innovation. Workers with advanced degrees are an essential start- ing point for innovation. Yet their existence does not guarantee scientific or technological breakthroughs or other forms of non-technological or social innovations. Creative and critical thinking, and the appetite for tak- ing risks and thinking entrepreneurially, often matter at least as much as technical qualifications. In addition, innovation is spurred by having favourable conditions in which actors and society are open to new approaches. Putting the right environment in place that will nur- ture, promote, and enable the human factor behind busi- ness and social innovation is a complex task, but a criti- cal one. There are many strands of action in the field of education, training, and skill formation; in collabora- tion; in the diffusion of knowledge; and in other areas, as described in this report. A particularly interesting issue concerns implementing new policies to help developing and developed countries retain, involve, or attract talent, sometimes by involving their skilled diaspora abroad in national innovation activities. A few developing coun- tries have put these approaches into practice, generat- ing lessons that can be refined and applied elsewhere. This year the changes to the GII innovation frame- work are less numerous than in recent years. This is a sign of the increased stability of the measurement frame- work. At the same time, the journey to more effective innovation measurement is far from over. The GII team continually tests the model for relevance to better reflect an improved understanding of innovation. Thus the GII is both a user of novel innovation metrics and an effec- tive demandeur for further measurement exercises. WIPO, 2013. Photo by Emmanuel Berrod. </li> <li> vi THEGLOBALINNOVATIONINDEX2014Preface We hope that the collective efforts of all members and users of the GII project will continue to pave the way for better innovation policies around the world. We thank our Knowledge Partners in 2014, the Confederation of Indian Industry, du, and Huawei as well as our Advisory Board Members for their support. Soumitra Dutta Dean, Samuel Curtis Johnson Graduate School of Management, Cornell University Francis Gurry Director General, World Intellectual Property Organization Bruno Lanvin Executive Director, European Competitiveness Initiative, INSEAD </li> <li> vii THEGLOBALINNOVATIONINDEX2014Foreword FOREWORD The fundamental driver behind any innovation process is the human factor associated with it. We observe that some nations take the lead in innovation capability over others. A major factor for this disparity of innovation prowess is the quality of human capital linked to the innovation activities carried out in these nations. Other factors, such as technology and capital, also influence the innovation process; these directly correlate with the human factor. Hence nurturing human capital at all lev- els and in all sections of society can be crucial for devel- oping the foundation for innovation. Across the world, talented human capital is formed in two primary ways. First, each nation creates the infra- structure (by creating schools and colleges and other academic/R&amp;D institutions) to enhance the knowl- edge of its population in various technological and non- technological fields of study by providing both basic and advanced teaching and R&amp;D facilities. Second, a nation attracts talented human capital from other parts of the world by providing suitable incentives, and then grooms and employs these workers in various innova- tion activities. The nation that can nurture and attract the best talent becomes the innovation trendsetter. For example, the United States of America has successfully built its innovation ecosystem by attracting the best brains in the world. US universities have been excep- tionally effective in their quest to engage some of the most prominent people in the world, and have simul- taneously created an ecosystem for entrepreneurs who have been able to establish some of the globes biggest organizations. The crux of this success has always been the people who have been able to find the right kind of incentives in the US system that allow them to pursue their innovation dream. In todays world, innovation is a subject of great importance because it stimulates sustainable growth in a highly competitive market. Scholars across the world are studying innovation in great detail and trying to deter- mine the different parameters that influence its behav- iour. Actors such as institutions, industry, academia, and government, along with factors such as R&amp;D, fund- ing, incubation, mentoring, infrastructure, markets, and businesses, have all been identified as crucial to any innovation ecosystem. But at the heart of all innovation lies the human factor, identified as its soul and purpose. The message is very clear: in order to build an innova- tion-driven nation we need to educate our people well, and to provide them enough resources and incentives to chase their dreams. Innovation will follow. India, with its billon plus populationthe youngest population in terms of the number of people below the age of 30is in a position to create unprecedented opportunities domes- tically as well as globally to drive future innovations. But this can happen only if India can drive its human capital effectively towards a knowledge economy. The theme of the current edition of Global Innovation Index is very apt. It tries to capture the nuances of the human factor that is responsible for innovation and growth. The different chapters of this report illustrate how human capital influences innova- tion trends and how nations in the developing world struggle to innovate to their full potential by providing inadequate infrastructure for education. Chapter 4, for example, presents the case of India, which now has an opportunity to make its education system into a source of high-quality graduates in areas such as engineering, basic sciences, and liberal arts; these highly qualified workers will contribute to Indias innovative capacity. I thank the entire GII team and all other Knowledge Partners in this report for coming up once again with this wonderful edition. I feel humble to have been part of this report for last few years and hope that this edition of the GII, like all previous editions, may strengthen the tools of policy makers across the world to enable them to make the right decisions for stimulating innovation. Thank you. Chandrajit Banerjee Director General Confederation of Indian Industry TheHumanFactor:TheFundamental DriverofInnovation </li> <li> ix THEGLOBALINNOVATIONINDEX2014Foreword FOR...</li></ul>


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