Funding for global innovation in sharp decline: WIPO index
Switzerland, Sweden, US, UK and Netherlands have topped the World Intellectual Property Organisation (WIPO)’s global innovation rankings released today, but the index revealed that COVID-19 is expected to exert acute pressure on innovation funding worldwide.
The report, Global Innovation Index 2020: Who will finance innovation?, which ranks the global innovation trends and performances of 131 economies, revealed that the funding of innovative ventures is drying up, as venture capital deals sharply decline across North America, Asia, and Europe.
WIPO director general Francis Gurry, said: “The rapid, worldwide spread of the coronavirus requires fresh thinking to ensure a shared victory over this quintessential global challenge.”
He added: “Even as we all grapple with the immediate human and economic effects of the COVID-19 pandemic, governments need to ensure that rescue packages are future oriented and support the individuals, research institutes, companies and others with innovative and collaborative new ideas for the post-COVID era. Innovations equal solutions.”
According to the index, Switzerland remains the world’s leader in innovation for the 10th consecutive year, while Sweden and the US have retained their second and third places from 2019, respectively. Sixteen of the leaders in the top 25 of the index’s rankings are European countries, with seven of them in the top 10.
The UK reached number four on the rankings, up from its fifth position last year. The UK Intellectual Property Office’s CEO Tim Moss said: “It is wonderful to see the UK receive recognition for its strengths as an innovative place to be. The timing is particularly relevant, as innovation is a fundamental part of driving the economic recovery of the UK and countries across the globe. Intellectual property, as a foundation of innovation, has a major part to play and is more important than ever.”
While high income countries continue to dominate the rankings, Asian economies have advanced considerably in innovation over the years, with the Republic of Korea joining the top 10 for the first time (at number 10), alongside one other Asian economy, Singapore (ranked number 8).
Over the years, Asian economies have advanced considerably in innovation, with China (number 14), Malaysia (number 33) Vietnam (number 42) and the Philippines (number 50) all now in the top 50.
However, the report revealed that the COVID-19 crisis hit the innovation landscape at a time when innovation was flourishing. In 2018, research and development (R&D) spending grew by 5.2%, after rebounding strongly from the financial crisis of 2008-2009.
Insead Business School’s executive director for global indices Bruno Lanvin called for international openness and collaboration on innovation. He said: “Faced with unprecedented challenges, whether sanitary, environmental, economic or social, the world needs to combine efforts and resources to ensure the continuous financing of innovation.”
The impact of the pandemic on the science and innovation systems will take time to unfold, but there are positive signs of increased international collaboration in science, the report said. However, WIPO stated the disruption of major research projects remains a key concern.
The index is co-authored by Insead, Cornell University and WIPO.
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