Which are the world’s most innovative economies? How are they most accurately measured?
According to Bloomberg’s annual Innovation Index, Germany broke South Korea’s six-year most innovative nation streak.
“Innovation is a critical driver of growth and prosperity,” said Tom Orlik, Bloomberg Economics chief economist. “China’s move up the rankings [to number 15], and the U.S. drop [to 9 from number 1 in 2013], is a reminder that without investment in education and research, trade tariffs aren’t going to maintain America’s economic edge.”
Each year, the Bloomberg index assesses over 200 economies across seven weighted metrics.
- R&D Intensity
Annual research and development spending, as a % of an economy’s gross domestic product (GDP).
- Patent Activity
The number of annual patent and grant filings, and the 3-year average growth of filings abroad and filings growth, as a share of the world’s total patent growth.
- Tertiary Efficiency
The total enrollment in higher education, the share of labor force with advanced education levels, and the share of STEM graduates and in the labor force.
- Manufacturing Value-added
Manufacturing output levels—contributing to exports—as a % of GDP, and per capita.
GDP and gross national income (GNI) in the working age population, and the 3-year improvement.
- High-tech Density
The volume of domestic, high-tech public companies as a share of the world’s total companies. Examples of high-tech companies include: aerospace and defense, biotech, internet services, and renewable energy.
- Researcher Concentration
Professionals (including postgraduate PhD students) engaged in R&D across the population.
Image source: bloomberg.com; visualcapitalist.com