Wednesday, July 10, 2013

Global Innovation Index

For the first time since 2009, the U.S. has been ranked among the top five nations in the Global Innovation Index 2013 (GII). The U.S. placed fifth behind Switzerland, Sweden, the U.K., and the Netherlands, ranked first through fourth, respectively. The annual report, released by the World Intellectual Property Organization, Cornell University, and INSEAD, is a key benchmarking tool for businesses, policy makers, and others concerned with the relative status of nations in the global innovation environment.

The GII relies on two sub-indices, the Innovation Input Sub-Index and the Innovation Output Sub-Index, each built around pillars.

Five input pillars capture elements of the national economy that enable innovative activities: (1) Institutions, (2) Human capital and research, (3) Infrastructure, (4) Market sophistication, and (5) Business sophistication. Two output pillars capture actual evidence of innovation outputs: (6) Knowledge and technology outputs and (7) Creative outputs.

Each pillar is divided into sub-pillars and each sub-pillar is composed of individual indicators (84 in total). Sub-pillar scores are calculated as the weighted average of individual indicators; pillar scores are calculated as the weighted average of sub-pillar scores.