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 Gă˘ political, regulatory and business environments
2. Human and capital research Gă˘ education, tertiary education, R&D
3. Infrastructure Gă˘ information/communications technology, general infrastructure, ecological sustainability
4. Market sophistication Gă˘ credit, investment, trade and competition
5. Business sophistication Gă˘ knowledge workers, innovation linkages, knowledge absorption
The second sub-index, consisting of two pillars, focuses on results:
1. Knowledge/Technology Outputs Gă˘ creation, impact and diffusion of knowledge
2. Creative Outputs Gă˘ intangible goods, creative goods and services, and online creativity
The overall GII score is calculated by taking the average of the two sub-indexes.