The Global Innovation Index (GII) has ranked India as the 57th most innovative nation in the world. The country has improved its ranking from 60th position last year. India has been improving steadily since it was ranked 81st in 2015. Meanwhile, China improved its ranking from 22 in 2017 to 17 this year.
The GII is being developed jointly by Cornell University, the Paris-based business school and the World Intellectual Property Organisation (WIPO) in Geneva. GII ranks 126 economies s based on 80 indicators. It is now in its 11th edition and has become a major input for policymakers on innovation around the world. Since 2011, Switzerland has been ranked at the top every year. This year, Netherlands follows at second place and Sweden at third. The US drops down to sixth from fourth last year. Apart from a rearrangement among themselves, the top 10 nations in GII have not changed.
The GII ranks the nations based on 80 indicators, ranging from intellectual property filing rates to R&D, mobile application creation, online creativity, computer software spending, education spending, scientific & technical publications and ease of starting business.
Although ranked at 57, India is a top performer in the lower middle income group, where it is ranked at fifth position. It is the most innovative country in its region of central and southern Asia. In the indicators that capture the quality of innovation inputs and outputs, India is ranked second after China in the lower and upper middle income group combined.
Many Asian nations have been steadily improving their ranking over the last five years. This list includes China, India, Philippines, Cambodia and Vietnam. Four of the top five innovation clusters are in Asia, based on patents and publishing. San Francisco is the only innovation cluster outside Asia among the top five. Tokyo is at the top, and two of the top five clusters are in China
The GII report shows that India has been improving its ranking on the basis of certain indicators which are flagged as the country’s strength. It includes India’s human capital (graduates in science & engineering), growth rate of GDP per worker, exports of information and communication technology (ICT) and services, productivity growth and creative goods exports among others.
The National Institution for Transforming India (NITI) Aayog and Confederation of Indian Industry (CII) have jointly launched India Innovation Index. The index has been jointly developed by NITI Aayog, DIPP and CII in consultation with World Economic Forum (WEF), World Intellectual Property Organization (WIPO), Cornell University, UNIDO, ILO, OECD, UNESCO, ITU etc. Besides country’s first innovation index portal was also launched
Innovation as a growth strategy works because people love everything new. In the current fast-paced times, the endurance of a product takes a backseat and cutting-edge rules the game.
Liberalised economies mean that competition is not just within the country, it transcends geographies. With the competition being thick, whoever manages to clear the clutter takes the cake. No single company, today, can have a monopoly over technology or product because technology is dynamic. Complacency is the killer of innovation.
The fear of risk and failure can set in an inertia in the business. Change, innovation and growth thrive on the ability to take the risk and handle failures. Companies need to make environmental assessments and innovate as per the need of the times. Finding and filling that essential need gap is what brings continuous growth.
The best growth companies have their finger on the customers’ pulse. They know what their customer wants. They continuously keep tabs on the changing needs of their customer through tools such as customer empathy map and regular market research. They draw insights from the collected data and use them for innovation. Their lean approach lends to quick creation of prototypes, design partnerships with the important users, and continuous innovation to improve their product as well as business model.
Innovation is an important source of growth and a key determinant of competitive advantage for many organizations. Achieving innovation requires the coordinated efforts of many different actors and the integration of activities across specialist functions, knowledge domains and contexts of application. Thus, organizational creation is fundamental to the process of innovation. The ability of an organization to innovate is a pre-condition for the successful utilization of inventive resources and new technologies. Conversely, the introduction of new technology often presents complex opportunities and challenges for organizations, leading to changes in managerial practices and the emergence of new organizational forms. Organizational and technological innovations are intertwined and India must work towards it.