First-of-its-kind index that benchmarks each country against an optimal innovation ecosystem
LONDON, Oct. 25, 2023 /PRNewswire/ — There is urgent need for responsible innovation to tackle unprecedented geopolitical, environmental, socioeconomic challenges. Addressing these requires bold ideas and new ways of working. To help countries build the right enabling ecosystems for innovation, Economist Impact, an arm of The Economist Group, developed the Innovation Quotient, an independent research programme, supported by Philip Morris International, uniquely designed to foster innovation for socioeconomic progress.
Economist Impact, with input from an advisory board of experts, identified 122 metrics that invigorate or impede a nation’s efforts to accelerate innovation. The research also encompassed an in-depth survey of 4,000 innovators and business leaders worldwide. The result is a benchmarking tool that spans the top 40 countries (by real GDP) and five industries (EOG and utilities, financial services, manufacturing, technology/media/telecommunications, retail and consumer goods), capturing more than 90% of global economic activity.
The Innovation Quotient ranks Singapore first and Egypt last, yet no country received perfect marks. On the 100-point scale, Singapore scored just 61.5, indicating that even the country with the world’s best ecosystem for innovation still has ample room to strengthen its policies and practices.
“The Innovation Quotient provides a moment to consider what we invent, how we bring it into the world and who it really benefits—all through the lens of rigorous research and enlightening data,” said Andrew Staples, Editorial Director of Initiatives, Economist Impact.
The global average score is 51/100, and just 11 points separate the 10th-ranked country, Australia, from the bottom quartile, indicating that lagging countries can quickly leapfrog to the top by adopting innovation-enabling practices in five key areas.
While the Innovation Quotient provides a snapshot of the environment for global innovation today, it is designed to serve as a blueprint for policy makers, government officials, business executives and thought leaders as they grapple with global, multidimensional challenges ranging from income inequality to the global energy crisis.
“With its explicit focus on socioeconomic progress, Economist Impact’s Innovation Quotient redefines successful innovation enablement,” said Vaibhav Sahgal, Economist Impact’s Principal, New Globalisation and Project Director of the Innovation Quotient. “Innovation should move the world toward a more desirable future that serves the public interest, contributes to wellbeing and delivers on environmental, social and economic goals.”
The Innovation Quotient research revealed several best practices which policy makers, business leaders and citizens can adopt to accelerate innovation for progress.
Top findings from the Innovation Quotient include:
Countries need to enable greater collaboration, alignment and inclusion
Enabling innovation requires engagement and co-ordinated action, where all participants have a seat at the table. Countries that score well overall, such as Singapore, Britain, Sweden, America and South Korea all have a mix of transparent governance and regulation, robust education, capacity building programmes and strong business operating environments that engage multiple stakeholders. National strategies can also help. South Korea’s digital government strategy for 2021-25, for example, focuses on intelligent service design, data-driven administration, and inclusive digital infrastructure.Global action requires collective co-operation
Globalisation has enhanced interconnectedness and led to socioeconomic gains, but is now challenged by geopolitical tension and rising protectionism. The Innovation Quotient points to the need for a new model of globalisation that encourages the global exchange of information, technology and talent while also safeguarding intellectual property, securing supply chains and spurring collaboration to limit climate change.Foster the workforce of the future
Many economies are faced with ageing and shrinking populations. Demographics are inextricably linked to innovation potential due to their bearing on the workforce. Automation and shifts in production are also raising fundamental questions about the relevance of existing skills. Country performance on the Innovation Quotient emphasises the need to rethink labour and education policy, supporting the development of a skilled workforce through training and migration, and making education more affordable and accessible.Support innovation hubs that are responsive to local contexts
Geographic concentrations of firms, suppliers, incubators and academia create benefits that ripple across an interconnected system. The Innovation Quotient reveals that much work is needed to ensure that innovation hubs or clusters are responsive to local contexts to avoid creating high costs of living, unsustainable urban conditions and wealth gaps.People are the agents, adopters and benefactors
Performance on the Innovation Quotient across metrics of people-centricity (e.g. consumer protection, employee culture, recruitment strategy) suggests that this is an afterthought retrofitted into the innovation process, if at all. Policymakers have a responsibility to ensure that institutions are representative and accountable. Businesses and investors must consider environmental and socioeconomic aspects of decisions to reap long-term benefits. The top-ranking countries on these metrics – Japan (91.6), the US (90.2), and the UK (85.2) – have strong regulatory frameworks conducive to business growth and innovation while also levelling the playing field to allow for grassroots innovation.
The Innovation Quotient is presented as a standalone report and an interactive, online repository of data, analysis and recommendations. In the coming months, Economist Impact will publish new streams of data and analysis that highlight specific countries and industries. The research is the foundation of a larger global programme with mutually reinforcing components including regional summits, country-focused workshops and multimedia content spanning interactive data visualisations, articles, podcasts and videos to drive discussion around the data and insights revealed by the research. Economist Impact’s findings are independent and do not necessarily reflect the views of the corporate supporter or consulted experts.
Notes for journalists:
Explore the Innovation Quotient index, report and related content at https://impact.economist.com/new-globalisation/innovation-quotient
Innovation Quotient Explained video: https://vimeo.com/876470963/838cc9e539?share=copy
About Economist Impact
Economist Impact combines the rigour of a think-tank with the creativity of a media brand to engage a globally influential audience. We believe that evidence-based insights can open debate, broaden perspectives and catalyse progress. The services offered by Economist Impact previously existed within The Economist Group as separate entities, including EIU Thought Leadership, EIU Public Policy, Economist Events, El Studios and SignalNoise.
Our track record spans 75 years across 205 countries. Along with creative storytelling, events expertise, design-thinking solutions and market-leading media products, we produce framework design, benchmarking, economic and social impact analysis, forecasting and scenario modelling, making Economist Impact’s offering unique in the marketplace. Visit www.economistimpact.com for more information.
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SOURCE Economist Impact