An economy’s response to megatrends can dictate its long-term success
With innovation being the front-of-mind theme in Davos, discussions at the World Economic Forum’s annual assembly of political and business leaders in 2020 was centred on the ability of countries to innovate in the face of changing times.
Many countries are now continuously pushing the envelope in order to maintain their competitiveness within the global economy—and constant innovation has been the key to provide a better life for their present and future populations.
Based on the annual Bloomberg Innovation Index, Germany clinched the top spot for the first time in years for the most innovative economy, ending South Korea’s winning streak.
YoY Rank Change
The European nation scores in the top five for its manufacturing value-added, high-tech density, and patent activity metrics.
Each year, the index assesses over 200 economies across seven weighted metrics, which include R&D intensity, patent activity, tertiary efficiency, manufacturing value-added, productivity, high-tech density, and researcher concentration.
Ranking third overall, Singapore leads the charge for tertiary efficiency, with almost 85% gross enrollment in higher education as of 2017. In contrast, Germany’s enrollment stood at around 70% in the same year.
An economy’s response to megatrends, such as tech breakthroughs and the risks of climate change, can dictate its long-term success.
The United States ranks in first place for both patent activity, and high-tech density—with the highest share of domestic high-tech public companies in the world.
With the “Big Five” tech giants all headquartered in the US, it is easy to see their impact on a global scale. Over the past five years, the top 10 players in this index have shuffled around, but remained quite consistent.
China’s steady rise (up from 21st place in 2017) could be because it scores second worldwide for patent activity. This comes from the aggressive 6,000 patents filed since 2015 by the nation’s own tech giants.
The patents cover breakthrough technologies from AI and blockchain, to autonomous driving and even regenerative medicine.
Ireland comes in first place on both manufacturing value-added and productivity metrics. In fact, for every hour worked, employed Irish people add $99.5 to national GDP.