Switzerland | Human-Centered Change and Innovation

America Drops Out of Top 10 Most Innovative Countries

The latest Bloomberg Innovation Index is out (2021 edition), and South Korea has risen to first place, taking the title back from Germany, while the U.S. fell out of the Top 10 completely.

Seven of the top 10 places went to European countries while the USA and China slipped.

“Intensifying competition between the U.S. and China is reshaping the innovation landscape. For the U.S., fears about losing intellectual property to a geopolitical rival are undermining support for the open innovation system. For China, fear of being cut off from foreign technology is accelerating investment in R&D capacity at home.” — Bloomberg Chief Economist Tom Orlik

The rankings are based on dozens of criteria centered around seven metrics:

For patent activity
For research personnel concentration
For tertiary education
For technology company density
For productivity
For manufacturing value added
For research and development expenditures

Bloomberg Innovation Index 2021 Chart Part 1

The Bloomberg Innovation Index tries to measure and rank countries on the ability of their economies to innovate, which will be a key theme at the annual World Economic Forum in Davos, Switzerland taking place Jan. 26-29.

While spending on research and development continues to be important, shifts in productivity and education effectiveness (among other factors) will continue to encourage significant changes in the index from year to year.

“In the year of Covid and facing the urgency of climate change, the importance of innovation fundamentals only increases. Innovation is often measured by new ideas, new products and new services, but its their diffusion and adoption that is the real metric of success.” — Catherine Mann, Global Chief Economist at Citigroup Inc.

What do you think?

Does Bloomberg get it right or are there other innovation rankings or indexes that do a better job?

Which is more important to the relative innovativeness of a country, efforts by the government or by industry?

Which countries do the best job of achieving successful public/private partnerships to encourage innovation?

Click here to see the full 2021 Bloomberg Innovation Index rankings

Image credits: Bloomberg

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Starbucks Train Making Connections with Customers

What happens in Switzerland if you forget to buy your latte or cappuccino before you get on the train?

Well, Starbucks has taken the next leap in connecting with customers as they make their rail connections, moving beyond retail locations in train stations across Europe to opening its first store on a Swiss Federal Railways (SBB) car, the national railway line for Switzerland.

Starbucks Train Interior The new Starbucks train café is one of the smallest the company has ever designed, and they have managed to include space for 50 people, baristas, a pastry case, standing bar, and a lounge area, all tastefully assembled into a two level train car.

This latest Starbucks retail twist may only be a test, and the first of its kind for the company, but it now officially puts them in planes, trains, and automobiles, and is a smart way to extend the customer relationship and maintain their connection with existing customers while also possibly building new ones in a captive audience situation.

It’s a smart move for Starbucks to test this format even if it fails like Amazon Tote.

Starbucks Train Customers It’s incredibly important for companies like Starbucks that sell daily indulgences to be in the places where people are looking to enjoy that little treat, and with the level of quality increasing (at least in the coffee experience) at competitors like Dunkin Donuts, McCafe, Caribou Coffee, and others, Starbucks has to do everything they can to reinforce their premium image and customer loyalty.

The questions every retailer (or business for that matter) must continuously ask themselves include:

1. What type of customer relationship do we have?
2. What type of relationship does the customer have with our product or service?
3. What products and services do we have our customers’ permission to provide?
4. Where do our customers want us to be?

If you have a copy of my popular five-star book Stoking Your Innovation Bonfire, you can dig into the ideas behind these questions more in Appendix A where I look at a number of different “Customer Relationship Types” and “Levels of Customer Permission” in an effort to help you maximize the customer relationship

If you are looking for additional opportunities to serve your customers, maintain existing customer loyalty, and to build new customer relationships, you might also want to check out Appendix B in Stoking Your Innovation Bonfire, where I get into my framework for visualizing the customer purchasing journey and my framework for visualizing the core business operations that support the customer purchasing journey.

And then when you’ve got some ideas that you want to possibly pursue, you might want to run them through The Innovation Baker’s Dozen framework in Appendix C.

There is a lot of great content hidden in the book in various places, which is why it has done so well, and this exploration of the new Starbucks Train is the perfect time to highlight some of the insights captured in the appendices.

So, ask yourself the four questions above, check out the appendices, think about what Starbucks has done with their espresso train and let me know what you come up with!

Here is the official video announcing the Starbucks and SBB collaboration on the Starbucks train experience: