Ranked: The Most Innovative Economies in the World
Innovation was again a front-of-mind theme in Davos at the World Economic Forum’s annual assembly of political and business leaders in 2020.
The global conversation centered around the ability of countries to innovate in the face of changing times. An economy’s response to megatrends, such as tech breakthroughs and the risks of climate change, can dictate its long-term success.
Today’s chart identifies the world’s top 20 most innovative economies, based on the annual index created by Bloomberg. We also delve into how the top 10 spots have evolved over time.
How Are Innovative Economies Measured?
Each year, the index assesses over 200 economies across seven weighted metrics.
- R&D Intensity
Annual research and development spending, as a % of an economy’s gross domestic product (GDP).
- Patent Activity
The number of annual patent and grant filings, and the 3-year average growth of filings abroad and filings growth, as a share of the world’s total patent growth.
- Tertiary Efficiency
The total enrollment in higher education, the share of labor force with advanced education levels, and the share of STEM graduates and in the labor force.
- Manufacturing Value-added
Manufacturing output levels—contributing to exports—as a % of GDP, and per capita.
- Productivity
GDP and gross national income (GNI) in the working age population, and the 3-year improvement.
- High-tech Density
The volume of domestic, high-tech public companies as a share of the world’s total companies. Examples of high-tech companies include: aerospace and defense, biotech, internet services, and renewable energy.
- Researcher Concentration
Professionals (including postgraduate PhD students) engaged in R&D across the population.
Based on available data of these measures, only 105 countries made the final cut for this year’s edition of the index—below are the 60 most innovative economies scored out of 100 points, and the highlights from that list.
The 10 Most Innovative Economies
For the first time in years, Germany clinched the top spot for the most innovative economy, ending South Korea’s winning streak. The European nation scores in the top five for its manufacturing value-added, high-tech density, and patent activity metrics.
However, even winners have some room for improvement. As the global economy sways ever more in the direction of services over manufacturing, Germany could improve its rate of higher education to achieve an even better score on the index.
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.
Which other countries sit in the top 10?
The Most Innovative Economies in the World 
