The United States has just ranked 2nd on the new Global Innovation Index (GII), produced by World Intellectual Property Organization (WIPO). Published on September 29th, the report analyzed 132 countries and their economies. Besides reuniting the current science and technology (S&T) market results, the GII data also highlights where there is still potential to create innovation.
Even though WIPO has considered 81 indicators, the USA was able to keep its reputation for innovation matters. Due to the outstanding outturn on 15 indicators. However, the reason for all that goes beyond labs and scientific papers.
According to WIPO, the United States has had an innovation performance above expectation, considering its level of development. That’s because, in 2021, the USA got 13 good indicators. While in 2022, this number has increased to 15.
Therefore, to achieve the 2nd position in the GII, the United States counted good numbers from investments in:
In addition, the index also shows the USA as the present leader of S&T in North America. This outturn came mainly from US top clusters. Such as San Jose-San Francisco (one of the most Science&Technology-intensive clusters in the world), Boston-Cambridge, and New York City.
Although the current numbers were good, America has to keep its eyes wide open, since some specialists have been showing worries about the future of innovation in science and technology.
In December 2021, the Atlantic published a piece that explores this fear:
“The University of Chicago scholar James Evans has found that as the number of scientific researchers has grown, progress has slowed down in many fields, perhaps because scientists are so overwhelmed by the glut of information in their domain that they’re clustering around the same safe subjects and citing the same few papers”.
Nowadays, one way out of stagnation is that elements such as business models, technical aspects, and ESG practices are also in the innovation concept. Therefore, it is possible to see that research and development (R&D) is being applied with horizontal and general criteria.
As described by the National Academies of Sciences, Engineering, and Medicine (NASEM), “The innovation environment of the 21st century is characterized by disruption, accelerated technology development, and globalized access to information, which is a dramatic shift from the largely government-controlled Cold War innovation environment of the previous century”
Plus, a report found out that lots of companies still use practices from the 1950s. Although, it can be replaced by a value-creation playbook, which considerations say that:
Due to all the factors described above, the market watches the innovation environment change. According to the Global Innovation Index, China has gotten the same top 100 S&T clusters (21 world-leading) as the United States – for the first time.
Following this trend, Singapore also topped the rank on 11 indicators. Such as government effectiveness; ICT access; venture capital investors; high-tech manufacturing, and GitHub commits.
Other countries stand out in the ranking among categories like Trademarks, High-tech imports, and research & development expenditure. For the 2023 index, companies that find ways to balance creation and efficient innovation ecosystems may stand out on the market.
Are you curious if any of your branches can be beneficiate through some tax incentive?
The FI Group is a worldwide lead consulting firm, whose target is the Management of Public Tax Credits for Research, Development & Innovation (RD&I). Thanks to our 22 years of experience – which comes from working with different industries and fields of knowledge –, we can assist our clients on how to optimize their investments in RD&I activities.
Through Global support, FI Group can give you all the answers and opportunities. Contact us for a virtual or in-person meeting to optimize your company journey.