Switzerland remains on top of the world in the innovation sector, according to the Global Innovation Index 2020, published earlier this month.
The World Intellectual Property Organization (WIPO) ranked Switzerland number one in the world for innovation for the tenth consecutive year. Switzerland is immediately followed by Sweden, the US, the UK and the Netherlands. A second Asian economy - South Korea - has broken into the top 10 for the first time this year, and a group of Asian economies – China, India, the Philippines and Vietnam – have continued to climb in the rankings.
The WIPO ranking, compiled in collaboration with French business administration institute INSEAD and Cornell University, covers dozens of indicators and more than 130 countries. It is a global reference for measuring an economy’s innovation performance.
The ranking methodology relies on two sub-indices—the Innovation Input Sub-Index and the Innovation Output Sub-Index—each built the following: institutions, human capital and research, infrastructure, market sophistication, business sophistication, knowledge and technology outputs and creative outputs. Each pillar is composed of individual indicators, a total of 80 this year. The Innovation Input Sub-Index and Innovation Output Sub-Index are added together in order to give an overall GII score for each country.
If Switzerland leads the ranking for the ninth consecutive year it is no coincidence: Switzerland is a world leader in several key innovation indicators. Including PCT (patent cooperation treaty) applications by origin; ICT (information and communication technology) services imports; IP (intellectual property) receipts; FDI (foreign direct investment) net outflows; and Environmental performance.
And not surprisingly, this year, the question on everyone’s lips is: “who will finance innovation ?“ - also the theme of The Global Innovation Index’s 2020 report . Indeed, due to Covid-19, multiple companies and industries traditionally very active in the innovation financing scene have been severely affected by the effects of the sanitary crisis. However so far Switzerland seems to be coping quite well, the economic resistance of the country against international shock events helped by the monetary reserve of the Swiss franc and the country’s highly liquid capital markets.
Written by Ramata Diallo