Each year the European Commission runs a range of assessments and studies to judge the effectiveness of the R&D funding it distributes and the “innovativeness” of EU member countries. It does this through the European Innovation Scoreboard, the Regional Innovation Scoreboard and the Innobarometer show that
This year’s results show that Europe is catching up with Japan and the US in terms of innovation. Sweden is again the innovation leader, and Latvia has become the fastest growing innovator.
European Innovation Scoreboard 2016: Top 10 countries
1. Sweden
2. Denmark
3. Finland
4. Germany
5. Netherlands
6. Ireland
7. Belgium
8. UK
9. Luxembourg
10. Austria
Sweden is followed by Denmark, Finland, Germany and the Netherlands as Europe’s most innovative countries. The most private investment in innovation occurs in Germany, Belgium is the best at collaboration, whereas the most innovation from SMEs can be found in Sweden, according to the research.
Latvia, Malta, Lithuania, the Netherlands and the UK showed the fastest rate of increasing innovation in their economies.
The Scoreboard, which has been compiled every year since 2007, takes into account factors such as education levels, number of scientific publications, R&D expenditure, venture capital and patent applications to determine an innovation rating for each EU member state.
Balanced investment
The research also reveals that the key driver of becoming an innovation leader is to adopt a balanced innovation system which combines public and private investment, effective innovation partnerships among companies and with academia, as well as a strong educational basis and excellent research.
The specialisation in Key Enabling Technologies (KETs) are also seen to increase regional innovation performance. The research shows that technology research in advanced materials, industrial biotechnology, photonics, and advanced manufacturing technologies have the greatest impact.
The economic impact of innovation is measured in terms of sales and exports of innovative products as well as in employment. Elżbieta Bieńkowska, European commissioner for the internal market, industry, entrepreneurship and SMEs, said: "I want Europe to be a place where innovative SMEs and start-ups flourish and scale up. This requires a concerted effort. At EU level, we need to simplify VAT regulation, adapt insolvency rules, make information on regulatory requirements more easily accessible and work on a clear and SME-friendly intellectual property framework."
Global comparison
Released at the same time as the European Commission’s assessments, the Global Innovation Index is published by Cornell University, business school INSEAD, and the World Intellectual Property Organization (WIPO).
This year’s index surveyed 128 economies, and uses 82 indicators to gauge both innovative capabilities and measurable results. Use of these measures shows Switzerland to be the world's most innovative country, as was found last year, followed by Sweden and the UK.
Outside of the top three, China was ranked 25th – the first time the country has joined the list of the world’s 25 most innovative countries since the index was started nine years ago.
The index is calculated by analyzing the size and performance of aspects of society that influence innovation, such as institutions, human capital and research, infrastructure and market sophistication. It also measures knowledge and technology outputs and creative outputs.
Top 10 Countries: Global Innovation Index 2016
- Switzerland (No.1 in 2015)
- Sweden (3)
- UK (2)
- USA (5)
- Finland (6)
- Singapore (7)
- Ireland (8)
- Denmark (10)
- Netherlands (4)
- Germany (12)
Francis Gurry, director general of the World Intellectual Property Office, said: “Investing in innovation is critical to raising long-term economic growth.”
“In this current economic climate, uncovering new sources of growth and leveraging the opportunities raised by global innovation are priorities for all stakeholders.”
According to the WIPO before the 2009 crisis, research and development (R&D) expenditure grew at an annual pace of around 7%. This year’s Innovation Index data indicates that global R&D grew by only 4% in 2014. This was a result of slower growth in emerging economies and tighter R&D budgets in high-income economies – “this remains a source of concern”, said the WIPO.