The latest Bloomberg Innovation Index is out (2020 edition), and Germany has risen to first place, breaking South Korea’s six-year winning streak, while the U.S. fell one notch to No. 9.
“Innovation is a critical driver of growth and prosperity. China’s move up the rankings, and the U.S. drop, is a reminder that without investment in education and research, trade tariffs aren’t going to maintain America’s economic edge.” –Tom Orlik, Bloomberg Economics chief economist
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
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. 21-24.
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.
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?
Image credits: Bloomberg