The World Intellectual Property Organization (WIPO) released the Global Innovation Index 2020: Who will Finance Innovation? on September 02, 20201. This year, the GII rankings were topped by Switzerland, Sweden, U.S., U.K. and Netherlands while India, China, the Philippines, and Viet Nam have been listed as the economies with most significant progress in their GII innovation ranking over the years.
TOP 3 INNOVATION ECONOMIES BY REGION
Source: GII 2020
Impact of COVID-19 on Innovation
GII crucially analyses the impact of COVID-19 pandemic which has impacted almost all walks of life and sectors. In this context the report strongly words that COVID-19 pandemic has triggered an unprecedented global economic shutdown which has severely hindered the innovation worldwide. The report also states that the crisis struck innovation when it was flourishing and the situation requires for government support as well as collaborative models and also continued private sector investment in innovation.
Decline in Innovation Finance
The GII also reports a decline in innovation finance and one of the critical areas recognized is the impact of the current crisis on start-ups, VC (venture capital), and other sources of innovation financing. The findings indicate that money to fund innovative ventures is drying up as there are few initial public offerings (IPOs) in sight, and the startups that survive may grow less attractive and profitable for—venture capitalists.
India's Position- GII 2020
- India's Global Innovation Index 2020 rank is 48 among 131 economies, moves up by four positions since 2019
- India tops the list in innovation economies ranking in the Central and South Asia
- India ranks 3rd among the lower middle-income group. GII remarks this as a new milestone
- India ranks high in Knowledge and technology outputs and Market sophistication
- India ranks high in Knowledge and technology outputs (27th) and Market sophistication (31st) contrast with its relatively lower rank in Infrastructure (75th)
- India has been recognized of being innovation achievers for 10 consecutive years
- India ranks 2nd for the fifth consecutive year- with top positions in the quality of scientific publications (21st globally) and the quality of its universities (22nd). Indian Institute of Technology (Bombay and Delhi) and the Indian Institute of Science Bengaluru have been recognized as top 3 universities.
- India increases the most in three pillars: Institutions (61st), Business sophistication (55th), and Creative outputs (64th)
- Report recognized India for valuable brands and ranks 31st in the GII indicator on Global brands. India's 164 brands led by TATA Group feature in the top 5,000 brands globally.
- India recognized for a vibrant start-up ecosystem as it has 6 of the top 100 most entrepreneurial cities in the world
- India recognized for investing in Science intensive industries including medical sciences and biosciences as these instruments can effectively be used to foster investments
- India recognized for nurturing its start-up ecosystem
- India's investment in R&D has decreased over the last decade from 0.85% of GDP in 2008–2009 to remain stagnant at around 0.7% for the last several years.
- The report recognizes the efforts of multiple government departments like notably the Department for Promotion of Industry & Internal Trade (DPIIT), NITI Aayog, DST, and DBT for being instrumental in framing the policies and regulations for start-up investments.
- The newly amended CSR rule mandating profitable companies to contribute to incubators and research projects in publicly funded universities, Indian Institutes of Technology (IITs), and national laboratories and recognizing it as eligible for CSR funding has been noted as one of the driving forces for investment in startups in India.
India has been remarked as the "Innovation achievers" and also the Indian start-up ecosystem has been praised as exemplary for boosting start-up investments and funding. The concerted efforts of the Government to build a conducive environment for fostering innovations and start-ups appears to be streamlining and consistent efforts may make India a developed economy in near future.
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