21 Most Innovative Countries in the World
This article will look at the 21 most innovative countries in the world. If you want to skip our detailed analysis of the most innovative countries, head to the 7 Most Innovative Countries.
Previously, we looked at the 15 most innovative countries in the world. That list was primarily composed through the Global Innovation Index and the World Bank’s data on the percentage of GDP allotted to research and development. However, the Global Innovation Index allocates excess importance to attributes that are not integral to innovation. The Global Innovation Index ranks Switzerland as the most innovative country. While the Swiss government dedicates a significant amount of effort and money to innovation, it does not compare to the United States when it comes to innovation. 10 out of the 15 Most Innovative Companies are based in the United States. Meta Platforms, Inc. (NASDAQ: META) is an American company that spent more than $35 Billion in Research and Development in 2022, which is more than Switzerland’s $33 Billion in Research and Development. With that in mind, it is natural to wonder which country has the highest innovation. This article will uncover the most innovative countries in the world based on an improved methodology. We will also uncover the innovation capital of the world.
The amount that Meta Platforms, Inc. (NASDAQ: META) spent on research and development (R&D) in 2022 was almost double the entire GDP of Malta. The huge research and development spending has resulted in groundbreaking products and services. It launched Meta Quest Pro in 2022, which lets users dive into a Virtual Reality experience in the Meta Universe. Meta Universe is Meta Platforms, Inc. (NASDAQ: META)’s interconnected network of immersive virtual worlds.
Despite huge research and development spending, Meta is not the most innovative company in the United States. Amazon.com, Inc. (NASDAQ: AMZN) is considered as the most innovative US company because it spends the most on research and development. It spent $73.2 Billion, the equivalent of Ghana’s GDP, on research and development in 2022. Amazon.com, Inc. (NASDAQ: AMZN) has had a rich history of innovation and patents. It filed the One-click purchase patent as early as 1997 when the E-commerce market was fairly new. Amazon’s one-click revolutionized the E-commerce market and resulted in a greater return on investment. It stored the customer’s credit card information and presented all information at the click of a button. In 2014, Amazon.com, Inc. (NASDAQ: AMZN) launched its own voice assistant, Alexa, which powers its Echo devices and can be used for everything from playing music to ordering groceries. In 2020, Amazon launched its first cashier-less stores. These Amazon Go stores use advanced technologies such as deep learning, computer vision, and sensor fusion to track products customers take from shelves. As the customer leaves the stores, their Amazon accounts are automatically credited.
Google’s parent company, Alphabet Inc. (NASDAQ: GOOG), spent $39.5 Billion on research and development in 2022. Google’s innovations in the past have shaped our current web browsing experience, and it is likely to do so in the future. Alphabet Inc. (NASDAQ: GOOG)’s Google search is the most used search engine. Its auto-complete feature was an innovation that shaped how we search for answers online. Alphabet Inc. (NASDAQ: GOOG)’s Google Maps, launched in 2005, made it easier to get to unseen locations. Its latest innovation, Project Tara, will help rural locales gain internet access.
Tesla, Inc. (NASDAQ: TSLA) is also one of the most innovative companies in the world. It is credited for bringing electric cars into the mainstream market. In 2010, Tesla, Inc. (NASDAQ: TSLA) opened up electric vehicle charging stations that let Tesla car owners charge their vehicles faster. In 2012, it started building its proprietary fast-charging Tesla Supercharger network. Recently, the company developed an adapter “magic dock,” which enables non-Tesla users to charge their cars into existing Tesla plugs. In 2014, Tesla, Inc. (NASDAQ: TSLA) launched its first AI-based driver assistance program, which later in 2015 led to the launch of its autopilot feature.
The future of innovation will be fueled by AI. Open AI, a privately owned company headquartered in San Francisco, is at the forefront of generative AI. In 2022, it launched ChatGPT, an AI-driven natural language processing tool that enables its users to refine and steer conversations with an AI chatbot to a desired outcome. ChatGPT currently has 100 million users who use it for a variety of tasks such as writing essays, codes, and emails.
Alexey Yuzhakov/Shutterstock.com
Methodology
We ranked the most innovative countries in the world according to their spending on research and development, the number of companies in the list of 100 largest technology companies, and their rank in the Schimago Journal rank sorted by H citations. For our research, we only included the top 50 countries in the Schimago ranking. For each of these factors, we scored the countries out of 1. For example, the country with the lowest spending on research and development was given a score of 1/50 for that metric. We repeated this for all the metrics and aggregated the total score. The maximum any country could score was 3. As a tiebreaker, we used each country’s investment in research and development. Our improved methodology placed Switzerland at #10 instead of #1 in the world.
21 - Belgium
Insider Monkey Score - 0.14
The European Commission ranked Belgium fifth in the 2021 European and Regional Innovations scoreboard. The top innovation trends in Belgium revolve around sustainability and decarbonization. Belgium is committed to cleantech innovation including renewable technologies, low-carbon construction, sustainable automation, and digital transformation.
20 - Singapore
Insider Monkey Score - 0.14
Singapore is one of the most innovative countries in Asia. It has a unique ability to leverage technology, which has enabled it to become successful as a smart city with an excellent quality of life for its citizens.
19 - Sweden
Insider Monkey Score - 0.15
Sweden is one of Europe’s innovation leaders. Sweden has a vibrant startup culture and its startups are leading the way in the development of global digital health care. These healthcare startups such as ‘KRY’ combine mobile technologies and Artificial Intelligence to provide healthcare services.
18 - Brazil
Insider Monkey Score - 0.16
Brazil spent 36.5 Billion dollars on research and development in 2021. It government has been prioritizing the science, technology, and innovation sectors for a couple of years. It is the 24th country when ranked according to H Index citations in the Schimago Journal Rank.
17 - Thailand
Insider Monkey Score - 0.20
Thailand is among the top 30 countries according to the amount spent on research and development. It spent $5.6 Billion in research and development in 2021. Thailand has one of the most extensive 5G telecommunication networks in Southeast Asia. It also has a 13,000-square-kilometer high-tech zone outside Bangkok. Delta Electronics Thailand PCL (BKK: DELTA), an electronics exporter and manufacturer of electronic components, is a Thiland-based subsidiary of Delta Electronics in the list of the biggest tech companies.
16 - India
Insider Monkey Score - 0.22
India is a rising innovator and is among the top 10 countries according to the amount spent on research and development. The India Space Research Organization’s Chadryan program recently achieved a soft landing on the Moon’s south pole.
15 - Italy
Insider Monkey Score - 0.24
Italy ranks 8th in the Schimago Journal Rank when sorted according to H index citations. In 2017, the Italian government incentivized businesses to transform into digitized factories. Italy’s tech growth is concentrated in the areas of Milan and Rome.
14 - Israel
Insider Monkey Score - 0.27
It is unsurprising to see Israel in the list of most innovative countries. Israel has a vibrant tech startup scene with web companies like Fiverr, and Tailor Brands. Israel also has a growing semi-conductor industry which generated $35 Billion in revenue in 2020.
13 - Spain
Insider Monkey Score - 0.30
Spain has made significant strides in the field of technological innovations recently. Amadeus IT Group SA (BME: SA), a Spanish company on the list of the 100 biggest tech companies, is a major provider of global tourism and travel companies.
12 - Australia
Insider Monkey Score - 0.33
Australia has a rich history of innovation. From the invention of the bionic ear in the 1970s to Ultrasound machines in 1950, Australia has been one of the most technologically innovative countries. It is also among the top 25 countries that spend the most on innovation.
11 - Taiwan
Insider Monkey Score - 0.35
Taiwan is one of the most innovative countries in Asia. It is also known as the ICT manufacturing hub because it has robust semiconductor manufacturing clusters and an industry base. Four Taiwanese companies are among the 100 biggest technology companies, with Taiwan Semiconductor Manufacturing ( BCBA: TSMC) being at number eight.
10 - Switzerland
Insider Monkey Score - 0.35
The Global Innovation Index ranks Switzerland as the most innovative country in the world. It ranks 10th according to the Schimago Journal when ranked according to the H index citations. Switzerland is also among the top 15 countries according to the amount spent on research and development.
9 - South Korea
Insider Monkey Score - 0.43
For the first half of the twentieth century, South Korea was an agrarian Japanese colony. Despite this, it is now one of the most innovative countries in the world. Systematic reform backed by consistent investment has made it one of the global innovation leaders. 3 out of the 100 biggest technology companies in the world belong to South Korea. It is also home to Samsung, one of the world's leading consumer electronics and appliances companies.
8 - Netherlands
Insider Monkey Score - 0.46
The Netherlands is the 8th most innovative country in the world. 4 of the 100 largest tech companies in the world belong to the Netherlands. The Dutch consumers are also known to be digital frontrunners who quickly adapt to new technologies.
Click to continue reading and see the 7 Most Innovative Countries in the World.
Suggested Articles:
Disclosure: none. 21 Most Innovative Countries in the World is originally published on Insider Monkey