The Global Innovation Index 2012

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416 3 Infrastructure (continued) THE GLOBAL INNOVATION INDEX 2012 III: Sources and Definitions 3.2.3 Trade and transport-related infrastructure Logistics performance Index: Quality of trade and transport-related infrastructure (1 = low to 5 = high)* | 2009 Logistics Performance Index surveys conducted by the World Bank in partnership with academic and international institutions and private companies and individuals engaged in international logistics. The 2009 round of surveys covered more than 5,000 country assessments by nearly 1,000 international freight forwarders. Respondents evaluate eight markets on six core dimensions on a scale from 1 (worst) to 5 (best). The markets are chosen based on the most important export and import markets of the respondent’s country, random selection, and, for landlocked countries, neighbouring countries that connect them with international markets. Details of the survey methodology are in Arvis et al.’s Connecting to Compete 2010: Trade Logistics in the Global Economy (2010). Respondents evaluated the quality of trade and transport related infrastructure (e.g., ports, railroads, roads, information technology), on a rating ranging from 1 (very low) to 5 (very high). Scores are averaged across all respondents. Source: World Bank and Turku School of Economics, Logistics Performance Index 2010 (2006–09). (http://go.worldbank. org/88X6PU5GV0) 3.2.4 Gross capital formation Gross capital formation (% of GDp) | 2010 Gross capital formation (formerly ‘gross domestic investment’) consists of outlays on additions to the fixed assets of the economy plus net changes in the level of inventories. Fixed assets include land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. Inventories are stocks of goods held by firms to meet temporary or unexpected fluctuations in production or sales, and ‘work in progress’. Net acquisitions of valuables are also considered capital formation. Source: World Bank and OECD, World Bank World Development Indicators database (2003–10). (http://data.worldbank.org/) 3.3 Ecological sustainability 3.3.1 GDP per unit of energy use GDp per unit of energy use (2000 ppp$ per kg of oil equivalent) | 2009 Purchasing power parity gross domestic product (PPP$ GDP) per kilogram of oil equivalent of energy use. Energy use or total primary energy supply (TPES) is calculated as production of fuels + inputs from other sources + imports – exports – international marine bunkers +/– stock changes. It includes coal, crude oil, natural gas liquids, refinery feedstocks, additives, petroleum products, gases, combustible renewables and waste, electricity, and heat. Domestic supply (also called ‘energy apparent consumption’) differs from final consumption in that it does not take account of distribution losses. The supply (or use) of energy commodities is converted to kilograms or tons of oil equivalent (koe, toe) using standard coefficients for each energy source. Source: International Energy Agency, World Energy Balances online data service (2009–10). (http://www.iea.org/stats/) 3.3.2 Environmental performance Environmental performance Index* | 2010 This index ranks countries on 22 performance indicators tracked across policy categories that cover both environmental public health and ecosystem vitality. These indicators gauge how close countries are to established environmental policy goals. The index ranges from 0 to 100, 100 indicating best performance. Source: Yale University and Columbia University Environmental Performance Index 2012. (http://epi.yale.edu/) 3.3.3 ISO 14001 environmental certificates ISO 14001 Environmental management systems— requirements with guidance for use: Number of certificates issued (per billion GDp in ppp$) | 2010 Number of certificates of conformity to ‘ISO 14001:2004 Environmental management systems: Requirements with guidance for use’ issued, based on the ISO survey. Single-site and multiple-site certificates are not distinguished. The ISO survey is published on an annual basis by the International Organization for Standardization (ISO). The 2010 edition of the ISO survey was carried out by the market research firm the Nielsen Company. Only certification bodies accredited by national members of the International Accreditation Forum (www. iaf.nu) were used as sources (except for certificates in the Russian Federation, which were accredited locally). Certification of conformity with standards is not a requirement and the standards can be implemented without certification, but certification is perceived as adding value and trust. ISO is a network of the national standards institutes of 163 countries, and it is the world’s largest developer of voluntary International Standards for business, government, and society, with a portfolio of more than 18,800 standards in almost every sector of economic activity and technology. ISO itself does not perform certification to its standards, does not issue certificates, and does not control certification performed independently of ISO by other organizations. The data are reported per billion PPP$ GDP. Source: International Organization for Standardization (ISO), The ISO Survey of Certifications 2010 CD-Rom (2008–10). (www. iso.org)
4 Market sophistication 4.1 Credit 4.1.1 Ease of getting credit Ease of getting credit, percent rank index* r | 2011 The ranking is based on the percentile rankings on the component indicators for the getting credit index: strength of legal rights index (range 0–10, weighted at 62.5%); and depth of credit information index (range 0–6, weighted at 37.5%). Doing Business measures the legal rights of borrowers and lenders with respect to secured transactions through one set of indicators and the sharing of credit information through another. The first set of indicators describes how well collateral and bankruptcy laws facilitate lending. The second set measures the coverage, scope and accessibility of credit information available through public credit registries and private credit bureaus. Although Doing Business compiles data on getting credit for public registry coverage (% of adults) and for private bureau coverage (% of adults), these indicators are not included in the ranking. Source: World Bank, Ease of Doing Business Index 2012, Doing Business 2012. (http://www. doingbusiness.org/) 4.1.2 Domestic credit to private sector Domestic credit to private sector (% of GDp) | 2010 Financial resources provided to the private sector, such as through loans, purchases of nonequity securities, and trade credits and other accounts receivable, that establish a claim for repayment. For some countries, these claims include credit to public enterprises. Source: International Monetary Fund; World Bank and OECD GDP estimates, World Bank World Development Indicators database (2005–10). (http://data.worldbank.org/) 4.1.3 Microfinance institutions’ gross loan portfolio Microfinance institutions: Gross loan portfolio (% of GDp) | 2010 Combined gross loan balances per microfinance institution (current US$), divided by GDP (current US$) and multiplied by 100. Source: Microfinance Information Exchange, Mix Market database; World Bank and OECD GDP estimates, World Bank World Development Indicators database (2001–11). (http://www.mixmarket.org/crossmarketanalysis-report/download; http://data. worldbank.org/) 4.2 Investment 4.2.1 Ease of protecting investors Ease of protecting investors, percent rank index* r | 2011 The ranking is the simple average of the percentile rankings on the component indicators for protecting investors: the extent of disclosure index (0–10); the extent of director liability index (0–10); the ease of shareholder suits index (0–10); and the strength of investor protection index (0–10). Doing Business measures the strength of minority shareholder protections against directors’ misuse of corporate assets for personal gain. The indicators distinguish three dimensions of investor protections: transparency of related-party transactions (extent of disclosure index), liability for self-dealing (extent of director liability index), and shareholders’ ability to sue officers and directors for misconduct (ease of shareholder suits index). The data come from a survey of corporate and securities lawyers and are based on securities regulations, company laws, civil procedure codes, and court rules of evidence. Source: World Bank, Ease of Doing Business Index 2012, Doing Business 2012. (http://www. doingbusiness.org/) 4.2.2 Market capitalization Market capitalization of listed companies (% of GDp) | 2010 Market capitalization (also known as ‘market value’) is the share price times the number of shares outstanding. Listed domestic companies are the domestically incorporated companies listed on the country’s stock exchanges at the end of the year. Listed companies do not include investment companies, mutual funds, or other collective investment vehicles. Source: Standard and Poor’s and World Bank and OECD GDP estimates, World Bank World Development Indicators database (2006–10). (http://data.worldbank.org/) 4.2.3 Total value of stocks traded Stocks traded, total value (% of GDp) | 2010 Total value of shares traded during the period. This indicator complements the market capitalization ratio by showing whether market size is matched by trading. Source: Standard and Poor’s and World Bank and OECD GDP estimates, World Bank World Development Indicators database (2006–10). (http://data.worldbank.org/) 4.2.4 Venture capital deals venture capital per investment location: Number of deals (per trillion ppp$ GDp) | 2011 Thomson Reuters data on private equity deals, per deal, with details on, among others, the location of investment, investment company, investor firms, and funds. The series corresponds to a query on venture capital deals from 1 January 2011 to 31 December 2011, with the data collected by investment location, for a total of 6,306 deals in 71 countries in 2011. The data are reported per trillion PPP$ GDP. Source: Thomson Reuters, Thomson One Banker Private Equity database; World Bank and OECD GDP estimates, World Bank World Development Indicators database. (http://banker.thomsonib.com; http://data. worldbank.org/) 4.3 Trade and competition 4.3.1 Applied tariff rate, weighted mean Tariff rate, applied, weighted mean, all products (%) | 2010 The average of effectively applied rates weighted by the product import shares corresponding to each partner country. Data are classified using the Harmonized System of trade at the six- or eight-digit level. Tariff line data were matched to Standard International Trade Classification (SITC) revision 3 codes to define commodity groups and import weights. To the extent possible, specific rates have been converted to their ad valorem equivalent rates and have been included in the calculation of weighted mean tariffs. Effectively applied tariff rates at the six- and eight-digit product level are averaged for products in each commodity group. When the effectively applied rate is unavailable, the most favoured nation rate is used instead. World Bank estimates using the World Integrated Trade Solution (WITS) system, based on tariff data from the UNCTAD Trade Analysis and Information System (TRAINS) database and import weights calculated using the UN Comtrade database. Source: World Bank, based on WITS, UNCTAD TRAINS, and UN COMTRADE, World Bank World Development Indicators database (2003–10). (http://data.worldbank.org/) 417 THE GLOBAL INNOVATION INDEX 2012 III: Sources and Definitions
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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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cHApTEr 3 Academia-Industry Innovat
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Intel, Microsoft, Motorola, Nokia,
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Figure 2: Intermediary university-i
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the best combinations of foreign te
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cHApTEr 5 The Role of Coherent Link
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Figure 1: Innovation policy framewo
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which is good. However, the role of
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Box 1: Strengthening the innovation
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Figure 4: Conceptual framework for
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Box 2: Saudi Arabia: Linking innova
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cHApTEr 6 The Russian Federation: A
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Figure 2: Expenditure on technologi
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in pharmaceuticals, computers, tele
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financial sustainability, and the v
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ex-territorial innovation centre wi
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cHApTEr 7 Shaping the National Inno
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Table 1: Idea-to-market curve 1. po
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is around 8%—very low, even compa
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culture, environment, and economy.1
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13 See the Department of Biotechnol
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cHApTEr 8 An Integrated Policy Appr
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institutions in developing countrie
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egan to publish monographs on STI p
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cHApTEr 9 Broadband, Inevitable Inn
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Figure 1: Global ICT developments,
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Figure 3: Global fixed and mobile b
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Figure 4: Evolution of ICT-innovati
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cHApTEr 10 The Internet: An Unprece
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egularly update their pages and sha
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Google’s anti-SOPA page, resultin
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cHApTEr 11 We Are All Content Creat
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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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Page 417 and 418: 6.3.4 Foreign direct investment net
Page 419 and 420: 7.1.2 Madrid Agreement trademark re
Page 421 and 422: 7.1.4 ICT and organizational models
Page 423 and 424: 7.2.2 National feature films produc
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Page 431: Sources and Definitions III
Page 434 and 435: 412 1 Institutions THE GLOBAL INNOV
Page 436 and 437: 414 2 Human capital and research TH
Page 440 and 441: 418 4 Market sophistication THE GLO
Page 442 and 443: 420 5 Business sophistication (cont
Page 444 and 445: 422 6 Knowledge and technology outp
Page 446 and 447: 424 7 Creative outputs (continued)
Page 449: Technical Notes IV
Page 452 and 453: 430 THE GLOBAL INNOVATION INDEX 201
Page 455: About the Authors V
Page 462: 440 THE GLOBAL INNOVATION INDEX 201
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