Gii

what's GII? and how does it work?

1. The Global Innovation Index (GII) By : Nasrin Asadi Kamal Email: [email protected] Supervisor: Dr. Farhanchi 1

2. What’s the (GII)? 2

3. The  Global Innovation Index   (GII) is an annual ranking of countries by their capacity for, and success in,   innovation . It is published by  Cornell University,  INSEAD , and the  World Intellectual Property Organization , in partnership with other organizations and institutions,  and is based on both subjective and objective data derived from several sources, including the  International Telecommunication Union , the  World Bank  and the  World Economic Forum   . The index was started in 2007 by INSEAD and  World Business , a British magazine. The GII is commonly used by corporate and government officials to compare countries by their level of innovation . GII 3

4. How does it work? (GII) The GII is computed by taking a simple average of the scores in two sub-indices, the Innovation Input Index and Innovation Output Index, which are composed of five and two pillars respectively. Each of these pillars describe an attribute of innovation, and comprise up to five indicators, and their score is calculated by the weighted average method . Below are the top 30 countries according to the GII 2017 rankings. Among the top 30 countries, all are high-income countries, with the exception of China, which is the only upper-middle income country to be among the most innovative, according to the report. 4

5. HISTORY OF (GII) The Global Innovation Index (GII) aims to capture the multi-dimensional facets of innovation and provide the tools that can assist in tailoring policies to promote long-term output growth, improved productivity, and job growth. The GII helps to create an environment in which innovation factors are continually evaluated. It provides a key tool and a rich database of detailed metrics for economies, which in 2017 encompasses 127 economies, representing 92.5% of the world’s population and 97.6% of global GDP. 5

6. HISTORY OF (GII) The Global Innovation Index 2017 (GII), in its 10th edition this year, will be released June 15, and continues to be co-published by Cornell University, INSEAD, and the World Intellectual Property Organization (WIPO, an agency of the United Nations). The core of the GII Report consists of a ranking of world economies’ innovation capabilities and results. Over the last ten years, the GII has established itself as a leading reference on innovation. Understanding in more detail the human aspects behind innovation is essential for the design of policies that help promote economic development and richer innovation-prone environments locally. Recognizing the key role of innovation as a driver of economic growth and prosperity, and the need for a broad horizontal vision of innovation applicable to developed and emerging economies, the GII includes indicators that go beyond the traditional measures of innovation such as the level of research and development. 6

7. GII Framework The Global Innovation Index (GII) is an evolving project that builds on its previous editions while incorporating newly available data and that is inspired by the latest research on the measurement of innovation. The GII relies on two sub-indices—the Innovation Input Sub-Index and the Innovation Output Sub-Index—each built around key pillars. Five input pillars capture elements of the national economy that enable innovative activities: (1) Institutions, (2) Human capital and research, (3) Infrastructure, (4) Market sophistication, and (5) Business sophistication. Two output pillars capture actual evidence of innovation outputs: (6) Knowledge and technology outputs and (7) Creative outputs. Each pillar is divided into sub-pillars and each sub-pillar is composed of individual indicators (81 in total in 2017). Sub-pillar scores are calculated as the weighted average of individual indicators; pillar scores are calculated as the weighted average of sub-pillar scores. 7

8. Four measures are then calculated: Innovation Input Sub-Index: is the simple average of the first five pillar scores Innovation Output Sub-Index is the simple average of the last two pillar scores The overall GII score is the simple average of the Input and Output Sub-Indices The Innovation Efficiency Ratio is the ratio of the Output Sub-Index over the Input Sub-Index The GII gathers data from more than 30 sources, covering a large spectrum of innovation drivers and results; privileging hard data over qualitative assessments (only five survey questions were included in the GII 2017) The framework is revised every year in a transparent exercise to improve the way innovation is measured. For more on the latest updates to the framework, see Annex 2 of the GII 2016. GII Framework 8

9. GII Framework 9

10. Key findings From the Global Innovation Index 2017, devoted to measuring the innovation performance of 127 economies and the theme ‘Innovation Feeding the World’, six messages emerge. Many of these messages are concerned with innovation as a driver of growth generally. One is concerned specifically with the role of innovation as a way to address the growing need for advances in agriculture and food value chains. 10

11. Finding 1: Crafting the foundations for innovation-driven growth while the global economy is at an important turning point 11

12. Finding 2: Smart, digital agricultural innovation and a better uptake of innovation in developing countries can help overcome serious food challenges 12

13. Finding 3: More innovation convergence is needed globally, with developing countries perfecting their innovation systems 13

14. Finding 4: Opportunities have emerged to leverage the rise of new East Asia Innovation Tigers, fostering deeper regional innovation networks and benefitting from the rise of India 14

15. Finding 5: Preserving the innovation momentum in Sub-Saharan Africa and tapping the innovation potential in Latin America are priorities 15

16. Finding 6: The largest sub-national clusters of inventive activity, as measured by patenting, include Tokyo–Yokohama , Shenzhen–Hong Kong ( China), and San Jose–San Francisco, CA 16

17. The Global Innovation Index 2017 results The GII 2017 results have shown consistency in areas such as top rankings and the innovation divide. However , there also have been some new high-level developments as described below. 17

18. 81 Indicators 1 Institutions 1.1. Political environment 1.1.1 Political stability and absence of violence/terrorism 1.1.2 Government effectiveness 1.2. Regulatory environment 1.2.1 Regulatory quality 1.2.2 Rule of law 1.2.3 Cost of redundancy dismissal 1.3. Business environment 1.3.1 Ease of starting a business 1.3.2 Ease of resolving insolvency 1.3.3 Ease of paying taxes 18

19. 2 Human capital and research 2.1. Education 2.1.1 Expenditure on education 2.1.2 Government expenditure on education per pupil, secondary 2.1.3 School life expectancy 2.1.4 Assessment in reading, mathematics, and science 2.1.5 Pupil-teacher ratio, secondary 2.2. Tertiary education 2.2.1 Tertiary enrolment 2.2.2 Graduates in science and engineering 2.2.3 Tertiary level inbound mobility 2.3. Research and development (R&D) 2.3.1 Researchers 2.3.2 Gross expenditure on R&D (GERD) 2.3.3 Global R&D companies, average expenditure top 3 2.3.4 QS university ranking average score top 3 universities 19

20. 3 Infrastructure 3.1. Information and communication technologies (ICTs) 3.1.1 ICT access 3.1.2 ICT use 3.1.3 Government's online service 3.1.4 Online e-participation 3.2. General infrastructure 3.2.1 Electricity output 3.2.2 Logistics performance 3.2.3 Gross capital formation 3.3. Ecological sustainability 3.3.1 GDP per unit of energy use 3.3.2 Environmental performance 3.3.3 ISO 14001 environmental certificates 20

21. 4 Market sophistication 4.1. Credit 4.1.1 Ease of getting credit 4.1.2 Domestic credit to private sector 4.1.3 Microfinance institutions' gross loan portfolio 4.2. Investment 4.2.1 Ease of protecting minority investors 4.2.2 Market capitalization 4.2.3 Venture capital deals 4.3. Trade, competition, & market scale 4.3.1 Applied tariff rate, weighted mean 4.3.2 Intensity of local competition 4.3.3 Domestic market scale 21

22. 5 Business sophistication 5.1. Knowledge workers 5.1.1 Employment in knowledge-intensive services 5.1.2 Firms offering formal training 5.1.3 GERD performed by business enterprise 5.1.4 GERD financed by business enterprise 5.1.5 Females employed with advanced degrees 5.2. Innovation linkages 5.2.1 University/industry research collaboration 5.2.2 State of cluster development 5.2.3 GERD financed by abroad 5.2.4 Joint venture/strategic alliance deals 5.2.5 Patent families filed in at least two offices 5.3. Knowledge absorption 5.3.1 Intellectual property payments 5.3.2 High-tech imports 5.3.3 ICT services imports 5.3.4 Foreign direct investment, net inflows 5.3.5 Research talent in business enterprise 22

23. 6 Knowledge and technology outputs 6.1. Knowledge creation 6.1.1 Patent applications by origin 6.1.2 PCT international applications by origin 6.1.3 Utility model applications by origin 6.1.4 Scientific and technical publications 6.1.5 Citable documents H index 6.2. Knowledge impact 6.2.1 Growth rate of GDP per person engaged 6.2.2 New business density 6.2.3 Total computer software spending 6.2.4 ISO 9001 quality certificates 6.2.5 High-tech and medium high-tech output 6.3. Knowledge diffusion 6.3.1 Intellectual property receipts 6.3.2 High-tech exports 6.3.3 ICT services exports 6.3.4 Foreign direct investment, net outflows 23

24. 7 Creative outputs 7.1. Intangible assets 7.1.1 Trademark application class count by origin 7.1.2 Industrial designs by origin 7.1.3 ICTs and business model creation 7.1.4 ICTs and organizational model creation 7.2. Creative goods and services 7.2.1 Cultural and creative services exports 7.2.2 National feature films produced 7.2.3 Global entertainment and media market 7.2.4 Printing and publishing output 7.2.5 Creative goods exports 7.3. Online creativity 7.3.1 Generic top-level domains ( gTLDs ) 7.3.2 Country-code top-level domains ( ccTLDs ) 7.3.3 Wikipedia yearly edits 7.3.4 Video uploads on YouTube 24

25. Thanks for attention 25