The Global Innovation Index 2012

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THE GLOBAL INNOVATION INDEX 2012 1: The GII Conceptual Framework
Table 1c: Infrastructure pillar
Average value by income group (0–100)
High upper-middle Lower-middle Low
Indicator income income income income Mean
3 Infrastructure
3.1 Information & communication technologies (ICT)
3.1.1 ICT access* ......................................................................................7.3 ....................4.5 ....................3.0 ....................1.9 ....................4.6
3.1.2 ICT use* .............................................................................................5.2 ....................1.9 ....................0.8 ....................0.3 ....................2.5
3.1.3 Government’s online service*.............................................0.7 ....................0.5 ....................0.4 ....................0.3 ....................0.5
3.1.4 E-participation* ............................................................................0.5 ....................0.3 ....................0.2 ....................0.1 ....................0.3
3.2 General infrastructure
3.2.1 Electricity output, kWh/cap ..................................... 10,019.7 ..........2,805.3 .......... 1,190.2 ..............535.2 .......... 4,754.8
3.2.2 Electricity consumption, kWh/cap .........................9,931.7 ..........2,534.1 ..............802.7 ..............476.7 .......... 4,541.1
3.2.3 Quality of trade & transport infrastructure* ...............3.6 ....................2.6 ....................2.3 ....................2.1 ....................2.7
3.2.4 Gross capital formation, % GDP ......................................20.4 .................24.9 .................24.0 .................22.7 .................23.0
3.3 Ecological sustainability
3.3.1 GDP/unit of energy use, 2000 PPP$/kg oil eq...........6.1 ....................6.5 ....................5.3 ....................4.2 ....................5.9
3.3.2 Environmental performance* ..........................................60.3 .................52.3 .................48.2 .................49.7 .................53.8
3.3.3 ISO 14001 certificates/bn PPP$ GDP ..............................4.5 ....................2.8 ....................0.4 ....................0.3 ....................2.5
Note (*) index, (†) survey question, (a) half weight, (b) higher values indicate worse outcomes.
Table 1d: Market sophistication pillar
Average value by income group (0–100)
High upper-middle Lower-middle Low
Indicator income income income income Mean
4 Market sophistication
4.1 Credit
4.1.1 Ease of getting credit* .............................................................0.7 ....................0.7 ....................0.5 ....................0.4 ....................0.6
4.1.2 Domestic credit to private sector, % GDP .............121.4 .................54.8 .................33.7 .................24.1 .................65.9
4.1.3 Microfinance gross loans, % GDP .....................................0.0 ....................1.0 ....................2.1 ....................2.2 ....................1.6
4.2 Investment
4.2.1 Ease of protecting investors* ..............................................0.7 ....................0.6 ....................0.4 ....................0.5 ....................0.6
4.2.2 Market capitalization, % GDP ...........................................96.0 .................54.7 .................29.1 .................39.1 .................64.6
4.2.3 Total value of stocks traded, % GDP .............................61.3 .................18.2 ....................7.2 ....................4.4 .................31.9
4.2.4 Venture capital deals/tr PPP$ GDP ................................69.7 ....................9.5 ....................7.7 .................18.3 .................29.1
4.3 Trade & competition
4.3.1 Applied tariff rate, weighted mean, % ...........................2.2 ....................5.4 ....................6.8 ....................9.4 ....................5.3
4.3.2 Non-agricultural mkt access weighted tariff, % .......1.6 ....................1.0 ....................1.3 ....................2.2 ....................1.4
4.3.3 Imports of goods & services, % GDP............................54.8 .................41.2 .................48.7 .................43.1 .................47.6
4.3.4 Exports of goods & services, % GDP ............................62.1 .................38.7 .................39.2 .................24.7 .................44.0
4.3.5 Intensity of local competition† ..........................................5.4 ....................4.6 ....................4.5 ....................4.3 ....................4.8
Note (*) index, (†) survey question, (a) half weight, (b) higher values indicate worse outcomes.
the ease of protecting investors.10
Three indicators on level of transactions
are used. To show whether
market size is matched by market
dynamism, stock market capitalization
is complemented by the total
value of shares traded. These indicators
are complemented by hard data
on venture capital deals, taking into
account a total of 6,306 deals in 71
countries in 2011.11
The last sub-pillar tackles trade and
competition. The market conditions
for trade are given by two indicators:
the average tariff rate weighted
by import shares, and a measure capturing
market access conditions to
foreign markets (five major export
markets weighted actual applied tariffs
for non-agricultural exports).12
The sub-pillar then includes the
total value of exports and imports
as a percentage of GDP. The last
indicator is a survey question that
reflects on the intensity of competition
in local markets. Efforts made
at finding hard data on competition
proved unsuccessful.
Business sophistication
The last enabler pillar tries to capture
the level of business sophistication
to assess how conducive firms
are to innovation activity (Table 1e).
The Human capital and research
pillar (pillar 2) made the case that
the accumulation of human capital
through education, and particularly
higher education and the prioritization
of R&D activities, is an indispensable
condition for innovation to
take place. That logic is taken one
step further here with the assertion
that businesses foster their productivity,
competitiveness, and innovation
potential with the employment
of highly qualified professionals and
technicians.
The first sub-pillar includes four
quantitative indicators on knowledge
workers already included in
the GII 2011: employment in knowledge-intensive
services; the availability
of formal training at the level
of the firm; and the percentage of
total gross expenditure of R&D that
is either financed or performed by
business enterprise. In addition, this
year two indicators related to the
Graduate Management Admission
Test (GMAT) were added.13 The
GMAT mean scores and total number
of test takers (scaled by population
aged 20 to 34 years old) were
taken as proxies for the entrepreneurship
mindset of young graduates
and for their overall level of aptitude
to succeed in global innovation
markets (where skills in English and
mathematics are crucial).
Innovation linkages and public/
private/academic partnerships are
essential to innovation (see Chapter