Government // Leadership
News
7/9/2013
12:15 PM
Connect Directly
RSS
E-Mail
50%
50%
Repost This

U.S. Climbs To Fifth Most Innovative Nation

Global Innovation Index grades innovation performance among countries and encourages local innovation. In this year's report, U.S. rises from last year's 10th-place ranking.

10 Job Search Tools For Recent Grads
10 Job Search Tools For Recent Grads
(click image for slideshow)
The Global Innovation Index ranks innovation performance among countries and encourages local innovation. In this year's report, published by Cornell University, prestigious graduate business school INSEAD and the World Intellectual Property Organization (WIPO), the United States moved up five spots from last year's 10th-place ranking. Switzerland retained its top spot.

"Innovation is a global game," said Soumitra Dutta, dean of the Samuel Curtis Johnson Graduate School of Management at Cornell University. All of the highest-ranked countries come from unique locations around the globe.

This Global Innovation Index (GII) was created in 2007 to track innovation that had become increasingly more global and dispersed. The GII ranks the economies of 142 countries and uses 84 indicators to determine innovation capabilities. It is invaluable to policy makers, business executives and others desiring insight into the state of global innovation. This year's findings were determined with the help of Booz and Company, the Confederation of the Indian Industry, du Telecom, Huawei, and a 14-member advisory board.

[For inspiration, read 20 People Who Changed Tech: The Internet Pioneers.]

At the New York launch of the 2013 report, a panel of experts discussed this year's findings and the future of innovation. Despite global economic difficulties, innovation has not faltered. In fact, it has improved. Research and development expenditures have increased since 2010, said the panel.

Although wealthy countries continue to dominate the GII, some middle-to-low-income countries -- including China, Costa Rica, India and Senegal -- are increasing their outputs and outpacing their income-group peers. Notably, many improving countries have increased their R&D expenditure faster than higher-ranked countries, inspiring optimism for the future.

The theme of this year's report is "The Local Dynamics of Innovation." Regional innovation is booming. Countries are encouraged to focus on their own high-tech, knowledge-based or creative industries rather than trying to emulate others' success.

New York, where Cornell founded a campus focused on technology and innovation, is a key example of a local innovative hub. Dan Huttenlocher, dean and vice provost of the Cornell NYC Tech campus, described how its programs infuse academia and entrepreneurship. The Master's in Computer Science track includes business courses in which students practice public speaking. "With business classes, tech students will have the resources to conduct research and the capabilities to speak about the impact and business implications of their findings," Huttenlocher said. Such classes have made a "huge difference" in students' understanding, he said.

In the future, Cornell NYC Tech plans to include a technological MBA and other engineering and technology programs. Its goals are to attract new talent, create jobs and boost the economy of the surrounding region -- three goals common of all local innovation hubs.

"These localized innovation systems … go much deeper into the psyche of individuals, groups, and society," wrote Chandrajit Banerjee, director general of the Confederation of Indian Industry. Local innovation inspires members of society to contribute to their own economies.

Future innovation also requires consumer input, said Dutta. Companies should create an environment that welcomes consumers, who can participate by co-designing and co-creating in the product cycle, he said. Huttenlocher discussed an increase in iterative technological development and how customers are becoming involved early in the creation process. Barry Jaruzelski, senior partner for Booz & Company, described the importance of end-user insight in guiding product development.

However, the next great step in innovation remains a mystery, according to David J. Skorton, the president of Cornell University. "It's critical that we don't anticipate the next innovative success," he said. Knowledge of science is necessary to create a foundation for innovation -- people just need to apply it.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Kelly22
50%
50%
Kelly22,
User Rank: Apprentice
7/10/2013 | 1:03:25 PM
re: U.S. Climbs To Fifth Most Innovative Nation
Tom, great question. The GII takes a variety of factors into
account when determining innovation. The reason I highlighted R&D spending is because there was an uptick in R&D investment among middle to lower-income countries.

When defining innovation, the GII uses two sub-indexes. The first consists of five pillars that facilitate national innovation. These pillars are:

1. Institutions G혀 political, regulatory and business environments
2. Human and capital research G혀 education, tertiary education, R&D
3. Infrastructure G혀 information/communications technology, general infrastructure, ecological sustainability
4. Market sophistication G혀 credit, investment, trade and competition
5. Business sophistication G혀 knowledge workers, innovation linkages, knowledge absorption

The second sub-index, consisting of two pillars, focuses on results:

1. Knowledge/Technology Outputs G혀 creation, impact and diffusion of knowledge
2. Creative Outputs G혀 intangible goods, creative goods and services, and online creativity

The overall GII score is calculated by taking the average of the two sub-indexes.
Thomas Claburn
50%
50%
Thomas Claburn,
User Rank: Author
7/9/2013 | 9:14:40 PM
re: U.S. Climbs To Fifth Most Innovative Nation
How does the GII define innovation? I hope it goes beyond R&D spending.
David F. Carr
50%
50%
David F. Carr,
User Rank: Author
7/9/2013 | 7:00:36 PM
re: U.S. Climbs To Fifth Most Innovative Nation
It would be interesting to apply this analysis to the different states within the U.S. and their educational and entrepreneurial infrastructure.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Elite 100 - 2014
Our InformationWeek Elite 100 issue -- our 26th ranking of technology innovators -- shines a spotlight on businesses that are succeeding because of their digital strategies. We take a close at look at the top five companies in this year's ranking and the eight winners of our Business Innovation awards, and offer 20 great ideas that you can use in your company. We also provide a ranked list of our Elite 100 innovators.
Video
Slideshows
Twitter Feed
Audio Interviews
Archived Audio Interviews
GE is a leader in combining connected devices and advanced analytics in pursuit of practical goals like less downtime, lower operating costs, and higher throughput. At GIO Power & Water, CIO Jim Fowler is part of the team exploring how to apply these techniques to some of the world's essential infrastructure, from power plants to water treatment systems. Join us, and bring your questions, as we talk about what's ahead.