The amount spent on global investment in research and
development (R&D) has tripled to $2.4 trillion since 2000.
R&D spend is also casting a broader global net. The United
States made up nearly 70% of global R&D spending in 1960 and by 2020 this
figure had fallen to 30%. R&D plays an important role in a country’s
economic growth and innovation and impacts nearly every corner of the society
either in a direct or indirect manner. From public health and job creation to
industrial competitiveness and national security, R&D has a role to play.
Other key elements that play an important role in driving
progress and innovation, along with R&D include scientific research, technological
adoption, and venture capital activity, to name a few.
The infographic ranks the world’s most innovative economies
using data from the UN’s WIPO Global Innovation Index.
What Defines an Innovative Economy?
Innovation is inherently challenging to quantify, but the
Global Innovation Index is an old effort to do just that.
The framework used for the index was designed to create a
more complete analysis, comprising of 81 indicators across seven categories to
calculate a country’s score.
These categories are:
- Business Sophistication
- Market Sophistication
- Infrastructure
- Human Capital & Research
- Institutions
- Creative Outputs
- Knowledge and Technology Outputs
As the above table shows, the framework aims to identify
indicators that raise an innovative environment and breakthrough technologies.
The 10 Most Innovative Countries in 2022
Switzerland positions at the top for the 12th year in a
row—above the U.S., South Korea, and Israel.
It may be a surprise for many but, the country’s
intellectual property rules are considered world-class, and they are perfected
by strong collaboration between universities and industry. Moreover, the
country draws top talent, all appreciation to its high quality of living.
At second is the United States, which is a top spender on
R&D at over $700 billion per year. Globally, four of the five top R&D
spending companies are in America: Amazon ($42.7 billion), Alphabet ($27.6
billion), Microsoft ($19.3 billion), and Apple ($18.8 billion).
|
Rank |
Country / Region |
Score |
|
1 |
Switzerland |
64.6 |
|
2 |
U.S. |
61.8 |
|
3 |
Sweden |
61.6 |
|
4 |
United Kingdom |
59.7 |
|
5 |
Netherlands |
58.0 |
|
6 |
South Korea |
57.8 |
|
7 |
Singapore |
57.3 |
|
8 |
Germany |
57.2 |
|
9 |
Finland |
56.9 |
|
10 |
Denmark |
55.9 |
Other top ranking countries include Sweden (#3), the United Kingdom (#4) and the Netherlands (#5), which are European nations.
South Korea (#6), is known for its high R&D intensity.
This is motivated by its industrial conglomerates, known as chaebols, which are
mostly family-owned. Samsung and LG are among the largest companies, known for
their high degree of corporate-academic collaboration.
Most innovative countries by region:
North America
The United States ranks the highest. It has been recognized
as a global leader in innovation and has a strong track record of introducing
new ideas which have now transformed the way we live and work. Ranking second
in the region is Canada (Global rank: #15).
South America
Chile (#50) ranks first across the region, thanks to its dedicated
tech sector. To date, it is home to an estimated 8,000 tech companies. The
country also has the maximum scale of mobile connectivity in the region. In
late 2021, it launched the first 5G network in South America.
Middle East and Central Asia
Israel (#16) is the only country globally that spends over
5% of GDP on R&D and has the highest rank in the region. The country’s
density of start-ups per capita is 16 times that of Europe.
Europe
With 15 of the top 25 economies in the world, Europe is a
powerhouse for nurturing innovative ecosystems. The continent also leads in
social progress, equality, and life satisfaction.
East Asia and Oceania
South Korea (#6) ranks highest across East Asia and Oceania.
It is recognized as a leader in technology and innovation on the global stage. They
are speeding the construction of eco-friendly infrastructure and renewable
energy.
South Korea’s Hyundai and its subsidiary Kia have made extensive
ground in electric vehicle (EV) production, comprising 9% of the U.S. EV
market, the second-highest share after Tesla.
Africa
The highest ranked in Africa is the island nation of
Mauritius (#45), followed by South Africa (#61).
