Global Innovation Index 2023: Switzerland, Sweden and the U.S. lead the Global Innovation Ranking; Innovation Robust but Startup Funding Increasingly Uncertain

1. Switzerland (Number 1 in 2022)
2. Sweden (3)
3. United States of America (2)
4. United Kingdom (4)
5. Singapore (7)
6. Finland (9)
7. Netherlands (5)
8. Germany (8)
9. Denmark (10)
10. Republic of Korea (6)

11. France (12)
12. China (11)
13. Japan (13)
14. Israel (16)
15. Canada (15)
16. Estonia (18)
17. Hong Kong, China (14)
18. Austria (17)
19. Norway (22)
20. Iceland (20)

21. Global leaders in innovation in 2023 – Regional Breakdown

    Northern America

    The United States (3^rd) scores the best in the world in 13 of the 80 GII 2023 innovation indicators. It holds the number one spot globally in various critical indicators, including global corporate R&D investors, VC received, university quality, combined valuation of unicorn companies and the value of corporate intangible asset intensity.

    Canada (15^th) remains firmly positioned among the top 15 global innovators. The country leads in indicators including VC recipients (at first place), impact of its scientific publications (H-Index, 4) and software spending (5).

    Europe

    Europe hosts the greatest number of innovation leaders among the top 25 – 16 in total, one more than in 2022. Out of 39 European economies covered, 19 move up the rankings this year (seven more than last year), namely Sweden (2^nd), Finland (6^th), Denmark (9^th), France (11^th), Estonia (16^th), Norway (19^th), Ireland (22^nd), Belgium (23^rd), Italy (26^th), Portugal (30^th), Lithuania (34^th), Latvia (37^th), Greece (42^nd), Slovakia (45^th), Romania (47^th), Serbia (53^rd), North Macedonia (54^th), Ukraine (55^th) and Albania (83^rd).

    ADVERTISEMENT

    Among economies improving their performance, France excels in intangible assets (at third place), global brands (4), industrial designs (8) and global corporate R&D investors (9). Belgium performs well in R&D expenditure (6), researchers (8) and university-industry R&D collaboration (9).

    Serbia approaches the top 50 with a strong performance in foreign direct investment (FDI) inflows (11) and labor productivity growth (14).

    South East Asia, East Asia, and Oceania

    Six South East Asia, East Asia and Oceania (SEAO) economies are world innovation leaders, namely Singapore (5^th), the Republic of Korea (10^th), China (12^th), Japan (13^th), Hong Kong, China (17^th) and Australia (24^th).

    Eight economies within the SEAO region improve their rankings this year, with Indonesia (61^st, up from 75^th) making the greatest advance. Indonesia excels in ICT-related indicators and ranks among the top 10 globally for university-industry R&D collaboration (5), state of cluster development (5), entrepreneurship policies and culture (5) and finance for startups and scaleups (8). Indonesia has made marked improvements in innovation outputs, notably in knowledge creation and online creativity.

    Mongolia (68^th), Brunei Darussalam (87^th) and the Lao People’s Democratic Republic (110^th) also move up the rankings.

    Central and Southern Asia

    In Central and Southern Asia, India (40^th) is the best-ranked innovation economy in this region. The Islamic Republic of Iran (62^nd), Kazakhstan (81^st, and a newcomer in the regional top three), and Uzbekistan (82^nd) get close to the top 80.

    India maintains its 40^th position overall and takes the helm in the lower middle-income group. It holds the record for overperforming on innovation for the 13^th consecutive year. India holds top rankings in key indicators including ICT services exports (at place 5), VC received (6), graduates in science and engineering (11) and global corporate R&D investors (13).

    The Islamic Republic of Iran secures the 2^nd position within the region. It claims the top spot globally in trademarks (at first place), performs well in intangible assets (13), and is in the top 15 worldwide in graduates in science and engineering (3), market capitalization (5) and industrial designs (11).

    Kazakhstan emerges as a newcomer in the regional top three and is one of only two economies that go up the rankings in the region, together with Nepal (108^th). Pakistan and Uzbekistan overperform on innovation for the second consecutive year, while Pakistan also positions itself among the economies that have shown the most significant ascent in the GII over the past four years.

    Northern Africa and Western Asia

    Israel (14^th), Cyprus (28^th), the United Arab Emirates (32^nd) and Türkiye lead in the innovation rankings for this region.

    Israel gained two ranks. It leads the world in nine innovation indicators, including R&D expenditure, university-industry R&D collaboration, the cumulative value of its unicorn companies, WIPO Patent Cooperation Treaty (PCT) patent applications and ICT services exports.

    The United Arab Emirates stabilizes close to the top 30 and ranks in the top five for its entrepreneurship policies and culture, policies for doing business, the number of researchers in businesses, and R&D financed by the private sector. Türkiye remains firmly placed among the group of middle-income economies within the GII top 65, and has climbed fastest in the ranks over the last decade. It ranks in the top five for its industry diversification, and excels notably in intangible assets, industrial designs and trademark filings.

    Joining the top 50 ranks are Saudi Arabia (48^th) and Qatar (50^th). Saudi Arabia performs well in ICT access (7), ICT use (10) and policies for doing business (16). Additionally, it excels in global corporate R&D investors (16) and global brand value (18).

    The economies of Bahrain (67^th), Oman (69^th), Jordan (71^st) and Egypt (86^th) also experience significant improvements in their innovation rankings. Bahrain and Oman both enter the top 70, while Oman secures a spot among the top 10 worldwide in graduates in science and engineering (2) and government funding per pupil (9).

    Georgia (65^th) and Armenia (72^nd) also make notable improvements.

    Latin America and the Caribbean

    In Latin America and the Caribbean, Brazil breaks into the top 50 economies in 2023. Following a steady ascent in recent years, it surpasses Chile (52^nd) for the first time, securing its position as the most innovative economy in the region. Mexico (58^th) follows, holding the third regional position.

    Brazil climbs up five ranks this year, firmly establishing itself among the group of economies that have shown the most remarkable improvement in the GII over the past four years. Brazil excels in indicators including government’s online service (at place 14) and e-participation (11), both in the top 15 worldwide; the valuation of its 16 unicorn companies (22), representing 1.9 percent of its GDP in 2023; and intangible assets (31), ranking well worldwide for its trademarks (13), and its global brands value (39).

    Jamaica (78^th) also overperforms on innovation for its level of development.

    In addition to Brazil, Uruguay (63^rd) and El Salvador (95^th) are the only other countries in the region that have improved their positions this year. Uruguay takes the lead in the top 10 for policies for doing business (4), ICT services imports (5), exports (7), and operational stability for businesses (10). El Salvador stands out with notable rankings in firms offering formal training (15) and trademarks (20).

    Sub-Saharan Africa

    In Sub-Saharan Africa, Mauritius (57^th) leads the region, followed by South Africa (59^th) making a stride by entering the top 60. Botswana (85^th), Cabo Verde (91^st) and Senegal (93^rd) follow. Nine economies in the region improve their innovation rankings. South Africa, Senegal, Rwanda (103^rd, and leading the low-income group), Nigeria (109^th), Togo (114^th) and Mauritania (127^th) are among the economies that have shown notable progress.

    Mauritius leads worldwide in amount of relative VC invested (at place 1) and secures a spot among the top five in VC received (5). South Africa leads the region in knowledge and technology outputs, thanks to its good performance in software spending (28), patents by origin (34), PCT patent applications (40) and valuation of its unicorn companies (37). Botswana leads in business sophistication and performs well in loans from microfinance institutions (12).

    Senegal takes the lead for the valuation of its unicorns and it performs well in gross capital formation (8), loans from microfinance institutions (10), FDI inflows (13) and VC received (19).

    Rwanda, Madagascar (107^th), South Africa, Senegal and Burundi (130^th) stand out for overperforming on innovation relative to their level of economic development, with Rwanda excelling for 11 years.

22.  source: The World Intellectual Property Organization (WIPO)

The NITI Aayog, in collaboration with the Confederation of Indian Industry (CII) and the World Intellectual Property Organization (WIPO), Geneva celebrated the unveiling of the Global Innovation Index (GII) 2023 in India. With India retaining the 40^th position out of 132 economies, the nation’s continued ascent in several innovation parameters is affirmed, reflecting a remarkable journey from its 81^st rank in 2015 to this notable achievement.

The GII 2023 launch was graced by esteemed dignitaries, including Shri Suman Bery, Vice-Chairman of the NITI Aayog; Dr. V.K. Saraswat, Member (S&T) of the NITI Aayog; Shri BVR Subrahmanyam, Chief Executive Officer (CEO) of the NITI Aayog; Mr. Daren Tang, Director General of WIPO; Dr. Sacha Wunsch-Vincent, Co-Editor of the GII & Head of the Economics and Statistics Division, WIPO; Professor Rishikesha Krishnan, Director of the Indian Institute of Management, Bangalore; and Mr. Alok Nanda, Co-Chairman of the CII National Committee on Technology, Innovation & Research, and Chief Executive Officer of the GE India Technology Centre.

Dr. Sacha Wunsch-Vincent, in his elaborate address, commended India, particularly the NITI Aayog, for driving the country’s continuous forward march in the GII’s global rankings. He highlighted India’s exemplary data-driven innovation progress and national-level initiatives. Among middle-income nations, India’s consistent innovation growth in the last five years, attributed to effective policies and coordination, stands out. He added that India is in a “sweet spot” for an exciting future innovation journey, drawing, most notably, on its strong, highly educated, entrepreneurially minded, and intellectual property-savvy youth.

Key Highlights from GII 2023:

1.      India’s Consistent Rise: India’s continued ascent in the GII, from its 81^st rank in 2015 to retaining the current 40^th position, underscores the nation’s unwavering commitment to innovation. This upward trajectory aligns with the vision of Atma Nirbhar Bharat, championed by the Prime Minister Narendra Modi, emphasizing self-reliance and resilience through innovation.

2.      Leadership Among Peers: India emerges as the numero uno among 37 lower-middle-income group economies and stands tall as the number one innovation performer among the 10 economies in Central and Southern Asia.

3.      Consistent Innovation Excellence: India continues to impress by surpassing expectations in relation to its level of development, maintaining its position as an “innovation achiever” for the 13^th consecutive year.

4.      Strengths and Focus Areas: India ranks highest in the Market Sophistication (input pillar) and Knowledge and Technology Outputs (output pillar) categories. It ranks amongst the top 10 in the Infrastructure and Institutions pillars (input pillars).

5.      Top-Ranked Indicator: India secures the top spot in the “Domestic market scale, bn PPP$” indicator. Furthermore, India is ranked in the top 10 in six additional indicators: “ICT Services exports, % total trade,” “Venture capital received, value, % GDP,” “Finance for startups and scaleups,” “Domestic industry diversification,” “Unicorn valuation, % GDP,” and “Intangible asset intensity, top 15, %.”

6.      Innovation Outputs: India proudly ranks 35^th in innovation outputs, marking an improvement from the previous year.

7.      Higher Graduates in Science and Engineering: India records 34% of total tertiary graduates in science and engineering in 2021, ranking 11^th in this indicator.

8.      Startup Finance Recognition: India’s finance for startups and scaleups earns it the 9^th position in this category, while the Venture Capital Performance, though slightly lower than the previous year, secures the 6^th position.

9.      Diverse Domestic Industries: India demonstrates growth in domestic industry diversification, reflecting a 0.46% increase from the prior year, and ranks 10^th in this indicator.

10.  Patents and Citable Documents: India shows a substantial growth in patents by origin, ranking 28^th globally. Additionally, it achieved the 20^th rank in the citable documents H-index in 2022.

11.  Unicorn Valuation: India’s unicorn valuation stands at 5.04% of GDP in 2023, securing the 9^th position in this indicator.

12.  High-Tech Manufacturing: High-tech manufacturing contributed to 34.23% of the total manufacturing output in 2019, with India ranking 35^th in this category.

13.  Intangible Asset Intensity: India achieved an impressive 8^th position in intangible asset intensity, and maintains a Global Brand Value of 210.907 billion USD in 2023, ranking 31^st globally.

14.  Cultural and Creative Exports: India’s cultural and creative services exports soared in 2021, up by a substantial 21.4% from the prior year, securing the 18^th position in this thriving sector.

The Global Innovation Index 2023 launch in India exemplifies the nation’s unwavering commitment to innovation and its remarkable journey towards becoming a global innovation leader. As India consistently outperforms expectations and excels in various indicators, it stands poised to drive economic growth, foster resilience and embrace self-reliance through innovation.

For further information and detailed insights into the Global Innovation Index 2023, please visit: https://www.wipo.int/global_innovation_index/en/2023/