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Singapore maintains eighth ranking in latest global innovation index
21 September 2021
Singapore has retained its overall ranking as the 8th most innovative nation in the latest Global Innovation Index (GII) 2021 released by the World Intellectual Property Organization (WIPO).
As an innovative economy, Singapore ranked first in the Innovation Input SubIndex and attained the top position for two new indicators relating to capital raising and financing – Venture Capital Investors and Venture Capital Recipients.
The GII ranks world economies according to their innovation capabilities. It has two subindices namely the Innovation Input Sub-Index and the Innovation Output Sub-Index. Its more than 80 indicators are grouped into seven pillars. These are institutions, human capital and research, infrastructure, market sophistication, business sophistication, knowledge, and technology outputs and creative outputs.
Singapore has retained its top position in the Innovation Input Sub-Index, which the country consistently held for the past decade. It also moved up two places to 13th position (from 15th in 2020) in the Innovation Output Sub-Index. The Innovation Input Sub-Index captures elements of the national economy that enable innovative activities, while the Innovation Output Sub-Index reflects the results from innovative activities in the economy. The Innovation Output Sub-Index comprises two pillars, and Singapore's performance in both these pillars has improved; Knowledge & Technology Outputs improved from 14th to 13th and Creative Outputs moved a notch up from 18th to 17th.
In the Market Sophistication pillar, Singapore ranked fifth globally, topping the Investment indicator. The Market Sophistication pillar considers the economy's market conditions and level of transactions. Singapore's rank in the Investment sub-pillar improved from 2nd to 1st. Within this, Singapore came in first for two new indicators relating to capital raising and financing – Venture Capital Investors and Venture Capital Recipients. The country’s top ranking in these inaugural indicators reflects its strong commitment to catalyze more investments into innovation and technology. This is also a nod to Singapore’s Whole-of-Government efforts to ensure timely finance for innovative companies, and to establish Singapore as a destination of choice for local and global innovative companies, especially those from the high-growth and high-tech sectors.
Ranked third globally in the Business Sophistication pillar, Singapore topped the Knowledge Absorption indicator. The Business Sophistication pillar assesses how conducive the business environment is for firms to carry out innovation activity. Singapore’s rank in the Innovation Linkages (18th to 13th) and Knowledge Absorption (2nd to 1st) sub-pillars improved from last year. For the latter, Singapore's improvements in FDI Net Inflows (4th to 3rd) and Research Talent (23rd to 21st) indicators could have enhanced its lead in Knowledge Absorption indicator.
In relation to Knowledge and Technology Outputs, Singapore has notched up one rank to 13th. Singapore clinched top spot for both High-tech Manufacturing and High-tech Exports indicators. Singapore has also improved in rankings for both patent-related indicators, i.e., Patents by Origin/bn PPP$ GDP and PCT Patents by Origin/bn PPP$ GDP. Under the Creative Outputs pillar, Singapore ranked first in the Mobile App Creation indicator, which measures global downloads of mobile apps.
Singapore continued to perform well in the Institutions pillar, coming out tops in the traditionally strong indicators of Political Environment and Regulatory Environment.
“Singapore continues to do well as an innovative economy, performing well in the key innovation indexes for the GII. Many of the strategies we have laid out in our Singapore IP Strategy 2030 will help us to continue providing a conducive environment for enterprises to innovate and grow,” said Intellectual Property Office of Singapore chief executive Rena Lee.
Recognizing that innovation is a key driver of economic development, the GII aims to provide an innovation ranking and rich analysis referencing around 130 economies. Over the last decade, the GII has established itself as a leading reference on innovation and a "tool for action" for economies that incorporate the GII into their innovation agendas.
