Ranked: The Most Innovative Economies in the World. Todo. Add the INNOVATION CHALLENGE to our list of VIP projects, featuring EXPENDITURES and subsequently INCOMES. It may have Project manager or BOARD.
| Created: | 01/03/2020 8:31 am |
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| Updated: | 01/03/2020 8:38 am |
| Tags: | competition, competitiveness - global, CoNPro Budget, Countries, innovation, Nigeria- philosophically, VIP-Virtually Incorp Projects |
| Source: | https://www.visualcapitalist.com/world-most-innovative-economies/ |
Ranked: The Most Innovative Economies in the World
Published
2 days ago
on
February 28, 2020
By
Ranked: The Most Innovative Economies in the World
Innovation was again a front-of-mind theme in Davos at the World Economic Forum’s annual assembly of political and business leaders in 2020.
The global conversation centered around the ability of countries to innovate in the face of changing times. An economy’s response to megatrends, such as tech breakthroughs and the risks of climate change, can dictate its long-term success.
Today’s chart identifies the world’s top 20 most innovative economies, based on the annual index created by Bloomberg. We also delve into how the top 10 spots have evolved over time.
How Are Innovative Economies Measured?
Each year, the index assesses over 200 economies across seven weighted metrics.
R&D Intensity
Annual research and development spending, as a % of an economy’s gross domestic product (GDP).
Patent Activity
The number of annual patent and grant filings, and the 3-year average growth of filings abroad and filings growth, as a share of the world’s total patent growth.
Tertiary Efficiency
The total enrollment in higher education, the share of labor force with advanced education levels, and the share of STEM graduates and in the labor force.
Manufacturing Value-added
Manufacturing output levels—contributing to exports—as a % of GDP, and per capita.
Productivity
GDP and gross national income (GNI) in the working age population, and the 3-year improvement.
High-tech Density
The volume of domestic, high-tech public companies as a share of the world’s total companies. Examples of high-tech companies include: aerospace and defense, biotech, internet services, and renewable energy.
Researcher Concentration
Professionals (including postgraduate PhD students) engaged in R&D across the population.
Based on available data of these measures, only 105 countries made the final cut for this year’s edition of the index—below are the 60 most innovative economies scored out of 100 points, and the highlights from that list.
The 10 Most Innovative Economies
For the first time in years, Germany clinched the top spot for the most innovative economy, ending South Korea’s winning streak. The European nation scores in the top five for its manufacturing value-added, high-tech density, and patent activity metrics.
However, even winners have some room for improvement. As the global economy sways ever more in the direction of services over manufacturing, Germany could improve its rate of higher education to achieve an even better score on the index.
Ranking third overall, Singapore leads the charge for tertiary efficiency, with almost 85% gross enrollment in higher education as of 2017. In contrast, Germany’s enrollment stood at around 70% in the same year.
Which other countries sit in the top 10?
| Rank | Country | Score | YoY Rank Change | Best-performing Metric |
|---|---|---|---|---|
| #1 | Germany | 88.21 | +1 | High-tech density, Patent activity (tied) |
| #2 | South Korea | 88.16 | -1 | R&D intensity |
| #3 | Singapore | 87.01 | +3 | Tertiary efficiency (Ranked #1) |
| #4 | Switzerland | 85.67 | 0 | R&D intensity, Researcher concentration (tied) |
| #5 | Sweden | 85.50 | +2 | R&D intensity |
| #6 | Israel | 85.03 | -1 | R&D intensity (Ranked #1) |
| #7 | Finland | 84.00 | -4 | Productivity, Researcher concentration (tied) |
| #8 | Denmark | 83.22 | +3 | Researcher concentration (Ranked #1) |
| #9 | United States | 83.17 | -1 | High-tech density, Patent activity |
| (Tied, Ranked #1 for both) | ||||
| #10 | France | 82.75 | 0 | High-tech density |
A global hub for innovation, South Korea is still not to be ignored. With one of the most complex economies around, it leads in exports of communications technology and cars. It’s also at the forefront of 5G, being the first country to roll it out—so it’s no surprise that South Korea spends big on research, relative to its GDP.
R&D spending determines life or death for South Korean companies… It’s about widening whatever lead South Korea has—or else China will catch up.
—Chang Suk-Gwon, University professor in Seoul
The United States ranks in first place for both patent activity, and high-tech density—with the highest share of domestic high-tech public companies in the world. With the “Big Five” tech giants all headquartered here, it’s easy to see their impact on a global scale.
Over the past five years, the top 10 players in this index have shuffled around, but remained quite consistent. But one particular economy may well upend the future leaderboard.
The Most Innovative Economies (#11-20)
In 2020, the #11-#20 ranked innovative countries show an interesting mix.
| Rank | Country | Score | YoY Ranking Change | Best-performing metric |
|---|---|---|---|---|
| #11 | Austria | 82.40 | +1 | R&D intensity |
| #12 | Japan | 82.31 | -3 | R&D intensity, Manufacturing value-added (tied) |
| #13 | Netherlands | 81.28 | +2 | High-tech density |
| #14 | Belgium | 79.93 | -1 | R&D intensity, Productivity (tied) |
| #15 | China | 78.80 | +1 | Patent activity (Ranked #2) |
| #16 | Ireland | 78.65 | -2 | Manufacturing value-added, Productivity |
| (Tied, Ranked #1 for both) | ||||
| #17 | Norway | 76.93 | 0 | Productivity |
| #18 | United Kingdom | 76.03 | 0 | Tertiary efficiency |
| #19 | Italy | 75.76 | +2 | High-tech density |
| #20 | Australia | 74.13 | -1 | Productivity |
China’s steady rise (up from 21st place in 2017) could be because it scores second worldwide for patent activity. This comes from the aggressive 6,000 patents filed since 2015 by the nation’s own tech giants. The patents cover breakthrough technologies from AI and blockchain, to autonomous driving and even regenerative medicine.
Ireland comes in first place on both manufacturing value-added and productivity metrics. In fact, for every hour worked, employed Irish people add $99.50 to national GDP.
The Full List
Below is the full list of all 60 innovative economies highlighted in the 2020 index.
| Rank | Country | Score | YoY Ranking Change |
|---|---|---|---|
| #1 | Germany | 88.21 | +1 |
| #2 | South Korea | 88.16 | -1 |
| #3 | Singapore | 87.01 | +3 |
| #4 | Switzerland | 85.67 | 0 |
| #5 | Sweden | 85.50 | +2 |
| #6 | Israel | 85.03 | -1 |
| #7 | Finland | 84.00 | -4 |
| #8 | Denmark | 83.22 | +3 |
| #9 | U.S. | 83.17 | -1 |
| #10 | France | 82.75 | 0 |
Showing 1 to 10 of 60 entries
Highlights from the rest of the list include:
Slovenia improved the most by 10 places (to the #21 spot) thanks to its stronger patent activity.
New Zealand slid by 10 places to the 29th spot, falling for the third consecutive year.
Last but not least, four countries or jurisdictions made their debut onto the index in 2020: Algeria, Egypt, Kazakhstan, and Macao.
It’s clear that many countries are continuously pushing the envelope in order to maintain their competitiveness within the global economy—and constant innovation can provide a better life for their present and future populations.
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Related Topics: china germany innovation innovative economies manufacturing patents research and development singapore south korea technology US
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Can a Shorter Workweek Make People Happier?
The idea of a shorter workweek sounds enticing to most, but would it actually lead to a happier population? We look at the data so far.
Published
2 weeks ago
on
February 14, 2020
By
Can A Shorter Workweek Make People Happier?
For many people, the concept of a shorter workweek is enticing. After all, it can be difficult to find enough time for the things we love.
Is it reasonable then, in our quest for happiness, to begin working less? Advocates of a shorter workweek would agree, but these policies have yet to be widely-adopted.
Today’s chart plots data from the World Happiness Report 2019 and the OECD to determine if there’s any correlation between a country’s happiness and average hours worked per person.
What Happens When We Work Too Much?
The unhealthy side effects of working long hours are well established. In extreme cases, however, symptoms can extend beyond the usual stress and fatigue.
For example, the American Heart Association found that people under the age of 50 had a higher risk of stroke when working over 10 hours a day for a decade or more. Another study, conducted across 14 countries, concluded that people who worked long hours were 12% more likely to become excessive drinkers.
If working longer days is so harmful to our well-being, what happens if we work fewer hours instead?
Comparing the Numbers
The tables below list the happiest countries as well as the unhappiest countries in the OECD; happiness scores range from 0 to 10, with a 10 representing the best life possible.
Based on the data, there appears to be some degree of correlation between a person’s happiness and the amount of hours they work.
Here’s how the five happiest countries stack up:
Country Happiness Score (0-10) 5-Yr Average Annual
Hours Worked Difference in Hours Worked
from OECD Average (1,682 hrs)
Finland 7.769 1,559 hrs -123 hrs
Denmark 7.600 1,406 hrs -276 hrs
Norway 7.554 1,422 hrs -260 hrs
Iceland 7.494 1,491 hrs -191 hrs
Netherlands 7.488 1,432 hrs -250 hrs
The five happiest countries each work over 100 hours less than the OECD average. Compare this to the five least happiest countries:
Country Happiness Score (0-10) 5-Yr Average Annual
Hours Worked Difference in Hours Worked
from OECD Average (1,682 hrs)
Greece 5.287 1,946 hrs +264 hrs
Turkey 5.373 1,832 hrs +150 hrs
Portugal 5.693 1,722 hrs +40 hrs
Hungary 5.758 1,749 hrs +67 hrs
Japan 5.886 1,710 hrs* +28 hrs
*OECD data includes full- and part-time workers. While this affects the entire data set, Japan’s high share of part-time workers (37% as of 2017) suggests it is particularly vulnerable to underestimation.
Coincidentally, all five of the least happiest countries work more hours than the OECD average, up to over 264 hours in the case of Greece.
Happiness is multifaceted, though, and we should avoid drawing conclusions from a single variable. For instance, the World Happiness Report 2019 calculates happiness scores based on eight distinct metrics:
| Metric | Description | |
|---|---|---|
| #1 | Positive Affect | The average of 3 measures: happiness, laughter, and enjoyment |
| #2 | Negative Affect | The average of 3 measures: worry, sadness, and anger |
| #3 | Social Support | Having someone to count on in times of trouble |
| #4 | Freedom | The ability to make life choices |
| #5 | Corruption | The perception of corruption throughout business and government |
| #6 | Generosity | Based on survey results about charity donations |
| #7 | GDP per Capita (Log Scale) | Economic output per person |
| #8 | Healthy Life Expectancy | Years spent in good health |
With these in mind, we can make a few additional observations.
Four of the five happiest OECD countries are located in the Nordics, a region known for low corruption rates and robust social safety nets. On the other end of the scale, economic hardship is a recurring theme among the OECD’s least happiest countries. The falling Turkish lira and Greece’s debt crisis are two significant examples.
To properly measure the happiness-boosting potential of a shortened workweek, it seems we need to isolate its effects.
Challenging the Status Quo
Employers are now experimenting with shorter work schedules to see if happier employees are in fact better employees.
Case 1: Successful Trial
Perpetual Guardian, a New Zealand-based estate planning firm, trialed a four-day workweek for two months with no changes to compensation.
The trial was hailed as a success. Employee stress levels fell by 7 percentage points while overall life satisfaction rose by 5 percentage points. Perhaps most impressive is the fact that productivity remained the same.
Employees designed a number of innovations and initiatives to work in a more productive and efficient manner.
– Helen Delaney, University of Auckland
Following the trial, the firm’s founder expressed interest in implementing the four-day workweek on a permanent basis.
Case 2: Successful Trial with Trade-offs
Filimundus, a Sweden-based software studio, trialed a six-hour workday in 2014. Staff reception was positive, and the company has since adopted it permanently.
There were trade-offs, however. While staff enjoyed more time for their private lives, productivity across different departments saw mixed results.
We did see some decrease in production for some staff, mostly our artists, but an increase in production for our programmers. So money-wise, in costs, it evened out.
– Linus Feldt, CEO
Interestingly, the studio also trialed a seven-hour workday, and saw no positive effects.
Case 3: An Unsustainable Solution
Public healthcare workers in Gothenburg, Sweden, trialed a six-hour workday for two years. Similar to the first case, compensation was unchanged.
While the trial achieved good results—staff experienced lower stress levels and patients received a higher level of care—the policy was unsustainable.
It’s far too expensive to carry out a general shortening of working hours within a reasonable time frame.
– Daniel Bernmar
17 additional staff were hired to compensate for the shorter workdays, increasing the local government’s payroll by $738,000 . The city council did note, however, that lower unemployment costs offset this increase by approximately 10%.
Picking Up Momentum
These experiments are garnering attention from around the world.
Even Japan, a country known for its “overtime culture”, is getting in on the action. Microsoft offices in the East Asian country tested a four-day workweek in August 2019, and reported happier staff, as well as an impressive 40% boost in productivity.
While the results of these early experiments are indeed promising, they’ve exposed the nuances that exist between industries and job types, and the need for further trials. One thing is certain though—shorter workweek policies should not be interpreted as a “one size fits all” solution for happier lives.
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Ranked: The Social Mobility of 82 Countries
Published
3 weeks ago
on
February 7, 2020
By
Ranked: The Social Mobility of 82 Countries
It’s an unfortunate truth that a person’s opportunities can be partially tethered to their socioeconomic status at birth.
Although winning or losing the “birth lottery” will continue to shape the lives of generations to come, climbing the socioeconomic ladder is possible. However, it boils down to what opportunities people are afforded in the country they live in.
Today’s chart pulls data from the inaugural Global Social Mobility report produced by the World Economic Forum. The report ranks 82 countries according to their performance across five key pillars: healthcare, education, technology access, working conditions, and social protection.
While most countries aim to create a level playing field, which places best live up to this lofty and challenging mission?
The Spectrum of Social Mobility
Social mobility refers to the movement of individuals either up or down the socioeconomic ladder relative to their current standing, such as a low-income family moving up to become a part of the middle class.
Countries with high levels of social mobility exhibit lower levels of income inequality and provide more equally shared opportunities for its citizens across each of the five pillars.
Here is how all 82 countries rank, according to the report:
Show
10
entries
| Ranking | Countries | Index Score |
|---|---|---|
| #1 | Denmark | 85.2 |
| #2 | Norway | 83.6 |
| #3 | Finland | 83.6 |
| #4 | Sweden | 83.5 |
| #5 | Iceland | 82.7 |
| #6 | Netherlands | 82.4 |
| #7 | Switzerland | 82.1 |
| #8 | Belgium | 80.1 |
| #9 | Austria | 80.1 |
| #10 | Luxembourg | 79.8 |
Showing 1 to 10 of 82 entries
There are a number of countries that set an example for social mobility that others can follow.
The Mobility Medal Winners
All of the countries in the top 10 are European, but it is the Nordic countries that sit comfortably at the top of the ranks.
Denmark holds the title for the most socially mobile country in the world, boasting an index score of 85.2. If a person is born into a low-income family in Denmark, the WEF estimates it would take two generations to reach a median income. In contrast, someone in Brazil or South Africa would take nine generations at the current pace of growth.
As one of the few non-European countries in the top 20, Canada also performs well across the majority of pillars, but similarly to Denmark, it could improve in the area of lifelong learning which includes providing support for the unemployed and teaching digital skills.
The Least Socially Mobile Countries
Developing country Côte d’Ivoire sits at the bottom of the ranks, with an index score of just 34.5. As a nation once ravaged by internal conflict and turbulent economic shifts, the resulting poverty rate remains high at 46.3%.
While the government has made improvements to its basic social services, the country falls behind on categories like access to education and fair wages, and retains the highest gender inequality rate in the world.
Despite a significant decrease in the percentage of people living in absolute poverty, India ranks low on the index in 76th place. Structural reform is required across all pillars if India is to increase its score, especially in relation to fair wages and education.
Why Invest in Social Mobility?
According to the report, most economies are far from providing fair conditions for their citizens to thrive, with the greatest challenges ranging from lack of social protection and low wages to poor lifelong learning systems.
Countries that fail to invest in the key pillars of social mobility could experience damaging consequences for governments and citizens alike:
Precarity (the unpredictability of living without secure and well-paid employment)
Perceived loss of identity and dignity
Weakening social fabric
Eroding trust in institutions
Disenchantment with political processes
Aside from the social returns, the economic impact of investing in the right blend of social mobility pillars could be substantial.
Calculating the True Cost
The report dives into the opportunity cost of low social mobility and finds that if each country increased its score by just 10 index points , it could result in an extra 4.41% of cumulative GDP growth for the global economy by 2030—equal to $5.1 trillion .
China alone could add $1 trillion of GDP growth by 2030 if a 10 point increase is achieved:
Although social mobility can act as an economic lever, many countries are struggling to provide the optimal conditions for their citizens to thrive. For those countries, globalization and technology may continue to exacerbate income inequality.
If countries are unable to create new social mobility pathways towards more inclusive economies, they risk being stuck in a cycle where inequality remains entrenched—and history continues to repeats itself.
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