GE
January 2013
Innovation Barometer
Global Scorecard
As part of this year’s Global Innovation Barometer, GE’s Global Market Intelligence team created a scoring model to rank 50
countries on certain factors inherent to their specific government, business and educational environments that impact the level of
innovation within each country. We named it GE’s Global Innovation Scorecard.
The Innovation Scorecard has five pillars, and five factors within each pillar. Each country is ranked by each factor and an average
score is created for each pillar. Countries are then placed into one of an upper, lower, or two middle quartiles for each pillar and for an
overall score. The countries that fall into the top quartile are considered leaders in laying out the kind of environment necessary to
promote innovation.
Top Quartile Countries – Innovation Scorecard
Canada
Finland
Germany
Hong Kong
Israel
Netherlands
Norway
Singapore
Sweden
Switzerland
United Kingdom
United States
The first two pillars are government related. The first based on how strict of a regulatory environment is in place, the second on how the
government promotes and invests in programs that could foster innovation. The next two pillars are focused on businesses within each
country. One pillar measures factors outside of a firms’ control– what types of capital funding are available and how accessible are loans,
among other factors. The other pillar looks at whether or not firms promote an innovative environment within their own walls. The fifth and
final pillar looks at the level and quality of training and education within each country.
Key Findings
A heavy tax burden does not always impede innovation. Six countries that fell in the top quartile in the overall scorecard were outside of
the top 20 countries for the effect and extent of tax burden category. Those countries are Finland, Germany, Israel, Sweden, the United
States and United Kingdom.
Top countries do not depend on their governments to supply the latest technological advances. Looking at government procurement
of advanced technology and availability of latest technology, several countries that rank highly in the overall scorecard rank higher in
availability of tech than they do in ranking the government procurement of tech. Places like Hong Kong, the United Kingdom, the
Netherlands and Japan achieve innovation by having their businesses do more than the governments in bringing in the latest technology.
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January 2013
Foreign Direct Investment as a percent of GDP is highest in many countries that do not perform well overall on GE’s Innovation
Scorecard. Peru, Portugal, Hungary, Vietnam, Chile all fall into the top quartile for this factor but overall are in the bottom half of the
rankings. Obviously a major reason for this is that countries with large overall economies would require a greater amount of FDI to impact
the percentage of GDP. Also, larger economies have a higher percentage of domestic investment supporting their growth. But investors
should do a better job of identifying countries that do more to promote innovation for their capital plays.
Marketing is a key factor in successful innovation. Having the capacity to innovate within a country is just part of the equation. Once a
new product is created it needs effective messaging, branding and strategic planning to bring it to market. Top scorecard countries like
the US, Canada and Germany also rank in the top quartile for extent of marketing.
Having a top math and science education is not essential to fostering an innovative environment. This plays into the Innovation
Barometer finding that process innovation is taking precedence over costly and time consuming new product innovation. Managing
business and operational change could be factors playing a larger role than engineering in the current economic environment. Top
scorecard countries like the United States, United Kingdom, Israel and Norway fall outside of the top 20 for quality of math and science
education.
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January 2013
Factor Definitions and Rankings
Pillar 1 – Government Regulatory
Intellectual Property Protection – World Economic Forum Global Competitiveness Report, 2011-2012 Weighted Average Ranking.
How would you rate intellectual property protection, including anti-counterfeiting measures, in your country?
Without sufficient regulation in place to protect intellectual property, domestic businesses and thinkers will look over borders to innovate.
Foreign firms are more likely to invest capital or position staff within countries where their intellectual property is safe.
Top Quartile - IP Protection
Bottom Quartile - IP Protection
Austria
Finland
France
Germany
Hong Kong
Ireland
Netherlands
Norway
Singapore
Sweden
Switzerland
UK
Argentina
Columbia
Egypt
Mexico
Nigeria
Peru
Philippines
Romania
Russia
Thailand
Turkey
Vietnam
Burden of Government Regulation - World Economic Forum Global Competitiveness Report, 2011-2012 Weighted Average Ranking.
How burdensome is it for businesses in your country to comply with governmental administrative requirements (e.g., permits, regulations,
reporting)?
An overabundance of regulations could hinder innovation domestically by creating the appearance of too much government involvement.
For foreign firms, burdensome regulation means additional costs of doing business when they consider expansion into new markets.
Burden of Govt. Regs. Top Quartile
Burden of Govt. Regs. Bottom Qtl
Chile
China
Finland
Hong Kong
Malaysia
Netherlands
Nigeria
Saudi Arabia
Singapore
Sweden
Switzerland
UAE
Argentina
Belgium
Brazil
Czech Republic
France
Greece
Hungary
Italy
Peru
Poland
Portugal
Russia
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GE
January 2013
Transparency of Government Policymaking - World Economic Forum Global Competitiveness Report, 2011-2012 Weighted Average
Ranking.
How easy is it for businesses in your country to obtain information about changes in government policies and regulations affecting their
activities?
Critically important for foreign firms looking to do business across borders. Without a strong history of transparency, the potential for
foreign firms to innovate and grow becomes more risky and less likely.
Top Quartile - Transparency
Bottom Quartile - Transparency
Austria
Canada
Chile
Finland
Hong Kong
Malaysia
Netherlands
Singapore
Sweden
Switzerland
UAE
UK
Argentina
Czech
Egypt
Greece
Hungary
Italy
Korea
Philippines
Poland
Romania
Russia
Vietnam
Ethical Behavior of Firms - World Economic Forum Global Competitiveness Report, 2011-2012 Weighted Average Ranking.
How would you compare the corporate ethics (ethical behavior in interactions with public officials, politicians, and other enterprises) of
firms in your country with those of other countries in the world?
Corporate ethics plays greatly into partnerships, a key finding in this year’s Innovation Barometer. With firms looking to fill their talent and
capability gaps by teaming with other firms, the knowledge that partners conduct business ethically allow for greater collaboration.
Top Quartile - Ethical Behavior
Bottom Quartile - Ethical Behavior
Australia
Canada
Denmark
Finland
Germany
Japan
Netherlands
Norway
Singapore
Sweden
Switzerland
UK
Argentina
Columbia
Czech
Greece
Hungary
Indonesia
Italy
Nigeria
Peru
Romania
Russia
Vietnam
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GE
January 2013
Extent and Effect of Taxation - World Economic Forum Global Competitiveness Report, 2011-2012 Weighted Average Ranking.
What impact does the level of taxes in your country have on incentives to work or invest?
Favorable taxation includes policies that provide incentives for research and development and for training and development of the
existing labor force while also keeping the total corporate tax rate competitive with other industrial nations.
Top Quartile - Tax Burden
Bottom Quartile - Tax Burden
Canada
Chile
Hong Kong
Indonesia
Malaysia
Netherlands
Nigeria
Saudi Arabia
Singapore
South Africa
Switzerland
UAE
Argentina
Belgium
Brazil
Denmark
France
Greece
Hungary
Italy
Portugal
Romania
Russia
Turkey
Pillar 2 – Government Environment
Quality of Overall Infrastructure - World Economic Forum Global Competitiveness Report, 2011-2012 Weighted Average Ranking.
How would you assess general infrastructure (e.g., transport, telephony, and energy) in your country?
A strong infrastructure allows products to get to market, both for domestic consumption and to ports for exporting. Technology
infrastructure is essential for global connectivity and to succeed in bringing in foreign investment.
Top Quartile - Infrastructure
Bottom Quartile - Infrastructure
Austria
Canada
Denmark
Finland
France
Germany
Hong Kong
Netherlands
Portugal
Singapore
Switzerland
UAE
Algeria
Argentina
Brazil
Columbia
Egypt
Indonesia
Nigeria
Peru
Philippines
Romania
Russia
Vietnam
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GE
January 2013
Government Procurement of Advanced Technology - World Economic Forum Global Competitiveness Report, 2011-2012 Weighted
Average Ranking. Do government procurement decisions foster technological innovation in your country?
The government needs to take an active role in supplying innovators with technology. Without a healthy process for providing innovators
with products they need, they will take their ideas across borders.
Top Quartile - Govt. Tech Pcmnt
Bottom Quartile - Govt. Tech Pcmnt
China
Finland
Germany
Israel
Malaysia
Netherlands
Saudi Arabia
Singapore
Sweden
Switzerland
U.S.
UAE
Argentina
Czech
Egypt
Greece
Hungary
Italy
Philippines
Poland
Romania
Russia
South Africa
Thailand
Availability of Latest Technologies - World Economic Forum Global Competitiveness Report, 2011-2012. To what extent are the latest
technologies available in your country?
It is not only important for governments to procure technology, but to drive innovation, they need to bring in the latest technologies and
ensure that these technologies are available to the innovators within their borders.
Top Quartile - Tech Availability
Bottom Quartile - Tech Availability
Austria
Belgium
Finland
Hong Kong
Japan
Netherlands
Norway
Singapore
Sweden
Switzerland
U.S.
UK
Argentina
China
Columbia
Egypt
Indonesia
Nigeria
Peru
Poland
Romania
Russia
Thailand
Vietnam
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GE
January 2013
Resident Patents per 1000 Working Age Population – World Development Indicators, UN Population Statistics, Haver Analytics, GE Global
Market Intelligence
While governments need to ensure that the patent process is accessible and not cumbersome, business and individual innovators need to
prove to the global marketplace that ideas are flowing. This will promote direct investment.
Top Quartile - Patents
Bottom Quartile - Patents
Austria
Denmark
Finland
France
Germany
Israel
Japan
Korea
Norway
Sweden
U.S.
UK
Brazil
Columbia
Egypt
India
Indonesia
Mexico
Nigeria
Peru
Philippines
Saudi Arabia
UAE
Vietnam
High Tech Exports as a % of Total Manufacturing Exports – World Development Indicators Ranking, Haver Analytics, GE Global Market
Intelligence
While exporting is key to current account balances and commodities, agricultural, and natural resource exports drive certain economies,
exporting technology is proof of innovation within a country.
Top Quartile - High Tech Exports
Bottom Quartile - High Tech Exports
China
France
Hungary
Ireland
Korea
Malaysia
Netherlands
Philippines
Singapore
Switzerland
Thailand
UK
Chile
Columbia
Egypt
Nigeria
Peru
Portugal
Saudi Arabia
South Africa
Spain
Turkey
UAE
Vietnam
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GE
January 2013
Pillar 3 – Business – External Factors
Venture Capital Availability - World Economic Forum Global Competitiveness Report, 2011-2012. In your country, how easy is it for
entrepreneurs with innovative but risky projects to find venture capital?
Capital funding can come from banks or from private investors. The availability of capital within a country is a key factor in determining
whether or not innovations make it to market.
Ease of Access to Loans - World Economic Forum Global Competitiveness Report, 2011-2012. How easy is it to obtain a bank loan in your
country with only a good business plan and no collateral?
Capital funding is key to innovation, and if credit markets are tight or bank regulations prevent innovators from accessing capital, those
innovators will look outside their borders for funding.
Top Quartile - Access to Loans
Bottom Quartile - Access to Loans
Singapore
Sweden
UAE
Norway
Hong Kong
Malaysia
Finland
Saudi Arabia
Indonesia
Canada
Belgium
U.S.
Argentina
Greece
Hungary
Ireland
Italy
Korea
Nigeria
Poland
Portugal
Russia
Spain
Vietnam
FDI and Technology Transfer - World Economic Forum Global Competitiveness Report, 2011-2012 Weighted Average Ranking. To what
extent does foreign direct investment (FDI) bring new technology into your country?
Though governments and firms can bring technology into a country and share it with other firms and innovators, another key factor is
seeing what technology is brought in and able to be shared through foreign investment.
Top Quartile - FDI Tech Transfer
Bottom Quartile - FDI Tech Transfer
Belgium
Canada
Czech
Hong Kong
Hungary
Ireland
Israel
Malaysia
Mexico
Saudi Arabia
Singapore
UAE
Argentina
China
Columbia
Finland
Germany
Greece
Italy
Korea
Nigeria
Romania
Russia
Vietnam
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GE
January 2013
University – Industry Collaboration in R&D - World Economic Forum Global Competitiveness Report, 2011-2012 Weighted Average
Ranking. To what extent do business and universities collaborate on research and development (R&D) in your country?
Often the best thinkers and innovators are found on campuses. Further, in the fast paced corporate world, it often is beneficial to get a
more academic view of innovations within in company.
Top Quartile - Univ-Biz Colab
Bottom Quartile - Univ-Biz Colab
Australia
Belgium
Finland
Germany
Ireland
Israel
Netherlands
Singapore
Sweden
Switzerland
U.S.
UK
Argentina
Egypt
Greece
Italy
Nigeria
Peru
Philippines
Poland
Romania
Russia
Turkey
Vietnam
Foreign Direct Investment, Net Inflows as % of GDP – Ranking. World Development Indicators, Haver Analytics, GE Global Market
Intelligence
Investment within a country of foreign capital signifies a strong government regulatory environment and tax structure, the availability of
trustworthy firms to partner with and the availability of a qualified labor force.
Top Quartile for FDI
Bottom Quartile for FDI
Belgium
Chile
Denmark
Hong Kong
Hungary
Ireland
Israel
Malaysia
Peru
Portugal
Singapore
Vietnam
Finland
Germany
Greece
India
Italy
Japan
Korea
Philippines
South Africa
Switzerland
U.S.
UK
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GE
January 2013
Pillar 4 – Business- Internal Factors
Firm Level Technology Absorption - World Economic Forum Global Competitiveness Report, 2011-2012 Weighted Average Ranking. To
what extent do businesses in your country absorb new technology?
Governments can assist in providing access to technology and foreign investors can insure technologies make their way into new
markets, but firms need to be active in adopting available technology and utilizing these advancements for further innovation
Top Quartile - Tech Absorption
Bottom Quartile - Tech Absorption
Austria
Finland
Hong Kong
Israel
Japan
Korea
Norway
Singapore
Sweden
Switzerland
U.S.
UAE
Argentina
China
Columbia
Egypt
Greece
Italy
Nigeria
Peru
Poland
Romania
Russia
Vietnam
Capacity for Innovation - World Economic Forum Global Competitiveness Report, 2011-2012 Weighted Average Ranking. In your country,
how do companies obtain technology? [Low Ranking: exclusively from licensing or imitating foreign companies; High Ranking: by
conducting formal research and pioneering their own new products and processes]
Pioneering new products and processes versus licensing or copying them from foreign firms indicates a higher level of innovators and a
willingness of firms and governments to promote innovation.
Top Quartile - Innovation Cap.
Bottom Quartile - Innovation Cap.
Austria
Belgium
Finland
France
Germany
Israel
Japan
Netherlands
Sweden
Switzerland
U.S.
UK
Argentina
Chile
Columbia
Egypt
Greece
Mexico
Nigeria
Peru
Philippines
Romania
Thailand
Vietnam
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January 2013
Production Process Sophistication - World Economic Forum Global Competitiveness Report, 2011-2012 Weighted Average Ranking. In
your country, how sophisticated are production processes?
While sophisticated production processes in themselves are evidence of innovation, they also provide a platform for process innovations,
a trend that was exemplified in the results of this year’s Innovation Barometer
Top Quartile – Prod. Process
Bottom Quartile – Prod. Process
Austria
Belgium
Finland
Germany
Ireland
Israel
Japan
Netherlands
Norway
Sweden
Switzerland
U.S.
Argentina
China
Columbia
Egypt
Greece
Hungary
Nigeria
Peru
Philippines
Romania
Russia
Vietnam
Extent of Marketing - World Economic Forum Global Competitiveness Report, 2011-2012 Weighted Average Ranking. In your country, to
what extent do companies use sophisticated marketing tools and techniques?
Once innovations are borne, it is essential for these products or processes to be promoted in order to find a viable marketplace.
Top Quartile - Marketing
Bottom Quartile - Marketing
Austria
Canada
France
Germany
Hong Kong
Israel
Japan
Netherlands
Sweden
Switzerland
U.S.
UK
Columbia
Egypt
Greece
Hungary
Indonesia
Nigeria
Peru
Poland
Romania
Russia
Thailand
Vietnam
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January 2013
Company Spending on R&D - World Economic Forum Global Competitiveness Report, 2011-2012 Weighted Average Ranking. To what
extent do companies in your country spend on R&D?
Governments can do their part to promote innovation, and individual innovators can access capital and investment to push their ideas
forward, but companies will be challenged to successfully innovate without dedication to invest in research and development.
Top Quartile - R&D Spend
Bottom Quartile - R&D Spend
Austria
Denmark
Finland
Germany
Israel
Japan
Korea
Singapore
Sweden
Switzerland
U.S.
UK
Argentina
Columbia
Egypt
Greece
Hungary
Nigeria
Peru
Poland
Romania
Russia
Thailand
Vietnam
Pillar 5 – Education & Training
Quality of Math & Science Education - World Economic Forum Global Competitiveness Report, 2011-2012 Weighted Average Ranking.
How would you assess the quality of math and science education in your country’s schools?
The quality of math and science education throughout schooling is essential to foster the growth of innovators.
Top Quartile - Math & Science
Bottom Quartile - Math & Science
Australia
Belgium
Canada
Finland
France
Hong Kong
Korea
Malaysia
Netherlands
Singapore
Switzerland
UAE
Argentina
Brazil
Chile
Columbia
Egypt
Mexico
Peru
Philippines
Portugal
South Africa
Spain
Turkey
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GE
January 2013
Quality of Management School - World Economic Forum Global Competitiveness Report, 2011-2012 Weighted Average Ranking. How
would you assess the quality of management or business schools in your country?
Having a strong stable of domestic management schools not only helps future business leaders with real world business skills needed to
promote ideas, but prevents skilled students from seeking education elsewhere and potentially not returning to their home turf.
Top Quartile - Mgmt School
Bottom Quartile - Mgmt Schools
Belgium
Canada
Chile
Finland
France
Netherlands
Singapore
Spain
Sweden
Switzerland
U.S.
UK
Columbia
Czech
Egypt
Greece
Hungary
Japan
Nigeria
Poland
Romania
Russia
Turkey
Vietnam
Quality of Scientific Research Institutions - World Economic Forum Global Competitiveness Report, 2011-2012 Weighted Average
Ranking. How would you assess the quality of scientific research institutions in your country?
Once education is completed, it is essential that the dedication to new ideas, technology and innovation continue. Nations with public
and/or private research institutions have an advantage over those that don’t have the ability to incubate new thinking.
Top Quartile - Research Inst.
Bottom Quartile - Research Inst.
Australia
Belgium
Finland
Germany
Israel
Japan
Netherlands
Singapore
Sweden
Switzerland
U.S.
UK
Columbia
Egypt
Greece
Indonesia
Nigeria
Peru
Philippines
Romania
Russia
Thailand
Turkey
Vietnam
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January 2013
Availability of Scientists and Engineers - World Economic Forum Global Competitiveness Report, 2011-2012 Weighted Average Ranking.
To what extent are scientists and engineers available in your country?
Primary and management schooling, job opportunities and rule of law are all essential factors in growing, and more importantly, keeping
talented scientists and engineers.
Top Quartile - Scientists/Engrs
Bottom Quartile -Scientists/Engrs
Canada
Finland
Greece
India
Israel
Japan
Singapore
Sweden
Switzerland
U.S.
UAE
UK
Argentina
Brazil
Columbia
Egypt
Mexico
Nigeria
Peru
Philippines
Romania
Russia
South Africa
Vietnam
Fixed Broadband Internet Subscriptions - World Economic Forum Global Competitiveness Report, Ranking, 2011 or most recent year
available. Fixed broadband Internet subscriptions per 100 population
The ability to access the latest technology quickly, to market new innovations globally, and the access to innovators, thinkers and ideacreators across the globe are essential for a country to succeed as innovative.
Top Quartile - Broadband
Bottom Quartile - Broadband
Belgium
Canada
Denmark
France
Germany
Hong Kong
Korea
Netherlands
Norway
Sweden
Switzerland
UK
Columbia
Egypt
India
Indonesia
Malaysia
Nigeria
Peru
Philippines
Saudi Arabia
South Africa
Thailand
Vietnam
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January 2013
List of Countries Measured:
Algeria
Argentina
Australia
Austria
Belgium
Brazil
Canada
Chile
China
Columbia
Czech
Denmark
Egypt
Finland
France
Germany
Greece
Hong Kong
Hungary
India
Indonesia
Ireland
Israel
Italy
Japan
Korea
Malaysia
Mexico
Netherlands
Nigeria
Norway
Pakistan
Peru
Philippines
Poland
Portugal
Romania
Russia
Saudi Arabia
Singapore
South Africa
Spain
Sweden
Switzerland
Thailand
Turkey
U.S.
UAE
UK
Venezuela
Vietnam
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