The Global Innovation Index (GII) 2017, a collaborative effort by Cornell University, INSEAD, and the World Intellectual Property Organization (WIPO), highlights India and Vietnam for surpassing their developmental peers. The GII, which assesses the innovative capacity of approximately 130 economies, underscores India’s emergence as a hub for innovation in Asia.
This year’s GII points to a persistent disparity in innovation between developed and developing economies, alongside sluggish growth in research and development (R&D) investment from both governments and corporations. WIPO Director General Francis Gurry emphasizes the importance of innovation for economic growth, calling for greater investment in human creativity.
While high-income economies dominate the top 25 rankings, China stands out as the sole middle-income economy in this group, securing the 22nd position. The report underscores the need for emerging economies to understand and leverage their innovation strengths while addressing their weaknesses through effective policies.
Several middle and lower-income economies, including Indonesia, Malaysia, Singapore, Thailand, the Philippines, and Vietnam, have demonstrated impressive innovation performance relative to their development level. These “innovation achievers” are actively enhancing their innovation ecosystems, demonstrating notable progress in education, R&D, productivity growth, and high-tech exports.
The GII 2017 theme, “Innovation Feeding the World,” centers on the role of innovation in agriculture and food systems. This focus is particularly significant given the anticipated surge in global food demand, increasing competition for natural resources, and the need to address climate change. The report advocates for “smart agriculture” to optimize food systems and ensure global food security.
The report acknowledges Korea’s dominance in patenting and intellectual property, while Japan ranks among the top 10 global economies for R&D and technology adoption. China’s progress in the GII ranking is attributed to its strength in business sophistication, knowledge, technology outputs, and a robust IP ecosystem.
Within ASEAN, Singapore leads in most indicators, while Thailand excels in creative goods exports and business-funded R&D. Vietnam stands out for its investment in education, labor productivity growth, and foreign direct investment. Malaysia demonstrates strengths in high-tech trade and university-industry research collaboration.
India (ranked 60th globally) emerges as a top performer, consistently exceeding expectations based on its GDP per capita. Its progress is evident in infrastructure, business sophistication, knowledge, technology, creative outputs, and a strong presence of global R&D companies.
The report also highlights standout performers in Central and Southern Asia, including Iran for tertiary education, Tajikistan for microfinance, and Kazakhstan for its pupil-teacher ratio and investor protection. The UAE ranks high in Northern Africa and Western Asia, demonstrating strengths in tertiary education, innovation clusters, and ICT-driven business model innovation.
Now in its tenth edition, the GII serves as a crucial benchmarking tool for decision-makers globally, providing a comprehensive assessment of innovation and its impact on economic growth.
In a separate report, the Global Talent Competitiveness Index (GTCI) 2017, also co-published by INSEAD, recognizes Singapore as a global leader in talent competitiveness. The report emphasizes the importance of talent in driving technological innovation and highlights the need for adaptable education systems.
The GTCI underscores the Asia Pacific region’s preparedness for technological advancements, with countries like Singapore, Australia, New Zealand, Japan, Malaysia, and South Korea demonstrating notable talent competitiveness.
The report highlights the challenges faced by China and India in attracting and retaining talent. Despite their overall ranking, both countries boast globally competitive cities, such as Shanghai and Mumbai, that excel in attracting talent.
Australia’s strong performance in the GTCI is attributed to its ability to attract global talent, while Malaysia stands out among upper-middle-income countries, demonstrating strengths in vocational and technical skills.
Japan, although a strong performer, faces challenges in attracting talent compared to other leading economies in the region. South Korea, despite its prowess in R&D, needs to enhance its talent attraction strategies. The Philippines emerges as a leader among lower-middle-income countries, demonstrating strong vocational, technical, and global knowledge skills.