In the past, a country’s economic growth was defined by two key indicators: first, how the market responds to price signals depending on the supply and demand curves; second, how the government effectively allocates its resources. However, everything changed when technology came into the picture and eventually gave birth to what we now know as innovation economics—dramatically shifting the focus of societies around the world.
Innovation is a key driver of economic growth and some countries are leading the list of the world’s most innovative economies. This year, the 2017 Bloomberg Innovation Index just named the dominating nations in the annual battle of ideas.
South Korea maintained its number one spot in the international chart, dominating the ranks in Research and Development Intensity, patent activity, and value-added manufacturing. The country was also included in the top 5 ranking in higher education and research concentration, and high-tech density.
Sweden’s success to secure No. 2 can be credited to its improvement on the manufacturing value added metric. It’s Nordic cousin, Finland, did an impressive advance when it cracked into the top 5, thanks to the rise of high-technology firms in the country. Israel, meanwhile, made it to the top ten—a one rank progress from its No. 11 spot in 2016.
Although the technology giant Japan lost its No. 4 spot to Switzerland and moved down to the seventh rank, the 2017 index shows that it still remains one of the top five countries for productivity and tertiary efficiency. Germany, Switzerland, and Singapore took the third, fourth and sixth spot, respectively,
To see the full ranking list, click here.