Switzerland Maintains its Rank as the World's Most Innovative Economy in 2022
According to the World Intellectual Property Organization's Global Innovation Index 2022, Switzerland is the most innovative economy in the world. The United States, Sweden, the United Kingdom, and the Netherlands ranked second through fifth, respectively, in the annual study, which ranks 132 economies based on their innovation ecosystems using 81 indicators from both international public and private sources.
What Enables Switzerland to Maintain Its Status as a Leader in Innovation?
A variety of factors contribute to this achievement, including the country's strong education system and diverse talent pool. According to Switzerland’s Federal Statistics Office, in 2021 alone, foreign workers made up 32.2% of Switzerland's workforce, many of whom hold high-skilled positions. Since the start of WIPO's annual global innovation ranking in 2011, Switzerland has consistently ranked first among all other countries.
It is vital for the country to have strong collaboration between the public and private sectors in order to use educational excellence to drive private sector industry growth. One example of this collaboration is Switzerland Innovation, a government-supported program that allows universities and businesses to work together on research and development projects to create new products and services for the private sector.
What Does this Ranking Mean to Investors and What Are the Advantages?
This ranking indicates that Switzerland is a good place to invest in innovative and cutting-edge technologies. It has a strong ecosystem for innovation and a high level of research and development. This can lead to potential opportunities for people looking to invest in innovative companies or industries in Switzerland.
There are several advantages to investing in Switzerland due to its high ranking in the Global Innovation Index:
1. Access to a highly educated and skilled workforce: Switzerland has one of the highest percentages of highly educated workers in the world, so investors can tap into a pool of talented and skilled employees for their business.
2. Strong research and development capabilities: Switzerland is known for its strong research and development capabilities, allowing investors can access the latest technologies and innovations in the country.
3. Favorable business environment: Switzerland has a stable and business-friendly environment, making it easier for investors to set up and run their businesses in the country. Also, the country’s legal system has different regulations in place allowing both foreign and local investors to carry out their business with no interference.
4. Access to global markets: Switzerland is located at the heart of Europe and is well-connected to global markets, which makes it an ideal location for investors looking to access international markets.
Why Capital Investment Is Not Enough to Spur Innovations
While capital investment is certainly a necessary component of innovation, it is not the only factor. According to the GII 2022, even during the Covid-19 crisis, investments in R&D and other areas that foster global innovative activity continued to thrive. In 2021, the top global corporate R&D spenders saw an increase of nearly 10% in their expenditure, totaling more than $900bn, which was even higher than the pre-pandemic levels in 2019. This growth was particularly driven by four industries:
- ICT hardware and electrical equipment
- Software and ICT services
- Pharmaceuticals and biotechnology
- Construction and Industrial metals