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