The World's Most Innovative Countries, 2020

Summary

The 2020 Global Innovation Index (GII) report highlights the importance of financing innovation amid a global health crisis and economic uncertainty. Despite challenges, the report shows stability in top-ranking economies, with countries like South Korea and France making notable strides. While the pandemic may strain public funds and private investment, certain sectors like ICT, health, and automotive may continue to thrive. The report also emphasizes the role of education and openness in fostering innovation, particularly in developing countries. As the crisis reshapes global dynamics, the GII offers crucial insights for shaping future innovation strategies.

Takeaways

• 😀 The Global Innovation Index (GII) highlights the importance of financing innovation to build a sustainable and inclusive future.
• 😀 The top 10 GII rankings have remained largely stable, with South Korea entering the top 10 and France making significant progress, overtaking China.
• 😀 Open economies and strong focus on education are key characteristics of countries that excel in innovation, a trend that has persisted through the COVID-19 crisis.
• 😀 Despite the pandemic's impact, there are positive signs that innovation financing will not suffer as much as initially expected, particularly in sectors like ICT and health.
• 😀 The COVID-19 crisis has underscored the potential for growth in ICT and health sectors, with technology companies benefiting from new habits like remote work and telehealth.
• 😀 Some sectors, such as automotive and financial services, will undergo significant transformations post-crisis, driven by environmental pressures and digital transition.
• 😀 Developing economies, especially in Asia, have shown dynamic growth in innovation, with China continuing to perform strongly and India making notable progress in the rankings.
• 😀 Many low-income countries, like Indonesia and Tanzania, are seeing promising innovation despite facing challenges such as limited R&D investment.
• 😀 In Latin America and Africa, innovation is progressing unevenly, but countries like Botswana, Tunisia, South Africa, and Kenya have made strides by focusing on education and R&D investment.
• 😀 Inequalities in innovation performance between rich and poor countries are likely to widen, with global pressures to relocate industries potentially disadvantaging emerging economies.
• 😀 The GII emphasizes the importance of linking innovation efforts to global goals like the UN's Sustainable Development Goals (SDGs), stressing the role of innovation in addressing global challenges such as climate change and future pandemics.

Q & A

What is the main theme of this year's Global Innovation Index (GII) report?

The main theme of the GII report this year is 'Who will finance innovation?', focusing on how innovation financing will be affected by the ongoing global crises, including the health and economic challenges caused by COVID-19.

Which countries lead the Global Innovation Index rankings in 2020?

The top ten countries in the 2020 GII rankings show remarkable stability, with nine of them maintaining their positions from the previous year. However, South Korea has joined the top ten, and France made a notable jump from 16th to 12th, overtaking China.

What characteristics do the top-performing countries in innovation share?

The top-performing countries in innovation share a focus on education and an openness to global trade and ideas. These factors have been crucial in maintaining their leadership in innovation.

How was innovation financing before the COVID-19 crisis?

Before the COVID-19 crisis, innovation financing was growing positively, with R&D spending exceeding GDP growth in many countries. Public spending through recovery packages helped sustain innovation investments, and private sector investments continued, especially in countries like China, India, South Korea, and advanced Western nations.

What impact has the COVID-19 crisis had on innovation financing?

The COVID-19 crisis is expected to result in restricted public funding outside of recovery packages, while the private sector may be hesitant to invest in certain innovation areas. However, some sectors, such as ICT and healthcare, are likely to benefit due to new demands arising from the pandemic.

Which industries are likely to benefit from the crisis, and which will suffer?

Industries such as ICT and healthcare are likely to benefit due to new demands for digital communication tools and health-related products. On the other hand, industries like hardware manufacturing and traditional automotive sectors may face difficulties due to decreased demand and environmental pressures.

What are the specific challenges facing innovation in developing countries due to the pandemic?

The COVID-19 pandemic will likely have a disproportionately negative impact on poorer countries, as they may face greater challenges in financing innovation and R&D. However, countries like Indonesia and Tanzania show that innovation is still possible in developing economies, though they may need to be protected from the pandemic's adverse effects.

What role does education play in driving innovation, according to the GII report?

Education is a critical factor in driving innovation. The GII report highlights that countries focusing on building human capital through education and research are better positioned for long-term innovation success.

Has the COVID-19 crisis exacerbated the innovation divide between rich and poor countries?

Yes, the pandemic has likely exacerbated the innovation divide between rich and poor countries. Wealthier nations are more capable of financing innovation, while poorer countries may face greater barriers, including restricted access to international flows of goods, services, and technology.

How can the GII help countries and institutions in the post-pandemic world?

The GII provides valuable data and insights to help countries and institutions prioritize innovation, focusing on education and openness as essential pillars of success. It also helps link innovation efforts to global goals, such as the UN’s Sustainable Development Goals (SDGs), highlighting the need for innovation in social, political, and financial sectors in the post-pandemic era.