GlobalInnovationIndex2018.pdf - GLOBAL INNOVATION INDEX 2018 GLOBAL INNOVATION INDEX 2018 Energizing the World with Innovation 11TH EDITION Soumitra

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Unformatted text preview: GLOBAL INNOVATION INDEX 2018 GLOBAL INNOVATION INDEX 2018 Energizing the World with Innovation 11TH EDITION Soumitra Dutta, Bruno Lanvin, and Sacha Wunsch-Vincent Editors The Global Innovation Index 2018: Energizing the World with Innovation is the result of a collaboration between Cornell University, INSEAD, and the World Intellectual Property Organization (WIPO) as co-publishers, and their Knowledge Partners. The report and any opinions expressed in this publication are the sole responsibility of the authors. They do not purport to reflect the opinions or views of WIPO Member States or the WIPO Secretariat. The terms ‘country’, ‘economy’, and ‘nation’ as used in this report do not in all cases refer to a territorial entity that is a state as understood by international law and practice. The terms cover well-defined, geographically self-contained economic areas that may not be states but for which statistical data are maintained on a separate and independent basis. Any boundaries and names shown and the designations used on any visual maps do not imply official endorsement or acceptance by any of the co-publishers. Chapters 2–13 may deviate from UN terminology for countries and regions. © Cornell University, INSEAD, and the World Intellectual Property Organization, 2018 This work is licensed under the Creative Commons Attribution Non-commercial No-Derivatives 3.0 IGO License. The user is allowed to reproduce, distribute, and publicly perform this publication without explicit permission, provided that the content is accompanied by an acknowledgement that Cornell University, INSEAD, and WIPO are the source. No part of this publication can be used for commercial purposes or adapted/ translated/modified without the prior permission of WIPO. Please write to treaties[dot]mail[at]wipo[dot]int to obtain permission. To view a copy of the license, please visit . When content, such as an image, graphic, data, trademark, or logo, is attributed to a third party, the user is solely responsible for clearing the rights with the right holders. Suggested citation: Cornell University, INSEAD, and WIPO (2018): The Global Innovation Index 2018: Energizing the World with Innovation. Ithaca, Fontainebleau, and Geneva. ISSN 2263-3993 ISBN 979-10-95870-09-8 Printed and bound in Geneva, Switzerland, by the World Intellectual Property Organization (WIPO), and in New Delhi, India, by the Confederation of Indian Industry (CII). Cover design by Neil Weinberg Design Group LLC; cover image courtesy of oliviercefai.com based on a photo from @sachleno. CONTENTS v Preface: Releasing the Global Innovation Index 2018: Energizing the World with Innovation By Soumitra Dutta, SC Johnson College of Business at Cornell University; Francis Gurry, World Intellectual Property Organization; and Bruno Lanvin, INSEAD vii Foreword: Innovation: A Key to Energy Security By Chandrajit Banerjee, Director General, Confederation of Indian Industry ix Foreword: Towards the Goal of Energy for All By Tim Ryan, U.S. Chairman and Senior Partner, PwC xi Foreword: Innovation: Central to Brazil’s Energy Sector By Robson Braga de Andrade, President of CNI, Director of SESI, and President of SENAI’s National Council; Heloisa Menezes, Technical Director in the Exercise of the Presidency of SEBRAE xiii Contributors to the Report xvii Advisory Board to the Global Innovation Index RANKINGS xx Global Innovation Index 2018 Rankings KEY FINDINGS xxix Key Findings of the Global Innovation Index (GII) 2018 CHAPTERS 3 Chapter 1: The Global Innovation Index 2018: Energizing the World with Innovation By Soumitra Dutta, Rafael Escalona Reynoso, Antanina Garanasvili, and Kritika Saxena, SC Johnson College of Business, Cornell University; Bruno Lanvin, INSEAD; Sacha Wunsch-Vincent, Lorena Rivera León, and Francesca Guadagno (outside consultant), WIPO 55 65 71 89 Annex 1: The Global Innovation Index (GII) Conceptual Framework Annex 2: Adjustments to the Global Innovation Index Framework and Year-on-Year Comparability of Results Annex 3: Joint Research Centre Statistical Audit of the 2018 Global Innovation Index By Michaela Saisana, Marcos Domínguez-Torreiro, and Daniel Vértesy, European Commission, Joint Research Centre (JRC), Ispra, Italy Chapter 2: Energy for All: How Innovation Is Democratizing Electricity By Norbert Schwieters, PwC; Barry Jaruzelski and Robert Chwalik, PwC’s Strategy& (Continued on next page) Contents iii 97 Chapter 3: Innovation Driving the Energy Transition By Francisco Boshell, Dolf Gielen, Roland Roesch, Arina Ansie, Alessandra Salgado, and Sean Ratka, International Renewable Energy Agency (IRENA) 107 Chapter 4: Export and Patent Specialization in Low-Carbon Technologies By Georg Zachmann, Bruegel; and Robert Kalcik, AIT Austrian Institute of Technology 115 Chapter 5: Technology-Specific Analysis of Energy Innovation Systems By Charlie Wilson, Tyndall Centre for Climate Change Research and International Institute for Applied Systems Analysis (IIASA); and Yeong Jae Kim, Tyndall Centre for Climate Change Research 127 Chapter 6: Energy Storage in the Antipodes: Building Australia’s New Batteries By Max E. Easton and Thomas Maschmeyer, University of Sydney and Gelion Technologies Pty Ltd 133 Chapter 7: The Innovation Ecosystem in the Brazilian Energy Value Chain By Robson Braga de Andrade, National Industry Confederation (CNI), Social Services for the Industry (SESI), and the Brazilian National Service for Industrial Training (SENAI); and Heloisa Menezes, Brazilian Micro and Small Business Support Service (Sebrae) 143 Chapter 8: India’s Energy Story: A Quest for Sustainable Development with Strained Earth Resources By Anil Kakodkar, Former Chairman, Atomic Energy Commission, India 151 Chapter 9: Grassroots Innovations Improve Woodfuel in Sub-Saharan Africa By Mary Njenga, World Agroforestry Centre (ICRAF) and the Wangari Maathai Institute for Peace and Environmental Studies; Miyuki Iiyama, World Agroforestry Centre (ICRAF) and the Japan International Research Center for Agricultural Sciences (JIRCAS); James K. Gitau, World Agroforestry Centre (ICRAF) and the Wangari Maathai Institute for Peace and Environmental Studies; and Ruth Mendum, Office of International Programs, College of Agricultural Sciences, Pennsylvania State University 159 Chapter 10: Chile and the Solar Revolution By Andrés Rebolledo, Former Minister of Energy, Chile 167 Chapter 11: Singapore: A Living Lab for Renewable Energy By Daren Tang, Intellectual Property Office of Singapore 177 Chapter 12: Innovation as the Driving Force for China’s Renewable Energy Powerhouse By Baoshan Li, China Renewable Energy Society (CRES); and Lijuan Fan, Department of International and Regional Cooperation, China National Renewable Energy Centre (CNREC) 185 Chapter 13: Commitment and Learning in Innovation: The Case of the First 500 kV Transformer Made in Viet Nam By Hung Vo Nguyen, National Institute for Science and Technology Policy and Strategy Studies (NISTPASS) SPECIAL SECTION: CLUSTERS 193 Identifying and Ranking the World’s Largest Science and Technology Clusters By Kyle Bergquist, Carsten Fink, and Julio Raffo, World Intellectual Property Organization (WIPO) APPENDICES 213 345 349 367 373 iv Appendix I: Country/Economy Profiles Appendix II: Data Tables Appendix III: Sources and Definitions Appendix IV: Technical Notes Appendix V: About the Authors The Global Innovation Index 2018 PREFACE RELEASING THE GLOBAL INNOVATION INDEX 2018: ENERGIZING THE WORLD WITH INNOVATION We are pleased to present the 2018 edition of the Global Innovation Index (GII) on the theme ‘Energizing the World with Innovation’. Energy demand is reaching unprecedented levels as a result of a growing world population, rapid urbanization, and industrialization. Higher levels of technological and non-technological innovation are required to meet this demand, both on the production side of the energy equation (alternative sources, smart grids, and new advanced energystorage technologies) and on the consumption side (smart cities, homes, and buildings; energy-efficient industries; and transport and future mobility). Innovation plays key roles in addressing both sides of that equation. However, technological innovation alone is rarely the solution. Changes in societal norms and cultures along with innovations in organizational processes are also essential. The GII 2018 analyses the energy innovation landscape of the next decade and identifies possible breakthroughs in fields such as energy production, storage, distribution, and consumption. It also looks at how breakthrough innovation occurs at the grassroots level and describes how small-scale renewable systems are on the rise. Last year marked the 10th edition of the report. Work in the context of the GII continues on two important fronts: assisting countries to better assess their innovation performance by collecting innovation metrics according to international standards, and helping empower countries to improve their innovation policies while leveraging their strengths and overcoming challenges. On both fronts, national GII events have made substantial progress. First, technical sessions across national capitals with data and innovation experts have elaborated on how to close gaps in countries’ innovation metrics. Second, high-level meetings with a cross-section of innovation stakeholders have expanded on countries’ ©WIPO 2018. Photo by Emmanuel Berrod. innovation performance and possible sectoral priorities, often leading to concrete innovation policy agendas. Despite the decade-long positive influence of the GII, significant progress is needed on key questions related to innovation metrics. How should one better measure innovation and intangible assets in the services sector? How can linkages between innovation actors be better quantified and assessed? How can the more open nature of innovation processes be captured? Discussions in capitals and in academic settings, and related experimentation with new indicators in the context of the GII, offer a welcome opportunity to shape future innovation metrics. The GII 2018 again includes a ranking of the world’s largest clusters of science and technology activity. As last year, this ranking relies on international patent filings to identify such clusters. This year, the report introduces scientific publishing activity as a second measure of cluster performance. While still a long way from fully capturing innovation performance at the city and regional level, we hope that this big data approach to measurement offers an increasingly useful complement to the country-based ranking that forms the core of the GII. We thank our Knowledge Partners, the Confederation of Indian Industry (CII), PwC’s Strategy&, the National Confederation of Industry Brazil (CNI) and the Brazilian Service of Support to Micro and Small Enterprises (Sebrae), for their support of this year’s report. We also thank our prominent Advisory Board, which has been enriched by three new members this year: Audrey Azoulay, Director-General, United Nations Educational, Scientific and Cultural Organization (UNESCO); Philippe Kuhutama Mawoko, Executive Secretary, the African Observatory for STI, African Union Commission; and Sergio Mujica, Secretary-General, International Organization for Standardization (ISO). Soumitra Dutta Francis Gurry Bruno Lanvin Former Dean and Professor of Operations, Technology and Information Management, Cornell SC Johnson College of Business, Cornell University Director General, World Intellectual Property Organization (WIPO) Executive Director for Global Indices, INSEAD Preface v FOREWORD INNOVATION: A KEY TO ENERGY SECURITY In today’s connected world, increasingly driven by technology, communication, and super human intelligence, energy is the fundamental element that makes everything possible. Without energy there can be no development. The growth of any nation therefore demands adequate available energy. In India, that adequacy has eluded us thus far by a wide margin. Our per capita energy consumption needs to grow four times to enable us to be level with the world’s most advanced countries in terms of the Human Development Index. Even at India’s current low consumption levels, more than 42% of our energy requirements are met by imports. To boost consumption, contain imports, and increase domestic production, it is imperative to look at innovative ways to generate, store, and transmit electricity. Recent government efforts have the nation inching closer to 100% electrification. The latest innovations in solar energy and light emitting diodes (LED) have significantly lowered consumption in terms of wattage and at the same time improved luminescence. But a lot remains to be done. The theme of this year’s Global Innovation Index (GII), ‘Energizing the World with Innovation’, is very apt for India as well as the rest of the developing world. It captures the pulse of the key enablers of growth and economic development. Working towards ensuring energy security is a key agenda for the Confederation of Indian Industry (CII), in close partnership with the government and industry. Department of Industrial Policy and Promotion, the National Institution for Transforming India, and CII. In 2016 India’s Minister of State for Commerce and Industry instituted a high-level Task Force on Innovation to suggest ways to improve the innovation ecosystem. As a follow-up, the first international consultative exercise was organized in January 2017 in New Delhi to address existing data gaps in the GII. Moreover, the first India Innovation Index—focused on ranking Indian states—was conceptualized in 2017 and reviewed along with India’s performance in the GII at the Indian Innovation Summit in Delhi in October 2017. As a result, a State Innovation Index is now in the works. It is hoped that it will spur states to improve their innovation ecosystems. Based on this year’s theme, Chapter 8 presents India’s energy story. This has largely been a quest for sustainable development with strained resources. Rising energy demand coupled with a less-than-adequate increase in domestic production has led to an alarming increase in the import component of India’s energy basket. Tackling that challenge requires innovative thinking and a smart push towards technologies and services that provide maximum impact. CII’s partnership with GII continues to grow strong and I see it consolidating in years to come. I congratulate the GII team for their sustained efforts and untiring rigor in producing this latest edition of the index, which is based on a very apt theme and will lead to significant improvement in world energy scenario. India’s position on the GII has been keenly monitored by the Indian government for the past few years. Joint efforts of CII and the publishers of the GII, including WIPO, have led to significant collaboration on improving Indian innovation metrics and identifying innovation challenges and opportunities. Since 2016, the report has also launched separately in India at an event jointly organized by the Chandrajit Banerjee Director General Confederation of Indian Industry Foreword vii FOREWORD TOWARDS THE GOAL OF ENERGY FOR ALL Innovation lies at the core of any solution to the challenges facing our world today. Whether it’s the creation of new technologies that can help us stretch the limits of what is possible, or the development of new business models that make our world more efficient and interconnected, it is our business imperative as leaders to continuously reinvent, rethink, and reimagine. The Global Innovation Index (GII), by creating metrics through which innovation can be measured across the globe, helps identify ways that innovation can better serve society and the challenges we face. At Strategy&, PwC’s strategy consulting business, we are proud to be included as contributors to this volume for the second consecutive year. Our purpose at PwC is to build trust in society and solve important problems—problems that erode trust, prevent expanding economic opportunity for all, and threaten the fabric of our society and culture. These are problems that require people to come together, bringing their best ideas and creativity to the table. The GII brings strategy and execution together to advance innovation in the service of making our world better. The theme of the 2018 GII, ‘Energizing the World with Innovation’, offers an opportunity for some of the world’s greatest minds to apply themselves to the critical issue of access to energy—from production to storage, from transport and distribution to consumption patterns. Supply has not kept pace with demand, and there is a growing need for sustainable solutions. In PwC’s chapter, ‘Energy for All: How Innovation Is Democratizing Electricity’, Norbert Schwieters, Barry Jaruzelski, and Robert Chwalik report that an estimated 1.2 billion people worldwide are living without electricity, and 2.8 billion without clean and safe cooking facilities. This certainly represents a crisis of global concern. But as we go on to discuss, innovations in energy sources such as renewables, as well as distribution and storage solutions such as micro-grids, batteries, and smart technologies, can be game-changers. In regions where centralized power grids are inefficient and unreliable, distributed energy systems can be built from the ground up, thanks to off-grid renewable energy technology. Even in developed countries, where the shift is happening more slowly because centralized power generation via longdistance power grids is well established, customers are installing solar panels, producing their own energy, and sending unused energy back to the grid. It’s clear that, across the globe, traditional energy frameworks are witnessing a fundamental change. Privatesector investment will play a significant role as these new systems take shape, both from traditional utilities—many of which are seeing this new way forward as an opportunity rather than as disruption—and from the start-ups and entrepreneurs developing and applying new technologies in the renewables space. Around the globe companies are implementing projects, often in close coordination with public-sector partners, that demonstrate the transformative potential of these innovations. The realization of ‘energy for all’ is a powerful and worthy goal, and one that we owe ourselves and future generations to continue to pursue. As a GII Knowledge Partner, we hope to contribute to bridging the gap between innovation goals and tangible societal benefits. Tim Ryan U.S. Chairman and Senior Partner PwC Foreword ix FOREWORD INNOVATION: CENTRAL TO BRAZIL’S ENERGY SECTOR Sustainable development is a priority for the Brazilian National Confederation of Industry (CNI), the Social Service of Industry (SESI), the National Service of Industrial Training (SENAI), the Brazilian the Brazilian Micro and Small Business Support Service (Sebrae), and the Entrepreneurial Mobilization for Innovation (MEI). Sustainable development demands innovation and, since 2008, Brazilian business leaders, including those from the energy sector, have been promoting innovation as the centre of business strategy, aiming to increase the strength and efficiency of innovation policies in Brazil. The energy sector is essential for sustainable development. The rational use of natural resources has room to improve significantly, and the use of renewable sources is increasing fast. Those processes can contribute to making good on the commitments undertaken by Brazil in the Paris Agreement. The goal is to promote the reduction of greenhouse gas emissions as part of a transition towards a low-carbon economy. The theme of this year´s Global Innovation Index, ‘Energizing the World with Innovation’, deals with a crucial issue for the world´s industry: the role of innovation to promote a costeffective energy transition. The great challenge in energy transitio...
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