The Global Innovation Index 2013The Local Dynamics of Innovation

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country/Economy Score (0–100) rank Income rank region rank Efficiency ratio rank Median: 0.78

Switzerland 66.59 1 HI 1 EUr 1 1.00 12

Sweden 61.36 2 HI 2 EUr 2 0.81 55

United Kingdom 61.25 3 HI 3 EUr 3 0.80 60

Netherlands 61.14 4 HI 4 EUr 4 0.91 26

United States of america 60.31 5 HI 5 Nac 1 0.74 86

finland 59.51 6 HI 6 EUr 5 0.79 67

Hong Kong (china) 59.43 7 HI 7 SEaO 1 0.68 109

Singapore 59.41 8 HI 8 SEaO 2 0.64 121

Denmark 58.34 9 HI 9 EUr 6 0.76 78

Ireland 57.91 10 HI 10 EUr 7 0.81 57

canada 57.60 11 HI 11 Nac 2 0.78 68

Luxembourg 56.57 12 HI 12 EUr 8 0.89 33

Iceland 56.40 13 HI 13 EUr 9 0.89 30

Israel 55.98 14 HI 14 NaWa 1 0.87 38

Germany 55.83 15 HI 15 EUr 10 0.87 40

Norway 55.64 16 HI 16 EUr 11 0.76 81

New Zealand 54.46 17 HI 17 SEaO 3 0.74 90

Korea, rep. 53.31 18 HI 18 SEaO 4 0.72 95

australia 53.07 19 HI 19 SEaO 5 0.65 116

france 52.83 20 HI 20 EUr 12 0.79 63

Belgium 52.49 21 HI 21 EUr 13 0.76 75

Japan 52.23 22 HI 22 SEaO 6 0.66 112

austria 51.87 23 HI 23 EUr 14 0.71 98

Malta 51.79 24 HI 24 EUr 15 1.06 4

Estonia 50.60 25 HI 25 EUr 16 0.82 51

Spain 49.41 26 HI 26 EUr 17 0.71 101

cyprus 49.32 27 HI 27 NaWa 2 0.86 43

czech republic 48.36 28 HI 28 EUr 18 0.81 53

Italy 47.85 29 HI 29 EUr 19 0.79 62

Slovenia 47.32 30 HI 30 EUr 20 0.78 70

Hungary 46.93 31 HI 31 EUr 21 0.94 23

Malaysia 46.92 32 UM 1 SEaO 7 0.81 52

Latvia 45.24 33 UM 2 EUr 22 0.77 74

portugal 45.10 34 HI 32 EUr 23 0.73 92

china 44.66 35 UM 3 SEaO 8 0.98 14

Slovakia 42.25 36 HI 33 EUr 24 0.75 84

croatia 41.95 37 HI 34 EUr 25 0.82 50

United arab Emirates 41.87 38 HI 35 NaWa 3 0.55 133

costa rica 41.54 39 UM 4 LcN 1 1.02 9

Lithuania 41.39 40 UM 5 EUr 26 0.69 105

Bulgaria 41.33 41 UM 6 EUr 27 0.88 35

Saudi arabia 41.21 42 HI 36 NaWa 4 0.80 61

Qatar 41.00 43 HI 37 NaWa 5 0.71 97

Montenegro 40.95 44 UM 7 EUr 28 0.72 94

Moldova, rep. 40.94 45 LM 1 EUr 29 1.08 2

chile 40.58 46 UM 8 LcN 2 0.74 88

Barbados 40.48 47 HI 38 LcN 3 0.73 91

romania 40.33 48 UM 9 EUr 30 0.88 34

poland 40.12 49 HI 39 EUr 31 0.68 110

Kuwait 40.02 50 HI 40 NaWa 6 1.03 8

Macedonia, fyr 38.18 51 UM 10 EUr 32 0.72 96

Uruguay 38.08 52 UM 11 LcN 4 0.85 45

Mauritius 38.00 53 UM 12 SSf 1 0.80 59

Serbia 37.87 54 UM 13 EUr 33 0.82 49

Greece 37.71 55 HI 41 EUr 34 0.65 118

argentina 37.66 56 UM 14 LcN 5 0.94 20

Thailand 37.63 57 UM 15 SEaO 9 0.76 76

South africa 37.60 58 UM 16 SSf 2 0.71 99

armenia 37.59 59 LM 2 NaWa 7 0.86 42

colombia 37.38 60 UM 17 LcN 6 0.76 79

Jordan 37.30 61 UM 18 NaWa 8 0.77 73

russian federation 37.20 62 UM 19 EUr 35 0.70 104

Mexico 36.82 63 UM 20 LcN 7 0.81 56

Brazil 36.33 64 UM 21 LcN 8 0.78 69

Bosnia and Herzegovina 36.24 65 UM 22 EUr 36 0.70 103

India 36.17 66 LM 3 cSa 1 1.02 11

Bahrain 36.13 67 HI 42 NaWa 9 0.62 123

Turkey 36.03 68 UM 23 NaWa 10 0.90 29

peru 35.96 69 UM 24 LcN 9 0.77 72

Tunisia 35.82 70 UM 25 NaWa 11 0.88 36 Ukraine 35.78 71 LM 4 EUr 37 0.89 31

Global Innovation Index rankings

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Mongolia 35.77 72 LM 5 SEaO 10 0.62 122 Georgia 35.56 73 LM 6 NaWa 12 0.71 100

Brunei Darussalam 35.53 74 HI 43 SEaO 11 0.65 119

Lebanon 35.47 75 UM 26 NaWa 13 0.66 114

viet Nam 34.82 76 LM 7 SEaO 12 0.96 17

Belarus 34.62 77 UM 27 EUr 38 0.75 82

Guyana 34.36 78 LM 8 LcN 10 0.97 15

Dominican republic 33.28 79 UM 28 LcN 11 0.90 28

Oman 33.25 80 HI 44 NaWa 14 0.54 134

Trinidad and Tobago 33.17 81 HI 45 LcN 12 0.75 85

Jamaica 32.89 82 UM 29 LcN 13 0.79 65

Ecuador 32.83 83 UM 30 LcN 14 0.94 21

Kazakhstan 32.73 84 UM 31 cSa 2 0.61 126

Indonesia 31.95 85 LM 9 SEaO 13 1.04 6

panama 31.82 86 UM 32 LcN 15 0.61 127

Guatemala 31.46 87 LM 10 LcN 16 0.79 66

El Salvador 31.32 88 LM 11 LcN 17 0.76 80

Uganda 31.21 89 LI 1 SSf 3 0.95 19

philippines 31.18 90 LM 12 SEaO 14 0.93 24

Botswana 31.14 91 UM 33 SSf 4 0.51 136

Morocco 30.89 92 LM 13 NaWa 15 0.75 83

albania 30.85 93 LM 14 EUr 39 0.58 129

Ghana 30.60 94 LM 15 SSf 5 0.80 58

Bolivia, plurinational St. 30.48 95 LM 16 LcN 18 0.88 37

Senegal 30.48 96 LM 17 SSf 6 0.95 18

fiji 30.46 97 LM 18 SEaO 15 0.51 137

Sri Lanka 30.45 98 LM 19 cSa 3 0.99 13

Kenya 30.28 99 LI 2 SSf 7 0.78 71

paraguay 30.28 100 LM 20 LcN 19 0.82 48

Tajikistan 30.00 101 LI 3 cSa 4 0.90 27

Belize 29.98 102 LM 21 LcN 20 0.73 93

cape verde 29.69 103 LM 22 SSf 8 0.57 130

Swaziland 29.60 104 LM 23 SSf 9 1.06 5

azerbaijan 28.99 105 UM 34 NaWa 16 0.65 117

Mali 28.84 106 LI 4 SSf 10 1.13 1 Honduras 28.80 107 LM 24 LcN 21 0.66 115

Egypt 28.48 108 LM 25 NaWa 17 0.68 108

Namibia 28.36 109 UM 35 SSf 11 0.48 139

cambodia 28.07 110 LI 5 SEaO 16 0.87 39

Gabon 28.04 111 UM 36 SSf 12 0.81 54

rwanda 27.64 112 LI 6 SSf 13 0.64 120

Iran, Islamic rep. 27.30 113 UM 37 cSa 5 0.68 107

venezuela, Bolivarian rep. 27.25 114 UM 38 LcN 22 1.02 10

Nicaragua 27.10 115 LM 26 LcN 23 0.62 125

Burkina faso 27.03 116 LI 7 SSf 14 0.79 64

Kyrgyzstan 26.98 117 LI 8 cSa 6 0.56 131

Zambia 26.79 118 LM 27 SSf 15 0.89 32

Malawi 26.73 119 LI 9 SSf 16 0.87 41

Nigeria 26.57 120 LM 28 SSf 17 1.03 7

Mozambique 26.50 121 LI 10 SSf 18 0.67 111

Gambia 26.39 122 LI 11 SSf 19 0.86 44

Tanzania, United rep. 26.35 123 LI 12 SSf 20 0.66 113

Lesotho 26.29 124 LM 29 SSf 21 0.47 140

cameroon 25.71 125 LM 30 SSf 22 0.84 47

Guinea 25.70 126 LI 13 SSf 23 1.07 3

Benin 25.10 127 LI 14 SSf 24 0.69 106

Nepal 24.97 128 LI 15 cSa 7 0.76 77

Ethiopia 24.80 129 LI 16 SSf 25 0.74 87

Bangladesh 24.52 130 LI 17 cSa 8 0.84 46

Niger 24.03 131 LI 18 SSf 26 0.71 102

Zimbabwe 23.98 132 LI 19 SSf 27 0.91 25

Uzbekistan 23.87 133 LM 31 cSa 9 0.52 135

Syrian arab republic 23.73 134 LM 32 NaWa 18 0.45 142

angola 23.46 135 UM 39 SSf 28 0.94 22

côte d'Ivoire 23.42 136 LM 33 SSf 29 0.74 89

pakistan 23.33 137 LM 34 cSa 10 0.97 16

algeria 23.11 138 UM 40 NaWa 19 0.46 141

Togo 23.04 139 LI 20 SSf 30 0.56 132

Madagascar 22.95 140 LI 21 SSf 31 0.59 128

Sudan 19.81 141 LM 35 SSf 32 0.49 138 yemen 19.32 142 LM 36 NaWa 20 0.62 124

Note: World Bank Income Group Classification (July 2012): LI = low income; LM = lower-middle income; UM = upper-middle income; and HI = high income. Regions are based on the United Nations Classification (11 February 2013): 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.

Global Innovation Index rankings (continued)

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Table 5: Heatmap for GII top 10 economies and regional and income group averages (1–100)

country/Economy GII

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Switzerland 66.59 87.31 55.45 57.03 77.47 55.33 66.52 61.46 71.84 66.65 1.00

Sweden 61.36 89.92 62.45 63.14 71.82 51.97 67.86 54.12 55.60 54.86 0.81

United Kingdom 61.25 88.44 56.18 59.45 84.60 52.32 68.20 51.07 57.52 54.30 0.80

Netherlands 61.14 92.76 50.64 55.48 69.18 52.85 64.18 53.89 62.30 58.09 0.91

United States of america 60.31 86.05 61.06 52.54 87.09 59.24 69.19 53.62 49.22 51.42 0.74

finland 59.51 95.31 67.39 57.51 63.19 49.95 66.67 50.81 53.90 52.35 0.79

Hong Kong (china) 59.43 90.80 52.29 63.43 88.58 58.17 70.65 34.21 62.20 48.21 0.68

Singapore 59.41 92.24 63.18 59.19 77.60 69.16 72.27 48.53 44.58 46.56 0.64

Denmark 58.34 95.33 60.36 53.87 74.60 47.53 66.34 41.93 58.77 50.35 0.76

Ireland 57.91 91.95 59.28 42.19 73.22 53.83 64.09 55.58 47.88 51.73 0.81

Average 37.41 62.52 32.69 33.54 48.26 33.70 42.15 27.62 37.73 32.67 0.78

regions

Northern america 58.96 89.65 55.26 52.79 82.94 54.26 66.98 48.99 52.87 50.93 0.76

Europe 47.64 75.66 46.31 44.91 56.12 41.17 52.83 37.77 47.13 42.45 0.80

South East asia and Oceania 43.06 66.91 40.23 40.98 57.88 41.19 49.44 32.07 41.28 36.67 0.76

Northern africa and Western asia 35.55 61.23 33.88 33.28 47.06 30.38 41.17 24.09 35.79 29.94 0.72

Latin america and the caribbean 33.91 55.99 26.28 29.45 42.81 33.20 37.55 21.31 39.22 30.27 0.81

central and Southern asia 28.03 47.23 21.55 25.11 40.32 23.65 31.57 24.30 24.68 24.49 0.79

Sub-Saharan africa 27.38 52.91 18.26 20.52 38.87 25.16 31.14 19.44 27.79 23.62 0.77

Income levels

High income 50.11 80.54 49.05 47.79 60.39 44.71 56.50 38.26 49.18 43.72 0.77

Upper-middle income 35.71 59.53 31.55 33.17 45.59 31.66 40.30 25.61 36.63 31.12 0.77

Lower-middle income 29.83 50.82 23.84 24.49 41.66 26.83 33.53 21.25 31.01 26.13 0.78

Low income 26.43 49.69 14.99 19.25 38.68 25.81 29.68 19.54 26.84 23.19 0.79

Note: Darker shadings indicate better performances. Countries/economies are classified according to the World Bank Income Group and the United Nations Regional Classifications (July 2012 and 11 February 2013, respectively).

Worst Average Best

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Figure 5: Top world start-up ecosystems, 2012

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Source: Author’s elaboration, based on Telefónica Digital and Startup Genome, 2012.Note: The bubble size indicates the positioning of each territory in the total ranking, where Silicon Valley ranks at the top (i.e., 20) and Santiago at the bottom (i.e., 1). In each index, Silicon Valley is assumed to be the reference and it ranks at the

top (i.e., it scores 20). The funding index measures the availability of risk capital in each start-up ecosystem, while the talent index ranks the skills of the start-up founders in each territory, taking into account different variables including age, education, work experience, and industry domain expertise, among other factors.

with a few places concentrating most of global innovative capabilities and f inancing; (2) persistence in the leadership of traditional innovation hotspots, such as California, and the rise of new places for innovation in specif ic regions and cities in China and other emerging economies; and (3) a growing internationalization of innovative regions and cities.

The new evolving geography of innovation reaff irms the impor-tance of territory. Competences and institutions tend to cluster in specific locations. Effective innovation poli-cies recognize the local dimension of innovation and take it into account in policy design and implementa-tion. This is even truer in the new global economic landscape where new, and different, innovation hotspots are emerging. For exam-ple, knowledge-intensive FDI does not spontaneously generate linkages with the local economy. Often, local

innovation and production systems lag behind and face diff iculties in providing critical inputs and services for international companies.

In parallel, foreign companies tend to show little interest in devel-oping a network of local suppliers because the smaller local suppliers do not exhibit economies of scale, and because of trust and quality requirements on the part of the for-eign companies. Regional and local governments can play a determinant role in fostering local innovation by promoting synergies between knowledge-intensive FDI and the local innovation system. For exam-ple, in the city of Porto Alegre in the state of Rio Grande do Sul in Brazil, the localization of an IBM design centre in the local technol-ogy park has contributed to increas-ing the brand-value of the park and to attracting other innovative com-panies to co-locate in the same site;

matched with the national effort of creating national technology insti-tutes in the different Brazilian states, this has helped to create a critical mass of innovative companies in the state. The creation of new innovative f irms can contribute to the dyna-mism of a local production system. Their creation faces several barriers, and public policies can play a deter-minant role in helping to create the conditions that foster the develop-ment of start-ups. The experience of both OECD and non-OECD coun-tries shows that policies can help by offering seed capital for the creation of these firms, as well as by provid-ing incentives for the development of venture capital and angel inves-tors. Policies can also facilitate access to soft and hard infrastructure and develop a business-friendly legal framework.15

History has also shown that suc-cess is not achieved by trying to

Silicon valley

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Note: l indicates a strength; a weakness; * an index; † a survey question.

Key indicatorspopulation (millions) ............................................................................................................. 7.5GDp (US$ billions) .............................................................................................................. 258.0GDp per capita, ppp$ .................................................................................................... 50,708.9Income group .......................................................................................................... High incomeregion.............................................................................................South East asia and Oceania

Score (0–100) or value (hard data) rank

Global Innovation Index (out of 142) ................................. 59.4 7Innovation Output Sub-Index ..................................................................................48.2 15Innovation Input Sub-Index .....................................................................................70.7 2 l

Innovation Efficiency ratio.........................................................................................0.7 109 Global Innovation Index 2012 (based on GII 2012 framework) ................................58.7 8

1 Institutions ....................................................90.8 91.1 Political environment ..........................................................................82.8 191.1.1 Political stability*....................................................................................89.6 231.1.2 Government effectiveness* ............................................................85.1 121.1.3 Press freedom* ........................................................................................73.8 49

1.2 Regulatory environment ..................................................................96.8 71.2.1 Regulatory quality* ..............................................................................98.5 3 l

1.2.2 Rule of law* ...............................................................................................88.6 181.2.3 Cost of redundancy dismissal, salary weeks ...........................8.0 1

1.3 Business environment ........................................................................92.8 41.3.1 Ease of starting a business* ............................................................95.8 91.3.2 Ease of resolving insolvency* ........................................................86.2 161.3.3 Ease of paying taxes* ..........................................................................96.3 4

2 Human capital & research ..........................52.3 212.1 Education ...................................................................................................51.7 762.1.1 Current expenditure on education, % GNI ..............................2.8 98 2.1.2 Public expenditure/pupil, % GDP/cap .....................................18.9 63 2.1.3 School life expectancy, years .........................................................15.8 232.1.4 PISA scales in reading, maths, & science .............................545.6 2 l

2.1.5 Pupil-teacher ratio, secondary ......................................................17.8 87

2.2 Tertiary education .................................................................................63.0 42.2.1 Tertiary enrolment, % gross ............................................................60.4 342.2.2 Graduates in science & engineering, % ..................................34.7 62.2.3 Tertiary inbound mobility, % .............................................................6.6 262.2.4 Gross tertiary outbound enrolment, % ......................................7.3 8

2.3 Research & development (R&D)...................................................42.2 232.3.1 Researchers, headcounts/mn pop. ..................................... 3,293.4 262.3.2 Gross expenditure on R&D, % GDP ...............................................0.8 402.3.3 QS university ranking, average score top 3* ........................83.8 5

3 Infrastructure................................................63.4 1 l

3.1 Information & communication technologies (ICTs) ........86.9 3 l

3.1.1 ICT access* .................................................................................................92.1 1 l

3.1.2 ICT use* .......................................................................................................81.7 1 l

3.1.3 Government’s online service* .........................................................n/a n/a3.1.4 E-participation*.........................................................................................n/a n/a

3.2 General infrastructure .........................................................................42.8 243.2.1 Electricity output, kWh/cap ..................................................... 5,416.5 393.2.2 Electricity consumption, kWh/cap ...................................... 5,923.3 343.2.3 Logistics performance* .....................................................................78.0 2 l

3.2.4 Gross capital formation, % GDP ...................................................23.3 67

3.3 Ecological sustainability ....................................................................60.6 63.3.1 GDP/unit of energy use, 2000 PPP$/kg oil eq ....................21.4 1 l

3.3.2 Environmental performance*..........................................................n/a n/a3.3.3 ISO 14001 environmental certificates/bn PPP$ GDP ........2.8 34

4 Market sophistication .................................88.6 1 l

4.1 Credit .............................................................................................................95.4 1 l

4.1.1 Ease of getting credit* .......................................................................93.8 44.1.2 Domestic credit to private sector, % GDP ..........................202.2 54.1.3 Microfinance gross loans, % GDP .................................................n/a n/a

4.2 Investment ................................................................................................83.0 1 l

4.2.1 Ease of protecting investors* .........................................................93.0 3 l

4.2.2 Market capitalization, % GDP......................................................357.8 1 l

4.2.3 Total value of stocks traded, % GDP .......................................624.1 14.2.4 Venture capital deals/tr PPP$ GDP ................................................0.0 36

4.3 Trade & competition ...........................................................................87.3 74.3.1 Applied tariff rate, weighted mean, % ........................................0.0 1 l

4.3.2 Non-agricultural mkt access weighted tariff, % ....................1.6 89 4.3.3 Intensity of local competition†.....................................................79.6 8

5 Business sophistication ..............................58.2 3 l

5.1 Knowledge workers .............................................................................64.8 205.1.1 Knowledge-intensive employment, % ....................................36.0 165.1.2 Firms offering formal training, % firms ......................................n/a n/a5.1.3 R&D performed by business, % GDP ...........................................0.3 385.1.4 R&D financed by business, % ........................................................45.8 285.1.5 GMAT mean score ..............................................................................583.1 115.1.6 GMAT test takers/mn pop. 20–34 ........................................ 1,521.0 2 l

5.2 Innovation linkages .............................................................................42.0 285.2.1 University/industry research collaboration† ........................64.1 235.2.2 State of cluster development† .....................................................65.9 125.2.3 R&D financed by abroad, % ...............................................................6.1 54 5.2.4 JV–strategic alliance deals/tr PPP$ GDP ....................................0.2 85.2.5 Patent families filed in 3+ offices/bn PPP$ GDP ..................0.3 31

5.3 Knowledge absorption ......................................................................67.8 2 l

5.3.1 Royalty & license fees payments, % service imports .........3.9 385.3.2 High-tech imports less re-imports, % ......................................42.3 1 l

5.3.3 Comm., computer & info. services imports, % .......................4.4 645.3.4 FDI net inflows, % GDP ......................................................................36.3 1

6 Knowledge & technology outputs ...........34.2 386.1 Knowledge creation ............................................................................11.5 656.1.1 Domestic resident patent ap/bn PPP$ GDP ...........................0.5 78 6.1.2 PCT resident patent ap/bn PPP$ GDP ........................................0.0 92 6.1.3 Domestic res utility model ap/bn PPP$ GDP .........................1.1 296.1.4 Scientific & technical articles/bn PPP$ GDP ...........................n/a n/a6.1.5 Citable documents H index .........................................................268.0 25

6.2 Knowledge impact ...............................................................................55.7 76.2.1 Growth rate of PPP$ GDP/worker, % ...........................................5.4 106.2.2 New businesses/th pop. 15–64 ....................................................27.7 16.2.3 Computer software spending, % GDP ........................................0.4 216.2.4 ISO 9001 quality certificates/bn PPP$ GDP ..........................10.5 456.2.5 High- & medium-high-tech manufactures, % ....................24.7 39

6.3 Knowledge diffusion ...........................................................................24.1 80 6.3.1 Royalty & license fees receipts, % service exports ..............0.4 63 6.3.2 High-tech exports less re-exports, %...........................................4.3 416.3.3 Comm., computer & info. services exports, % .......................2.0 118 6.3.4 FDI net outflows, % GDP ..................................................................32.8 3

7 Creative outputs ..........................................62.2 57.1 Intangible assets ....................................................................................55.1 227.1.1 Domestic res trademark reg/bn PPP$ GDP ..........................43.8 397.1.2 Madrid trademark registrations/bn PPP$ GDP .....................n/a n/a7.1.3 ICT & business model creation†...................................................72.3 187.1.4 ICT & organizational model creation† ......................................68.5 14

7.2 Creative goods & services ................................................................68.6 3 l

7.2.1 Audio-visual & related services exports, %...............................0.1 49 7.2.2 National feature films/mn pop. 15–69........................................9.4 167.2.3 Paid-for dailies, circulation, % pop. 15–69 .............................39.5 67.2.4 Printing & publishing manufactures, %...................................18.3 17.2.5 Creative goods exports, % ..................................................................7.3 9

7.3 Online creativity .....................................................................................70.0 107.3.1 Generic top-level domains (TLDs)/th pop. 15–69 ............89.5 87.3.2 Country-code TLDs/th pop. 15–69 ............................................48.1 387.3.3 Wikipedia monthly edits/mn pop. 15–69 ....................... 9,619.6 107.3.4 Video uploads on YouTube/pop. 15–69 .................................86.5 14

Hong Kong (China)