Dear Colleagues! This is Asrar Qureshi’s Blog Post #734 for Pharma Veterans. Pharma Veterans welcome sharing of knowledge and wisdom by Veterans for the benefit of Community at large. Pharma Veterans Blog is published by Asrar Qureshi on WordPress, the top blog site. Please email to firstname.lastname@example.org for publishing your contributions here.
These blog posts are based on WIPO – World Intellectual Property Rights Report on Global Innovation Index 2022.
As mentioned in the previous post, GII represents analysis of 132 economies. It is a comprehensive report covering all factors impacting innovation. We can understand that innovation does not happen in isolation. Yes, there may be individual achievements, but to convert these into impactful innovations is a complex process. The world is littered with innovations which were great ideas, but these could not see the light of the day or died in the early stages.
While I would prefer not to let you get lost in the data maze, it will be impossible to move away from it. That kind of oversimplification shall make the discussion on this report useless. Therefore, please bear with me while I tread you through the data.
The Purpose and Utility of Global Innovation Index Report 2022
The report aims at supporting countries at all stages of development in strengthening their innovation ecosystem. More than a reference guide, the GII report comes as a powerful tool for the construction and development of pro-innovative policies. Some countries work with WIPO to create relevant indices at the sub-national level.
WIPO asked member states how they used the GII reports. Of the 110 responding countries, more than 75 used the GII either to improve their innovation ecosystem, strengthen innovation metrics, and as a specific reference in policy making.
The Structure of Global Innovation Index Report 2022
There are multiple levels of data cohorts which are interpreted accordingly.
- Top three economies by geographical region
- Top three innovation economies by income group
- Performance above expectation for level of development
- Performance in line with level of development
- Short-term and long-term Science and Innovation Investments
- Short-term and long-term Technological Progress
- Short-term, long-term, and penetration of Technology Adoption
- Short-term and long-term Socio-economic Impact
- R&D expenditures
- Government budget allocations for R&D
- Value of VC deals by region
- Technology adoption
- Movement within GII
- Science and Technology Clusters
Each country has a dedicated page with following information.
- The basic information is factsheet about country’s population, GDP, per capita income, input, and output
- There are 7 innovation pillars
- There are 21 sub-pillars
- There are 81 indicators
- Of the 7 innovation pillars, 5 belong to Input. These are:
- Institutions – has 7 indicators
- Human Capital and Research – has 12 indicators
- Infrastructure – has 10 indicators
- Market Sophistication – has 10 indicators
- Business Sophistication – has 15 indicators
- Two innovation pillars belong to Output. These are:
- Knowledge and Technology Outputs – has 14 indicators
- Creative Outputs – 13 indicators
As mentioned at the beginning of this post, innovation does not happen in vacuum, it has to have an ecosystem. The difference between more innovative and less innovative countries is the presence or absence of that ecosystem.
Switzerland has been consistently holding onto number#1 position for the 12th year in a row. Let us look at the details to see why it is so.
Population – 8.7 million
GDP/PPP – 677.3 billion US$
GDP per capita/PPP – 78,112 US$
Input Rank – 3
Output Rank – 1. Means that even with relatively less input, the output is greater.
About the pillars and sub-pillars.
- Institutions – #2
- Political environment – 6
- Regulatory environment – 7
- Business Environment – 4
- Human Capital and Research – #4
- Education – 27
- Tertiary education – 19
- R&D expenditure – 3
- Infrastructure – #4
- ICT – 17
- General Infrastructure – 18
- Ecological sustainability – 4
- Market sophistication – #8
- Investment – 10
- Trade, Diversification, and Market scale – 42
- Business Sophistication – #7
- Knowledge workers – 10
- Innovation linkages – 5
- Knowledge absorption
- Knowledge and technology outputs – #1
- Knowledge creation – 1
- Knowledge impact – 5
- Knowledge diffusion – 7
- Creative Outputs – #1
- Intangible assets – 8
- Creative goods and services – 12
- Online creativity – 2
As can be seen above, the Inputs by Switzerland lead both in Inputs and Outputs. This understanding is necessary to see the waste that occurs in so many countries where Inputs are wasted without creating any significant output.
Disclaimer: Most pictures in these blogs are taken from Google Images and Pexels. Credit is given where known; some do not show copyright ownership. However, if a claim is lodged at any stage, we shall either mention the ownership clearly, or remove the picture with suitable regrets.