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1 Soumitra Dutta Founder and co-editor Cornell University Bruno Lanvin Co-editor INSEAD Sacha Wunsch-Vincent Co-editor WIPO Dr. Rafael Escalona Reynoso Lead Researcher, The Global Innovation Index SC College of Business Cornell Univerity Beyond Patents: Assessing the value and Impact of Research Investment National Academy of Sciences Building Washington, D.C. 28 June 2017 The Global Innovation Index 2017

The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Page 1: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Soumitra DuttaFounder and co-editor

Cornell University

Bruno LanvinCo-editor

INSEAD

Sacha Wunsch-VincentCo-editor

WIPO

Dr. Rafael Escalona Reynoso

Lead Researcher, The Global Innovation Index

SC College of Business

Cornell Univerity

Beyond Patents:

Assessing the value and Impact of Research Investment

National Academy of Sciences Building

Washington, D.C.

28 June 2017

The Global Innovation Index

2017

Page 2: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Introduction and Rationale1

The Global Innovation Index 2017

Rankings and other Parameters3

Conclusions and Future Perspectives4

Architecture and Metrics2

Page 3: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Measures innovation across 127

economies

Leading reference on innovation

A ‘tool for action’ for decision

makers with the goal of

improving countries’ innovation

performances

Focuses on a particular theme

where innovation is key

Recognizes innovation as key

driver of economic growth

Offers a holistic analysis of

innovation, applicable to both

developed and emerging

economies alike

Helps monitor innovation

progress on a yearly basis

Introduction1.1

Page 4: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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• Measuring innovation is complex and a moving target

1. Difficulty of right data selection

2. Difficulty of right scaling

3. Difficulty of right aggregation

4. Keeping model constant versus dynamic

No simple formula

Possible criticism: Nature of selection of

variables & aggregation

Rationale1.2

Page 5: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Launched in 2007

When?

How?

Using a collection of metrics to monitor performance over

time and to benchmark developments against countries,

region and income peers

Why?

To find metrics and approaches that closely mirror innovation

environments in society and go beyond traditional measures

Page 6: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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81 Metrics Create a

Tool for Action

Architecture2.1

Page 7: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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1. Quantitative/objective/hard data

―57 indicators

2. Composite indicators/index data

―19 indicators

3. Survey/qualitative/subjective/soft data

―5 indicators

The model includes 81 indicators, which fall

within the following three categories:

Metrics 2.2

Patent-related

• Patents filed in 2+ offices

• Patents by origin

• PCT patent applications

All scaled by bn PPP$ GDP

Page 8: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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• The statistical soundness of the GII and of modelling

assumptions on scores and ranks is tested every year.

• Problematic indicators = identified and treated.

• The redundancy of indicators is assessed.

• Sensitivity and uncertainty analysis conducted

• Recognition that measuring innovation is a journey. The GII

team continually tests the model for relevance to better

reflect an improved understanding of innovation

Statistical strategies to ensure robustness of results

Page 9: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Rankings and other Parameters3

Page 10: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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1. Switzerland

2. Netherlands

3. Sweden

4. Luxembourg

5. USA

6. United Kingdom

7. Germany

8. Ireland

9. Korea, Rep.

10. Iceland

1. Singapore

2. Sweden

3. Switzerland

4. Finland

5. USA

6. Denmark

7. United Kingdom

8. Hong Kong (China)

9. Netherlands

10. Canada

Input Sub-Index Output Sub-Index 1. Switzerland

2. Sweden

3. Netherlands

4. USA

5. United Kingdom

6. Denmark

7. Singapore

8. Finland

9. Germany

10. Ireland

GII

Global rankings of GII 2017 (top 10)

Page 11: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Efficient and Inefficient Innovators

Page 12: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Strength• Scores with percent ranks greater than the 10th largest

percent rank among the 81 indicators in that economy.

Weakness• Scores with percent ranks lower than the 10th smallest

percent rank among the 81 indicators in that economy.

Innovation

Achievers

• Countries which GII scores are higher than expected,

based on their level of economic development as

measured by GDP per capita.

Pillar

Outperformers

• Countries that outperform their income group peers in

four or more GII pillars.

Page 13: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Innovation activities confronted with low investment and resource constraints

Evolving innovation landscape: emerging economies play increasingly a role in innovation

Good quality of innovation remains a distinct characteristic of innovation leaders

The innovation divide remains

Sub-Saharan Africa region sees the most significant improvements in the GII rankings, but

still needs support

Key role of governments, and of public and coordinated private investments in creating

sound innovation systems

Conclusions4.1

Page 14: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Geocoded patent data enables the

identification of clusters

Largest clusters of inventive activity:

1. Tokyo-Yokohama

2. Shenzhen-Hong Kong (China)

3. San Jose– San Francisco, CA

Measurement remains challenging

Importance of clusters of inventive activity and innovation

hubs at sub-national level

Future Perspectives4.2

Page 15: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Thank you for

your attention

Please visit us at:

http://www.globalinnovationindex.org

@GI_Index

#GII2017

Page 16: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Annexes

Page 17: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Annex I: Main quantitative results of GII 2017

Page 18: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Country Profile Data Table

Page 19: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Income Group Rankings – Top 3Income Group Rankings (top 3)

Page 20: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Regional Rankings – Top 3

Page 21: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Annex II: Conclusions and key messages 2017

Page 22: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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New growth momentum, but

investment and productivity growth

at historic lows

Lackluster growth rates for R&D

activities, both at the government

and corporate levels.

Leveraging innovation-driven growth

Page 23: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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GII remains stable at the top

China keeps rising

Continued gap between developed and

developing nations

Low-income economies closing the gap

More innovation convergence is needed

Page 24: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Sub-Saharan Africa

High innovation performance relative to

development

More innovation achievers than any other region

Noted improvements in: Institutions, Market

sophistication, Infrastructure and Human Capital

Drivers of growth in the region have seen a

slowdown

Latin America and the Caribbean

Opportunity to improve innovation capacity

No identified innovation achiever

Sustained efforts in improved innovation

investments and more coordinated innovation

systems are required

Broader regional R&D and innovation

cooperation also needed

Sub-Saharan Africa and Latin America: Preserve the

momentum and leverage the innovation potential

Page 25: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Innovation is required to confront slow growth in agricultural productivity:

Adequate information to farmers, skills, adoption of new products and processes

Farmers empowerment by providing access to digital technologies and new service platforms

Boost entrepreneurship and venture capital approaches

Adopt excellence and innovation attitudes into the agricultural sector

Improve national legal and regulatory frameworks in agriculture

Smart digital agricultural innovation to overcome food challenges

Page 26: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Smart agriculture (distribution, value chains) is now required on a global scale

Policy makers have a responsibility to provide funding mechanisms to stimulate

innovation in agriculture and food production, especially in developing countries,

which have yet to benefit from earlier waves of agricultural innovations

Solving the food equation (feeding 10 billion

people while reducing pressure on natural resources

(land, energy eg) requires innovation.

A wave of new agricultural innovations is taking place

(digital agriculture), but rolling out rather slowly in

many parts of the world

Innovation Feeding the World : from Digital to Smart Agriculture

Page 27: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Annex III: Structure and Computation

Page 28: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Global Innovation Index

Innovation Efficiency Ratio

Innovation Input

Sub-Index

Innovation Output

Sub-Index

Structure (1/2)

Page 29: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Innovation Input

Sub-Index

Innovation Output

Sub-Index

1. Institutions

4. Market sophistication

2. Human capital and

research

3. Infrastructure

5. Business sophistication

6. Knowledge and

technology outputs

7. Creative outputs

The two sub-indices

have the same

weight

Structure (2/2)

Page 30: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Country/econom

y coverage

• Inputs: 54 indicators

• Outputs: 27 indicators

• Minimum coverage: 66%-66% per sub-index

• Must have scores for at least two sub-pillars per pillar.

Computation (1/2)

Data range • 10 year range cut-off (except when new or revised data).

Missing data• Not considered in Sub-pillar score

• For the sake of transparency and replicability of

results, no effort made to fill missing values.

Page 31: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Outliers• Selection:

• Absoluter skewness > 2.25 or

• Kurtosis greater than 3.5

• Treatment:

• Winsorization

• Multiplication by f factor plus Log transformation

Computation (2/2)

Normalization• Min-Max Method

• All scores are normalized between 0 and 100

• Except Innovation Efficiency Ratio

Page 32: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Annex IV: Collaborators

Page 33: The Global Innovation Index 2017 - National Academies · 2020-04-14 · The Global Innovation Index 2017. 2 1 Introduction and Rationale The Global Innovation Index 2017 3 Rankings

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Co-published by Cornell University,

INSEAD and WIPO

Three Knowledge Partners:

Confederation of Indian Industry,

PricewaterhouseCoopers and Strategy&,

National Confederation of Industry and

Serviço Brasileiro de Apoio às Micro e

Pequenas Empresas

Independent statistical audit by the

Joint Research Centre of the European

Commission

International Advisory Board

Collaboration among GII Partners