The Global Innovation Index (GII) 2024, published by the World Intellectual Property Organization (WIPO), ranks 133 economies based on their innovation capabilities and performance. This yearâs report highlights significant shifts in global innovation leadership, with several Asia-Pacific (APAC) countries emerging as key players.
Singapore continues to lead the APAC region, ranking 4th globally. Its strong performance is driven by a robust regulatory framework, efficient public services, and a strategic focus on high-tech manufacturing and digital adoption. These factors not only enhance Singaporeâs innovation landscape but also make it a magnet for foreign direct investment (FDI). The correlation between innovation and FDI is evident as investors seek stable, forward-thinking environments to place their capital.
South Korea, ranked 6th, excels in digital innovation and operational efficiency, underpinned by substantial investments in research and development. This commitment to innovation attracts significant FDI, as global investors are drawn to South Koreaâs cutting-edge technology and robust infrastructure.
China and Japan also feature prominently, with China at 11th and Japan at 13th, showcasing their strengths in knowledge and technology outputs and creative industries. Chinaâs rapid advancements in technology and its large market size continue to attract substantial FDI. Similarly, Japanâs focus on high-quality standards and technological innovation makes it an attractive destination for international investors.
The GII measures each economy based on seven innovation pillars, including Knowledge & Tech Outputs, Human Capital & Research, Business Sophistication, Market Sophistication, Creative Outputs, Infrastructure, and Institutions. These pillars encompass 78 indicators, providing a comprehensive overview of each countryâs innovation landscape.
A key theme of this yearâs GII is the rise of innovation overperformersâcountries that exceed expectations relative to their development levels. Notably, Vietnam has made significant strides, reflecting its growing role as an innovation hub in the region. Vietnamâs improvements in innovation are closely linked to its increasing FDI inflows, as investors recognize the countryâs potential for growth and development.
The 2024 GII report underscores the dynamic nature of global innovation, with APAC countries increasingly positioning themselves as leaders in this space. As these nations continue to invest in technology, education, and infrastructure, their influence on the global innovation landscape is set to grow. The strong correlation between innovation and FDI highlights the importance of fostering an innovative environment to attract and retain global investments.
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