The Global Innovation Index 2012

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114 THE GLOBAL INNOVATION INDEX 2012 5: The Role of Coherent Linkages Box 1: Strengthening the innovation environment in the United Arab Emirates The public sector and commercial entities in the United Arab Emirates (UAE) have initiated an innovation strategy and supporting efforts. There is broad recognition within the UAE that the success of its strategy will depend on its drivers and on a supportive environment. Such an environment involves creating regulatory incentives for stakeholders, ensuring that entities have the necessary support services such as networking and marketing, and orchestrating the innovation agenda to provide effective interaction among all stakeholders. Finland Sweden Netherlands Norway Japan UK France Singapore Ireland Korea, Rep. Saudi Arabia UAE Egypt Brazil 0 2 4 6 8 Regulatory environment A comprehensive regulatory environment typically addresses several supporting aspects of innovation including intellectual property (IP) rights incentives specifically targeted at innovators and protective measures that improve investor confidence. In all three aspects, the UAE has made good progress, particularly on incentives regulation (see Figure 1.1). • Intellectual Property Rights: The UAE is a member of the Paris Convention for the Protection of Industrial Property and has Figure 1.1: Regulatory indicators for the United Arab Emirates and benchmark economies 1.1a: Incentive regulations How burdensome is it for businesses in your country to comply with governmental administrative requirements (e.g., permits, regulations, reporting)? [0 = extremely burdensome; 10 = not burdensome at all]. n Established innovators n rising innovators n Budding innovators 1.1b: Protective regulations UK Japan Norway Finland Sweden France Netherlands Singapore Ireland Korea, Rep. Saudi Arabia Brazil Egypt UAE promulgated a patent law. IP legislation in the UAE can become even more comprehensive by covering a larger number of sectors. • Incentive Regulations: The UAE com- pares favourably on implementing incentive regulations for firms in general, chiefly through the provision of tax exemptions, the absence of trade barriers, modern infrastructure, and freedom from foreign exchange controls. However, the UAE needs to enhance regulations that promote innovation. 0 2 4 6 8 10 Burden of Government Regulation Indicator* Strength of Investor Protection Index (1–10 scale) Sources: 1.1a: World Economic Forum, Executive Opinion Survey 2010–2011. 1.1b: World Bank, Ease of Doing Business Index 2012, Doing Business 2012 (http://www.doingbusiness.org/) Note: `Established Innovators’ refers to countries that have long since put in place the structures needed to reach their innovation potential; `Rising Innovators’ refers to countries that have established the structures needed to reach their innovation potential, and have risen rapidly to establish themselves as innovation leaders; `Budding Innovators’ refers to countries beginning to explore plans to tap into their innovation potential and have started to put in place the structures needed to support their plans. * The Burden of Government Regulation Indicator is rescaled from a scale of 1 to 7 to a scale of 0 to 10.
Box 1: Strengthening the innovation environment in the United Arab Emirates (continued) The UAE can provide monetary incentives for undertaking research, hiring research personnel, and introducing environmentally friendly technologies—approaches taken in Singapore. • Protective Regulations: Investor protection in the UAE must be enhanced if it is to become comparable to that of leading economies such as Singapore and Norway. The legal and regulatory systems in Singapore and Norway offer more protective measures. These include active bankruptcy laws, disclosure of information on transactions, and the liability of directors for damages caused. Shareholders can also launch lawsuits more easily. Operations support The UAE has operations support for innovation. The Technology Development Committee (TDC) plays a notable role in setting policy in Abu Dhabi. Similarly, the Khalifa Fund for Enterprise Development in Abu Dhabi provides funding for support systems—such as training and development—for entrepreneurs, and invests in specific projects. Overall, however, there is limited support for companies active in R&D and innovation. The UAE can expand assistance in three areas. 1. The UAE would benefit from a dedicated agency that provides support services specifically for innovators. Such services typically would include R&D funding, advisory support, matchmaking, and networking, as well as logistical support including marketing and promotion. 2. The UAE should increase the number of its incubators. The government can play a role in establishing and nurturing such incubators. In addition, entities such as CERT Technology Park in Abu Dhabi can provide mentoring and guidance to access the UAE market. They can help support innovative companies by transforming original ideas into economic value. 3. There should be a greater focus on innovation. A number of different entities, such as the Chamber of Commerce, offer support services such as matchmaking and networking for businesses. These efforts would be more powerful if they were coordinated with a specific focus on innovators. Orchestration In the UAE, orchestration can exist among most traditional and nascent sectors targeted for innovation. Having an entity charged with ensuring the orchestration of all these activities is critical for policies and initiatives to succeed. Orchestration involves coordinating the implementation of policies at the operational level, such as ensuring that funding is channelled to high-potential businesses and helping these businesses find investors and customers. Orchestration also means working with stakeholders in the landscape to identify and advocate new policies or policy revisions that will provide further support. The back-and-forth of orchestration provides continuous feedback that can improve policies. The challenge in the UAE is that crossstakeholder interaction is limited. It occurs typically through bilateral exchanges. Hence, the creation of an orchestration entity will produce engaged stakeholders connected precisely through the coherent linkages that result in a thriving ecosystem. positioning their countries for competitive advantages as they develop their innovation strategies. For example, between 1978 and 1997, Singapore focused on the development of clusters in high value-added and mutually supporting industries such as electronics, petrochemicals, and engineering. The country thereby gained expertise and a competitive edge in electronics and high-tech products and services. Linking innovation stakeholders GCC countries have improved their stakeholder collaboration, according to the Executive Opinion Survey of the World Economic Forum in 2010-11 (see Figure 3). Saudi Arabia, for example, has risen from a ranking of 49 out of 130 countries in 2007 to 28 out of 142 in 2011 in terms of university-industry research collaboration. This is clear evidence of the strong initial impact of promotion entities such as the King Abdulaziz City for Science and Technology. These entities are strengthening and promoting effective links among stakeholders in the ecosystem. Such links may have resulted in positive outcomes, such as the increase in the number of research publications. These impressive first steps should not lead to complacency. The main stakeholders in the innovation landscape in the GCC— such as government agencies, business, and academia—remain insufficiently connected. They have yet to coordinate in a fully effective and creative manner. Coordination among stakeholders often is limited to bilateral exchanges with little alignment among the innovation entities. For example, small, nascent enterprises remain isolated from the formal economy. In addition, many multinational corporations, such as those in the energy sector, are at 115 THE GLOBAL INNOVATION INDEX 2012 5: The Role of Coherent Linkages
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The Global Innovation Index 2012 St
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The Global Innovation Index 2012: S
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iv THE GLOBAL INNOVATION INDEX 2012
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vi THE GLOBAL INNOVATION INDEX 2012
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Foreword The Coherence Premium in I
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cONTrIBuTOrS Contributors to the Re
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Rankings
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Global Innovation Index rankings (c
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cHApTEr 1 The Global Innovation Ind
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The GII helps to create an environm
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4. The Innovation Efficiency Index
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Table 1: Global Innovation Index ra
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Table 2: Innovation Input Sub-Index
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Table 3: Innovation Output Sub-Inde
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Box 1: A spotlight on the United St
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Figure 2: Innovation Output Sub-Ind
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Malta is ranked 16th in the GII 201
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Figure 3: Global Innovation Index v
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Table 5a: Innovation Efficiency Ind
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Figure 4: GII scores v. GDP per cap
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Table 5c: Innovation Efficiency Ind
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Figure 5: Average scores for select
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performances on key indicators and
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pillars, however, place it among th
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eflect the situation of the countri
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PPP$ 3,354.8 Viet Nam has a very go
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6. Northern America continues to be
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Freeman, C., and L. Soete. 2007.
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44 THE GLOBAL INNOVATION INDEX 2012
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Table 1: Models of creative industr
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than any single major recording lab
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Pélissié du Rausas, M., J. Manyik
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Country/Economy Profiles I
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THE GLOBAL INNOVATION INDEX 2012 II
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Index of Data Tables 1 Institutions
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1.1.1 Political stability and absen
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1.1.3 Press freedom Press freedom i
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1.2.2 Rule of law Rule of law index
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1.3.1 Ease of starting a business E
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1.3.3 Ease of paying taxes Ease of
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2.1.2 Public expenditure on educati
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2.1.4 Assessment in reading, mathem
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2.2.1 Tertiary enrolment School enr
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2.2.3 Tertiary inbound mobility Ter
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2.3.1 Researchers Researchers, head
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2.3.3 Quality of scientific researc
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3.1.2 ICT use ICT use index* | 2010
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3.1.4 Online e-participation E-part
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3.2.2 Electricity consumption Elect
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3.2.4 Gross capital formation Gross
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3.3.2 Environmental performance Env
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4.1.1 Ease of getting credit Ease o
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4.1.3 Microfinance institutions’
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4.2.2 Market capitalization Market
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4.2.4 Venture capital deals Venture
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4.3.2 Market access for non-agricul
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4.3.4 Exports of goods and services
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5.1.1 Employment in knowledge-inten
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5.1.3 GERD performed by business en
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5.1.5 GMAT mean score Weighted mean
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5.2.1 University/industry research
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5.2.3 GERD financed by abroad GERD:
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5.2.5 Share of patents with foreign
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5.3.2 High-tech imports High-tech n
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5.3.4 Foreign direct investment net
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6.1.2 Patent Cooperation Treaty app
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6.1.4 Scientific and technical jour
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6.2.2 New business density New busi
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6.2.4 ISO 9001 quality certificates
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6.3.2 High-tech exports High-tech n
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6.3.4 Foreign direct investment net
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7.1.2 Madrid Agreement trademark re
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7.1.4 ICT and organizational models
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7.2.2 National feature films produc
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7.2.4 Creative goods exports Creati
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7.3.1 Generic top-level domains (gT
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7.3.3 Wikipedia monthly edits Wikip
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Sources and Definitions III
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412 1 Institutions THE GLOBAL INNOV
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414 2 Human capital and research TH
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416 3 Infrastructure (continued) TH
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418 4 Market sophistication THE GLO
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420 5 Business sophistication (cont
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422 6 Knowledge and technology outp
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424 7 Creative outputs (continued)
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Technical Notes IV
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About the Authors V
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