1. The Global Innovation Index 2012Stronger Innovation Linkages
for Global GrowthSoumitra Dutta, INSEADEditor
2. The Global Innovation Index 2012Stonger Innovation Linkages
for Global GrowthSoumitra Dutta, INSEADEditor
3. The Global Innovation Index 2012: Stronger Innovation INSEAD
and WIPO 2012. All rights reserved. No part ofLinkages for Global
Growth is the result of a collaboration this publication can be
reproduced, stored in a retrievalbetween INSEAD and the World
Intellectual Property system, or transmitted, in any form or by any
means,Organization (WIPO) as co-publishers, and their electronic,
mechanical, photocopying, or otherwiseKnowledge Partners. without
the prior permission of INSEAD.The terms country, economy, and
nation as used in this ISBN: 978-2-9522210-2-3report do not in all
cases refer to a territorial entity that isa state as understood by
international law and practice. Printed and bound in France by
INSEAD, Fontainebleau.The terms cover well-defined, geographically
self-contained economic areas that may not be states but forwhich
statistical data are maintained on a separate andindependent
basis.Disclaimer: The indexs methodology and the rankingsdo not
necessarily present the views of WIPO or itsMember States. The same
applies to the substantivechapters in this report, which are the
responsibility ofthe authors and not WIPO.
4. iiiTable of Contents ContentsPreface: Stronger Innovation
Linkages v Chapter 3: Academia-Industry Innovation Linkages in
89for Global Growth the Case of Saudi Arabia: Developing a
University-IndustryBy Soumitra Dutta, Roland Berger Professor of
Business and Triple-Helix Framework to Promote Research
andTechnology, Academic Director, INSEAD eLab, INSEAD and
Development CollaborationFrancis Gurry, Director General, World
Intellectual Property By Khaled S. Al-Sultan and Dr. Iyad
Alzaharnah, King FahadOrganization University for Petroleum &
Minerals of Saudi ArabiaForeword: Embracing New Types of
Partnerships vii Chapter 4: Accounting for Science-Industry 97to
Drive Open Innovation Collaboration in Innovation: Existing Metrics
andBy Ben Verwaayen, Chief Executive Officer, Alcatel-Lucent
Related Challenges By Sacha Wunsch-Vincent, World Intellectual
Property OrganizationForeword: The Coherence Premium in Innovation
ixBy Cesare R. Mainardi, Chief Executive Officer, Booz &
Company Chapter 5: The Role of Coherent Linkages in Fostering 109
Innovation-Based Economies in the Gulf CooperationForeword: Why
Innovation Linkages? xi Council CountriesPerspectives from an
Emerging Economy By Barry Jaruzelski, Chadi N. Moujaes, Rasheed
Eltayeb, Hadi Raad,By Chandrajit Banerjee, Director General,
Confederation of and Hatem A. Samman, Booz & CompanyIndian
Industry Chapter 6: The Russian Federation: A New Innovation
121Contributors to the Report xiii Policy for Sustainable Growth By
Leonid Gokhberg and Vitaly Roud, Higher School of
Economics,Advisory Board to the Global Innovation Index xv Russian
Federation Chapter 7: Shaping the National Innovation System: 131
Rankings The Indian Perspective By Yagnaswami Sundara Rajan, Indian
Space Research OrganizationGlobal Innovation Index 2012 Rankings
xviii Annex:
Acronyms.........................................................................................................141
Chapter 8: An Integrated Policy Approach in 143 Chapters Science,
Technology, and Innovation for Sustainable Development: A UNESCO
Idea in ActionChapter 1: The Global Innovation Index 2012: 3 By
Irina Bokova, UNESCOStronger Innovation Linkages for Global
GrowthBy Soumitra Dutta and Daniela Benavente, INSEAD; and Sacha
Wunsch- Chapter 9: Broadband, Inevitable Innovation, 149Vincent,
World Intellectual Property Organization and Development By Robert
Shaw, ITU, and Bruno Lanvin, INSEAD eLab and Broadband Annex 1: The
Global Innovation Index Conceptual...............................43
Commission Framework Annex 2: Adjustments to the Global Innovation
Index ......................67 Chapter 10: The Internet: An
Unprecedented and 157 Framework and Year-on-Year Comparability of
Results Unparalleled Platform for Innovation and Change THE GLOBAL
INNOVATION INDEX 2012 Annex 3: Statistical tests on the Global
Innovation Index.................71 By Lynn St. Amour, Internet
Society By Michaela Saisana and Dionisis Th. Philippas, European
Commission Joint Research Centre (Ispra, Italy) Chapter 11: We Are
All Content Creators Now: 163 Measuring Creativity and Innovation
in theChapter 2: The Role of Public-Private Partnerships in 81
Digital EconomyDriving Innovation By Derek Slater and Patricia
Wruuck, GoogleBy Louis Witters, Revital Marom, and Kurt Steinert,
Alcatel-Lucent
5. ivContents Appendices Appendix I: Country/Economy
Profiles173 Appendix II: Data Tables319 Appendix III: Sources and
Definitions409 Appendix IV: Technical Notes427 Appendix V: About
the Authors433THE GLOBAL INNOVATION INDEX 2012
6. preface vStronger Innovation Linkages Prefacefor Global
Growth WIPO 2011. Photo: Emmanuel Berrod.In recent months, policy
discussions about how to reig- This years GII report underlines the
importance ofnite confidence in the world economy have questioned
linkages and of supporting the optimal infrastructure forthe focus
on austerity measures. The economic policy these innovation
ecosystems.debate is placing renewed emphasis on achieving an This
is an important f ield of innovation policy,appropriate policy mix
that fosters growth and employ- and one that garners increasing
attention. The Worldment while promoting sustainable public
finances. Intellectual Property Organization (WIPO), for Policies
to promote innovation should feature example, contributes to
fostering the innovation infra-prominently in these discussionseven
if innovation structure by focusing on knowledge diffusion.
Amongcannot cure the most immediate financial difficulties, its
other recent initiatives, WIPOs Access to Researchit is a crucial
element of sustainable growth. Future for Development and
Innovation programme increasesgenerations will ask whether the
stimulus programmes the availability of scientific and technical
publicationsof 2009 and any upcoming initiatives successfully mar-
in developing countries. Its Technology and Innovationried
short-term demand stimulus with longer-lasting Support Centers are
designed to provide local innovatorsgrowth objectives. They will
also ask whether policy with access to high-quality technology
information,makers seized the opportunity presented by the cur-
including patent documents.rent crisis to put forward-looking
measures in place tolay the foundations for future prosperity.
Finally, theywill judge whether firms and other innovation actors
Challenges to promoting linkagesinvested appropriately in the
future, and attempt to While there is broad agreement that linkages
amongdetermine why some emerged from the crisis more innovation
actors are key, we face two interrelatedstrongly than others.
challenges: To support this debate, metrics are required to First,
experiences and lessons in designing effectiveassess innovation and
related policy performance. In policies that foster innovation
linkages are still scarce.this light, we are pleased to present the
2012 edition Modern innovation policies aim to support science-of
the Global Innovation Index (GII). The GII helps to industry
collaboration, the formation of innovationcreate an environment in
which innovation factors are clusters, and knowledge diffusion, for
example. Yet cre-under continual evaluation, and it provides a key
tool ating innovation linkages is perhaps the most complexfor
refining innovation policies. innovation policy area, and there are
no easy recipes for achieving tangible outcomes and benefits. For
years, many economies have sought to foster collaborationThe
importance of linkages and the right infrastructure between
universities and firms, or to create successfulfor innovation
technology clustersoften to no avail.Collaboration, the f low of
ideas between different inno- Second, measuring the existence and
impact of inno- THE GLOBAL INNOVATION INDEX 2012vation actors, and
access to knowledge are all increas- vation linkages remains
dauntingly difficult. This is whyingly important ingredients of
innovation. So-called the GII puts particular emphasis on measuring
not onlyinnovation ecosystems have become more complex and are
innovation inputs and outputs, but innovation linkagesnow built on
more internationalized, collaborative, and as well. For instance,
it includes measures of the numberopen innovation models and
knowledge markets. of joint ventures, or patents filed jointly by a
domestic and foreign inventor. However, most of the existing
7. vi variables capture innovation linkages only
imperfectly,Preface and improved metrics are sorely needed. The
theme of this years GII puts a spotlight on this important future
measurement agenda. Continuing the journey for better innovation
metrics and policies INSEAD began its journey to find better ways
to mea- sure innovation in 2007, increasingly helped by its
Knowledge Partners. WIPO joined INSEAD as one of the Knowledge
Partners in 2011 and is now co-publisher of the GII. Over the
years, the GII model has evolved in response to our growing
understanding of innovation parameters. We take pride in
continually adapting the model to better ref lect the modern
dynamics of innova- tion and the better availability of data. The
2012 edition, for instance, places greater emphasis on measuring
econ- omies ecological sustainability and online creativity. We
thank the GIIs Knowledge PartnersAlcatel- Lucent, Booz &
Company, and the Confederation of Indian Industryfor bringing true
enterprise perspec- tives to our debates. Last but not least, we
welcome two new members to our eminent Advisory Board who have
greatly strengthened its ranks: Sibusiso Sibisi, President and
Chief Executive Officer of the Council for Scientific and
Industrial Research in South Africa; and Rob Steele,
Secretary-General of the International Organization for
Standardization. From the outset, we said that measuring innova-
tion, identifying its main drivers, and fostering adequate policies
would be a multi-year journey. INSEAD and WIPO, along with our
partners, look forward to con- tinuing this journey. Soumitra Dutta
Roland Berger Professor of Business and Technology and Academic
Director of eLab, INSEAD Francis Gurry Director General, World
Intellectual Property Organization (WIPO)THE GLOBAL INNOVATION
INDEX 2012
8. foreword viiEmbracing New Types of Partnerships Forewordto
Drive Open InnovationWe talk a great deal about innovation in the
informa- many cases, this means working very differently thantion
and communication technologies (ICT) industry, they ever have
before. It means forging much closer tieswhere I have spent most of
my career. When we speak between previously distinct sectors than
ever before. Itabout innovation we are generally talking about
break- means sharing resources and responsibilities,
dependingthroughs, new technologies, and the companies that on
others to do their part in the collaborative action,bring them to
market. and embracing these interdependencies. Alcatel-Lucent,
Breakthroughs are of course an important aspect with many others,
does this in the GreenTouch con-of innovation. Breakthroughs can
reduce energy sortium, which is working to help reduce the
energyconsumption, create new markets, introduce differ-
consumption of telecommunications networks 1,000-ent ways of doing
things, generate new revenue, help fold by 2015.people connect
better, and help us solve problems in Partnering in this way is
difficult. Many countriesareas as diverse as healthcare,
agriculture, education, have sought to bring their educational,
business, andand transportation. But innovation is about much more
NGO sectors together to address specific challenges.than just
technological breakthroughs. Increasingly it is Some have been
successful, but just as often they haveabout breakthroughs in
collaborationforming link- not: the often divergent motivations of
these differentages among different types of companies, industries,
and organizations can lead to a mismatch of objectives,public
institutions to address challenges and opportuni- expectations, and
approaches.ties that reach far beyond the scope or capability of
any But innovation is a crucial element of competitive-individual
organization. ness. For organizations, companies, and countries to
This notion of linkages and the collaborative models remain
competitive and to grow, they must innovate,needed to address our
biggest challenges is the central and one of the ways they can
accomplish this is throughtheme of the 2012 edition of the Global
Innovation Index broad collaboration. Given the challenges we face
as a(GII), which we are proud to support once again as a global
community, we must find ways to partner moreKnowledge Partner. The
2012 GII explores the condi- effectively.tions in which innovation
f lourishes and documents The GII offers an opportunity to think
through thiswhich countries are most successful in fostering those
challenge. By shining a light on successful models ofconditions.
The GII also looks at some of the ways old collaboration and
innovation, and by documenting whatmodels of innovation are
evolving, how new models has worked (or not) and where, the GII is
contributingare emerging, why they matter, and the impacts they to
an absolutely critical conversation.can have. Chapter 2 of this
report, contributed by colleagues Ben Verwaayen Chief Executive
Officerat Alcatel-Lucent, explores how an ancient model of
Alcatel-Lucentcollaborationthe public-private partnershipis being
THE GLOBAL INNOVATION INDEX 2012applied in novel ways to address
some of the large-scalechallenges faced today. The reality is that
no organiza-tionno government, company, research institution,or
nongovernmental organization (NGO)by itselfcan solve our biggest
problems, such as the economiccrisis facing Europe or the massive
emerging ecologicalthreats. They must partner. They must
collaborate. In
9. foreword ixThe Coherence Premium in ForewordInnovationBooz
& Company is honoured to contribute to The direction, and
selling products or services that thriveGlobal Innovation Index
2012 for a second consecu- within that system. When these three
elements aretive year. This is a critical element in our continuing
aligned, a company can be described as coherent and caneffort to
support businesses and governments in their move past the
competition consistently and with ease.development of
innovation-led economies. For almost We recognize that coherence is
as relevant anda decade, Booz & Companys annual Global
Innovation critical for countries as it is for companies.
Coherence1000 study has ranked the top 1,000 public companies
between innovation strategies and capabilities at theby their
research and development (R&D) spending and national level
requires the stakeholders to be closelyhas analysed how that
spending inf luences their overall linked in an effective
ecosystem. Developed economiesfinancial performance. Through this
work, we continue must continue to strengthen and develop such
linkagesto gain significant insight into the nature of innovation.
to stay ahead in strategic sectors. At the same time,It is clear
that success in innovation is not just a blend of developing
economies must institute a national modelquantitative elements such
as the number of researchers, that establishes coherent linkages in
their innovationthe amount that they receive in funding, and the
number systems. This involves forging strong ties among allof
patents they file. Rather, the companies and countries stakeholders
in the innovation ecosystem, encompassingthat have succeeded in
establishing strong innovation policies, stakeholders, and
operations. Key to this effortcultures have also embraced
qualitative success fac- is establishing an innovation-promotion
entity that willtorsthey have developed coherent linkages between
create and develop the necessary linkages, coordinatetheir
strategies and capabilities, and they nurture an policy, convene
stakeholders, and drive the nationalenvironment that supports
innovation. agenda. Our 2011 study The Global Innovation 1000: Why
At Booz & Company, we believe that coherenceCulture Is Key
shows that spending more on R&D is around key capabilities
drives essential advantage.not enough to create robust and
sustainable innovative Coherent companies and, indeed, countries,
wield aenterprises. Instead, numerous elements comprise a truly
clear set of capabilities aligned with their strategyinnovative
company: a focused innovation strategy, a throughout their
portfolio. Furthermore, both publicwinning overall business vision,
profound customer and private sectors have an important role to
play ininsight, great talent, and the right set of capabilitiesthe
increasing global welfare by developing coherent strate-combination
of processes, tools, knowledge, skills, and gies and linkages for
innovation at both the firm andorganizationare needed to succeed.
Importantly, cor- country-wide levels.porate culture ties all those
elements together, makingthe secret sauce that makes innovative
companies dif- Cesare R. Mainardi Chief Executive Officerferent
from their peers. The right culture of innovation Booz &
Companyguarantees a high degree of coherence between strate- THE
GLOBAL INNOVATION INDEX 2012gies and capabilities or between a
companys aspirationsand its implementation. A coherent
capabilities-driven strategy is the keyto unlocking value creation
on a reliable and sustainedbasis. Three interlocking elements
comprise this strat-egy: pursuing a clear strategic direction,
building asystem of differentiating capabilities consistent with
that
10. foreword xiWhy Innovation Linkages? ForewordPerspectives
from anEmerging EconomyToo often these days, any discussion on
innovation and critical area and on inclusive growth. At the same
time,its linkages to growth and development is reduced to the
government has prioritized a doubling of investmentthe difficulties
faced by economies in certain parts of in R&D over the next
five years. The Indian Nationalthe world over the last few years
and the implications for Innovation Council (NIC) was established
by the gov-the global economy. There is an urgent need to broaden
ernment in 2010 to discuss, analyse, and help implementthis
discussion and to explore how innovation can be not strategies for
inclusive innovation in India and prepareonly fostered and
harnessed for growth but also how it a Roadmap for Innovation
20102020. Recently, forcan solve everyday problems, reduce poverty,
and help example, the NIC has taken up the challenge of forg-us
attain a faster-sustainable-inclusive-growth-driven ing global
collaborations through its Global Innovationfuture. Roundtable
Conference. There is also a need to widen the perspective on the
The governments partnership with stakeholdersactors that are
crucial in promoting innovation. Todays provides the key to the
success of its initiatives. Theinnovation environment is broad and
involves bilateral Confederation of Indian Industry (CII) has been
work-and multilateral collaborations in scientific and tech- ing
with the industry, institutions, government andnological research
and development (R&D), cultural global organizations to
strengthen innovation ecosystemexchanges, sharing of best
practices, open innovation in India. Many innovative initiatives
based on public-challenges, and other forms of linkages.
private-partnership (PPP) mode have been launched Such linkages
must, however, energize and be ener- to implement and support
innovations on the ground.gized by the innovative and creative
spirits inherent in One key initiative is formation of a
not-for-profit PPPevery society and culture. In this context, India
stands company named Global Innovation & Technologyas an
example. With a large population and limited Alliance to support
industrial R&D that converts globalresources, Indians must
innovate to thrive, and this is high cost/high quality innovative
technologies into costexpressed in every strand of society: by
those on the effective products those are affordable by and
accessiblestreet; by grassroots innovators; by entrepreneurs; and
to people.by small, medium, and large companies. The theme of this
years Global Innovation Index, A specific instance is found in one
of Indias big- which emphasizes innovation linkages in high-
andgest recent success stories: the mobile and ICT revolu-
lower-income countries alike, is well suited for address-tion. This
revolution has enabled innovation in other ing the contemporary
challenges of innovation. I takespheres by connecting people
throughout the country, this opportunity to thank INSEAD and the
Worldproviding the means for optimization of ideas and their
Intellectual Property Organization for bringing outrealization. The
government, for example, is connect- this excellent work and to
express my pleasure at CIIsing Indian panchayats (village
administrations) through participation over the last four years as
a Knowledgefibre optic cables with the goal of transforming service
Partner in this important initiative. I also congratulate THE
GLOBAL INNOVATION INDEX 2012delivery in areas such as health,
education, agriculture. the other Knowledge Partners for their
continued sup-This has truly provided an important means by which
port and contribution to the report.this Indian innovative spirit
can be harnessed. The government is keen to provide an enabling
Chandrajit Banerjee Director Generalpolicy and institutional
framework to promote innova- Confederation of Indian Industrytion.
The President of India has declared 20102020the Decade of
Innovation to focus attention on this
11. contributors xiiiContributors to the Report
ContributorsThis report was developed under the general direction
of Soumitra DUTTA DIRECT COLLABORATORS(Editor) and Francis GURRY
(Director General, World Intellectual Property Michaela SAISANA,
Senior Researcher, Institute for the Protection andOrganization).
It was prepared and coordinated by a core team comprising: Security
of the Citizen, Joint Research Centre of the European Commission
Hope STEELE, Editor, Steele Editorial Servicescore team Neil
WEINBERG, Principal, Neil Weinberg DesignSoumitra DUTTA, Roland
Berger Professor of Business and Technology,INSEAD, and Academic
Director of eLab, INSEAD data COLLABORATORSBruno LANVIN, Executive
Director of eLab, INSEAD Alex CHISHOLM, Director, Statistical
Analysis; and Hillary CHAN, ResearchDaniela BENAVENTE, GII Lead
Researcher and Project Manager, Analysis Associate Manager at the
Graduate Management AdmissioneLab, INSEAD Council (GMAC)Sacha
WUNSCH-VINCENT, Senior Economist, Economics and Janis KARKLINS,
Assistant Director-General for UNESCOs CommunicationStatistics
Division, WIPO and Information Sector, Martin SCHAAPER, Programme
Specialist, Lydia DELOUMEAUX, Assistant Programme Specialist,
Luciana MARINS,KNOWLEDGE PARTNERS Assistant Programme Specialist,
UNESCO Institute for StatisticsAlcatel-Lucent Alex KOZAK, Policy
Analyst, GoogleRevital MAROM, Head of Market and Consumer Insight
Sean MAC CURTAIN, Head, Conformity Assessment, InternationalLouis
WITTERS, Director, Market and Consumer Insight Organization for
Standardization (ISO) Adelina MENDOZA, Senior Statistical Officer,
Economic Research andKurt STEINERT, Director of Corporate
Communications Statistical Division, World Trade Organization
(WTO)Simon POULTER, Head of Media Relations Ifigenia POULKA, Data
and Applications Specialist, Thomson ReutersBooz and Company
Programme for International Student Assessment (PISA), Directorate
forBarry JARUZELSKI, Senior Vice President Education, Indicators
and Analysis Division, Organisation for EconomicKarim M. SABBAGH,
Senior Vice President Co-operation and Development (OECD) Taylor
REYNOLDS, Head; Piotr STRYSZOWSKI, Economist; and FredericRichard
SHEDIAC, Senior Vice President BOURASSA, Statistician, Information,
Computer and CommunicationChadi N. MOUJAES, Vice-President Policy
Division, Directorate for Science, Technology and Industry,
OECDRasheed ELTAYEB, Principal Susan TELTSCHER, Head; and Esperanza
MAGPANTAY, StatisticianHadi RAAD, Principal at the Market
Information and Statistics Division, TelecommunicationHatem A.
SAMMAN, Director, The Ideation Center Development Bureau,
International Telecommunication Union (ITU) Karen TREANTON, Head of
Energy Balances, Prices and Emissions Section,Confederation of
Indian Industry Energy Statistics Division, International Energy
AgencyAnjan DAS, Executive Director, Technology Erik ZACHTE, Data
Analyst, Wikimedia FoundationSeema GUPTA, Director Matthew ZOOK,
Associate Professor at the University of KentuckyJibak DASGUPTA,
Deputy DirectorINSEADShellie KARABELL, Director Media Relations
& KnowledgeSophie BADRE, Associate Director Media
RelationsShilpa DODDA, Research Programmer, eLab THE GLOBAL
INNOVATION INDEX 2012Virginie BONGEOT-MINET, Centre Coordinator,
eLabWIPOCarsten FINK, Chief EconomistRyan LAMB, Statistical
Analyst, Economics and Statistics DivisionLiudmila KASHCHEEVA,
Intern, Economics and Statistics DivisionWIPO Communications
DivisionWIPO Printing & Publication Production Section
12. advisory board xvAdvisory Board to the Global Innovation
Index Advisory BoardIn 2011, an Advisory Board was set up to
provide advice ADVISORY BOARD MEMBERS Khalid S. Al-Sultanon the
research underlying the Global Innovation Index Rector, King Fahad
University for Petroleum & Minerals, Saudi Arabia(GII),
generate synergies at its stages of development, and Daniele
Archibugiassist with the dissemination of its messages and results.
Research Director, Italian National Research Council (CNR),
affiliated withThe Advisory Board is a select group of leading
interna- the Institute on Population and Social Policy (IRPPS); and
Professor oftional practitioners and experts with unique knowledge
Innovation, Governance and Public Policy, Department of
Management,and skills in the realm of innovation. Its members,
while Birkbeck College, University of Londoncoming from diverse
geographical and institutional Irina Bokovabackgrounds
(international organizations, the public Director General of the
United Nations Educational, Scientific and Culturalsector,
non-governmental organizations, business, and Organization
(UNESCO)academia), participate in their personal capacity. We
Leonid Gokhberg First Vice-Rector, Higher School of Economics
(HSE), and Director, HSEare grateful for the time and support
provided by the Institute for Statistical Studies and Economics of
Knowledge, RussianAdvisory Board members. Federation In 2012, we
welcomed two new members to the Rolf-Dieter HeuerAdvisory Board:
Sibusiso Sibisi and Rob Steele. Director General, European
Organization for Nuclear Research (CERN) Rolf Lehming Director,
Science and Engineering Indicators Program, National Science
Foundation (NSF), United States of America Raghunath Anant
Mashelkar Bhatnagar Fellow, National Chemical Laboratory, Council
of Scientific and Industrial Research (CSIR); Chairperson, National
Innovation Foundation; and President, Global Research Alliance,
India Sibusiso Sibisi President and Chief Executive Officer,
Council for Scientific and Industrial Research (CSIR), South Africa
Lynn St. Amour President and Chief Executive Officer, Internet
Society Rob Steele Secretary-General, International Organization
for Standardization (ISO) Hamadoun Tour Secretary-General,
International Telecommunication Union (ITU) THE GLOBAL INNOVATION
INDEX 2012
13. Rankings
14. xviii Global Innovation Index rankingsRankings
Country/Economy Score (0100) Rank Income Rank Region Rank
Switzerland 68.2 1 HI 1 EUR 1 Sweden 64.8 2 HI 2 EUR 2 Singapore
63.5 3 HI 3 SEAO 1 Finland 61.8 4 HI 4 EUR 3 United Kingdom 61.2 5
HI 5 EUR 4 Netherlands 60.5 6 HI 6 EUR 5 Denmark 59.9 7 HI 7 EUR 6
Hong Kong (China) 58.7 8 HI 8 SEAO 2 Ireland 58.7 9 HI 9 EUR 7
United States of America 57.7 10 HI 10 NAC 1 Luxembourg 57.7 11 HI
11 EUR 8 Canada 56.9 12 HI 12 NAC 2 New Zealand 56.6 13 HI 13 SEAO
3 Norway 56.4 14 HI 14 EUR 9 Germany 56.2 15 HI 15 EUR 10 Malta
56.1 16 HI 16 EUR 11 Israel 56.0 17 HI 17 NAWA 1 Iceland 55.7 18 HI
18 EUR 12 Estonia 55.3 19 HI 19 EUR 13 Belgium 54.3 20 HI 20 EUR 14
Korea, Rep. 53.9 21 HI 21 SEAO 4 Austria 53.1 22 HI 22 EUR 15
Australia 51.9 23 HI 23 SEAO 5 France 51.8 24 HI 24 EUR 16 Japan
51.7 25 HI 25 SEAO 6 Slovenia 49.9 26 HI 26 EUR 17 Czech Republic
49.7 27 HI 27 EUR 18 Cyprus 47.9 28 HI 28 NAWA 2 Spain 47.2 29 HI
29 EUR 19 Latvia 47.0 30 UM 1 EUR 20 Hungary 46.5 31 HI 30 EUR 21
Malaysia 45.9 32 UM 2 SEAO 7 Qatar 45.5 33 HI 31 NAWA 3 China 45.4
34 UM 3 SEAO 8 Portugal 45.3 35 HI 32 EUR 22 Italy 44.5 36 HI 33
EUR 23 United Arab Emirates 44.4 37 HI 34 NAWA 4 Lithuania 44.0 38
UM 4 EUR 24 Chile 42.7 39 UM 5 LCN 1 Slovakia 41.4 40 HI 35 EUR 25
Bahrain 41.1 41 HI 36 NAWA 5 Croatia 40.7 42 HI 37 EUR 26 Bulgaria
40.7 43 UM 6 EUR 27 Poland 40.4 44 HI 38 EUR 28 Montenegro 40.1 45
UM 7 EUR 29 Serbia 40.0 46 UM 8 EUR 30 Oman 39.5 47 HI 39 NAWA 6
Saudi Arabia 39.3 48 HI 40 NAWA 7 Mauritius 39.2 49 UM 9 SSF 1
Moldova, Rep. 39.2 50 LM 1 EUR 31 Russian Federation 37.9 51 UM 10
EUR 32 Romania 37.8 52 UM 11 EUR 33 Brunei Darussalam 37.7 53 HI 41
SEAO 9 South Africa 37.4 54 UM 12 SSF 2 Kuwait 37.2 55 HI 42 NAWA 8
Jordan 37.1 56 UM 13 NAWA 9 Thailand 36.9 57 UM 14 SEAO 10 Brazil
36.6 58 UM 15 LCN 2 Tunisia 36.5 59 UM 16 NAWA 10THE GLOBAL
INNOVATION INDEX 2012 Costa Rica 36.3 60 UM 17 LCN 3 Lebanon 36.2
61 UM 18 NAWA 11 Macedonia, FYR 36.2 62 UM 19 EUR 34 Ukraine 36.1
63 LM 2 EUR 35 India 35.7 64 LM 3 CSA 1 Colombia 35.5 65 UM 20 LCN
4 Greece 35.3 66 HI 43 EUR 36 Uruguay 35.1 67 UM 21 LCN 5 Mongolia
35.0 68 LM 4 SEAO 11 Armenia 34.5 69 LM 5 NAWA 12 Argentina 34.4 70
UM 22 LCN 6 Georgia 34.3 71 LM 6 NAWA 13
15. xixGlobal Innovation Index rankings (continued)
RankingsCountry/Economy Score (0100) Rank Income Rank Region
RankBosnia and Herzegovina 34.2 72 UM 23 EUR 37Namibia 34.1 73 UM
24 SSF 3Turkey 34.1 74 UM 25 NAWA 14Peru 34.1 75 UM 26 LCN 7Viet
Nam 33.9 76 LM 7 SEAO 12Guyana 33.7 77 LM 8 LCN 8Belarus 32.9 78 UM
27 EUR 38Mexico 32.9 79 UM 28 LCN 9Belize 32.5 80 LM 9 LCN
10Trinidad and Tobago 32.5 81 HI 44 LCN 11Swaziland 32.0 82 LM 10
SSF 4Kazakhstan 31.9 83 UM 29 CSA 2Paraguay 31.6 84 LM 11 LCN
12Botswana 31.4 85 UM 30 SSF 5Dominican Republic 30.9 86 UM 31 LCN
13Panama 30.9 87 UM 32 LCN 14Morocco 30.7 88 LM 12 NAWA
15Azerbaijan 30.4 89 UM 33 NAWA 16Albania 30.4 90 UM 34 EUR
39Jamaica 30.2 91 UM 35 LCN 15Ghana 29.6 92 LM 13 SSF 6El Salvador
29.5 93 LM 14 LCN 16Sri Lanka 29.1 94 LM 15 CSA 3Philippines 29.0
95 LM 16 SEAO 13Kenya 28.9 96 LI 1 SSF 7Senegal 28.8 97 LM 17 SSF
8Ecuador 28.5 98 UM 36 LCN 17Guatemala 28.4 99 LM 18 LCN
18Indonesia 28.1 100 LM 19 SEAO 14Fiji 27.9 101 LM 20 SEAO 15Rwanda
27.9 102 LI 2 SSF 9Egypt 27.9 103 LM 21 NAWA 17Iran, Islamic Rep.
27.3 104 UM 37 CSA 4Nicaragua 26.7 105 LM 22 LCN 19Gabon 26.5 106
UM 38 SSF 10Zambia 26.4 107 LM 23 SSF 11Tajikistan 26.4 108 LI 3
CSA 5Kyrgyzstan 26.4 109 LI 4 CSA 6Mozambique 26.3 110 LI 5 SSF
12Honduras 26.3 111 LM 24 LCN 20Bangladesh 26.1 112 LI 6 CSA 7Nepal
26.0 113 LI 7 CSA 8Bolivia, Plurinational St. 25.8 114 LM 25 LCN
21Zimbabwe 25.7 115 LI 8 SSF 13Lesotho 25.7 116 LM 26 SSF 14Uganda
25.6 117 LI 9 SSF 15Venezuela, Bolivarian Rep. 25.4 118 UM 39 LCN
22Mali 25.4 119 LI 10 SSF 16Malawi 25.4 120 LI 11 SSF 17Cameroon
25.0 121 LM 27 SSF 18Burkina Faso 24.6 122 LI 12 SSF 19Nigeria 24.6
123 LM 28 SSF 20Algeria 24.4 124 UM 40 NAWA 18Benin 24.4 125 LI 13
SSF 21Madagascar 24.2 126 LI 14 SSF 22Uzbekistan 23.9 127 LM 29 CSA
9Tanzania, United Rep. 23.9 128 LI 15 SSF 23Cambodia 23.4 129 LI 16
SEAO 16Gambia 23.3 130 LI 17 SSF 24 THE GLOBAL INNOVATION INDEX
2012Ethiopia 23.3 131 LI 18 SSF 25Syrian Arab Rep. 23.1 132 LM 30
NAWA 19Pakistan 23.1 133 LM 31 CSA 10Cte dIvoire 22.6 134 LM 32 SSF
26Angola 22.2 135 LM 33 SSF 27Togo 20.5 136 LI 19 SSF 28Burundi
20.5 137 LI 20 SSF 29Lao PDR 20.2 138 LM 34 SEAO 17Yemen 19.2 139
LM 35 NAWA 20Niger 18.6 140 LI 21 SSF 30Sudan 16.8 141 LM 36 SSF
31Note: World Bank Income Group Classification (April 2012): LI =
low income; LM = lower-middle income; UM = upper-middle income; and
HI = high income. Regions are based on the United Nations
Classification (20 September 2011): EUR = Europe; NAC = Northern
America; LCN = Latin America and the Caribbean; CSA = Central and
Southern Asia; SEAO = South East Asia and Oceania; NAWA = Northern
Africa and Western Asia; and SSF = Sub-Saharan Africa.
16. Chapters
17. chapter 1 3The Global Innovation Index 2012: Stronger
Innovation Linkages for Global 1: The Global Innovation Index
2012GrowthDaniela Benavente and S oumitra Dutta, INSEAD eLabSacha
Wunsch-Vincent, WIPOThe global economic recovery is this downturn
on innovation is com- Unmistakably, reductions or afragile and
uneven across different plex and ambiguous, with large vari-
streamlining of R&D expendituresregions. ations across f irms,
sectors, coun- in times of crisis does not have to Most current
economic forecasts tries, and regions. On the one hand, affect
research output or innovationsby leading international economic
crisis might stimulate new entrepre- if eff iciency is improved and
lessinstitutions predict a slowdown neurial ventures and growth
areas. promising projects are discontinued.of gross domestic
product (GDP) Past crises in the 1990s are said to Still, firmsin
particular small andgrowth throughout 2012 and an have generated
new strings of inno- medium-sized enterprises (SMEs)uncertain
recovery in 2013.1 Despite vative companies and may have put face
greater diff iculties in tappingsome setbacks, growth remains rel-
entire nationssuch as Finland and external sources of funding to
sup-atively strong in most emerging- the Republic of Koreaon a new
port their innovation investmentsmarket economies. The situation in
growth path.3 Countries that con- and to f inance new business
ven-high-income economies, however, tinue to invest in innovation
despite tures. The access to venture capital isis more precarious.
Unemployment economically worsening conditions still severely
depressed. The numberis high and growing in many of these are
reaping the benef its of their of firm creations is down in
coun-countries. Full crisis recovery will efforts at some point.
tries for which data are available.take its time, and there are
risks of On the other hand, true risks Importantly, research anda
renewed degradation of the eco- exist in terms of a negative effect
on development (R&D) and innova-nomic climate resulting in a
pro- innovation expenditures and out- tion expenditures cannot
often belonged state of uncertainty. puts. Total and/or business
R&D stopped and subsequently picked In this context, the
economic investments have declined as of 2008 up again simply when
the economypolicy debate is placing renewed or 2009 in a
significant number of recovers. Initial investments areemphasis on
achieving an appro- countries for which data are avail- sunk.
Researchers deskill and PhDpriate policy framework that fosters
able (for example, in Canada, Israel, students without funding go
intogrowth and employment while pro- Lithuania, Netherlands, Spain,
other fields. Innovation that is post-moting sustainable public
finances. Sweden, and the United Kingdom, poned now will also not
take placeAs outlined in the Preface to this or UK).4 Moreover, the
worlds later; there are hysteresis effects inreport, policies that
promote inno- top R&D investors decreased their
innovation.vation and structural policies foster- R&D spending
by 1.9% in 2009.5 Knowing the exact effects of theing long-term
output growth should The crisis is expected to have slowed economic
crisis on business innova-feature prominently in these discus- the
introduction of new products tion will take time. The
questionssions. Although innovation cannot or processes, primarily
because of involved are too complex to becure the most immediate
financial decreased demand and increased reduced to a blanket
assessment of THE GLOBAL INNOVATION INDEX 2012diff iculties, it is
a crucial element business uncertainty, including the effect of the
economic slowdownof sustainable growth. Forward- uncertainty about
the size of the on the level and geography of inno-looking measures
are needed to lay future market. Large multinational vation.
Moreover, such an assess-the foundations for future prosperity.
firms responsible for a large share of ment is premature and data
to fully The economic crisis is affecting business R&D have
recently accu- assess the impacts are only emerging.not only
investments but also the cli- mulated large cash stocks that are
not Also, as part of their stimulusmate for innovation.2 The effect
of being reinvested. packages, in 2009 and onwards most
18. 4 governments have pledged to avoid In the policy debate
and the liter- so by introducing and discussing rel-1: The Global
Innovation Index 2012 cutbacks in science and R&D or even
ature, emphasis is put on the increas- evant metrics that are
complemented increase spending.6 Ideally, spending ingly
collaborative nature of inno- by substantive chapters that analyse
measures decided by governments vative processes. Such
collaboration this theme in the context of partic- need to marry
short-term demand has been facilitated as innovation ular country
settings (Chapter 3 on stimulus with longer-lasting growth
processes have become more frag- Saudi Arabia, Chapter 5 on the
Golf objectives. Most governments have mented and open.7 As studied
in Cooperation Council, Chapter 6 on also identified financial or
structural several chapters of this publication, the Russian
Federation, and Chapter policies to foster new employment the role
of the Internet more gener- 7 on India) and with a focus on sci-
and growth in areas such as research, ally has been crucial in
introducing ence-industry linkages (Chapters 4 the health sector,
transport, and the changes to the innovation process and 8),
public-private partnerships environment. There is now a need to and
to related outputs.8 Markets for (Chapter 2), and the role of
informa- monitor and assess how and whether technologies that allow
for knowl- tion and communication technolo- these stimulus measures
have been edge diffusion have added a further gies and the Internet
(Chapters 8, 9, implemented and to determine the boost to
collaboration.9 and 10). impacts on short-term demand and
Accordingly, in the last decades longer-term economic foundations
in high- and middle-income coun- and the society more broadly. This
tries alike, various national strate- The rationale for the Global
Innovation applies to programmes decided in gies have aimed to
improve the link- Index 2009 and to those that are in the ages
between the various innovation The GII project was launched by
offing. actors, most notably the science sys- INSEAD in 2007 with
the simple To support these debates, to tem and higher education,
the gov- goal of determining how to f ind guide polices, and to
highlight good ernment, the private sector, and metrics and
approaches to better practices, metrics are required to
increasingly also the not-for-profit capture the richness of
innovation assess innovation and related policy sector such as
philanthropies and in society and go beyond such tradi-
performance. For this purpose the nongovernmental organizations.
tional measures of innovation as the GII is timely and relevant.
The measurement agenda has number of research articles and the
evolved to address the systemic dimen- level of R&D
expenditures.13 sion of innovation10that is, the activ- There were
several motivations Stronger innovation linkages for global ities
of multiple innovation actors for setting this goal. First, innova-
growth and linkages among them.11 The tion is important for driving
eco- The theme of this years GII report, challenge is to detect and
quantify nomic progress and competitive- Stronger innovation
linkages for the dynamic and often informal nessboth for developed
and devel- global growth, underlines the nature of linkages and
their efficacy. oping economies. Many govern- importance of
productive interac- This policy and measurement ments are putting
innovation at the tions among innovation actors ambition is far
from being impor- centre of their growth strategies. firms, the
public sector, academia, tant only to advanced economies. It
Second, there is awareness that the and societyin modern innovation
is also critical in most low- and mid- definition of innovation has
broad- ecosystems (see also Chapter 4 of this dle-income country
contexts, where enedit is no longer restricted to report).
innovation linkages are, on average, R&D laboratories and to
published More and more attention is weaker than in high-income
coun- scientific papers. Innovation could focused on the interplay
of institu- tries. Furthermore, low- and mid- be and is more
general and horizontal tions and the interactive processes
dle-income countries have been in nature, and includes social inno-
in the creation, application, and dif- the source of incremental
innova- vations and business model innova- THE GLOBAL INNOVATION
INDEX 2012 fusion of knowledge, human capi- tion.12 One challenge
is to appro- tions as well. Last but not least, rec- tal, and
technology. In particu- priately quantify the extent of this
ognizing and celebrating innovation lar, the transfer of scientific
results type of innovation and the required in emerging markets is
seen as criti- and inventions and their application linkages. cal
for inspiring peopleespecially to societal challenges in high- and
Yet again, the GII intends to the next generation of entrepreneurs
lower-income countries alike is gar- contribute to the policy and
mea- and innovators. nering attention. surement debate on linkages.
It does
19. 5 The GII helps to create an envi- An inclusive perspective
on innovation Furthermore, the process of 1: The Global Innovation
Index 2012ronment in which innovation factors The GII adopts a
broad notion of innovation has undergone signif i-are under
continual evaluation, and innovation, originally presented in cant
change. Investment in innova-it provides a key tool and a rich
data- the Oslo Manual developed by the tion-related activity has
consistentlybase of detailed metrics for refining European
Communities and the intensified at the firm, country, andinnovation
policies. OECD:14 global levels, adding new innovation The GII is
not meant to be the actors from outside high-income An innovation
is the implementation of aultimate and definitive ranking of
economies and also nonprofit actors. new or significantly improved
product (goodnations with respect to innovation. The structure of
knowledge produc- or service), a new process, a new
marketingMeasuring innovation outputs and tion activity is more
complex and method, or a new organizational method inimpacts
remains diff icult; hence geographically dispersed than ever.
business practices, workplace organization,great emphasis is placed
on mea- A key challenge is to find metrics or external
relations.suring the climate and infrastruc- that capture
innovation as it happensture for innovation and on assessing This
def inition ref lects the in the world today.16 Direct
officialrelated outcomes. evolving nature of the way inno- measures
that quantify innovation Although the end results take the vation
is perceived and understood outputs remain extremely scarce.17form
of several rankings, the GII is over the last two decades.15 For
example, there are no off icialmore concerned with improving the
Previously, economists and pol- statistics on the amount of innova-
journey to better measuring and icy makers focused on R&D-based
tive activitydefined as the num-understanding innovation, and with
technological product innovation, ber of new products, processes,
oridentifying targeted policies, good largely produced in-house and
other innovationsfor any givenpractices, and other levers to foster
mostly in manufacturing industries. innovation actor, let alone for
anyinnovation. The rich metrics can This type of innovation is
performed given country. Most measures alsobe used by individual
countries by a highly educated labour force struggle to
appropriately capture theeither at the level of the index and in
R&D-intensive companies. The innovation outputs of a wider
spec-sub-indices or at the level of individ- process leading to
such innovation trum of innovation actors, such asual variables,
such as the number of was conceptualized as closed, inter- the
services sector, public entities,patent applications by residentto
nal, and localized. Technological and so on.monitor performance
over time and breakthroughs were necessarily The GII aims to move
beyondto benchmark developments against radical and took place at
the global the mere measurement of such sim-other countries in the
same region or knowledge frontier. This character- ple innovation
metrics. This requiresof the same income group. ization also
implied the existence of the integration of new variables, As a
result, and drawing on the leading and lagging countries with with
a trade-off between the qual-expertise of the GIIs Knowledge low-
or middle-income economies ity of the variable on the one
handPartners and the prominent only catching up. and achieving good
country cover-Advisory Board, the GII model is Today, innovation
capability is age on the other hand.continually updated to ref lect
the seen more as the ability to exploit The timeliest indicators
areimproved availability of statistics and new technological
combinations and used for the GII. About 35% of dataour
understanding of the meaning embraces the notion of incremental
obtained is from 2011, 35% fromand implications of innovation. This
innovation and innovation without 2010, 21% from 2009, and the
smallyear particular emphasis is placed on research.
Non-R&D-innovative remainderfor certain particularavoiding f
lawed year-on-year com- expenditure is an important compo-
variables or low-income countriesparisons by estimating the impact
nent of reaping the rewards of tech- from earlier years.18 This
gives thein the rankings of changes in per- nological innovation.
GII good coverage of the years where THE GLOBAL INNOVATION INDEX
2012formance on particular indicators, There is also an increasing
inter- the economic crisis attained its ini-adjustments to the GII
framework, est in understanding how innova- tial peak, when
innovation expen-and/or the inclusion of additional tion takes
place in low- and middle- ditures were most severely
affected,economies in the rankings. income countries and an
awareness and when stimulus programmes that incremental forms of
innovation were decided and meant to be put can impact development.
into action.
20. 6 Figure 1: Framework of the Global Innovation Index 20121:
The Global Innovation Index 2012 Global Innovation Index (average)
Innovation Efficiency Index (ratio) Innovation Input Innovation
Output Sub-Index Sub-Index Human Knowledge and capital and Market
Business technology Creative Institutions research Infrastructure
sophistication sophistication outputs outputs Political Knowledge
Knowledge Creative environment Education ICT Credit workers
creation intangibles Regulatory Tertiary General Innovation
Knowledge Creative goods environment education infrastructure
Investment linkages impact and services Business Research &
Ecological Trade & Knowledge Knowledge Online environment
development sustainability competition absorption diffusion
creativity That said, the time coverage the latest research on the
measure- the simple average of the first does not allow us to
capture more ment of innovation. This year the five pillar scores.
medium-term effects of the crisis or GII model includes 141
economies, 2. Innovation Output Sub-Index: the stimulus programmes
on inno- which represent 94.9% of the worlds