The Philippines was ranked the 90th most innovative economy in the world this year, according to the Global Innovation Index 2013.
This was an improvement from its 95th position last year, which was attributed to the perceived positive changes in the country’s business institutions and market sophistication.
Global Innovation Index is an annual publication of a composite indicator that ranks countries/economies in terms of their enabling environment to innovation and their innovation outputs. It is published by Cornell University, INSEAD and the World Intellectual Property Organization and covers 142 countries.
It recognizes the “key role of innovation as a driver of economic growth and prosperity, and the need for a broad horizontal vision of innovation applicable to developed and emerging economies.”
According to the GII 2013, the Philippines scored 31.18 out of 100, based on 84 indicators that gauged the innovation capabilities and policy performances of 142 nations.
This year’s report, according to a statement, “casts additional light on the local dynamics of innovation, an area which has remained under-measured globally.”
“Dynamic innovation hubs are multiplying around the world despite the difficult state of the global economy. These hubs leverage local advantages with a global outlook on markets and talent,” WIPO director general Francis Gurry said in a statement.
The top 5 in the GII 2013 are Switzerland, Sweden, United Kingdom, the Netherlands and the United States.
Based on the GII 2013, the Philippines showed improvement in the “Institutions” indicator, scoring 44.8 and placing 128th, up from last year’s score and ranking of 34.6 and 132nd, respectively.
The country was also perceived to have advanced in terms of market sophistication (with a score of 41.75 and ranking of 95th). Among the factors gauged are the ease of getting credit, ease of protecting investors, market capitalization and trade and competition.
In terms of “creative outputs,” the Philippines rose to the 91st place from 108th last year. This measured the intangible assets of the economy, creative goods/services and online creativity.
The Philippines, however, fell in the infrastructure ranking to 78th from 69th place in 2012. This measures the country’s access and use of information and communication technologies, general infrastructure (in terms of electricity and logistics), and ecological sustainability (environmental performance).
Some of the country’s strengths cited by GII 2013 were the availability of graduates in science and engineering; market capitalization; research and development financed by business; innovation linkages, and communication, computer and information, services exports.