Innovation efficiency

X Y scatter chart showing the innovation output of 141 countries as a function of their innovation input. The linear association between output and input is strong as one should expect : correlation coefficient r = 0.90. The output variation is largely explained by the input variation (R² = 0.814). However, some countries are more efficient than others. The efficiency index (computed as the ratio of output per input times 100) provides a best-in-class champions group with an output index higher than the input index : in descending order China (113), India (110), Moldova (108), Malta (10), and Switzerland (101).

The chart shows the scatter of the innovation output of 141 countries as a function of their innovation input. The linear association between output and input is strong as one should expect : correlation coefficient r = 0.90. The output variation is largely explained by the input variation (R² = 0.81). However, some countries are more efficient than others. The efficiency index (computed as the ratio of output per input times 100) provides a best-in-class champions group with an output index higher than the input index : in descending order China (113), India (110), Moldova (108), Malta (103), and Switzerland (101).

This insight is corroborated by the analysis of the residuals (difference between the output score and the line of fit). The top ranking countries remain the same, although in a slightly different order : China (16.4), Switzerland (15.6), Malta (14.7), Moldova(13.1), and India (12.9). At the opposite end, the lowest performers are : Botswana (-11.9), Hong Kong (-10.8), Uzbekistan (-9), Australia (-8.6), and Lesotho (-8.6).

To better illustrate the relative efficiency of all countries, the chart is divided into four quadrants by the input median (red vertical line), and the output median (red horizontal line), grouping in the top left quadrant those countries that succeed in getting an above median output from their below median input; in the top right quadrant the countries that both use above median inputs and obtain above median outputs; in the lower left quadrant, those that use below median inputs and achieve below median outputs — destitute economies prevail in this quadrant; and in the lower right quadrant countries that use above median inputs, but whose innovation output is low, suggesting a waste of opportunities.

Efficient Utilization of Innovation Inputs 2012
Country	Income Group	GII (Global Innovation Index)		Innovation Input Index ¹		Innovation Output Index ²		Innovation Efficiency Index ³
Country	Income Group	Score	Rank	Score	Rank	Score	Rank	Innovation Efficiency Index ³
Albania	UM	30.4	90	37.4	82	23.3	98	62
Algeria	UM	24.4	124	33	101	15.8	134	48
Angola	LM	22.2	135	26.3	133	18.1	127	69
Argentina	UM	34.4	70	38.7	76	30.2	66	78
Armenia	LM	34.5	69	39.1	73	29.8	68	76
Australia	HI	51.9	23	63.4	13	40.4	31	64
Austria	HI	53.1	22	59.5	21	46.7	21	78
Azerbaijan	UM	30.4	89	36.8	85	24	94	65
Bahrain	HI	41.1	41	51.4	35	30.8	60	60
Bangladesh	LI	26.1	112	29.5	118	22.6	104	77
Belarus	UM	32.9	78	37.7	80	28.1	75	75
Belgium	HI	54.3	20	60.3	20	48.3	18	80
Belize	LM	32.5	80	36.6	87	28.4	74	78
Benin	LI	24.4	125	26.7	132	22	108	82
Bolivia	LM	25.8	114	31.3	108	20.3	120	65
Bosnia and Herzegovina	UM	34.2	72	41.4	66	26.9	80	65
Botswana	UM	31.4	85	42.8	54	19.9	121	46
Brazil	UM	36.6	58	40.2	69	33	52	82
Brunei Darussalam	HI	37.7	53	45.8	46	29.7	69	65
Bulgaria	UM	40.7	43	45.5	47	35.8	42	79
Burkina Faso	LI	24.6	122	29.5	120	19.8	123	67
Burundi	LI	20.5	137	25.3	137	15.8	135	62
Cambodia	LI	23.4	129	29.5	119	17.3	132	59
Cameroon	LM	25	121	28.3	125	21.7	111	77
Canada	HI	56.9	12	65.8	10	48	20	73
Chile	UM	42.7	39	46.8	43	38.5	34	82
China	UM	45.4	34	42.7	55	48.1	19	113
Colombia	UM	35.5	65	42.3	58	28.7	72	68
Costa Rica	UM	36.3	60	39.8	71	32.8	53	82
Côte d'Ivoire	LM	22.6	134	24.5	139	20.7	118	84
Croatia	HI	40.7	42	46.4	44	34.9	45	75
Cyprus	HI	47.9	28	56.4	25	39.3	32	70
Czech Republic	HI	49.7	27	53.3	31	46.1	23	86
Denmark	HI	59.9	7	67.4	8	52.5	9	78
Dominican Republic	UM	30.9	86	34.6	93	27.3	77	79
Ecuador	UM	28.5	98	31.2	109	25.9	85	83
Egypt	LM	27.9	103	32.5	104	23.3	99	72
El Salvador	LM	29.5	93	34.6	94	24.5	91	71
Estonia	HI	55.3	19	57.4	24	53.3	8	93
Ethiopia	LI	23.3	131	28.4	124	18.1	128	64
Fiji	LM	27.9	101	37	84	18.9	124	51
Finland	HI	61.8	4	67.5	6	56.1	5	83
France	HI	51.8	24	59.1	22	44.4	26	75
Gabon	UM	26.5	106	30.7	112	22.2	106	72
Gambia	LI	23.3	130	27.8	128	18.7	125	67
Georgia	LM	34.3	71	41.7	63	26.8	81	64
Germany	HI	56.2	15	58.8	23	53.7	7	91
Ghana	LM	29.6	92	35.1	91	24.1	93	69
Greece	HI	35.3	66	44	50	26.5	82	60
Guatemala	LM	28.4	99	33.7	98	23.1	101	69
Guyana	LM	33.7	77	36.7	86	30.6	64	83
Honduras	LM	26.3	111	31.8	105	20.9	116	66
Hong Kong	HI	58.7	8	72	2	45.5	25	63
Hungary	HI	46.5	31	51.2	37	41.9	29	82
Iceland	HI	55.7	18	60.8	19	50.6	12	83
India	LM	35.7	64	34	96	37.3	40	110
Indonesia	LM	28.1	100	30.6	113	25.5	89	83
Iran	UM	27.3	104	33.9	97	20.8	117	61
Ireland	HI	58.7	9	67.4	7	49.9	14	74
Israel	HI	56	17	61.5	17	50.5	13	82
Italy	HI	44.5	36	51.5	34	37.5	39	73
Jamaica	UM	30.2	91	38.2	77	22.1	107	58
Japan	HI	51.7	25	61.3	18	42	28	69
Jordan	UM	37.1	56	39.7	72	34.6	46	87
Kazakhstan	UM	31.9	83	41.4	67	22.4	105	54
Kenya	LI	28.9	96	36.6	89	21.3	114	58
Korea, Republic	HI	53.9	21	61.8	16	45.9	24	74
Kuwait	HI	37.2	55	42	61	32.4	54	77
Kyrgyzstan	LI	26.4	109	35.5	90	17.3	131	49
Lao PDR	LM	20.2	138	27.3	129	13.1	139	48
Latvia	UM	47	30	51.4	36	42.6	27	83
Lebanon	UM	36.2	61	41.8	62	30.6	63	73
Lesotho	LM	25.7	116	34.8	92	16.5	133	47
Lithuania	UM	44	38	50.2	38	37.8	37	75
Luxembourg	HI	57.7	11	63	14	52.4	10	83
Macedonia, FYR	UM	36.2	62	43.2	52	29.2	71	68
Madagascar	LI	24.2	126	30.2	116	18.2	126	60
Malawi	LI	25.4	120	30.8	110	19.9	122	65
Malaysia	UM	45.9	32	54.2	29	37.6	38	69
Mali	LI	25.4	119	27	131	23.8	97	88
Malta	HI	56.1	16	55.3	27	57	4	103
Mauritius	UM	39.2	49	44.7	49	33.8	48	76
Mexico	UM	32.9	79	39.8	70	25.9	86	65
Moldova	LM	39.2	50	37.8	79	40.7	30	108
Mongolia	LM	35	68	42.8	53	27.1	79	63
Montenegro	UM	40.1	45	45	48	35.3	44	78
Morocco	LM	30.7	88	36.6	88	24.7	90	67
Mozambique	LI	26.3	110	31.7	107	21	115	66
Namibia	UM	34.1	73	42.4	56	25.9	87	61
Nepal	LI	26	113	28	127	24	95	86
Netherlands	HI	60.5	6	62.9	15	58.2	3	93
New Zealand	HI	56.6	13	63.4	12	49.9	15	79
Nicaragua	LM	26.7	105	32.9	102	20.4	119	62
Niger	LI	18.6	140	25.4	136	11.9	140	47
Nigeria	LM	24.6	123	26.1	134	23.1	102	89
Norway	HI	56.4	14	64	11	48.8	17	76
Oman	HI	39.5	47	46.9	42	32.1	55	68
Pakistan	LM	23.1	133	24.3	140	21.8	110	90
Panama	UM	30.9	87	38.7	75	23.1	100	60
Paraguay	LM	31.6	84	32.6	103	30.6	62	94
Peru	UM	34.1	75	42.3	57	25.8	88	61
Philippines	LM	29	95	31.7	106	26.3	83	83
Poland	HI	40.4	44	47.1	41	33.6	50	71
Portugal	HI	45.3	35	51.9	33	38.7	33	75
Qatar	HI	45.5	33	54.1	30	36.9	41	68
Romania	UM	37.8	52	43.9	51	31.7	57	72
Russia	UM	37.9	51	42	60	33.8	49	80
Rwanda	LI	27.9	102	34.3	95	21.5	113	63
Saudi Arabia	HI	39.3	48	49.2	39	29.4	70	60
Senegal	LM	28.8	97	30.4	114	27.2	78	89
Serbia	UM	40	46	41.5	65	38.5	36	93
Singapore	HI	63.5	3	74.9	1	52	11	69
Slovakia	HI	41.4	40	47.3	40	35.4	43	75
Slovenia	HI	49.9	26	53.2	32	46.6	22	88
South Africa	UM	37.4	54	46.4	45	28.5	73	61
Spain	HI	47.2	29	56	26	38.5	35	69
Sri Lanka	LM	29.1	94	30.3	115	28	76	92
Sudan	LM	16.8	141	23.3	141	10.3	141	44
Swaziland	LM	32	82	33.7	99	30.4	65	90
Sweden	HI	64.8	2	68.8	3	60.7	2	88
Switzerland	HI	68.2	1	68	4	68.5	1	101
Syria	LM	23.1	132	28.6	123	17.6	130	62
Tajikistan	LI	26.4	108	30.8	111	22	109	71
Tanzania	LI	23.9	128	29.7	117	18	129	61
Thailand	UM	36.9	57	42.1	59	31.8	56	76
Togo	LI	20.5	136	25.4	135	15.6	136	61
Trinidad and Tobago	HI	32.5	81	39	74	26	84	67
Tunisia	UM	36.5	59	41.5	64	31.6	58	76
Turkey	UM	34.1	74	37.5	81	30.7	61	82
Uganda	LI	25.6	117	29.4	121	21.7	112	74
Ukraine	LM	36.1	63	38	78	34.2	47	90
United Arab Emirates	HI	44.4	37	55.2	28	33.6	51	61
United Kingdom	HI	61.2	5	68	5	54.5	6	80
United States	HI	57.7	10	66.3	9	49.1	16	74
Uruguay	UM	35.1	67	40.3	68	30	67	74
Uzbekistan	LM	23.9	127	33.2	100	14.7	137	44
Venezuela	UM	25.4	118	28.1	126	22.8	103	81
Viet Nam	LM	33.9	76	37	83	30.8	59	83
Yemen	LM	19.2	139	25.2	138	13.1	138	52
Zambia	LM	26.4	107	28.9	122	24	96	83
Zimbabwe	LI	25.7	115	27	130	24.4	92	90
Median				39.8		29.2
Correlation r						0.90
R²						0.81
¹ The Innovation Input Index is the simple average of 5 sub-indexes : Institutions (Political environment, Regulatory environment, Business environment), Human capital and research (Education, Tertiary education, Research and development), Infrastructure (ICT, Energy, General infrastructure), Market sophistication (Credit, Investment, Trade and competition) and Business sophistication (Knowledge workers, Innovation linkages, Knowledge absorption).
² The Innovation Output Index is the simple average of 2 sub-indexes : Scientific outputs (Knowledge creation, Knowledge impact, Knowledge diffusion) and Creative outputs (Creative intangibles, Creative goods and services outputs).
³ Innovation Efficiency Index = (Innovation Output ÷ Innovation Input) × 100.

Sources: INSEAD - WIPO.

areppim: information, pure and simple

Efficient Utilization of Innovation Inputs2012

Country

Income Group

GII(Global Innovation Index)

InnovationInput Index ¹

InnovationOutput Index ²

InnovationEfficiency Index ³

Score

Rank

Score

Rank

Score

Rank

Efficient Utilization of Innovation Inputs
2012

GII
(Global Innovation Index)

Innovation
Input Index ¹

Innovation
Output Index ²

Innovation
Efficiency Index ³