2014 Global Innovation Index: UAE first in the Middle East, Switzerland maintains its position at the forefront
Source: BI-ME , Author: Posted by BI-ME staff
Posted: Mon July 21, 2014 3:39 pm

UAE. The UAE ranked first among the countries of the Middle East in terms of overall performance in the 2014 Global Innovation Index, published by Cornell University and the European Institute for Business Administration INSEAD and the World Intellectual Property Organization.

du hosted the Middle East and North Africa launch conference of the 2014 Global Innovation Index in the United Arab Emirates, in the presence of HE Mohammed Al Gergawi, Minister of State for Cabinet Affairs, who delivered the opening speech of the conference.

Al Gargawi noted in his opening speech that the Arab world, and the United Arab Emirates in particular, formed a historical hub for innovation, and said: "The UAE was founded on the principles of innovation, creativity and knowledge, as suitably demonstrated by the latest initiative, the launch of Emirates Space Agency recently by His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, and His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, which is the first Arab and Islamic project to send a probe to Mars. The UAE leadership has from the beginning invested in nurturing human capital that is capable of achieving such ambitions.

The UAE is also characterized by its high ability to build an environment that encourages creativity and innovation, and attracts talent. It also has plans to transform the government into a smart government, and to transform our cities into innovative, human-friendly smart cities.

"Additionally, we have huge projects to transform the education sector to a smart sector, based on creativity and innovation. The UAE encourages innovation in the fields of internet, media, renewable energy and industries, and our economy is one of the knowledge and innovation-based economies as classified by the World Economic Forum, while our technological infrastructure is among the best in the world. And above all, our leadership believes that innovation is the asset of the future.”

The GII 2014 surveys 143 economies around the world, using 81 indicators–to gauge both their innovation capabilities and measurable results. Published annually since 2007, the GII is now a leading benchmarking tool for business executives, policy makers and others seeking insight into the state of innovation around the world. This year’s study benefits from the experience of its Knowledge Partners: the Confederation of Indian Industry, du and Huawei, as well as of an Advisory Board of 14 international experts.

The GII creates an environment in which innovation factors are under continual evaluation, including the following features: 143 country profiles, including data, ranks and strengths and weaknesses on 81 indicators from over 30 international public and private sources, of which 56 are hard data, 20 composite indicators, and 5 survey questions.

A transparent and replicable computation methodology including 90% confidence interval for each index ranking (GII, output and input sub-indices) and an analysis of factors affecting year-on-year changes in rankings

The GII 2014 is calculated as the average of two sub-indices. The Innovation Input Sub-Index gauges elements of the national economy which embody innovative activities grouped in five pillars which are Institutions, Human capital and research, Infrastructure, Market sophistication, and Business sophistication. On the other hand the Innovation Output Sub-Index captures actual evidence of innovation results, divided in two pillars: Knowledge and technology outputs and Creative outputs.

UAE Ranking: Innovation Inputs & Outputs sub-indices

Amid a newly documented slowdown in the growth of global research and development, the theme of the Global Innovation Index 2014 is “The Human Factor in Innovation,” exploring the role of human capital in the innovation process and underlining the growing interest that firms and governments have shown in identifying and energizing creative individuals and teams.

“Innovation is a major contributor to economic growth and the key to economic success in a global economy, as well as the source of competitive advantage for industries and companies,” said WIPO Director General Francis Gurry.  He  added, “Countries in the Middle East are recognizing the importance of innovation. They are seeking to diversify their economies away from natural resources and towards knowledge intensive industries.”

The Human Factor: The Essential Spark to Innovation
This year’s report highlights how the human factor of innovation largely explains which innovation champions remain at the top, and why some of the large emerging economies offer divergent innovation performances. A closer look at a collection of indicators that focus on education as a subset of human capital formation helps understand differences in innovation performance across regions and income groups.

Analysis of the GII results shows that the human factor is even more critical for innovation success in higher-income economies than in lower-income economies. It is likely that better educated citizens are more successful in higher-income economies in leveraging the favourable contexts (in business and markets) for driving innovation.

It also suggests that, as a country moves up the scale of innovation sophistication, the quality of its talents (in science, engineering, but also in business and management for example) become even more critical.

Bruno Lanvin, Executive Director for Global Indices at INSEAD, and co-author of the report, stresses that ‘The talent dimension of innovation is particularly critical for MENA countries, whose young populations will require massive job creations in the years to come. Reliance on ‘imported skills’ (from expats and consultants) needs to diminish rapidly if those countries want to be able to generate a sustainable flow of local innovation.

In this context, education is key. While countries like Tunisia (25th in tertiary education), Lebanon (26th), and to some extent Oman (32nd) have traditionally scored high on tertiary education, and the spectacular results registered this year by the UAE and Qatar (respectively 1st and 9th) reflect the high priority they provided to education over the last decade.’

Global Innovation Index


Soumitra Dutta, Anne and Elmer Lindseth Dean, Professor of Management, Samuel Curtis Johnson Graduate School of Management, and co-author of the report, said “The United Arab Emirates has become the top performer in the Northern Africa and Western Asia region, outperforming its peers in many key dimensions of innovation.

"Although the region has to do more to achieve its full potential, regional stars such as United Arab Emirates and Saudi Arabia continue to move up in the rankings and closer to the top innovation economies.” 

Osman Sultan, CEO, du, commented: “With a visionary leadership and continued investments in education, fostering avenues of growth and development, it is not surprising that the UAE leads region in key innovation parameters, The continued progression of the UAE in the GII rankings is proof positive of national efforts to bolster innovation-driven sustainable growth. There are three areas in which the country has demonstrated significant growth:  Human Capital and Research, Infrastructure, and Country Institutions, which are the key pillars to fostering a connected society. Investing in these areas will empower business acumen and facilitate a knowledge-based economy, powered by connectedness.”

The GII 2014 confirms the persistence of global innovation divides. Among the top 10 and top 25, rankings have changed but the list of economies remains unaltered. A difficult-to-bridge divide exists where less-innovative economies have difficulty keeping up with higher-ranking economies, even when making notable gains themselves. This can largely be explained by their difficulties to grow and retain the human resources necessary for sustained innovation, which is the focus of this year’s report.

Bruno Lanvin, added, “As innovation becomes a global game, a growing number of emerging economies are confronted with complex issues whereby ‘brain gain’ can only be generated through a delicate balance between talents outflows (citizens seeking an education abroad) and inflows (whereby high performers return home to innovate and create local jobs, and diasporas contribute to national competitiveness). Around the world, we see encouraging signs that this is happening.

"In GCC countries, it has been common for bright students to receive a high-level education abroad (in business, engineering) and return home to take high-level responsibilities. In countries like Lebanon, Morocco or Tunisia, diasporas have played positive roles in innovation, both abroad and at home.”

This year’s report, both through its sub-indicators and through the chapters provided by the UNESCO Institute for Statistics, the OECD and reports on India, Russia, the United Arab Emirates, South Africa and Morocco highlights how the human factor of innovation partly explains which innovation champions remain at the top, and why some of the large emerging economies offer divergent innovation performances.

In terms of education as a subset of human capital formation the top performers within the high income group are the Republic of Korea, Finland and the UK. China, Argentina and Hungary take the top positions among the middle-income countries. All of these countries have made visible efforts to maintain or enhance the quality of their human resources through education and life-long learning.

The GII shows that better educated citizens are more successful in higher-income economies in leveraging the favorable contexts for driving innovation. As countries move up the scale of innovation sophistication, the quality of its talents in science, engineering, but also in business and management for example become even more critical.

Top Rankings
For the GII 2014, Switzerland remains the leader for the fourth consecutive year. The United Kingdom moves up a rank to second place, followed by Sweden. A new entry into the top 10 this year is Luxembourg (9th).

These GII leaders have created well-linked innovation ecosystems, where investments in human capital combined with strong innovation infrastructures contribute to high levels of creativity.

In particular, the top 25 countries in the GII consistently score high in most indicators and have strengths in areas such as innovation infrastructure, including information and communication technologies; business sophistication such as knowledge workers, innovation linkages, and knowledge absorption; and innovation outputs such as creative goods and services and online creativity.

The quality of innovation is assessed as well. In terms of innovation quality – as measured by university performance, the reach of scholarly articles and the international dimension of patent applications - the United States of America (USA) holds the top place within the high-income group, followed by Japan, Germany and Switzerland.  Top-scoring middle-income economies are narrowing the gap on innovation quality with China in the lead, followed by Brazil and India.

Soumitra Dutta, added, "When reviewing the GII quality indicators, top performing middle-income economies are closing the gap with high-income economies. China significantly outperforms the average score of high-income economies across the combined quality indicators. To close the gap even further, middle-income economies must continue to invest in strengthening their innovation ecosystems closely monitor the quality of their innovation indicators."

Global R&D Spending: Strong Post-Crisis Recovery; Growth Slowing Since 
A fall in the growth of public R&D support coupled with the continued hesitancy of company R&D expenditures seems to be leading to slower overall growth of total R&D expenditures worldwide; this is the case especially in high-income countries. In many advanced countries, fiscal consolidation also seems to have negatively affected public spending on education since 2010.

Also, although governments have effectively included a significant number of future innovation-related growth projects in stimulus packages in 2009, support for such efforts seems to have lost momentum in some countries. To be sure, the majority of countries for which data are available continue to show positive R&D expenditure growth in 2013 and 2014. Yet strong R&D spending growth in 2013 and 2014 is expected to take place mostly in Asia, in particular in China, the Republic of Korea, and India.

About the Global Innovation Index
The Global Innovation Index 2014 (GII), in its 7th edition this year, is co-published by Cornell University, INSEAD, and the World Intellectual Property Organization (WIPO, a specialized agency of the United Nations).

The core of the GII Report consists of a ranking of world economies’ innovation capabilities and results. Recognizing the key role of innovation as a driver of economic growth and prosperity, and the need for a broad horizontal vision of innovation applicable to developed and emerging economies, the GII includes indicators that go beyond the traditional measures of innovation such as the level of research and development.

In just 7 years, the GII has established itself as the premier reference among innovation indices, and has evolved into a valuable benchmarking tool to facilitate public-private dialogue, whereby policymakers, business leaders and other stakeholders can evaluate progress on a continual basis.

To support the global innovation debate, to guide polices and to highlight good practices, metrics are required to assess innovation and related policy performance. The Global Innovation Index (GII) creates an environment in which innovation factors are under continual evaluation, including the following features:

• 143 country profiles, including data, ranks and strengths and weaknesses on 81 indicators
• 81 data tables for indicators from over 30 international public and private sources, of which 56 are hard data, 20 composite indicators, and 5 survey questions
• A transparent and replicable computation methodology including 90% confidence interval for each index ranking (GII, output and input sub-indices) and an analysis of factors affecting year-on-year changes in rankings

The GII 2014 is calculated as the average of two sub-indices. The Innovation Input Sub-Index gauges elements of the national economy which embody innovative activities grouped in five pillars: (1) Institutions, (2) Human capital and research, (3) Infrastructure, (4) Market sophistication, and (5) Business sophistication. The Innovation Output Sub-Index captures actual evidence of innovation results, divided in two pillars: (6) Knowledge and technology outputs and (7) Creative outputs.

The index is submitted to an independent statistical audit by the Joint Research Centre of the European Commission.

To download the full report visit: www.globalinnovationindex.org.

Knowledge Partners
The Confederation of Indian Industry, du, and Huawei collaborate as Knowledge Partners in 2014.
Knowledge Partners believe in the role of innovation in increasing the competitiveness of nations, enabling economic growth, driving societal changes and building the foundation of a country’s future.
They are committed to producing a valuable and non-partisan resource. Knowledge Partners support the elaboration of the GII; contribute analytical chapters or case studies to the GII Report; and participate in the discussion and dissemination of the GII results.

About Cornell University
Cornell is a privately endowed research university and a partner of the State University of New York. As the federal land-grant institution in New York State, we have a responsibility—unique within the Ivy League—to make contributions in all fields of knowledge in a manner that prioritizes public engagement to help improve the quality of life in our state, the nation, the world.

The Samuel Curtis Johnson Graduate School of Management at Cornell University is a leader in innovative business education for the connected world. Consistently ranked as one of the top business schools in the world, Johnson offers six MBA programs, spanning the U.S., Canada, Latin America, Mexico, and China. Our two most recent innovations in MBA education are the Johnson Cornell Tech MBA in New York City, and a dual-degree MBA/FBA with Tsinghua University in Beijing. Johnson is home to the renowned academic journal Administrative Science Quarterly; its 59 full-time, tenure-track faculty members conduct award-winning research and educate some 650 MBA and PhD students each year.

About INSEAD, The Business School for the World
As one of the world’s leading and largest graduate business schools, INSEAD brings together people, cultures and ideas to change lives and to transform organisations. A global perspective and cultural diversity are reflected in all aspects of our research and teaching.

With campuses in Europe (France), Asia (Singapore) and Abu Dhabi, INSEAD’s business education and research spans three continents. Our 146 renowned Faculty members from 34 countries inspire more than 1,300 degree participants annually in our MBA, Executive MBA, Specialised Master’s degrees (Master in Finance, Executive Master in Consulting and Coaching for Change) and PhD programmes. In addition, more than 12,000 executives participate in INSEAD’s Executive Education programmes each year.

In addition to INSEAD’s programmes on our three campuses, INSEAD participates in academic partnerships with the Wharton School of the University of Pennsylvania (Philadelphia & San Francisco); the Kellogg School of Management at Northwestern University near Chicago, and Johns Hopkins University/SAIS in Washington DC. In Asia, INSEAD partners with Tsinghua University in Beijing and with CEIBS. INSEAD is a founding member in the multidisciplinary Sorbonne University created in 2012, and also partners with Fundação Dom Cabral in Brazil.

INSEAD became a pioneer of international business education with the graduation of the first MBA class on the Fontainebleau campus in Europe in 1960. In 2000, INSEAD opened its Asia campus in Singapore. And in 2007 the school began an association in the Middle East, officially opening the Abu Dhabi campus in 2010.

Around the world and over the decades, INSEAD continues to conduct cutting edge research and to innovate across all our programmes to provide business leaders with the knowledge and sensitivity to operate anywhere. These core values have enabled us to become truly "The Business School for the World."

More information about INSEAD can be found at www.insead.edu.

About WIPO
The World Intellectual Property Organization (WIPO) is the leading global forum for the promotion of intellectual property as a force for innovation and creativity to achieve positive change. A specialized agency of the United Nations, WIPO assists its 186 member states in developing a balanced international IP legal framework to meet society’s evolving needs. It provides business services for obtaining IP rights in multiple countries and resolving disputes. It delivers capacity-building programs to help developing countries benefit from using IP. And it provides free access to unique knowledge banks of IP information.

About the Confederation of Indian Industry
“The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the development of India, partnering industry, Government, and civil society, through advisory and consultative processes.

CII is a non-government, not-for-profit, industry-led and industry-managed organization, playing a proactive role in India's development process. Founded over 118 years ago, India's premier business association has over 7100 members, from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 90,000 enterprises from around 257 national and regional sectoral industry bodies.

CII charts change by working closely with Government on policy issues, interfacing with thought leaders, and enhancing efficiency, competitiveness and business opportunities for industry through a range of specialized services and strategic global linkages. It also provides a platform for consensus-building and networking on key issues.”

About du
We opened for business in 2006. We offer mobile and fixed telephony, broadband connectivity and IPTV services to individuals, homes and businesses. We also provide carrier services for businesses and satellite up/downlink services for TV broadcasters. As a rapidly-growing enterprise, we have a team of experts working to enhance and expand our bouquet of service offerings. Our people come from over 60 countries - we mirror the rich cultural diversity of our nation, while being able to serve our customers in a variety of languages.
We remain committed to providing fulfilling opportunities for quality talent in a cosmopolitan working environment.

By the end of Q1 2014, more than 7.5 million individual customers and over 80,000 businesses have chosen to use our services. In 2013 we were awarded the Dubai Chamber CSR Label for the second year in recognition of our continuing commitment to CSR best practice and the Small Energy Award – Golden Category at Emirates Energy Award for our LEED platinum-certified Fujairah retail shop. We were also awarded with the Premier Plan Best Business Service commsMEA awards in 2013 and the award Best Cloud Provider for Datamena at Telecom Review Industry Awards.

du is 39.5 percent owned by Emirates Investment Authority, 20.08 percent by Mubadala Development Company PJSC, 19.5 percent by Emirates Communications and Technology LLC and the remaining stake by public shareholders. du is listed on the Dubai Financial Market (DFM) and trades under the name ‘du’.

About Huawei
Huawei is a leading global information and communications technology (ICT) solutions provider. Through our dedication to customer-centric innovation and strong partnerships, we have established end-to-end advantages in telecom networks, devices and cloud computing. We are committed to creating maximum value for telecom operators, enterprises and consumers by providing competitive solutions and services. Our products and solutions have been deployed in over 140 countries, serving more than one-third of the world’s population.

For more information, visit Huawei online: www.huawei.com.

 

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