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Innovation index methodology

Criteria and process used by areppim's source (INSEAD and WIPO - World Intellectual Property Organization, in collaboration with Alcatel-Lucent, Booz and Company, Confederation of Indian Industry and the Joint Research Centre of the European Commission ) for computing the innovation index:
 
The Global Innovation Index (GII) rests upon two sub-indices, the Innovation Input Sub-Index and the Innovation Output Sub-Index, each built around pillars.
 
Innovation Input Sub-Index : Five input pillars capture elements of the national economy that enable innovative activities :
  1. Institutions (3 sub-pillars : Political environment, Regulatory environment, Business environment)
  2. Human capital and research (3 sub-pillars : Education, Tertiary education, Research and development)
  3. Infrastructure (3 sub-pillars : ICT, Energy, General infrastructure)
  4. Market sophistication (3 sub-pillars : Credit, Investment, Trade and competition)
  5. Business sophistication (3 sub-pillars : Knowledge workers, Innovation linkages, Knowledge absorption)
 
Innovation Output Sub-Index : Two output pillars capture actual evidence of innovation outputs :
  1. Scientific outputs (3 sub-pillars : Knowledge creation, Knowledge impact, Knowledge diffusion)
  2. Creative outputs (2 sub-pillars : Creative intangibles, Creative goods and services outputs)
 
Each pillar is divided into sub-pillars and each sub-pillar is composed of individual indicators.
 
The Innovation Input Sub-Index is the simple average of the first five pillar scores.
 
Score computation :
  • The Innovation Output Sub-Index is the simple average of the last two pillar scores.
  • The overall GII is the simple average of the Input and Output Sub-Indices.
  • The Innovation Efficiency Index is the ratio of the Output Sub-Index over the Input Sub-Index.
 
The areppim's 2009 innovation charts were based on the Boston Consulting Group/US National Association of Manufacturers - Manufacturing Institute (BCG/NAM) International Innovation Index using data generated through surveys and interviews. Only the 2009 index has been published.
The BCG/NAM Index is based on two major blocks:
  1. Innovation Inputs : measured by fiscal policies, other policies, and innovation environment.
  2. Innovation Performance : measured by R&D results, business performance, and public impact of innovation.
 
(INSEAD - The Global Innovation Index [http://www.globalinnovationindex.org/gii/].)
(MI - Manufacturing Institute [http://www.nam.org/~/media/AboutUs/ManufacturingInstitute/innovationreport.ashx].)