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Home / IAS Preparation / Global Innovation Index

Global Innovation Index - Pillars, Analysis and Performance of India

Last Updated on Dec 17, 2024
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The Global Innovation Index ranks nations according to their innovation capabilities. The index projects multidimensional facets of innovation by tracing 80 indicators grouped into seven pillars. It provides a ranking and rich analysis of more than 130 economies. It has established itself as a leading reference to innovation and a “tool for action” for economies. 

Global Innovation Index is part of the Report and Indices under General Studies Paper II, which is vital for current affairs for the UPSC examination. 

In this article, we will read about the Global innovation index 2022, 2021, and 2020. We will also read about the key highlights of these indices and track India’s performance in these indices. UPSC Aspirants can improve their chances of selection through Testbook's UPSC CSE Coaching and boost their preparation for IAS Exam! Other important topics related to the UPSC IAS examination can also be accessed here on Testbook!

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What is the Global Innovation Index?
  • The Global Innovation Index is a list of countries ranked according to their success and capacity for innovation. 
  • The World Intellectual Property Organization (WIPO) has published the GII every year since 2007.
  • GII is developed by the World Intellectual Property Organization along with Cornell University and INSEAD.
  • The index ranks more than 130 nations on the basis of 80 indicators, classified under 7 pillars.
  • The data for the index is taken from various sources, such as the World Bank, the International Telecommunication Union (ITU), and the International Monetary Fund. 
  • India has been in the top half of the GII rankings Since 2020.

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Pillars of Global Innovation Index

  • The Global innovation index is decided on the basis of seven pillars. 
  • The pillars are classified into two categories. They are Innovation Input Sub-index and the Innovation Output Sub-index. 
  • The Innovation Input sub-index has 5 pillars. They are- Institutions, Human Capital and Research, Infrastructure, market sophistication, and business sophistication. 
  • The innovation Output Sub-index has 2 pillars. They are- Knowledge and technology output and creative outputs. 

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Global Innovation Index, 2022
  • The Global Innovation Index 2022 edition tracks the most recent global innovation trends.
  • The Global Innovation Index 2022 ranks the performance of world economies against recent challenges such as the COVID-19 pandemic, slowing productivity growth, and other evolving challenges. 
  • The theme of the Global Innovation Index 2022 edition is What is the future of innovation-driven growth?
  • The Global Innovation Index 2022 also provides a perspective on the stagnation and low productivity growth of the global economy. 
  • The Global Innovation Index 2022 talks about an era where new innovation spurts, such as the Digital Age and the Deep Science Innovation, waves to bring about an economic uplift.

Analysis of Global Innovation Index 2022

  • Switzerland, the United States of America, Sweden, the United Kingdom, and the Netherlands are the world’s most-innovative economies.
  • China stands at 11th rank in the list, whereas India gets 40th place.
  • Only a few economies have delivered better innovation performance since last year.
  • Europe dominates the top performer ranking list.
  • The report shows that increased investment in research and development (R&D) drives worldwide innovative activity despite the COVID-19 pandemic. However, witnessing challenges in translating innovation investments into impact.
  • The report highlights that current technological progress and adoption are slowing growth despite the increase in R&D expenditure and venture capital investments.
  • This increase in investment is not uniform. It is primarily driven by four industries- ICT hardware and electrical equipment, Software and ICT services, pharmaceuticals and biotechnology, and construction and industrial metals.

Performance of India in Global Innovation Index 2022
  • India continues to perform on an upward trend. India reached its best position till now.
  • India ranks 40th among the 132 economies featured in the Global Innovation Index 2022.
  • The table below will trace the recent performances in the Global Innovation Index.

Year 

Overall GII Ranks

Innovation Input Rank

Innovation Output Rank

2022

40

42

39

2021

46

57

45

2020

48

57

45
  • India will perform better in innovation outputs than innovation inputs in 2022. 
  • This year India ranks 42nd in innovation inputs, higher than in previous years. 
  • India ranks 39th in innovation outputs, which is higher than the previous years. 
  • India ranks 1st among the 36 lower-middle-income group economies.
  • India ranks 1st among the 10 Central and Southern Asia economies.
  • Relative to GDP, India’s performance is above expectations for its level of development.
  • India performs better in innovation outputs compared to innovation inputs.
  • India performs best in Market sophistication, and its weakest performance is in Infrastructure. 
  • India’s performance in all seven Pillars (in Worst to best order)

Pillars 

Ranks

Infrastructure 

78

Institutions 

54

Business sophistication 

54

Creative outputs

52

Human capital and research

43

Knowledge and technology outputs

34

Market sophistication

19
  • Indicators that are India’s Strengths and weaknesses as per the Global innovation index 2022 are given in the table below,

Strength 

Weakness
  • Entrepreneurship policies and culture
  • Graduates in science and engineering
  • Global corporate R&D investors,
  • Finance for startups and scaleups
  • Venture capital received, value, % GDP
  • Domestic industry diversification
  • Domestic market scale
  • Labor productivity growth
  • ICT services exports, % total trade
  • Cultural and creative services exports
  • School life expectancy, years 
  • Pupil-teacher ratio, secondary 
  • Tertiary inbound mobility
  • Researchers, 
  • ICT access 
  • Environmental performance
  • Females employed with advanced degrees
  • New businesses
  • Entertainment and media market/th pop.
  • Printing and other media, % manufacturing 
  • India is the innovation leader in the lower middle-income group. India leads the world in ICT services exports and holds top rankings in venture capital receipt value, finance for startups and scale-ups, graduates in science and engineering, labor productivity growth, and domestic industry diversification.

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Global Innovation Index, 2021
  • The Global Innovation Index 2021 is the 14th edition. It was launched on 20th September 2021.
  • India has improved on its previous performance and ranks at 46th rank in the Global Innovation Index, 2021.
  • The GII 2021 highlights that the investment in innovation is resilient during the COVID-19 pandemic. It often improves better than in past years. However, the investment varies across sectors and regions.
  • The innovation performance of major economies has been affected by the Covid-19 pandemic, and Only a few economies have performed better.
  • Switzerland tops the list, and Sweden, the U.S., the U.K., and the Republic of Korea follow it.
  • India has risen from a rank of 81 in 2015 to 46 in 2021.
  • India performed better in innovation outputs compared to the innovation inputs in 2021.
  • India stands in 2nd place among the 34 lower middle-income group economies.
  • India stands in 1st place among the 10 economies in Central and Southern Asia.
  • The departments of atomic energy, science, technology, biotechnology, and space have improved their performance to boost innovation.

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Global Innovation Index, 2020
  • The Global Innovation Index 2020 is the 13th edition. 
  • The theme of the GII 2020 index is “Who Will Finance Innovation?”
  • As per the report, Switzerland tops the list, Sweden, the U.S., and the U.K., and the Netherlands follows it.
  • India, Chile, Israel, South Africa, and Singapore have been the regional leaders.
  • The publishing of the ranking of the world’s top 100 science and technology hotspots in the last four years was a major point of discussion.
  • The top performing hotspot was the Tokyo-Yokohama. Shenzhen-Hong Kong-Guangzhou, Seoul, Beijing, and San Jose-San Francisco follow it.
  • The U.S. is the country with 25 which is the maximum hotspot in the world.
  • The largest number of hotspots in the world is in the U.S., with 25 hotspots.
  • India ranks at 48th place. It has become the third-most innovative economy in the lower-middle-income group in the world.
  • The report suggested that there is a shortage of investment for funding innovation. 
  • The index also pointed out a gradual eastward shift in the locus of innovation.
  • India stands in 3rd place among the lower-middle-income economies in the world.
  • India has performed excellently in many indicators like Information and Communication Technology (ICT) services exports, online government services, graduates in science and engineering, and Research and Development-intensive global companies.

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Conclusion

India has acknowledged the importance of innovation in the development of the economy. The government of India has launched several programs to encourage innovation in the country. Major government programs, including the Atal Innovation Mission, Technology Incubation and Development of Entrepreneurs (TIDE 2.0), MeitY Startup Hub, Startup Accelerator Programmes, etc., have helped India to perform better in the Global innovation index consistently.

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Global Innovation Index FAQs

There are 132 countries ranked in the Global Innovation Index 2022.

The global innovation index 2022 India Rank was 40

The global innovation index 2021 India Rank was 46

The global innovation index is important to track the growth of innovation and R&D in the economy of the world and nations.

The GII has 7 indicators. They are Institutions, Human Capital and Research, Infrastructure, market sophistication, business sophistication, Knowledge and technology output, and creative outputs.
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