Global Stars: The Most Innovative Countries, Ranked by Income Group
The Most Innovative Countries, Ranked by Income Group
Innovation can be instrumental to the success of economies, at macro and micro scales. While investment provides powerful fuel for innovation—the relationship isn’t always straightforward.
The 2020 ranking from the World Intellectual Property Organization (WIPO) reveals just that.
The above map breaks down the most innovative countries in each World Bank income group, based on data from WIPO’s Global Innovation Index (GII), which evaluates nations across 80 innovation indicators like research and development (R&D), venture capital, and high-tech production.
While wealthier nations continue to lead global innovation, the GII also shows that middle-income countries—particularly in Asia—are making impressive strides.
Fueling Innovation
The economic and regulatory spheres within countries can have an enormous impact on their level of innovation—and vice versa, as innovation in turn becomes an economic driver, stimulating further investment.
The positive feedback loop between investment and innovation results in the success of some of the top countries in the table below, which shows the three most innovative countries in each income group.
| Income Group | Group Rank | Country (Overall Rank) |
|---|---|---|
| High | 1 | 🇨🇭 Switzerland (#1) |
| High | 2 | 🇸🇪 Sweden (#2) |
| High | 3 | 🇺🇸 United States of America (#3) |
| Upper Middle | 1 | 🇨🇳 China (#14) |
| Upper Middle | 2 | 🇲🇾 Malaysia (#33) |
| Upper Middle | 3 | 🇧🇬 Bulgaria (#37) |
| Lower Middle | 1 | 🇻🇳 Vietnam (#42) |
| Lower Middle | 2 | 🇺🇦 Ukraine (#45) |
| Lower Middle | 3 | 🇮🇳 India (#48) |
| Low | 1 | 🇹🇿 Tanzania (#88) |
| Low | 2 | 🇷🇼 Rwanda (#91) |
| Low | 3 | 🇲🇼 Malawi (#111) |
Switzerland, Sweden, and the U.S. are the top three in the high-income group. Considering that Switzerland has the second-highest GDP per capita globally, it is not a surprise leader on this list.
Upper middle-income countries are led by China, Malaysia, and Bulgaria. Note that China far surpasses other nations in the upper-middle-income group ranking, reaching 14th spot overall in 2020. Others in the income group only appear in the overall ranking after 30th place.
Below are several income group leaders, and some of their key areas of output:
Shining a Light on Global Innovators
Since 2011, Switzerland has led the world in innovation according to this index, and the top five countries have seen few changes in recent years.
Sweden regained second place in 2019 and the U.S. moved into third—positions they maintain in 2020. The Netherlands entered the top two in 2018 and now sits at fifth.
Here’s how the overall ranking shakes out:
| Rank | Country | Score | Income Group |
|---|---|---|---|
| 1 | Switzerland | 66.1 | High |
| 2 | Sweden | 62.5 | High |
| 3 | United States of America | 60.6 | High |
| 4 | United Kingdom | 59.8 | High |
| 5 | Netherlands | 58.8 | High |
| 6 | Denmark | 57.5 | High |
| 7 | Finland | 57.0 | High |
| 8 | Singapore | 56.6 | High |
| 9 | Germany | 56.6 | High |
| 10 | South Korea | 56.1 | High |
| 11 | Hong Kong, China | 54.2 | High |
| 12 | France | 53.7 | High |
| 13 | Israel | 53.6 | High |
| 14 | China | 53.3 | Upper Middle |
| 15 | Ireland | 53.1 | High |
| 16 | Japan | 52.7 | High |
| 17 | Canada | 52.3 | High |
| 18 | Luxembourg | 50.8 | High |
| 19 | Austria | 50.1 | High |
| 20 | Norway | 49.3 | High |
| 21 | Iceland | 49.2 | High |
| 22 | Belgium | 49.1 | High |
| 23 | Australia | 48.4 | High |
| 24 | Czech Republic | 48.3 | High |
| 25 | Estonia | 48.3 | High |
| 26 | New Zealand | 47.0 | High |
| 27 | Malta | 46.4 | High |
| 28 | Italy | 45.7 | High |
| 29 | Cyprus | 45.7 | High |
| 30 | Spain | 45.6 | High |
| 31 | Portugal | 43.5 | High |
| 32 | Slovenia | 42.9 | High |
| 33 | Malaysia | 42.4 | Upper Middle |
| 34 | United Arab Emiratesx | 42.4 | High |
| 35 | Hungary | 41.5 | High |
| 36 | Latvia | 41.1 | High |
| 37 | Bulgaria | 40.0 | Upper Middle |
| 38 | Poland | 40.0 | High |
| 39 | Slovakia | 39.7 | High |
| 40 | Lithuania | 39.2 | High |
| 41 | Croatia | 37.3 | High |
| 42 | Viet Nam | 37.1 | Lower Middle |
| 43 | Greece | 36.8 | High |
| 44 | Thailand | 36.7 | Upper Middle |
| 45 | Ukraine | 36.3 | Lower Middle |
| 46 | Romania | 36.0 | Upper Middle |
| 47 | Russian Federation | 35.6 | Upper Middle |
| 48 | India | 35.6 | Lower Middle |
| 49 | Montenegro | 35.4 | Upper Middle |
| 50 | Philippines | 35.2 | Lower Middle |
| 51 | Turkey | 34.9 | Upper Middle |
| 52 | Mauritius | 34.4 | Upper Middle |
| 53 | Serbia | 34.3 | Upper Middle |
| 54 | Chile | 33.9 | High |
| 55 | Mexico | 33.6 | Upper Middle |
| 56 | Costa Rica | 33.5 | Upper Middle |
| 57 | North Macedonia | 33.4 | Upper Middle |
| 58 | Mongolia | 33.4 | Lower Middle |
| 59 | Republic of Moldova | 33.0 | Lower Middle |
| 60 | South Africa | 32.7 | Upper Middle |
| 61 | Armenia | 32.6 | Upper Middle |
| 62 | Brazil | 31.9 | Upper Middle |
| 63 | Georgia | 31.8 | Upper Middle |
| 64 | Belarus | 31.3 | Upper Middle |
| 65 | Tunisia | 31.2 | Lower Middle |
| 66 | Saudi Arabia | 30.9 | High |
| 67 | Iran (Islamic Republic of) | 30.9 | High |
| 68 | Colombia | 30.8 | Upper Middle |
| 69 | Uruguay | 30.8 | High |
| 70 | Qatar | 30.8 | High |
| 71 | Brunei Darussalam | 29.8 | High |
| 72 | Jamaica | 29.1 | Upper Middle |
| 73 | Panama | 29.0 | High |
| 74 | Bosnia and Herzegovina | 29.0 | Upper Middle |
| 75 | Morocco | 29.0 | Lower Middle |
| 76 | Peru | 28.8 | Upper Middle |
| 77 | Kazakhstan | 28.6 | Upper Middle |
| 78 | Kuwait | 28.4 | High |
| 79 | Bahrain | 28.4 | High |
| 80 | Argentina | 28.3 | Upper Middle |
| 81 | Jordan | 27.8 | Upper Middle |
| 82 | Azerbaijan | 27.2 | Upper Middle |
| 83 | Albania | 27.1 | Upper Middle |
| 84 | Oman | 26.5 | High |
| 85 | Indonesia | 26.5 | Lower Middle |
| 86 | Kenya | 26.1 | Lower Middle |
| 87 | Lebanon | 26.0 | Upper Middle |
| 88 | United Republic of Tanzania | 25.6 | Lower I |
| 89 | Botswana | 25.4 | Upper Middle |
| 90 | Dominican Republic | 25.1 | Upper Middle |
| 91 | Rwanda | 25.1 | Lower I |
| 92 | El Salvador | 24.9 | Lower Middle |
| 93 | Uzbekistan | 24.5 | Lower Middle |
| 94 | Kyrgyzstan | 24.5 | Lower Middle |
| 95 | Nepal | 24.4 | Lower I |
| 96 | Egypt | 24.2 | Lower Middle |
| 97 | Paraguay | 24.1 | Upper Middle |
| 98 | Trinidad and Tobago | 24.1 | High |
| 99 | Ecuador | 24.1 | Upper Middle |
| 100 | Cabo Verde | 23.9 | Lower Middle |
| 101 | Sri Lanka | 23.8 | Upper Middle |
| 102 | Senegal | 23.8 | Lower Middle |
| 103 | Honduras | 23.0 | Lower Middle |
| 104 | Namibia | 22.5 | Upper Middle |
| 105 | Bolivia (Plurinational State of) | 22.4 | Lower Middle |
| 106 | Guatemala | 22.4 | Upper Middle |
| 107 | Pakistan | 22.3 | Lower Middle |
| 108 | Ghana | 22.3 | Lower Middle |
| 109 | Tajikistan | 22.2 | Lower I |
| 110 | Cambodia | 21.5 | Lower Middle |
| 111 | Malawi | 21.4 | Lower I |
| 112 | Côte d’Ivoire | 21.2 | Lower Middle |
| 113 | Lao People’s Democratic Republic | 20.7 | Lower Middle |
| 114 | Uganda | 20.5 | Lower I |
| 115 | Madagascar | 20.4 | Lower I |
| 116 | Bangladesh | 20.4 | Lower Middle |
| 117 | Nigeria | 20.1 | Lower Middle |
| 118 | Burkina Faso | 20.0 | Lower I |
| 119 | Cameroon | 20.0 | Lower Middle |
| 120 | Zimbabwe | 20.0 | Lower Middle |
| 121 | Algeria | 19.5 | Upper Middle |
| 122 | Zambia | 19.4 | Lower Middle |
| 123 | Mali | 19.2 | Lower I |
| 124 | Mozambique | 18.7 | Lower I |
| 125 | Togo | 18.5 | Lower I |
| 126 | Benin | 18.1 | Lower I |
| 127 | Ethiopia | 18.1 | Lower I |
| 128 | Niger | 17.8 | Lower I |
| 129 | Myanmar | 17.7 | Lower Middle |
| 130 | Guinea | 17.3 | Lower I |
| 131 | Yemen | 13.6 | Lower I |
Nordic countries like Sweden, Denmark, and Finland continue their strong showing across innovation factors—like Knowledge Creation, Global Brand Value, Environmental Performance, and Intellectual Property Receipts—leading to their continued presence atop global innovators.
But the nations making the biggest moves in GII ranking are found in Asia.
China, Vietnam, India, and the Philippines have risen the most of all countries, with all four now in the top 50. China broke into the top 15 in 2019 and remains the only middle-income economy in the top 30.
In 2020, South Korea became the second Asian economy to enter the top 10, after Singapore. As the first Asian country to move into the global top five, Singapore joined the leaders in 2018, and now sits at 8th place.
In another first for 2020, India has now broken into the top 50.
Innovation Input & Output: The Overachievers
While annual rankings like these confirm the importance of a robust economy and innovation investment, variations in the relationship between input and output are not uncommon.
The correlation between wealth and innovation isn’t always straightforward, and neither is the connection between innovation input and output.
Below is an overview of the GII inputs and outputs, as well as several of the world’s overall leaders in each pillar.
Input variables can be characterized as factors that foster innovation—everything from the quality of a country’s university institutions to its levels of ecological sustainability.
| Input Pillars | Input Examples | Input Leaders |
|---|---|---|
| Institutions Human Capital & Research Infrastructure Market Sophistication Business Sophistication |
University Institutions Regulatory Environment Intangible Assets Entrepreneurship R&D Spending Venture Capital Deals Researchers |
1. Singapore 2. Switzerland 3. Sweden 4. U.S. 5. Denmark 6. U.K. 7. Hong Kong, China 8. Finland 9. Canada 10. South Korea |
Output factors include innovation indicators like the creation of new businesses, and even the number of Wikipedia edits made per million people.
| Output Pillars | Output Types | Output Leaders |
|---|---|---|
| Knowledge & Technology Creative |
Registered patents Creative goods and services Scientific publications National feature films Entertainment and media High-tech manufacturing |
1. Switzerland 2. Sweden 3. United Kingdom 4. Netherlands 5. U.S.A. 6. China 7. Germany 8. Finland 9. Denmark 10. South Korea |
Countries with impressive innovation outputs compared to input levels include:
Innovation Fuel Reductions Up Ahead?
Although financial markets have ignited, the economy as a whole has not fared well since lockdowns began. This begs the question of whether a steep decline in innovation capital will follow.
In response to the 2020 pandemic, will spending on R&D echo the 2009 recession and aftermath of 9/11? Will venture capital flows continue to decline more than they have since 2018?
Because innovation is so entwined with the economic growth strategies of companies and nations alike, the WIPO notes that the potential decline may not be as severe as historical trends might suggest.
No Stopping Human Innovation
Thankfully, innovation opportunities are not solely contingent on the level of capital infused during any given year. Instead, the cumulative results of continuous innovation stimuli may be enough to maintain growth, while strategic cash reserves are put to use.
What the GII ranking shows is that inputs don’t always equal outputs—and that innovative strides can be made with even modest levels of capital flow.
Ever since Apple and other Big Tech companies hit a market capitalization of $1 trillion, many sectors are revving to follow suit—including the automotive industry.
What could this spell for the future of the automotive industry?
Tesla’s competitive advantage comes as a result of its dedicated emphasis on research and development (R&D). In fact, many of its rivals have admitted that Tesla’s electronics far surpass their own—a teardown revealed that its batteries and AI chips are roughly six years ahead of other industry giants such as Toyota and Volkswagen.
Here’s how a selection of car manufacturers are embracing the electric future:
The company is also well-positioned to ride the wave of a potential consumer shift towards EVs in Europe. In response to the region’s strict emissions targets, Volkswagen upped its planned sales proportions for European hybrid and EV sales from 40% to 60% by 2030.
China jumped on the electric bandwagon early. Eager to make its mark as a global leader in the emerging technology of lithium ion batteries (an essential component of any EV), the Chinese government handed out billions of dollars in subsidies—fueling the growths of domestic car manufacturers BYD and Nio alike.
BYD gained the interest and attention of its billionaire backer Warren Buffett, while Nio is China’s response to Tesla and an attempt to capture the EV market locally.
One particular factor is giving GM confidence: its new EV battery creations. They will be able to extend the range of its new EVs to 400 miles (644km) on a single charge, at a rate that rivals Tesla’s Model S.
With the combined forces and funds of a $52 billion deal, the new Dutch-based car manufacturer hopes to rival bigger brands and race even more quickly towards the electric shift.
However, there’s a noble reason behind this decision. Honda is choosing instead to focus on its commitment to become carbon neutral by 2050. To do so, it’ll be shifting its financial resources away from F1 and towards R&D into fuel cell vehicle (FCV) and battery EV (BEV) technologies.
While the car’s specs compare to Tesla’s Model Y, its engineers also drew from the iPhone and Netflix to incorporate an infotainment system and driver profiles to create a truly tech-first specimen.
This content was originally published here.