10 Innovative Countries In The World 2020

With coronavirus crushing the world’s economy, there is one thing that sets apart countries. It is the innovative strategies and ideas that they bring to solve complex problems including the COVID-19. For, instance countries in the world are in a race to innovate the vaccine for coronavirus. Innovation is the process of creating and introducing new ideas, strategies, and products that majorly helps mankind to solve a problem. It is certainly the innovation that contributes greatly to a country’s economic growth. The 2020 Bloomberg Innovation Index states that Germany beats South Korea’s six-year record and ranks first in the list of the most innovative countries in the world. Stay tuned until the end of this article to grab the list of countries as per the Bloomberg Innovation Index and Global Innovation Index report.

Is Your Country Innovative Enough In 2020?

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Well, many may think that this question can be answered by looking at the dominance in world trade. However, there are entirely different parameters employed to answer this question.

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For instance, the US is known for the development of ideas that have changed lives. Production in the country increases because of innovation. Indeed, innovation and productivity are two sides of the same coin.

This does not make it the most innovative country. Nonetheless, the considerations in deeming a country innovative are diverse. Still, this does not, however, bring the idea of America lagging in technology.

Various organizations rank countries depending on various factors from the most to least innovative. Discussed herein are the rankings and statistics to support the ranks. The first organization that does this ranking is Bloomberg.

1. Bloomberg World Innovative Rankings

Bloomberg is one of the world’s leading consultancy firms with a great reputation everywhere. The organization carries annual global rankings on the levels of innovation called as Bloomberg Innovation Index.

To arrive at this, Bloomberg uses statistics and data obtained from various organizations. The organizations that it sources data include the World Intellectual Property Organization (WIPO), IMF, and World Bank.

The World’s Innovative Countries: Key Factors That Determine The List

The Bloomberg Innovation Index analyses each country in the world a range of areas. To arrive at the level of innovativeness of a country, several factors are considered.

The key ones include:

1. Part of GDP spent on Research and Development

Research and development are key drivers of innovation. With adequate data from research and exploration together with the testing of new ideas, the probability of innovation increases.

2. Patents

A patent is a form of intellectual property. Additionally, it bars others from using your idea for a given period. Patents are on their true indicators that a country is being innovative. Without a doubt, patents are crucial while calculating the innovativeness of a country.

3. Research Force

Even with the availability of research funds and infrastructure, you need research personnel to drive the research. With the right personnel, innovation is easier to achieve.

The world economy could more than double in size by 2050 due to continued technology-driven product improvements.

4. Hi-Tech Companies

These are companies that sell and produce the world’s leading technologies such as artificial intelligence. A hi-tech company reflects an intensive investment in innovation.

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5. Capabilities in Manufacturing

Furthermore, increased manufacturing capabilities imply growth in ideas. This is from the production of raw materials, identification of niches, and the transformation of raw materials to final products.

6. Tertiary Education

The quality of tertiary education is also one of the key factors that determine how innovative is a country.

Most Innovative Countries – 2020

With the parameters stated above and the data sourced from the sources, Bloomberg compiles its Innovative Index every year. Based on these results, the recent results for 2020 are as below:

1. Germany

Germany ranks No.1 on the list of most innovative countries in the world by beating South Korea. The added efforts of Germany in the sectors like manufacturing, high-tech companies density, and patent activity made the country back the top score.

In 2019, Germany was in the second position, right behind South Korea.

In 2020 Germany breaks South Korea’s six-year record as the most innovative country in the world and climbs to rank one in the world.

2. South Korea

South Korea, has been on the No.1 of the most innovative countries for six years in a row, until this year. Thanks to the South Korean brains who think ahead and solve problems with innovative solutions.

Tech oriented companies like Samsung Electronics, LG, and Hyundai Motor & Co. are the leading giants that should roll up their sleeves and catch up with other countries to stay in the top 10.

In fact, China could easily beat South Korea if they do not gear up their research and developments, which in turn contributes to the innovations of the country.

South Korea has topped The Bloomberg Innovation Index for the sixth straight year until 2019.

3. Singapore

Singapore with its world ranking efficiency in education has climbed up the ladder from spot 6 to spot 3 on the list of most innovative countries.

The country has a quality focus on manufacturing and encourages top talent to bring innovative ideas to the table.

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4. Switzerland

The country famous for quality products like Swiss watches, chocolates, and even cheese, is a top contender for several countries trying to gain a spot on the most innovative countries report.

Switzerland has been consistently seen in the top 10 most innovative countries and easily gains a spot on the Global Innovation Index report as well.

5. Sweden

Sweden as a country has a lot of interesting facts hidden and always tries to come up with innovative strategies. The country also boasts about its excellence and an intriguing lifestyle.

6. Israel

Israel is one of the key leaders for its efforts in research and development. Although the country did not score high in terms of manufacturing, and efficiency, it did manage to stick to its rank as the previous year.

7. Finland

Finland is known for its education system worldwide. The country also consistently ranks well according to the Global Innovation Index described below.

8. Denmark

Denmark is a country known for its sophistication, ranks well as the happiest country in the world.

It is also consistently observed as one of the countries with a better quality of life.

9. United States

The United States which is known to be a startup hub also ranked first on the Boomerang Index of most innovative countries in 2013.

The downfall of the US to this position alerts that the country must focus more on education and research, far more than trade and politics.

But, it is still not so bad. In fact, the USA has risen three spots from the previous year. Alternatively, China bagged the 16th position in the annual ranking.

The USA made it in the top ten due to faster product cycles as well as the intense atmosphere of competition. Additionally, it still is ranked by CEO World magazine as the

most start-up friendly country.

However, there are concerns that it is being overtaken in innovation over the last few years. The year 2018 witnessed the country deemed to be the world’s biggest thing economy miss out of the top ten spots in the Bloomberg Innovative Rankings.

Furthermore, the US is ranked 26th currently by CEO World in terms of investment activities. Malaysia, a developing country emerges the best.

Currently, China and the US are locked in a trade war. The USA claims to be trying to protect its intellectual property from China.

However, the USA might be frightened by the rapidly increasing expansion of the Chinese economy. This is powered by government policies. Furthermore, it encourages research and entrepreneurship.

China is using its phone maker, Huawei. Along with them, it is anticipated to release the 5G network. Undoubtedly, this is a real bargain in the innovativeness levels.

However, this cannot be a strong indicator. America is falling behind in technology. On the other hand, things like the controversial arrest of the Huawei CEO in Canada might mean that the country itself is doubting its technological capabilities.

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10. France

France is on the list ranking as the tenth most innovative country. The country gained its points due to the investments around the telecommunications infrastructure sectors.

2. The Global Innovation Index Report

The global innovation index is by far the most sophisticated and exhaustive of all innovation measures. It was released by WIPO, Cornell University, and several partners to GII (Global Innovation Index).

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To arrive at the rankings, they develop 80 data tables. This includes 57 physical signals of innovativeness, 5 surveys, and interviews. Besides, the rest are composite. Furthermore, they evaluate a country’s innovative level at a 90% confidence interval.

Global Innovation Index Report – 10 Innovative Countries In The World

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Based on the global innovation index, the rankings for the most innovative countries in the world are as follows:

Switzerland
Sweden
The United States Of America
Netherlands
United Kingdom
Finland
Denmark
Singapore
Germany
Israel

Based on this index, Switzerland ranked the most innovative country for 8 years in a row until the year 2018.

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Perhaps, the real indicator of the most innovative countries is the ability of a country to innovate with efficiency and effectiveness. Moreover, this means the transformation of knowledge and education into technology patents and hi-tech companies.

The Global Innovation Index Report – Top Countries In Education:

Switzerland
Luxembourg
China
the Netherlands
Ukraine
the Republic of Moldova
and Malta

Again, China is in the mix. We cannot deny the fact that China is one of the rapidly growing economies. This is also with the government enforcing policies to support research and technology.

Concluding thoughts,

Generally speaking, the main purpose of innovation is to improve people’s lives. The Bloomberg and Global Innovation Index changes every year.

Importantly, for any country to remain among the most innovative countries, it must not lien on its laurels. Besides, countries are increasingly understanding that innovation is a key driver for economic growth.

Similarly, innovation allows the country to stay relevant in the competitive market. In addition to this, it also plays an important role in economic growth. New technological patents can mean a big influx of income into a country.

Without a doubt, innovation is the driving force in a country’s development. The US although considered as the superpower might be lagging behind other nations in terms of innovation. This is because, despite its advancement in technologies, some other countries are revolutionizing their technology and innovation measures at an extra level.

What are your thoughts on the most innovative countries? Is your country on the list of innovative countries? Do you think the US will be able to beat others to become the most innovative country in 2021?

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