When you think about the most innovative countries, the U.S. and South Korea often come to mind. But what about Iceland or Iran? How do they compare?
Bloomberg Rankings recently examined more than 200 countries and sovereign regions to determine their innovation quotient. The final universe was narrowed down to 96. What follows is the top 50.
Innovation was measured by seven factors, including R&D intensity, productivity, high-tech density, researcher concentration, manufacturing capability, education levels and patent activity. The methodology, definitions and weightings are explained in the last slide.
To create the Bloomberg Innovation Quotient, we ranked countries on a scale of 0 to 100% on seven factors. The factors and weightings are below. We derived a weighted average score for countries that had sufficient data for at least five of the seven factors. N/A indicates that the country did not have sufficient data for a particular factor. The final universe consisted of 96 countries or sovereign regions. The most recently available data were used.
The factors and weightings:
R&D intensity (20%): Research and development as a percentage of gross domestic product.
Productivity (20%): GDP per employed person, per hour worked.
High-tech density (20%): High-tech public companies -- such as aerospace and defense, biotechnology, hardware, software, semiconductors, Internet software & services and renewable energy companies -- as a percentage of publicly listed companies.
Researcher concentration (20%): R&D researchers per one million people.
Manufacturing capability (10%): Manufacturing value-added as a percentage of GDP; products with high R&D intensity (aerospace, computers pharmaceuticals, scientific instruments and electrical machinery) as a percentage of total manufactured exports.
Tertiary efficiency (5%): Enrollment ratio in all subjects for post-secondary students; tertiary graduation ratio of students who majored in science, engineering, manufacturing and construction; annual new graduates and total tertiary-degree holders as percentages of labor force.
Patent activity (5%): Resident patent filings per million population and per $1 million R&D spent.