The Global Innovation Index 2012

Figure 2: Innovation Output Sub-Index vs. Innovation Input Sub-Index
Innovation Output Sub-Index (score)
70
60
50
40
30
20
10
High income
upper-middle income
0
20 30 40 50 60 70 80
Note: Countries/economies are classified according to the World Bank Income Group Classification (April 2012).
positions, respectively. Six of the top
10 Output countries are in the GII
top 10 (discussed above).
Luxembourg is ranked 11th in
the GII, up six positions from 17th
place in 2011, with the highest jump
in the EU from an improved performance
(Annex 2). It ranks 14th
in the Input Sub-Index and 10th in
the Output Sub-Index (up from 25th
in 2011), and 29th in Efficiency.
Luxembourg’s profile is that of a
sophisticated service economy, with
strengths across the board. It is particularly
open to exchanges with
the rest of the world at all levels:
it tops the rankings at 1st place in
imports and exports of goods and
services, FDI net inflows and outflows,
and tertiary inbound and outbound
mobility. While the country’s
credit (112th) and investment
(100th) regimes are found wanting,
this has not stopped the flow of
credit and investments: Luxembourg
ranks 10th in domestic credit to private
sector (at 185.4% of GDP) and
Lower-middle income
Low income
Innovation Input Sub-Index (score)
4th in market capitalization (at 183.5
% of GDP). Another strength comes
from the assimilation of ICTs by
businesses and society. Elementary
education requires attention, however:
while ranking 90th and 63rd
in current expenditure on education
and in public expenditure per pupil
alone might not be of great concern,
considering the high GDP per capita
of Luxembourg by which the data
are scaled, the 60th spot in school
life expectancy (13.5 years) and the
results of the PISA exam (ranked
33rd) are more worrisome.
Germany ranks 15th, down
from 12th in 2011. The country’s
loss of three positions is entirely due
to adjustments made to the model
(as opposed to a deteriorating performance,
Annex 2). With a population
of 81.4 million (the most populous
country in the EU), its strengths
are in the Output Sub-Index again
this year (7th). Ranking 23rd in the
Input Sub-Index, it places 11th in
Efficiency. Its rank of 16th in Human
capital and research is only partially
reliable (the only pillar affected by
such a problem) because Germany
has missing data in four key indicators.
This does not affect the subpillar
on R&D, in which it ranks
11th globally and which translates
into a 12th position in Knowledge
and technology outputs with ranks
within the top 20 on all but one of
the indicators included in knowledge
creation and knowledge diffusion.
It also places in the top 10
in registration of top-level domains.
Its major weaknesses are in innovation
linkages (where it ranks 55th
globally; see, however, the discussion
in Chapter 4 on the weak nature
of these indicators) and in three
domains that are deeply cyclical and
therefore affected by the global economic
crisis: gross capital formation
(ranked 116th at 17.3% of GDP),
imports of goods & services (69th
at 41.4% of GDP), FDI net inflows
(96th at 1.4% of GDP), and creation
of new businesses (57th).
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THE GLOBAL INNOVATION INDEX 2012 1: The Global Innovation Index 2012