Briefing for Australian Media. Global Innovation Index 2014

Transcription

1 Briefing for Australian Media Global Innovation Index 2014

2 1) BACKGROUND ON THE GII AND WIPO S INVOLVEMENT In 2014, it will be the seventh year that the GII will be published as a fully-fledged report: Cornell University, INSEAD and WIPO are the co-publishers of the report. The below table sets out the organizational set-up of the report over time. Editor and publisher Editor and publisher External partners INSEAD in partnership INSEAD in with Confederation of partnership with Indian Industry () INSEAD [article in World Business Magazine] Sponsored by British Telecom Sponsored by Canon Sponsored by Canon INSEAD INSEAD and WIPO Cornell, INSEAD and Cornell, INSEAD and WIPO WIPO External partners Knowledge partners: Alcatel-Lucent Booz WIPO Knowledge partners: Alcatel-Lucent Booz Knowledge partners: Booz Du Huawei Knowledge partners: Du Huawei This is the third year that we have an Advisory Board (AB) which includes two other UN organizations (ITU and UNESCO), CERN and ISO. 1. Khalid S. Al Sultan, Rector, King Fahad University for Petroleum & Minerals, Saudi Arabia 2. Daniele Archibugi, Research Director, Italian National Research Council (CNR); and Professor, Birkbeck College, University of London 3. Robert Atkinson, President, The Information Technology and Innovation Foundation, USA 4. Robert Bell, Program Director, National Science Foundation, United States of America 5. Irina Bokova, Director General, UNESCO 6. Dongmin Chen, Professor/Dean, School of Innovation and Entrepreneurship and Director, Office of Business Development for Science and Technology, Peking University, China 7. Leonid Gokhberg, First Vice-Rector, Higher School of Economics (HSE), Russian Fed. 8. Rolf-Dieter Heuer, Director General, European Organization for Nuclear Research (CERN) 9. Raghunath Anant Mashelkar, Bhatnagar Fellow, Council of Scientific and Industrial Research; Chairperson, National Innovation Foundation, India 10. Diego Molano Vega, Minister Information Technologies & Communications of Colombia 11. Sibusiso Sibisi, President and Chief Executive Officer, CSIR, South Africa 12. Lynn St. Amour, President and Chief Executive Officer, Internet Society 13. Rob Steele, Secretary-General, International Organization for Standardization (ISO) 14. Hamadoun Touré, Secretary-General, International Telecommunication Union (ITU) 2

3 2) GII 2014 THEME, ITS RATIONALE AND ITS CONCEPTUAL FRAMEWORK 2014 theme The 2014 GII edition will be on the subject of The Human Factor in Innovation, reflecting on the importance of human capital in fostering innovation. GII model The GII consists of a ranking of world economies innovation capabilities and results. The GII measures innovation based on criteria such as institutions, human capital and research, infrastructure, credit, investment, linkages, the creation, absorption, diffusion of knowledge, and creative outputs. It has two sub-indices: the Innovation Input Sub-Index and the Innovation Output Sub-Index (see Figure on next page). A challenge is to find metrics that capture innovation as it happens in the world today. The GII places great emphasis on measuring the climate and infrastructure for innovation and on assessing related outcomes. Direct official measures that quantify innovation outputs remain extremely scarce. Most measures also struggle to appropriately capture the innovation outputs of a wider spectrum of innovation actors such as the services sector, the government, etc. The GII thus aims to better conceptualise and measure innovation. Its model is continually updated to reflect the improved availability of statistics and our understanding of the meaning and implications of innovation. The rich metrics can be used by individual countries to monitor performance and to benchmark developments. Four measures are calculated (see Figure on next page): 1) The Innovation Input Sub-Index: Five input pillars capture elements of the economy that enable innovative activities: (1) Institutions, (2) Human capital and research, (3) Infrastructure, (4) Market sophistication, and (5) Business sophistication. 2) The Innovation Output Sub-Index: Innovation outputs are the results of innovative activities within the economy. There are two output pillars: (6) Knowledge and technology outputs and (7) Creative outputs. 3) The overall GII score is the simple average of the Input and Output Sub-Indices. 4) The Innovation Efficiency Ratio is the ratio of the Output Sub-Index over the Input Sub-Index. It shows how much innovation output a country is getting for its inputs. 3

4 In 2014, the GII model will include 143 economies that represent more than 95% of the world s population and close to 99% of the world s GDP (in current US dollars). It includes 81 indicators A transparent and replicable computation methodology including 90% confidence intervals for each index ranking (GII, output and input sub-indices) is used. The GII gives priority to hard data over qualitative assessments. The GII compares the performance of national innovation systems across economies. Importantly, making inferences about absolute or relative performance on the basis of year-on-year differences in rankings can be misleading. Several factors influence the year-on-year ranking of a country/economy: the actual performance of the economy in question; adjustments made to the GII framework to better capture innovation; data updates, the treatment of outliers, and missing values; and the inclusion or exclusion of countries/economies in the sample. The index is submitted to an independent statistical audit by the Joint Research Centre of the European Commission. 4

5 3) AUSTRALIA IN THE GLOBAL INNOVATION INDEX 2014 Australia ranks 17 th in the overall GII, up two positions from 19 th rank in The following table reflects Australia s ranking over time, well-noting that year-on-year comparisons are imperfect, and influenced by modelling and other changes. Australia s ranking over time GII Input Output Efficiency Annex 3 of the report shows that Australia s position on spot 17 is a conservative estimate; the confidence intervals provided show that its possible rank is anywhere from 14 to 17 taking statistical variation into account. Relative to GDP, Australia is an Innovation Leader in the report, see figure below 5

6 Among its income group (High-income) it ranks 17 th and in the Region (South East Asia and Oceania) 4 th. The South East Asia and Oceania region includes 17 economies that differ markedly in levels of development. The first five economies in the region among the top 25 in the three indices (GII, input, and output) are Singapore, Hong Kong (China); the Republic of Korea, Australia, and New Zealand. Importantly, Australia scores consistently better on the input side than the output side, impacting Australia s ranking in the GII innovation efficiency index negatively. This imbalance is slightly reduced this year, as the output ranking has significantly improved this, which in part might be related to a model change (e.g. better capturing global entertainment and media output). The top 10 economies in the Innovation Input Sub-Index are Singapore, Hong Kong (China), the UK, the USA, Finland, Sweden, Switzerland, Canada, Demark, and Australia. Canada and Australia are the only economies in this group that are not also in the GII top 10. Australia ranks 10th overall in the Input Sub-Index, with top 10 rankings for three pillars: Human capital and research (7th), Infrastructure (7th), and Market sophistication (10th). Australia s strengths are in the following sub-pillars: Tertiary education (7th), R&D (8th), ICT (9th), General infrastructure (9th), and the first spot in the Trade and competition (1st) sub-pillar. The results within the Creative goods and services sub-pillar are mixed, with two strengths and two weaknesses. Australia s weaker variables include cultural and creative services exports (52 nd ) and national feature films produced (49 th ); the country s strengths in the GII include global entertainment & media output (3rd) as well as printing & publishing output (5th). 6

7 On the variable-level, a snapshot of Australia s overall strengths and weaknesses in the GII model are shown below Strengths Regulatory quality (7th) Ease of starting a business (9th) Pillar 2 Human capital & research (7th) School life expectancy, years (1st) 2.2 Tertiary education (7th) Tertiary enrolment, % gross (7th) Tertiary inbound mobility, % (1st) 2.3 Research & development (8th) Pillar 3 Infrastructure (7th) 3.1 Information & communication technologies (9th) ICT use (8th) Weaknesses Government expenditure per pupil, secondary (59 th ) Graduates in science & engineering, % (73 rd ) Ease of protecting investors (55 th ) GERD financed by abroad, % (76 th ) High- & medium-high-tech manufacturers, % (54 th ) Communication, computer & information services exports, % total trade (87 th ) Cultural & creative services exports, % total trade (64 th ) National feature films produced (49 th ) 3.2 General infrastructure (9th) Environmental performance (3rd) 4.3 Trade & competition (1st) Global entertainment & media output (3rd) Printing & publishing manufactures, % (5th) Time series comparison at the variable level: A total of 16 indicators show absolute positive change over time, either between 2013 and 2014 data, or for a longer time period, when available. Some strengths are being reinforced over time such as the tertiary enrolment, the ICT use and the school life expectancy. Only one decline in an area of GII relative weakness is noted. 7

8 The top flagged progress is found for the following variables: Indicator Strength/Weakness New businesses/th pop Tertiary enrolment, % gross Press freedom* Scientific & technical articles/bn PPP$ GDP** Growth rate of PPP$ GDP/worker, % ICT use FDI net inflows, % GDP Gross capital formation, % GDP ICT access Political stability* * Change average to 14 ** Change from 13 to 14 Note: as in the reports the full bullets represent strengths and the empty bullets represent weaknesses, see the Australian country profile. The top flagged decreases are noted for the following variables. It must be noted that both increases and decreases must not be large in absolute terms, and that these are impacted by relative data availability. Indicator Strength/Weakness Electricity output, kwh/cap Market capitalization, % GDP Total value of stocks traded, % GDP PISA scales in reading, maths, & science* Domestic credit to private sector, % GDP High-tech imports less re-imports, % Non-agricultural mkt access weighted tariff, % National feature films/mn pop R&D financed by business, % FDI net outflows, % GDP *Change from 13 to 14 Note: as in the reports the full bullets represent strengths and the empty bullets represent weaknesses, see the Australian country profile. 8