South Korea Leads World In Innovation; US Drops Out of Top 10

An anonymous reader quotes a report from Bloomberg: South Korea returned to first place in the latest Bloomberg Innovation Index, while the U.S. dropped out of a top 10 that features a cluster of European countries. Korea regained the crown from Germany, which dropped to fourth place. The Asian nation has now topped the index for seven of the nine years that it's been published. Singapore and Switzerland each moved up one spot to rank second and third. The Bloomberg index analyzes dozens of criteria using seven equally weighted metrics, including research and development spending, manufacturing capability and concentration of high-tech public companies.

Korea's return to the top spot is mainly due to an increase in patent activity, where it ranks top, alongside a strong performance in R&D and manufacturing. Second-placed Singapore, which has been allocating budget funds to help workers and companies transition to a digital economy, also scores high for manufacturing -- and its globally competitive universities put it top of the tertiary education gauge. Switzerland, a leader in financial and biological technology, ranks near the top in both of the index's research categories. Germany's loss of the crown follows a warning two years ago by Juergen Michels, chief economist of Bayerische Landesbank, who said the country lacked skilled workers and a proper strategy for next-generation technology. As the two biggest economies, the U.S. and China account for much of the world's innovation. But both saw their rankings decline this year.

The U.S., which topped the first Bloomberg Innovation Index in 2013, dropped two places to 11th. The country scores badly in higher education, even though U.S. universities are world-famous. That underperformance was likely made worse by obstacles to foreign students, who are usually prominent in science and technology classes -- first due to the Trump administration's visa policies, and later to the pandemic. China, which fell one place to 16th in the 2021 index, is locked in a battle with the U.S. over key aspects of innovation policy. Other gainers in this year's index include India, which climbed back into the top 50 for the first time since 2016, and Uruguay, which qualified for the first time. Algeria and Argentina were among the countries that fell furthest.

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