The Global Innovation Index 2011Accelerating Growth and DevelopmentSoumitra Dutta, INSEAD Editor
The Global Innovation Index 2011Accelerating Growth and Development
Soumitra Dutta, INSEAD Editor
The Global Innovation Index 2011: Accelerating Growth and
Development is the result of a collaboration among INSEAD
and Knowledge Partners.
EDITOR
Soumitra DUTTA, Roland Berger Professor of Business and Technology, INSEAD, and Academic Director, eLab, INSEAD
ACKNOWLEDGEMENTS
The Global Innovation Index, like any innovation project, is a
collaborative effort. The valuable contributions of the individuals
listed below are gratefully acknowledged. We look forward to
the continued input of the broader community of innovation
professionals and experts to further improve the GII and to
make it more useful for policy making and decision makers in
the public/private sectors.
INSEAD
Bruno LANVIN, Executive Director of eLab
Daniela BENAVENTE, Senior Research Fellow, eLab
Shellie KARABELL, Director Media Relations & Knowledge
Sophie BADRE, Associate Director Media Relations
Shilpa DODDA, Research Programmer, eLab
Virginie BONGEOT-MINET, Centre Coordinator, eLab
OTHER DIRECT COLLABORATORS
Michaela SAISANA, Senior Researcher, Institute for the Protection and Security of the Citizen, Joint Research Centre
of the European Commission
Hope STEELE, Editor, Steele Editorial Services
Neil WEINBERG, Principal, Neil Weinberg Design
KNOWLEDGE PARTNERS
Alcatel-Lucent
Revital MAROM, Head of Market and Consumer Insight
Simon POULTER, Head of Media Relations
Kurt STEINERT, Director of Corporate Communications
Louis WITTERS, Director, Market and Consumer Insight
Booz and Company
Karim M. SABBAGH, Senior Vice President
Richard SHEDIAC, Senior Vice President
Barry JARUZELSKI, Vice President
Hatem A. SAMMAN, Director, The Ideation Center
Lisa MITCHELL, Principal
Chadi N. MOUJAES, Principal
Joanne ALAM, Senior Associate
Confederation of Indian Industry
Anjan DAS, Executive Director, Technology
Seema GUPTA, Director
Jibak DASGUPTA, Deputy Director
World Intellectual Property Organization (WIPO)
Carsten FINK, Chief Economist
Sacha WUNSCH-VINCENT, Senior Economist
The indexs methodology and the rankings do not necessarily present the views of WIPO orits Member States. Any remaining errors are the responsibility of the authors and not WIPO.
We are also grateful to the following persons for their help with
specific data requests:
Susan Teltscher, Head, and Esperanza Magpantay, Statistician,
Market Information and Statistics Division, Telecommunication
Development Bureau, International Telecommunication Union (ITU)
Karen Treanton, Head of Energy Balances, Prices and Emissions
Section, Energy Statistics Division, International Energy Agency
Cornelius Bubenzer, Financial Markets Executive, and Ifigenia
Poulka, Data and Applications Specialist, Thomson Reuters
The terms country and nation as 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.
INSEAD 2011. All rights reserved. No part of this publication can be reproduced, stored in a retrieval system, or transmitted, in any form or by
any means, electronic, mechanical, photocopying, or otherwise without the prior permission of INSEAD.
ISBN: 978-2-9522210-1-6
Printed and bound in France by INSEAD, Fontainebleau.
Foreword: The World Needs Open Innovation v
By Ben Verwaayen, Chief Executive Officer, Alcatel-Lucent
Foreword: Innovation: Increasingly Global, vii Increasingly Vital
By Shumeet Banerji, Chief Executive Officer, Booz & Company
Foreword: Innovation, Developing Markets, ix and the Role of the Global Innovation Index
By Chandrajit Banerjee, Director General, Confederation of
Indian Industry
Foreword: Why Innovation Is Important xi
By Francis Gurry, Director General, World Intellectual
Property Organization
Preface: The Global Innovation Index Is a xiii Collaborative Effort
Soumitra Dutta, INSEAD
Advisory Board to the Global Innovation Index xv
Rankings
Global Innovation Index 2011 Rankings xviii
Chapters
Chapter 1: Measuring Innovation Potential 3 and Results: The Best Performing Economies
By Soumitra Dutta and Daniela Benavente, INSEAD
Appendix: Statistical tests on the 57 Global Innovation Index
By Michaela Saisana, European Commission
Joint Research Centre
Chapter 2: Innovation in Latin America: 65 Recent Insights
By Lourdes Casanova, INSEAD Strategy Department; Jeff Dayton-Johnson,
Organisation for Economic Co-operation and Development; Nils Olaya
Fonstad, INSEAD; and Anna Pietikinen, Organisation for Economic
Co-operation and Development
Chapter 3: Innovation in India: 77 Affordable Innovations
By Manisha G. Singh, Council of Scientific and Industrial Research; Anuraj
Gambhir, Xpert Media; and Jibak Dasgupta, Confederation of Indian
Industry
Chapter 4: Making Cities Smart and Sustainable 87
By Kurt W. Steinert, Revital Marom, Philippe Richard,
Baspar Veiga, and Louis Witters, Alcatel-Lucent
Chapter 5: The Global Footprint of Innovation 97
By Barry Jaruzelski, Chadi Moujaes, and Hatem
Samman, Booz & Company
Chapter 6: Accounting for Creativity in 107 Innovation: What We Should Be Measuring and Related Difficulties
By Sacha Wunsch-Vincent, World Intellectual Property
Organization
Appendices
Appendix I: Country/Economy Profiles 117
Appendix II: Data Tables 247
Appendix III: Sources and Definitions 333
Appendix IV: Technical Notes 347
Appendix V: About the Authors 353
Table of Contents
v
THE
GLOB
AL IN
NOVA
TION
INDE
X 20
11
Fore
wor
ds
FOREWORD
There are initiatives underway that are applying this model of open innovation to specific global challenges. One example I like to highlight is the GreenTouch Consortium, a group that is drawing on the expertise of companies and organizations from all sectors of the infor-mation and communication technologies (ICT) industry and academia to dramatically reduce energy consump-tion in ICT networks, a significant contributor to global climate change. Together, these varied and often compet-ing organizations are working together to pioneer the new technologies on which energy efficient networks of the future will depend. These are not merely incremen-tal improvements, but disruptive technologies that will change the nature of networks forever.
I am convinced that this same model, where com-mercial concerns and self-interest are set aside for the greater good, can and must be applied to the great chal-lenges of our time, from the management of rapid urban-ization (which we address in this report) to connecting the underserved populations of the world and to the establishment of a more sustainable way of life across the board.
The Global Innovation Index is laying the foundation for a global conversation of the role of innovation in addressing these challenges. By bringing together diverse parties to explore how innovation is being applied around the world, and what conditions make for successful inno-vation, it is making an essential contribution to the pro-motion of open innovation as a basic operating principal for the global community.
Ben VerwaayenChief Executive OfficerAlcatel-Lucent
Innovation has always been an important element in the relative success of societieseconomically, intellectually, and socially. And as we move from a world of indepen-dent, lightly linked societies to one of inclusion with a larger, more deeply interconnected global community, innovation is more critical than ever.
What is the role of innovation in transforming a society? How does this transformation happen? It is one thing to have a great ideait is another to bring it to life. For innovation to thrive you need an ecosystem that can transform an idea into something truly meaningful.
This important work that you have in your hands, the Global Innovation Index, explores the transformative power of innovation. Significantly, it identifies the con-ditions and qualities that allow innovation to thrive, and highlights the role innovation can play in a nations eco-nomic and social development.
But there is another, even deeper question we need to ask ourselves: What is the role of innovation in address-ing the great challenges that confront humanity?
We are at a very exciting time in history, a pivot-al time, and the global community faces some daunt-ing challenges. The planet is getting hotter. Cities are expanding at an astounding rate, creating a difficult envi-ronment for the delivery of basic services such as health care, public safety, and education. At the same time, while the world becomes more connectedthere are more cell phones today than there are peoplelarge segments of the global community remain completely cut off from the world of commerce, communication, and informa-tion that has become so critical to the establishment of healthy economies and prosperous people.
As importantly, these changes cannot be increm
