With the release of the 14th edition of the Global Innovation Index (GII) we learned that Switzerland and Sweden continue to rank as the world’s most innovative countries.
This year both countries have remained amongst the the top three for over a decade. With Switzerland ranked as first from 2011 to 2021, and Sweden in the top three during the same period. The only countries to keep their spot in the top three for more than 10 years in a row. But for different reasons.
One year has passed since the last edition of the GII. A year that has been both disruptive and eventful to say the least. In many ways, the COVID-19 pandemic has fundamentally influenced the way we live, work and learn.
Based on historical evidence a major cutback in innovation investments was indicated following the pandemic. However, the report shows both governments and companies have increased investments in innovation in many parts of the world. With a continued growth in venture capital deals, IP filings, R&D expenditure and scientific output during 2020.
However, despite the fact that investments in innovation and science have proven resilient, the pandemic has had an impact on the landscape of global innovation. On one hand, it shows a decrease in investments in sectors hardly hit by the pandemic, e.g. travel and transport. On the other, it shows a significant increase in investments in sectors crucial to containing the pandemic, e.g. ICTs and pharmaceuticals.
Ranking shows individual strengths
The GII aims to capture the multidimensional aspects of innovation. This year ranking over 130 economies. The ranking is based on 81 different indicators, grouped into innovation inputs and outputs divided across the following seven pillars:
Innovation input related
• Institutions
Political-, regulatory-, business environment
• Human capital and research
Education, tertiary education, R&D
• Infrastructure
ICTs, general infrastructure, ecological sustainability
• Market sophistication
Credit, investment, trade, competition, market scale
• Business sophistication
Knowledge workers, innovation linkages, knowledge absorption
Innovation output related
• Knowledge and technology outputs
Knowledge creation, knowledge impact, knowledge diffusion
• Creative outputs
Intangible assets, creative goods and services, online creativity
A strong and balanced ranking across the seven pillars is clear amongst the leaders in innovation, including Switzerland and Sweden. Both performing above expectations for their level of development, relative to GDP.
Overall, Switzerland is presented as the regional leader in innovation outputs, with its strongest performance in Knowledge and technology outputs (1); Creative outputs (2); and Infrastructure (2). Switzerland performs the weakest in Institutions (13).
For Switzerland, the best ranked indicators include ICT use (1); Patent families/bn PPP$ GDP (1); Knowledge creation (1); Patents by origin/bn PPP$ GDP (1); PCT patents by origin/bn PPP$ GDP; and Intellectual property receipts, % total trade (1). Switzerland performs worst in the indicators Applied tariff rate, weighted avg., % (95); High-tech imports, % total trade (93); and Ease of protecting minority investors (92).
Sweden holds its highest ranking in Business sophistication (1); Human capital and research (2); as well as Knowledge and technology outputs (2). Its weakest performance is in Market sophistication (11). The indicators where Sweden is best ranked include Patent families/bn PPP$ GDP (1) and PCT patents by origin/bn PPP$ GDP (1). Swedens worst ranked indicators are Ease of getting credit (74) and Labor productivity growth, % (70).
High performing innovation ecosystems
Along with the rest of the top performers both countries have established high performing innovation ecosystems. Meaning balanced and efficient rankings across all seven pillars, and a successful conversion of innovation inputs to outputs.
Translating input to output is not an easy task. Many high performing economies struggle with the creation of high outputs following investments in innovation, e.g. institutions, infrastructure, education and R&D. Both Sweden and Switzerland effectively convert investments in innovation to more, and high quality, outputs.
Notably, Switzerland produces higher levels of outputs in comparison to other high income economies, including Sweden, the US and Singapore. Switzerland also performs better in innovation outputs than inputs, whereas Sweden performs equally in both inputs and outputs.
Although Sweden (2) ranks higher than Switzerland (4) in innovation inputs, Switzerland (1) ranks higher in outputs compared to Sweden (2). In comparison to the past two years, Sweden improved its ranking in innovation inputs whereas Switzerland ranks lower in comparison to its ranking in 2020 and 2019.
Long term collaboration intensified
With innovation being of great importance to both economies, the two most innovative countries of the world undoubtedly have a lot to gain from cooperation. Naturally, Switzerland and Sweden are committed to close and long-term cooperation in the area of innovation. Something that was just recently emphasised by the signed agreement between the two countries’ innovation agencies, Innosuisse and Vinnova.
Further reading
Read more about Switzerland’s GII rating here
Read more about Sweden’s GII rating here
Sources
WIPO (2021). Global Innovation Index 2021: Tracking Innovation through the COVID-19 Crisis. Geneva: World Intellectual Property Organization.
https://www.wipo.int/global_innovation_index/en/2021/
Innosuisse. https://www.innosuisse.ch/inno/en/home/about-us/newsroom/switzerland-sweden.html
Written by Maria Ljung
