According toWIPO's 2022 Global Innovation Index (GII) report, the world's most innovative economies are Switzerland, the United States of America (USA), Sweden, the United Kingdom and the Netherlands, while China has come close to the top ten. Other emerging market economies, including India and Turkey, continue to perform strongly, both of which were among the top 40 economies for the first time.

The report notes that despite the COVID-19 pandemic, investment in research and development (R&D) and other areas driving innovation around the world continued to grow rapidly in 2021, but there are already challenges to getting a real return on such investments.

The drafters of the GII 2022 found that productivity growth , under normal conditions spurred by the acceleration of the pace of innovation, is actually slowing down. They also note that today technological progress and the introduction of technologies are losing their momentum, despite the fact that until recently investments in R&D and venture capital investments were on the rise. However, a more careful and attentive attitude to innovation ecosystems can open the door to a new era of innovative development, the impetus for which will be set by innovation waves determined by digital technologies and "deep science".

This year's report notes that today, as the world recovers from the pandemic, the future of innovation is uncertain. If in 2020 and 2021 there was a rapid increase in investment in innovation, then the prospects for 2022 are overshadowed not only by global uncertainties, but also by the continuing low rates of labor productivity due to innovation. That is why we must pay closer attention not only to investment in innovation, but also to focus on the socio-economic impact it has. Quality and utility become as important a component of success as quantity and scale.

-WIPO Director General Daren Tang

The main findings of the GII are:
Companies that are the world's leading R&D spenders increased by almost 10% (to over $900 billion) in 2021, up from 2019 before the pandemic. This increase was mainly due to four industries: ICT hardware and electrical equipment; ICT software and services; pharmaceuticals and biotechnology; construction and industrial metals.
In 2020, global investment in R&D grew by 3.3%, which can be considered a slowdown, but not a collapse compared to the record figure of 6.1% recorded in 2019. In 2020, the countries with the highest R&D expenditures experienced high growth rates in government budget allocations. In terms of R&D spending in 2021, the picture has become more heterogeneous, with government spending continuing to rise in the Republic of Korea and Germany, but declining in the US and Japan.
The number of venture capital deals in 2021 increased by 46%, reaching volumes comparable to the period of rapid growth of Internet technologies in the late 1990s. The largest growth in venture capital (VC) was recorded in Latin America, the Caribbean and Africa. At the same time, the prospects of the VC for 2022 are assessed more restrained: the tightening of monetary policy and the indirect impact of this process on risk capital will lead to a slowdown in the growth of VC.
The annual ranking of world leaders in the field of innovation potential and innovation performance, which is the basis of the GII, demonstrates a number of important changes in the composition of the 15 leading economies: the United States rose to the 2nd line of the rating table, the Netherlands took the 5th, Singapore - the 7th, Germany - the 8th; China moved one line higher and took 11th place, coming close to the top ten world leaders.

Canada has returned to the ranks of the top 15 innovation economies (15th). For the first time, Turkey (37th place) and India (40th place) entered the world top 40. In addition to these countries, Vietnam (48th), the Islamic Republic of Iran (53rd) and the Philippines (59th) are currently showing the most dynamic results in terms of innovation among middle-income economies.

Global Ranking

Switzerland (1st place in 2021)
United States (3)
Sweden (2)
United Kingdom (4)
Netherlands (6)
Korea, Republic of (5)
Singapore (8)
Germany (10)
Finland (7)
Denmark (9)
China (12)
France (11)
Japan (13)
Hong Kong, China SAR (14)
Canada (16)
Israel (15)
Austria (18)
Estonia (21)
Luxembourg (23)
Iceland (17)

Several emerging economies are performing better in innovation than would be expected based on their level of economic development, including newcomers such as Indonesia, Uzbekistan, and Pakistan. The eight countries that outperformed innovation are in sub-Saharan Africa, with Kenya, Rwanda and Mozambique topping the list. In Latin America and the Caribbean, Brazil, Jamaica and Peru are outperforming their economic development category.

"With the growth of their innovation performance in the face of shocks in global supply chains, Turkey and India are confidently enriching the global innovation landscape, and Indonesia is declaring its promising innovative potential," said Mr. Sumitra Dutta, one of the GII's co-authors, Dean of the Saida Business School at the University of Oxford. "Other regional leaders, such as Chile and Brazil in Latin America, or South Africa and Botswana in sub-Saharan Africa, have also improved their innovation performance."

The top three economies in sub-Saharan Africa (SSA), excluding island economies. The top four economies of the region include Mauritius (1st place), South Africa (2nd place), Botswana (3rd place), Kenya (4th place).
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The three leading economies of the North Africa and West Asia (NAWA) region, except for the island economies. The top four economies in the region include Israel (1st), Cyprus (2nd), the United Arab Emirates (3rd) and Turkey (4th).

North America

The North America region includes theUnited StatesandCanada. The U.S.climbed to No. 2 andCanadareturned to the top 15 economies in the world in terms of innovation, consolidating in 15th place.

The U.S.performs globally in 15 of the GII's 81 2022 Innovation Indicators, including global corporate R&D investors' share, venture capitalists, university quality, the quality and impact of scientific publications, and the intensity of use of corporate intangible assets. Canadais a leader in venture capital recipients, joint ventures and strategic alliances, and software spending.

Europe

Europe still has the highest number of innovation leaders: 15 of the top 25 economies. This year, out of 39 European countries considered in the ranking, 12 improved their positions: Netherlands (5th place), Germany (8th place), Austria (17th place), Estonia (18th place), Luxembourg (19th place), Malta (21st place), Italy (28th place), Spain (29th place), Poland (38th place), Greece (44th place), Republic of Moldova (56th place) andBosnia and Herzegovina (70th place).

For the twelfth year in a row,Switzerland remains the world leader in innovation. It holds the palm among all economies of the world in terms of the results of innovation activities, more precisely, such indicators as the number of patents by origin, software costs, high-tech production and the complexity of production and export. Sweden (3rd) dominates the world in terms of infrastructure and level of business development, and also shows convincing results in such positions as the share of researchers, R&D spending and the share of highly qualified specialists.

Germanyhas risen to its highest position since 2009, after it managed to enter the top ten economies in 2016: the country leads the world in the share of global corporate investors in R&D. Estonia has made significant progress this year, breaking into the top 20; this country has world-leading results in the categories of venture capital transactions, import of ICT services, new businesses and creation of mobile applications.

Southeast Asia, East Asia and Oceania

The two economies of the Southeast Asia, East Asia and Oceania (SEAO) region are among the ten most innovative in the world: theRepublic of Korea (6th) andSingapore (7th); five more states in the region are among the top 25: China (11th), Japan (13th), Hong Kong, China (14th), New Zealand (24th) andAustralia (25th). Singapore, ChinaandNew Zealand improved their positions this year.

In the region as a whole,Vietnam (48th place), the Philippines (59th place), Indonesia (75th place), Cambodia (97th place) andthe Lao People's Democratic Republic (112th place) have made the greatest progress over the past decade. These economies continue to lead in key innovation indicators. Vietnamranks 1st in the world in imports of high-tech products, and thePhilippines dominatesin the export of the same products.

Indonesiahas made a significant breakthrough, achieving its best result since 2012. It is a world leader in terms of "entrepreneurship policy and culture" and has significantly improved results in such areas as innovation linkages and intangible assets, as well as successful in the categories of "startup financing and scaling" and "intensity of use of corporate intangible assets".

Central and South Asia

India (40th place) is the leader in its region and is among the top 40 economies, although in 2020 it was in the top 50. It is followed bythe Islamic Republic of Iran (53rd place) andUzbekistan (82nd place).

In terms of innovation,Indialeads the group of lower-middle-income countries. The country continues to play the role of world leader in the volume of exports of ICT services and ranks high in other indicators, such as the value of venture capital recipients, startup financing and scaling, graduates in the field of natural sciences and engineering, productivity growth and diversification of the national industry.

The Islamic Republic of Iranranked third in the group of lower-middle-income countries; for the second year in a row, the country performed better in innovation than might be expected given its level of economic development. Iran is a world leader in indicators such as trademarks and the share of graduates in the field of natural sciences and engineering.

Uzbekistanclimbed up four places; in 2022, this country for the first time showed outstripping the pace of innovation activity relative to the level of its development.

This year,Sri Lanka (85th place), Pakistan (87th place) and Bangladesh (102nd place) rose significantly inthe ranking. Of these, however, only Pakistan has steadily strengthened its position over time.

North Africa and Western Asia

Among the leaders of this region in terms of innovation areIsrael (16th place), Cyprus (27th place) andthe United Arab Emirates (UAE) (31st place).

Israelhas been the leader in terms of innovation in the region for 15 years. The country is a world leader in such articles as venture capital transactions, the share of employed women with full higher education, the share of international patent applications filed under the WIPO Patent Cooperation Treaty (PCT) on GDP and exports of ICT services in relation to total trade.

The UAEhas come very close to the top 30 economies in the ranking and remains in the top five in terms of the number of researchers in enterprises and the volume of R&D funded by the private sector.

Turkey (37th place) was among the top 40 economies in the ranking. The country ranks 4th in the world ranking in the category of intangible assets and demonstrates convincing results in the indicators "industrial designs", "trademarks" and "intensity of use of intangible assets".

Another 10 economies in the region rose in the ranking table, includingSaudi Arabia (51st place), Qatar (52nd place), Kuwait (62nd place), Morocco (67th place) andBahrain (72nd place).

Latin America and the Caribbean

Chile (50th place) - the only Latin American country among the 50 leading economies - is the leader in Latin America and the Caribbean; it is followed byBrazil (54th) – a newcomer to the regional top three – andMexico (58th). Costa Rica (68th place) dropped out of the top three in the region.

Chileperforms well under the headings "university enrollment" and "new enterprises". Brazilhas markedly improved its innovation performance and, in particular, its creative performance, including indicators such as intangible assets and online creativity, as well as trademarks and mobile application development. Mexicodominates in such items as the export of the results of creative work, the import and export of high-tech products.

Eight of the 18 economies in the region reviewed rose in the ranking. This year, Colombia (63rd place), Peru (65th place), Argentina (69th place) andthe Dominican Republic (90th place) have significantly improved their position. Peru deserves special mention: this year the country is a global leader in indicators such as loans from microfinance institutions, graduates in the field of natural sciences and engineering and utility models. Peru, BrazilandJamaica (76th) also performed better in innovation than would be expected given their level of economic development.

Sub-Saharan Africa

South Africa (61st) is the leader of the region; it is followed byBotswana (86th) andKenya (88th). Sixteen economies in the region improved their positions in the GII rankings. In addition toMauritiusandBotswana,Ghana (95th place), Senegal (99th place), Zimbabwe (107th place), Ethiopia (117th place) andAngola (127th place) achieved noticeable positive dynamics.

South Africadominates in terms of market capitalization,while Botswanaperforms well in items such as loans from microfinance institutions and payments for intellectual property. Namibia (96th) is the world leader in education spending, and its results in the position of "human capital and research" significantly outstrip the average for the region.

Sub-Saharan Africa is the region with the largest number of economies exceeding expectations for innovation (8), withKenyaperforming higher in innovation for the 12th consecutive year, a record. Rwanda (105th place) andMozambique (123rd place) also demonstrate systematically outstripping ratesof development.

This year, due to the increased availability of data,Burundi (130th place) is again present in the ranking,while Mauritania (129th place) appears in the GII for the first time.

GII 2022 Thematic Focus: The Future of Innovative Development
The 2022 GII outlines the prospect of two unprecedented innovation waves: (i) a digitally driven innovation wave based on supercomputing, artificial intelligence and automation, which is close to significant productivity gains across all sectors of the economy and across all areas of scientific research, and (ii) an innovation wave driven by "deep science" based on breakthroughs in all sectors of the economy and in all areas of scientific research. biotechnology, nanotechnology, the creation of new materials and other areas of science that make radical changes in four key areas for society: health, food, environment and mobility.

However, the report warns, the positive effects of these two unprecedented waves will not be felt very soon; many obstacles must first be overcome, particularly in the way of technology adoption and diffusion.

Productivity is at the heart of our vision of the society and economy of tomorrow, especially if we want to combine the principles of greater equality with a more prudent use of natural resources. Today, innovations are developing under the influence of truly radical changes due to the waves of evolution of digital technologies and "deep science". We all have a responsibility to ensure that the right conclusions are drawn from recent crises that will set the right direction for these radical changes and adapt them to build the future of our dreams.

• GiI co-author and co-founderof the Portulan Institute Bruno Lanvin

Information about the Global Innovation Index
In 2022, the Global Innovation Index (GII) report will be released for the 15th time; this publication is the result of a joint effort between WIPO andthe Portulan Institute and is being prepared with the support of corporate network partners represented by theConfederation of Indian Industry (CII), the National Confederation of Industry of Brazil (CNI),Ecopetrol (Colombia) andthe Turkish Exporters Assembly (TİM). In 2021, an Academic Network of Partners  was also established to engage the world's leading universities in GII research and to promote the dissemination of GII results to the academic community.

Since its inception in 2007, the GII has begun to shape the innovation measurement agenda and has become one of the pillars of economic policy, as more governments have systematically reviewed their annual GII results and developed policy measures to improve national performance. In addition, the UN Economic and Social Council, in its 2019 resolution on science, technology and innovation for development, recognized the GII as an authoritative tool for measuring innovation in relation to the Sustainable Development Goals (SDGs).

The GII is published annually, and its core is the innovation performance indicators, on the basis of which the rating of innovation ecosystems of 132 economies is compiled. The Index is based on a rich database that includes information on 81 indicators from international public and private sources, which allows us to go beyond traditional ways of measuring innovation activity, as the definition of innovation has expanded. This measurement is no longer limited to the analysis of R&D laboratories and published scientific articles; it is more general and horizontal, encompassing social and business models as well as technical aspects.

For each economy, a one-page report is prepared containing its results for all indicators in comparison with other economies of the Index. Also, such certificates reflect the strengths and weaknesses of the economy in the field of innovation.

The GII 2022 ranking is the average of two sub-indices. The contribution to innovation subindex allows you to evaluate the elements of the economy that contribute to innovation. They are grouped into five positions: (1) institutions, (2) human capital and research, (3) infrastructure, (4) market development level, and (5) business development level. The innovation results subindex reflects the actual results of such activities in two positions: (6) results in the field of knowledge and technology and (7) the results of creative activity.

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