Issues Involving Global Innovation Index
Issues Involving Global Innovation Index
This is the process of conceptualizing a new idea that could be termed as an invention, and can be converted to a valuable good and service that a customer or a client can pay for. The aspect of conceptualization is achieved through creativity and imagination while using available information and resources in an attempt to bridge a market niche (Rosenbusch, Brinckmann, & Bausch, 2011).
Global innovation index
This is a measure of the world’s state ability to facilitate innovation. The publication provided annually serves to give details about the enabling nature of the environment of a country to promote innovation through the availability of supportive resources. The content provides a composite indicator that serves as a parameter to rank nations and world economies based on their ability to facilitate innovation (Wunsch-Vincent, 2012).
How Global innovation index become essential for the Global Economy
The global innovation index became an essential element of a measure of development in the societies when the traditional parameters of innovation were not satisfactory. Such aspects as research and analysis of development in a given economy could not provide sufficient details at a time when innovation had been served as a mandatory requirement for sustainable economic growth and development (Sarajevu, 2014).
Difference between the Global innovation index (GII) and the competitiveness index (CI)
GGI is a measure of the ability of nations’ economy to facilitate innovation. It thus ranks countries based on the nature of their attitude towards innovation as suggested by availed resources and the output of the innovation process. On the other hand, the competitive index is a measure of the nature of the elements that shape the ability of a given nation to compete in the global economy. Such features include technology, macroeconomic environment, and the state of available institutions (GAP, 2014).
Relevance of Global innovation index to countries
GII is a reliable tool unlike the traditional parameters in showing the position of a country in fueling innovation. As such, it guides such countries in framing the best policies that would promote long-term economic growth. Nations learn new approaches to enhance productivity and create more jobs in the economy. In the long run, nations adapt to an environment that facilitates continued innovation (Dutta, Lanvin, & Wunsch-Vincent, 2015).
Benchmarking Criteria for measuring GII
The GII is established through the assessment of the pillars that could create a suitable environment for innovation. A regular of the input and output sub-indices is determined to give the final figure (Dutta, Lanvin, & Wunsch-Vincent, 2015). The tool finds innovation efficiency ratio of a particular nation by getting the quotient of the output sub-index divided by the input sub-index (Dutta, Lanvin, & Wunsch-Vincent, 2015). In this context, the input sub-index is a measure of the average of key factors that include human capital, infrastructure, research, institutions, nature of the market, and business complexity. The production sub-index represents the average of knowledge outputs, technology outputs, and creative outputs (Dutta, Lanvin, & Wunsch-Vincent, 2015).
Bahrain Main innovation criteria
As suggested by 2015 GII, Bahrain capitalizes more on its infrastructure when compared with other middle east countries. It is ranked 27th globally regarding the quality of infrastructure. This includes information and communication technology facilities and general infrastructure. It has established basic requirements like electricity (Johnson Cornell University, Bahrain, 2015).
Why Scandinavian countries lead the ranking index from innovation perspective
These countries have established a well-linked and interconnected innovation ecosystem that addresses all the pillars used as indicators of innovative competitiveness. These countries invest diligently in human capital to achieve the highest level of creativity. They build their environment with innovation infrastructure that is well furnished with advanced technology (WIPO, 2014).
How countries can raise their index ranking from innovation perspective
Countries can achieve better performance regarding innovation by structuring improved institutional frameworks (Acs & Szerb, 2010). This would initiate better governance and establishment of an appealing innovation environment. Having a skilled labor forced achieved through quality tertiary education would empower the population (WIPO, 2014). They would be able to exploit any availed innovation infrastructure to generate new thoughts and develop them into viable merchandises and services. These states should further make efforts to engage in global investment and be active members of trade markets. They will as such acquire new ideas and skills that will facilitate growth. They should establish a sophisticated business environment even when there are cases of inequality in their country. This will empower the people with knowledge. This can be done by appreciating the role of human investment in invention. Individuals with the ability to create and conceptualize new ideas should be identified, and supported to achieve results. Innovation infrastructure should be put in place to avail an environment that taps and unlocks any potential in a given person.
Recommendations to sustain the innovation concept and to cultures the importance of it
Nations and world economies should establish an innovation ecosystem mix that incorporates the input pillars that facilitate creativity and realization of a valuable item from the conceptualized idea (Rejeb, Morel-Guimarães, & Boly, 2008). The pillar of the institution should be structured in a manner that establishes political stability in a given state. This would create an ideal peaceful atmosphere under which individuals would find it easy to be imaginative. The government should be at the same time being effective in taking a leading role in the placement of necessary resources. Rules and regulations should be flexible enough to facilitate innovation. The business environment should be structured in a manner that allows the successful establishment of a new business, with a comprehensive taxation system. Any cases of insolvency should be easily solved. Moreover, governments should be able to tap human capital and unlock any hidden potential (Carayannis, 2008). This can be achieved through a sound education system that provides the opportunity to have the basic and tertiary education. The learners in such institutions should be empowered through research on various aspects of innovation. Another empowering aspect would be the establishment of a sound innovation infrastructure. Countries should be committed to having information technology facilities that individuals can use to conceptualize new ideas. The ideas can be developed by having a sophisticated market that can fund these projects. However, the business arena should be in a position to enhance the spread of knowledge to enhance the maturity of a new business idea.
Acs, Z. J., & Szerb, L. (2010). The global entrepreneurship index (GEINDEX). Foundations and Trends in Entrepreneurship, 5(5):341-435.
Carayannis, E. G. (2008). Measuring firm innovativeness: towards a composite innovation index built on firm innovative posture, propensity and performance attributes. International Journal of Innovation and Regional Development, 1(1), 90-107.
Dutta, S., Lanvin, B., & Wunsch-Vincent, S. (2015). Global innovation index, 2015. Retrieved from Johnson Cornell University: https://www.globalinnovationindex.org/content/page/GII-Home
GAP. (2014). Global competitiveness index. Retrieved from Governance assessment portal: http://www.gaportal.org/global-indicators/global-competitiveness-index
Johnson Cornell University (2015). Bahrain. Retrieved from Global innovation index: https://www.globalinnovationindex.org/userfiles/file/reportpdf/GII-2015/country/Bahrain.pdf
Rejeb, H. B., Morel-Guimarães, L., & Boly, V. (2008). Measuring innovation best practices: Improvement of an innovation index integrating threshold and synergy effects. Technovation, 28(12), 838-854.
Rosenbusch, N., Brinckmann, J., & Bausch, A. (2011). Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs. Journal of business Venturing, 26(4), 441-457.
Sarajevu, Z. R. (2014). Global innovation index: Comparative overview of innovation components of countries in the region. Business Source Complete, 8:247-255.
WIPO. (2014). Global innovation index 2014: Switzerland, UK and Sweden lead rankings with encourage signs from Sub-Saharan Africa. Retrieved from World Intellectual Property Organization: http://www.wipo.int/pressroom/en/articles/2014/article_0010.html
Wunsch-Vincent, S. A. (2012). The Global Innovation Index 2012: Stronger innovation linkages for global growth. The Global Innovation Index 2012, 3.
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