• For the 13th year in a row, Switzerland is the most innovative economy in 2023 followed by Sweden, the United States, the United Kingdom and Singapore, according to the Global Innovation Index (GII) published by World Intellectual Property Organisation (WIPO).

• This year, Sweden has overtaken the US and has climbed to second position. Singapore has entered the top five, and has taken the leading position among South East Asia, East Asia and Oceania (SEAO) region economies.

• India retained its 40th rank out of 132 economies in the GII 2023 rankings. 

• NITI Aayog said that India has been on a rising trajectory over the past several years in the GII, from 81st position in 2015 to 40 this year.

• The consistent improvement in the GII ranking is owing to the immense knowledge capital, vibrant startup ecosystem, and the amazing work done by the public and private research organisations.

What is Global Innovation Index?

• The Global Innovation Index (GII) 2023 uses 80 indicators to track global innovation trends in 130-plus economies, guiding policy makers and business leaders in stimulating human ingenuity. 

• This year, the report’s findings are unveiled against a background of slow economic recovery from the COVID-19 pandemic, high interest rates and geopolitical conflict.

• The GII is a reliable tool for governments across the world to assess the innovation-led social and economic changes in their respective countries. 

• Over the years, the GII has established itself as a policy tool for various governments and helped them to reflect upon the existing status quo.

India has third highest number of unicorns

• The 2023 edition of the GII includes a new indicator showing the combined valuation of a country’s unicorn companies.

• A unicorn company is a privately held startup valued at over $1 billion. Unicorn companies exhibit rapid growth. They often disrupt industries by introducing innovative products, services or business models that have the potential to reshape entire sectors.

• As of April 2023, there were 1,206 unicorn companies located in 50 different countries globally.

• According to a simple count, only five economies host 80 per cent of all the world’s unicorns, namely, the United States (54 per cent), China (14 per cent), India (6 per cent), the United Kingdom (4 per cent) and Germany (2 per cent). 

• Out of a total unicorn valuation of $3.8 trillion in 2023, US unicorns account of $2 trillion – a huge lead – followed by China at $736 billion and India at $193 billion.

Science and Technology Cluster Ranking

• The Science and Technology (S&T) Cluster ranking of the Global Innovation Index identifies local concentrations of world-leading science and technology activity. S&T clusters are established through the analysis of patent-filing activity and scientific article publication, documenting the geographical areas around the world with the highest density of inventors and scientific authors.

• The world’s five biggest S&T clusters are all located in East Asia. Tokyo-Yokohama (Japan) leads as the largest global S&T cluster, followed by Shenzhen-Hong Kong-Guangzhou (China and Hong Kong, China), Seoul (Republic of Korea), followed by China’s Beijing and Shanghai-Suzhou clusters.

• The US has 21 among the top 100, Germany 9, and Japan, Canada, India and the Republic of Korea each have four.

• Bengaluru, Delhi, Chennai and Mumbai are India’s four top S&T clusters.

What is WIPO?

• The World Intellectual Property Organisation (WIPO) is the global forum for intellectual property (IP) services, policy, information and cooperation. 

• The WIPO Convention, the constituent instrument of the WIPO, was signed in Stockholm on July 14, 1967, entered into force in 1970 and was amended in 1979. 

• WIPO is an inter-governmental organisation that became one of the specialized agencies of the United Nations system of organisations in 1974.

• It has 193 member states.

• Its mission is to lead the development of a balanced and effective international IP system that enables innovation and creativity for the benefit of all. 

• The headquarters of WIPO is situated in Geneva, Switzerland.

• India joined WIPO in 1975.

Two main objectives of WIPO are:

i) To promote the protection of intellectual property worldwide.

ii) To ensure administrative cooperation among the intellectual property unions established by the treaties that WIPO administers.

Additional read:

Innovation in India: Opportunities and challenges

India is among the fastest-growing economies globally and innovation has played a critical role in achieving this status. India has rightly identified innovation as a key priority and is committed to further influencing its innovative footprint across the globe.

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