The World Intellectual Property Organization has included China in its list of the world's top 25 most innovative economies for the first time.
Released this week, the annual Global Innovation Index evaluates a range of factors to rank more than 100 countries on their innovative capacity, with the aim of helping countries foster conditions for long-term output growth, job growth and productivity. Each country’s regulatory environment, the quality of its universities, its IP infrastructure and the ease of starting a business are all among the factors carefully weighed by the WIPO each year when compiling the list, GLP quoted the report as saying.
"In this current economic climate, uncovering new sources of growth and leveraging the opportunities raised by global innovation are priorities for all stakeholders," commented WIPO Director-General Francis Gurry.
While research and development expenditure grew at an average of 7% per year in the lead-up to the global financial crisis, data used for the 2016 GII concluded that R&D investment grew just 4% in 2014.
Europe Dominates
For the sixth consecutive year, Switzerland retained its title as the most innovative economy in the world, followed by Sweden, the United Kingdom, the United States and Finland in the coveted 'Top 5'.
Only one Asian economy–Singapore–made it into this year’s Top 10, with Republic of Korea, Hong Kong and Japan gaining a mention further down at 11th, 14th and 16th place respectively.
Meanwhile, European countries nabbed 15 of the Index’s Top 25 spots, with Finland, Ireland, Denmark, the Netherlands and Germany all also making the Top 10.
China Makes the Cut
Most notable on this year’s list however is the inclusion of China, which has ascended from 29th to 25th place since the publication of the 2015 Index.
Not only is the ranking a record high for the world’s second largest economy, it also marks the first time that a middle-income country has made it onto the upper echelons of a list historically dominated by highly developed economies.
"That of course is in keeping with what we have seen in China in recent years, including the current enormous emphasis on innovation and the transition of the Chinese economy from ‘Made in China’ to ‘Created in China’, said Gurry.
He added that there was no reason to believe that China won’t keep moving up the Index over the next few years, noting that China’s improvement had been ‘consistent’ across a variety of variables.
Other Innovation Leaders
Fifteen of the top 25 economies in the GII come from Europe. Switzerland retains the top position for the 6th consecutive year. Following regional leaders Sweden and UK are Finland (5), Ireland (7), Denmark (8), Netherlands (9) and Germany (10), which joins the top 10 in 2016.
In Northern America, the US (4) continues to be one of the world’s most-innovative nations. Canada is ranked 15th.
In Africa, Mauritius takes the top spot at 53, followed by South Africa (54), Kenya (80), Rwanda (83), Mozambique (84), Botswana (90), Namibia (93), and Malawi (98).
In Latin America, Chile takes the top spot among economies in the region (44), followed by Costa Rica (45), Mexico (61), Uruguay (62), and Colombia (63). Brazil is at 69.
India, 66, is the top-ranked economy in Central and Southern Asia.
Cyprus (31) is among the top two nations in the Northern Africa and Western Asia region for the 4thconsecutive year. Turkey ranks 4th and of the top five in this region, two are from the (Persian) Gulf Cooperation Council Arab states: United Arab Emirates (41) and Saudi Arabia (49).
Singapore (6), the Republic of Korea (11), Hong Kong (14), Japan (16), and New Zealand (17) lead in the South East Asia and Oceania region. The majority of GII innovation leaders are in this region or Europe.
Among upper-middle-income economies, China (25), Malaysia (35), and Thailand (52) rank first in the region.
