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5. IP Watch will not be liable for any loss including but not limited to the following (whether such losses are foreseen, known or otherwise): loss of data, loss of revenue or anticipated profit, loss of business, loss of opportunity, loss of goodwill or injury to reputation, losses suffered by third parties, any indirect, consequential or exemplary damages.

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    Switzerland Most Innovative Economy, Global Divide Persists, Says WIPO/INSEAD Index

    Published on 3 July 2012 @ 9:50 pm

    By , Intellectual Property Watch

    The Global Innovation Index 2012 launched today by the World Intellectual Property Organization and INSEAD shows a clear innovation divide in world economies. It advises countries to maintain their efforts to support and foster innovation despite the lingering economic crisis, as a key element of sustainable growth.

    Some 141 countries are ranked by the Index [pdf] on the basis of their innovation capabilities and results, with Switzerland, Sweden and Singapore in the leading positions for overall innovation performances, followed by Finland, the United Kingdom, the Netherlands, Denmark, Hong Kong, Ireland, and the United States.

    Last year’s ranking [pdf] gave the same top leaders, but the US dropped to 10th position this year from 7th last year, and Canada fell to 12th this year after placing 8th last year.

    The full report is available here.

    A key report graphic is here or here [pdf].

    There has been considerable policy discussion on how to deal with the global economic crisis, WIPO Director General Francis Gurry told a press briefing today. Some suggestions, he said, are that “we should achieve an appropriate policy mix between, on the one hand, achieving sustainable public finances,” and on the other hand adopt policies that encourage growth and employment.”

    “It is important to resist downward pressure on investments in innovation,” Gurry said.

    The Global Innovation Index is published by international business school INSEAD, and WIPO, with “knowledge partners”, including Alcatel-Lucent, global consulting firm Booz & Company, the Confederation of Indian Industry and an advisory board of experts.

    WIPO joined the Global Innovation Index in 2001 as one of the knowledge partners, Gurry said, and this year became co-publisher. He said this decision came from the recognition that intellectual property is an essential part of the innovation ecosystem.

    “IP encourages innovation and encourages those who innovate to be able to have a framework in which to trade their intellectual assets,” he said.

    The definition of innovation has evolved over the last decade, said Soumitra Dutta, professor of business, technology and academic director of eLab at INSEAD and editor of the Index.

    “Historically, innovation was often thought of as specialised improvements of products and processes done by a few specialised scientists inside research laboratories of companies” or organisations, but today there is a broader perspective of innovation, he said. Innovation is not just happening in product laboratories of companies, he added, but across multiple actors, including governments, other non-governmental organisations, and society as a whole. The theme of this year’s index is “Stronger Innovation Linkages for Global Growth.”

    The Global Innovation Index conceptual framework is built around two main elements, said Dutta. The first is the innovation input, analysed through five pillars: institutions, human capital and research, infrastructure, market sophistication, and business sophistication. The second is the innovation output with two pillars: knowledge and technology outputs, and creative outputs. This shows the capabilities of economies to innovate and their ability to make use of their innovations.

    This year, Dutta said, two additions were made: the ecological sustainability in the infrastructure inputs pillar, and the online creativity to the creative outputs pillar to reflect changes in the area of innovation.

    Several rankings are offered in the Index, most of them showing the same leading countries. The innovation input sub-index rankings show Singapore in the lead position, followed by Hong Kong, Sweden, Switzerland and the United Kingdom. The innovation output sub-index rankings present Switzerland in the lead, before Sweden, the Netherlands, Malta and Finland.

    However, the innovation efficiency index rankings tells a slightly different story. There, China scored highest, followed by India, Moldova, Malta and Switzerland. According to Dutta, the innovation efficiency index is calculated as the ration of the output over the input sub-index. This shows “countries particularly good at surmounting relative weaknesses on their input sub-indices, with robust output results,” the Index says.

    Shifts in the Middle-Income Countries; EU Divide

    The 2012 Index also confirmed that high-income economies dominate the innovation landscape “and tend to have a significant lead around the various elements of innovation,” Dutta said, but some interesting changes and trends are showing up in some middle income and lower income economies also “pushing the innovation frontier,” he added. He cited China and India, creating new innovative business models.

    Inside Europe, Dutta said a gap is emerging on innovation capabilities between northern and southern European countries, with some eastern European countries exhibiting signs of being fast learners.

    The Index also showed a slight setback in the United States position in the area of innovation, and found that the so-called BRIC countries (Brazil, Russia, India and China) need to renew their innovation drivers to “live up to their expected potential,” Dutta said at the launch event for the Index held today at WIPO.

    Innovation Linkages Essential, Speakers Say

    Most speakers at the launch of the Index emphasised the importance of linkages to reach success in innovation strategy. In particular, Per-Ola Karlsson, senior partner and managing director of Europe for Booz and Company in Sweden, said economies with a strong innovation culture have managed to link people, capital and research to introduce novelty and to create economic wealth.

    Many successful companies with high innovation performance in Switzerland or the Netherlands once invested heavily in innovation inputs such as academic institutions, he added. Top innovative countries have figured out how to transform ideas into outputs, knowledge, technology, and goods and services, Karlsson said. This success also reflects the ability of those countries to create effective linkages across a number of different stakeholders, he said.

    Success is not only about the amount of researchers, the amount of funds in research and development, or the amount of patents being filed, he said. It also is about the focus on qualitative aspects around innovation, and how to transform strategies into capabilities required to be successful.

    “The tighter the connexions between strategy, culture and innovation, the greater the leverage companies and countries will have in bringing innovation inputs into the marketplace in successful products and services,” he said.

    The amount of money spent on R&D is a poor predictor of how successful these companies are in innovation, he said. A study carried out by Booz and Company on the “top R&D spenders” reveals that other aspects than money are much more important, he said. An example is companies’ focus on their innovation strategy and their ability to establish a capability system to implement this strategy.

    Linking different elements in the corporation is essential, he said, adding that coherence is equally important for countries, involving several stakeholders in companies and aggregating them in an effective ecosystem. In developing countries, it is important to figure out what is the natural model that establishes these coherent linkages, he said.

    Innovation Should Promote Economic Inclusion

    During the launch of the Index, a high-policy panel gathered several speakers, including Sibusiso Sibisi, president and chief executive officer of the Council for Scientific and Industrial Research, and member of the National Advisory Council on Innovation of South Africa.

    He said innovation should promote social transformation, poverty reduction and job creation. It is essential, he said, that innovation lead to economic growth and enable a greater ability for people to be involved in the economy. A key expression is “inclusive growth through innovation,” he said.

    Sibisi also suggested a subtitle of the Index: “Innovation linkages for global growth and global public good.”

    Also speaking on the panel were Mohammed Al-Suwaiyel, president of King Abdulaziz City for Science and Technology in Saudi Arabia, Werner Bauer, executive vice-president, executive board and chief technology officer at Nestlé, and Jeong Kim, president of Bell Labs, Alcatel-Lucent. Main points of their interventions are here.

    In concluding words, Gurry advised that innovation be kept free of political bantering, arguing, “Innovation is too important as an economic and social phenomenon to be overly-politicised.”

    Catherine Saez may be reached at info@ip-watch.ch.

     


    Leave a Reply

    We welcome your participation in article and blog comment threads, and other discussion forums, where we encourage you to analyse and react to the content available on the Intellectual Property Watch website. By participating in discussions or reader forums, or by submitting opinion pieces or comments to articles, blogs, reviews or multimedia features, you are consenting to these rules.

    We welcome your participation in article and blog comment threads, and other discussion forums, where we encourage you to analyse and react to the content available on the Intellectual Property Watch website.

    By participating in discussions or reader forums, or by submitting opinion pieces or comments to articles, blogs, reviews or multimedia features, you are consenting to these rules.

    1. You agree that you are fully responsible for the content that you post. You will not knowingly post content that violates the copyright, trademark, patent or other intellectual property right of any third party or which you know is under a confidentiality obligation preventing its publication and that you will request removal of the same should you discover that you have violated this provision. Likewise, you may not post content that is libelous, defamatory, obscene, abusive, that violates a third party's right to privacy, that otherwise violates any applicable local, state, national or international law, that amounts to spamming or that is otherwise inappropriate. You may not post content that degrades others on the basis of gender, race, class, ethnicity, national origin, religion, sexual preference, disability or other classification. Epithets and other language intended to intimidate or to incite violence are also prohibited. Furthermore, you may not impersonate others.

    2. You understand and agree that Intellectual Property Watch is not responsible for any content posted by you or third parties. You further understand that IP Watch does not monitor the content posted. Nevertheless, IP Watch may monitor the any user-generated content as it chooses and reserves the right to remove, edit or otherwise alter content that it deems inappropriate for any reason whatever without consent nor notice. We further reserve the right, in our sole discretion, to remove a user's privilege to post content on our site. IP Watch is not in any manner endorsing the content of the discussion forums and cannot and will not vouch for its reliability or otherwise accept liability for it.

    3. By submitting any contribution to IP Watch, you warrant that your contribution is your own original work and that you have the right to make it available to IP Watch for all purposes and you agree to indemnify IP Watch, its directors, employees and agents against all damages, legal fees and others expenses that may be incurred by IP Watch as a result of your breach of warranty or of these terms.

    4. You further agree not to publish any personal information about yourself or anyone else (for example telephone number or home address). If you add a comment to a blog, be aware that your email address will be apparent.

    5. IP Watch will not be liable for any loss including but not limited to the following (whether such losses are foreseen, known or otherwise): loss of data, loss of revenue or anticipated profit, loss of business, loss of opportunity, loss of goodwill or injury to reputation, losses suffered by third parties, any indirect, consequential or exemplary damages.

    6. You understand and agree that the discussion forums are to be used only for non-commercial purposes. You may not solicit funds, promote commercial entities or otherwise engage in commercial activity in our discussion forums.

    7. You acknowledge and agree that you use and/or rely on any information obtained through the discussion forums at your own risk.

    8. For any content that you post, you hereby grant to IP Watch the royalty-free, irrevocable, perpetual, exclusive and fully sub-licensable license to use, reproduce, modify, adapt, publish, translate, create derivative works from, distribute, perform and display such content in whole or in part, world-wide and to incorporate it in other works, in any form, media or technology now known or later developed.

    9. These terms and your posts and contributions shall be governed and interpreted in accordance with the laws of Switzerland (without giving effect to conflict of laws principles thereof) and any dispute exclusively settled by the Courts of the Canton of Geneva.

     

     
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