Germany and South Korea ranked most innovative economies; Tiny Singapore and Finland lead the U.S.

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.

  1. R&D Intensity
    Annual research and development spending, as a % of an economy’s gross domestic product (GDP).
  2. 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.
  3. 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.
  4. Manufacturing Value-added
    Manufacturing output levels—contributing to exports—as a % of GDP, and per capita.
  5. Productivity
    GDP and gross national income (GNI) in the working age population, and the 3-year improvement.
  6. 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.
  7. Researcher Concentration
    Professionals (including postgraduate PhD students) engaged in R&D across the population.

Image source: bloomberg.com; visualcapitalist.com

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.