The Global Innovation Index 2013 - WIPO

1 The Global Innovation Index 2013 The Local Dynamics of InnovationThe Global Innovation Index 2013 The Local Dynamics of InnovationSoumitra Dutta and Bruno LanvinEditorsThe Global Innovation Index 2013: The Local Dynamics of Innovation is the result of a collaboration between Cornell University, INSEAD, and the World Intellectual Property Organization ( wipo ) as co-publishers, and their Knowledge terms country , economy , and nation as used in this report do not in all cases refer to a territorial entity that is a state as understood by international law and practice. The terms cover well-defined, geographically self-contained economic areas that may not be states but for which statistical data are maintained on a separate and independent : The Index s methodology and the rankings do not necessarily present the views of wipo or its Member States.

2 The same applies to the substantive chapters in this report, which are the responsibility of the authors and not wipo . Cornell University, INSEAD, and wipo 2013. All rights reserved. No part of this publication can be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, or otherwise without the prior permission of wipo . Please write to to obtain citation: Cornell University, INSEAD, and wipo (2013): The Global Innovation Index 2013: The Local Dynamics of Innovation , Geneva, Ithaca, and 2263 3693 ISBN 978-2-9522210-3-0 Printed and bound in Geneva, Switzerland, by the World Intellectual Property Organization ( wipo ) and in New Delhi, India, by the Confederation of Indian Industry (CII).

3 IiiTHE Global Innovation Index 2013 ContentsPreface: Releasing the Global Innovation Index 2013: v The Local Dynamics of Innovation Are Well at PlayBy Soumitra Dutta, Anne and Elmer Lindseth Dean, and Professor of Management, Samuel Curtis Johnson Graduate School of Management, Cornell University; Bruno Lanvin, Executive Director, European Competitiveness Initiative, INSEAD; and Francis Gurry, Director General, World Intellectual Property OrganizationForeword: A Virtuous Circle of Innovation viiBy Cesare R. Mainardi, Chief Executive Officer, Booz & CompanyForeword: Local Solutions to Global Challenges ixBy Chandrajit Banerjee, Director General, Confederation of Indian IndustryForeword: Connectivity as the Driver of Innovation xiBy Osman Sultan, Chief Executive Officer, duForeword: Open Innovation with a Global View xiiBy Ken Hu, Deputy Chairman and Rotating Chief Executive Officer, Huawei Technologies Contributors to the Report xvAdvisory Board to the Global Innovation Index xviiRankingsGlobal Innovation Index 2013 Rankings xxChaptersChapter 1: The Global Innovation Index 2013.

4 3 Local Dynamics Keep Innovation Strong in the Face of CrisisBy Soumitra Dutta, Cornell University; Daniela Benavente and Bruno Lanvin, INSEAD; and Sacha Wunsch-Vincent, World Intellectual Property OrganizationAnnex 1: The Global Innovation Index Conceptual 37 FrameworkAnnex 2: Adjustments to the Global Innovation Index 49 Framework and Year-on-Year Comparability of ResultsAnnex 3: Joint Research Centre Statistical Audit of the 55 2013 Global Innovation IndexBy Michaela Saisana and Dionisis Th. Philippas, European Commission Joint Research Centre (Ispra, Italy)ContentsChapter 2: The Evolving Geography of Innovation : 69 A Territorial PerspectiveBy Annalisa Primi, OECD Development CentreChapter 3: Measuring Regional Innovation : 79 A European PerspectiveBy Hugo Hollanders, UNU-MERIT (Maastricht University)Chapter 4: The Role of Enterprise Champions 87 in Strengthening Innovation HubsBy Barry Jaruzelski, Rasheed Eltayeb, Tamer Obied, and Hatem Samman, Booz & Company Chapter 5: Open Innovation : The View of an 95 ICT Leader in Distributed Global InnovationBy Qian Xiangjiang, James Peng, and Joe Kelly, Huawei Technologies Chapter 6.

5 Local Innovation Dynamics: Examples 99 and Lessons from the Arab WorldBy Jean-Eric Aubert, Tamer Taha, and Anuja Utz, Center for Mediterranean Integration, World BankChapter 7: Innovation Clusters Initiative: 107 Transforming India s Industry Clusters for Inclusive Growth and Global CompetitionBy Samir Mitra, Office of Advisor to the Prime Minister of IndiaChapter 8: Creating Local Innovation Dynamics: 115 The Uruguayan ExperienceBy Fernando Amestoy, Pando Technology Pole, Universidad de la Rep blica, UruguayAppendices Appendix I: Country/Economy Profiles 125 Appendix II: Data Tables 273 Appendix III: Sources and Definitions 363 Appendix IV: Technical Notes 379 Appendix V: About the Authors 385vTHE Global Innovation Index 2013 PrefacePrefaceReleasing the Global Innovation Index 2013: The Local Dynamics of Innovation Are Well at PlayprEfacEWe are pleased to present the Global Innovation Index (GII) 2013.

6 The GII 2013, in its 6th edition this year, is co-published by Cornell University, INSEAD, and the World Intellectual Property Organization ( wipo , a specialized agency of the United Nations). Booz & Company, the Confederation of Indian Industry, du, and Huawei support the elaboration of the GII as Knowledge Partners in the course of the last six years, the GII has established itself as a leading reference on Innovation for researchers and for public and private decision makers. It has evolved into a valuable benchmarking tool to facili-tate public-private dialogue. The GII recognizes the key role of Innovation as a driver of economic growth and prosperity, and adopts an inclusive, horizontal vision of Innovation applicable to both developed and emerging Innovation mattersThe theme of the GII 2013 is The Local Dynamics of Innovation .

7 The GII 2013 report shows that regional Innovation is alive and bustling. New regions are emerg-ing and rejuvenation is taking place even in developed metropolises such as New York City, where Cornell NYC Tech was invited to set up a unique campus focused on technology and Innovation on Roosevelt Island. The hope is that this new campus will attract a new talent pool, lead to Innovation , create novel jobs, and positively impact the economy of New York City and the surrounding theme Local Dynamics of Innovation ref lects the importance of local hubs and geographic concentra-tions of universities, companies, specialized suppliers, service providers, and associated institutions in foster-ing Innovation .

8 Clusters have an impact on competitive-ness by pooling talent, know-how, research labs, and manufacturing capabilities and concentrating them in a small area. They often specialize in niche markets with a multiplier effect at the national level by fomenting a culture of entrepreneurship. Well-known examples include California in the United States of America, Baden-W rttemberg in Germany, the Capital Region of the Republic of Korea, Guangdong Province in China, Stredni Cechy in the Czech Republic, the Mumbai region in India, Tel Aviv in Israel, S o Paulo in Brazil, and the list goes on. New initiatives continue to develop in other emerging economies such as in Kenya and the United Republic of Tanzania, Colombia and Viet no other point in history has so much money been spent on R&D worldwide.

9 Never before has Innovation been so well distributed among GII 2013 sheds light on the factors leading to the excellence of Innovation hubs, such as the role of local champions (large corporations), the availability of funding for the development of start-ups, and the importance of path dependency. Linkages among stake-holders (governments, firms, academia, and society) in the development of Innovation capabilities such as the existence of incubators and technology transfer pro-grammes and the interaction of Innovation clusters with local, inter-regional, and Global networks and value chains are included in the towards better Innovation metrics and policyThe Innovation framework underlying the GII contin-ues to evolve as we try each year to be responsive to both the availability of data across a diverse set of coun-tries and to our growing understanding of the phenom-enon of Innovation .

10 Our goal is to use the GII to cap-ture the multi-dimensional facets of Innovation across both developed and emerging economies. We also hope that users of the GII will go further than just focus-ing on year-to-year comparisons of the country rank-ings. Rather, the GII results are useful for benchmark-ing countries against their peers, to study country pro-files over time and identify their relative strengths and weaknesses from the rich and unique GII dataset. We are encouraged by the fact that more and more ministers wipo , 2012. Photo by Emmanuel Global Innovation Index 2013 Prefaceand other policy makers around the world are using the GII for just this welcome four new members to our Advisory Board: Robert D.