The Most Innovative Countries in the World, Ranked by Income Group
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Global Stars: The Most Innovative Countries, Ranked by Income Group

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The Most Innovative Countries, Ranked by Income Group

Innovation can be instrumental to the success of economies, at macro and micro scales. While investment provides powerful fuel for innovation—the relationship isn’t always straightforward.

The 2020 ranking from the World Intellectual Property Organization (WIPO) reveals just that.

The above map breaks down the most innovative countries in each World Bank income group, based on data from WIPO’s Global Innovation Index (GII), which evaluates nations across 80 innovation indicators like research and development (R&D), venture capital, and high-tech production.

While wealthier nations continue to lead global innovation, the GII also shows that middle-income countries—particularly in Asia—are making impressive strides.

Fueling Innovation

The economic and regulatory spheres within countries can have an enormous impact on their level of innovation—and vice versa, as innovation in turn becomes an economic driver, stimulating further investment.

The positive feedback loop between investment and innovation results in the success of some of the top countries in the table below, which shows the three most innovative countries in each income group.

Income GroupGroup RankCountry (Overall Rank)
High1🇨🇭 Switzerland (#1)
High2🇸🇪 Sweden (#2)
High3🇺🇸 United States of America (#3)
Upper Middle1🇨🇳 China (#14)
Upper Middle2🇲🇾 Malaysia (#33)
Upper Middle3🇧🇬 Bulgaria (#37)
Lower Middle1🇻🇳 Vietnam (#42)
Lower Middle2🇺🇦 Ukraine (#45)
Lower Middle3🇮🇳 India (#48)
Low1🇹🇿 Tanzania (#88)
Low2🇷🇼 Rwanda (#91)
Low3🇲🇼 Malawi (#111)

Switzerland, Sweden, and the U.S. are the top three in the high-income group. Considering that Switzerland has the second-highest GDP per capita globally, it is not a surprise leader on this list.

Upper middle-income countries are led by China, Malaysia, and Bulgaria. Note that China far surpasses other nations in the upper-middle-income group ranking, reaching 14th spot overall in 2020. Others in the income group only appear in the overall ranking after 30th place.

Below are several income group leaders, and some of their key areas of output:

  • Switzerland: First in Knowledge Creation, second in Global Brand Value
  • U.S.: First in Entertainment and Media, Computer Software Spending, Intellectual Property Receipts
  • China: First in Patents Registered
  • Vietnam: Second in High-Technology Net Exports
  • India: First in Information and Communication Technology Services Exports
  • Tanzania: 23rd in Printing and Other Media

Shining a Light on Global Innovators

Since 2011, Switzerland has led the world in innovation according to this index, and the top five countries have seen few changes in recent years.

Sweden regained second place in 2019 and the U.S. moved into third—positions they maintain in 2020. The Netherlands entered the top two in 2018 and now sits at fifth.

Here’s how the overall ranking shakes out:

RankCountryScoreIncome Group
1Switzerland66.1High
2Sweden62.5High
3United States of America60.6High
4United Kingdom59.8High
5Netherlands58.8High
6Denmark57.5High
7Finland57.0High
8Singapore56.6High
9Germany56.6High
10South Korea56.1High
11Hong Kong, China54.2High
12France53.7High
13Israel53.6High
14China53.3Upper Middle
15Ireland53.1High
16Japan52.7High
17Canada52.3High
18Luxembourg50.8High
19Austria50.1High
20Norway49.3High
21Iceland49.2High
22Belgium49.1High
23Australia48.4High
24Czech Republic48.3High
25Estonia48.3High
26New Zealand47.0High
27Malta46.4High
28Italy45.7High
29Cyprus45.7High
30Spain45.6High
31Portugal43.5High
32Slovenia42.9High
33Malaysia42.4Upper Middle
34United Arab Emiratesx42.4High
35Hungary41.5High
36Latvia41.1High
37Bulgaria40.0Upper Middle
38Poland40.0High
39Slovakia39.7High
40Lithuania39.2High
41Croatia37.3High
42Viet Nam37.1Lower Middle
43Greece36.8High
44Thailand36.7Upper Middle
45Ukraine36.3Lower Middle
46Romania36.0Upper Middle
47Russian Federation35.6Upper Middle
48India35.6Lower Middle
49Montenegro35.4Upper Middle
50Philippines35.2Lower Middle
51Turkey34.9Upper Middle
52Mauritius34.4Upper Middle
53Serbia34.3Upper Middle
54Chile33.9High
55Mexico33.6Upper Middle
56Costa Rica33.5Upper Middle
57North Macedonia33.4Upper Middle
58Mongolia33.4Lower Middle
59Republic of Moldova33.0Lower Middle
60South Africa32.7Upper Middle
61Armenia32.6Upper Middle
62Brazil31.9Upper Middle
63Georgia31.8Upper Middle
64Belarus31.3Upper Middle
65Tunisia31.2Lower Middle
66Saudi Arabia30.9High
67Iran (Islamic Republic of)30.9High
68Colombia30.8Upper Middle
69Uruguay30.8High
70Qatar30.8High
71Brunei Darussalam29.8High
72Jamaica29.1Upper Middle
73Panama29.0High
74Bosnia and Herzegovina29.0Upper Middle
75Morocco29.0Lower Middle
76Peru28.8Upper Middle
77Kazakhstan28.6Upper Middle
78Kuwait28.4High
79Bahrain28.4High
80Argentina28.3Upper Middle
81Jordan27.8Upper Middle
82Azerbaijan27.2Upper Middle
83Albania27.1Upper Middle
84Oman26.5High
85Indonesia26.5Lower Middle
86Kenya26.1Lower Middle
87Lebanon26.0Upper Middle
88United Republic of Tanzania25.6Lower I
89Botswana25.4Upper Middle
90Dominican Republic25.1Upper Middle
91Rwanda25.1Lower I
92El Salvador24.9Lower Middle
93Uzbekistan24.5Lower Middle
94Kyrgyzstan24.5Lower Middle
95Nepal24.4Lower I
96Egypt24.2Lower Middle
97Paraguay24.1Upper Middle
98Trinidad and Tobago24.1High
99Ecuador24.1Upper Middle
100Cabo Verde23.9Lower Middle
101Sri Lanka23.8Upper Middle
102Senegal23.8Lower Middle
103Honduras23.0Lower Middle
104Namibia22.5Upper Middle
105Bolivia (Plurinational State of)22.4Lower Middle
106Guatemala22.4Upper Middle
107Pakistan22.3Lower Middle
108Ghana22.3Lower Middle
109Tajikistan22.2Lower I
110Cambodia21.5Lower Middle
111Malawi21.4Lower I
112Côte d’Ivoire21.2Lower Middle
113Lao People’s Democratic Republic20.7Lower Middle
114Uganda20.5Lower I
115Madagascar20.4Lower I
116Bangladesh20.4Lower Middle
117Nigeria20.1Lower Middle
118Burkina Faso20.0Lower I
119Cameroon20.0Lower Middle
120Zimbabwe20.0Lower Middle
121Algeria19.5Upper Middle
122Zambia19.4Lower Middle
123Mali19.2Lower I
124Mozambique18.7Lower I
125Togo18.5Lower I
126Benin18.1Lower I
127Ethiopia18.1Lower I
128Niger17.8Lower I
129Myanmar17.7Lower Middle
130Guinea17.3Lower I
131Yemen13.6Lower I

Nordic countries like Sweden, Denmark, and Finland continue their strong showing across innovation factors—like Knowledge Creation, Global Brand Value, Environmental Performance, and Intellectual Property Receipts—leading to their continued presence atop global innovators.

But the nations making the biggest moves in GII ranking are found in Asia.

China, Vietnam, India, and the Philippines have risen the most of all countries, with all four now in the top 50. China broke into the top 15 in 2019 and remains the only middle-income economy in the top 30.

In 2020, South Korea became the second Asian economy to enter the top 10, after Singapore. As the first Asian country to move into the global top five, Singapore joined the leaders in 2018, and now sits at 8th place.

In another first for 2020, India has now broken into the top 50.

Innovation Input & Output: The Overachievers

While annual rankings like these confirm the importance of a robust economy and innovation investment, variations in the relationship between input and output are not uncommon.

The correlation between wealth and innovation isn’t always straightforward, and neither is the connection between innovation input and output.

Below is an overview of the GII inputs and outputs, as well as several of the world’s overall leaders in each pillar.

Input variables can be characterized as factors that foster innovation—everything from the quality of a country’s university institutions to its levels of ecological sustainability.

Input PillarsInput ExamplesInput Leaders
Institutions
Human Capital & Research
Infrastructure
Market Sophistication
Business Sophistication
University Institutions
Regulatory Environment
Intangible Assets
Entrepreneurship
R&D Spending
Venture Capital Deals
Researchers
1. Singapore
2. Switzerland
3. Sweden
4. U.S.
5. Denmark
6. U.K.
7. Hong Kong, China
8. Finland
9. Canada
10. South Korea

Output factors include innovation indicators like the creation of new businesses, and even the number of Wikipedia edits made per million people.

Output PillarsOutput TypesOutput Leaders
Knowledge & Technology
Creative
Registered patents
Creative goods and services
Scientific publications
National feature films
Entertainment and media
High-tech manufacturing
1. Switzerland
2. Sweden
3. United Kingdom
4. Netherlands
5. U.S.A.
6. China
7. Germany
8. Finland
9. Denmark
10. South Korea

Countries with impressive innovation outputs compared to input levels include:

  • China: 26th in inputs, but sixth in overall innovation outputs
  • Netherlands: 11th in innovation input, but fourth across outputs
  • Thailand: 48th in overall input, first in business R&D
  • Malaysia: 34th in overall input, first in high-tech net exports

Innovation Fuel Reductions Up Ahead?

Although financial markets have ignited, the economy as a whole has not fared well since lockdowns began. This begs the question of whether a steep decline in innovation capital will follow.

In response to the 2020 pandemic, will spending on R&D echo the 2009 recession and aftermath of 9/11? Will venture capital flows continue to decline more than they have since 2018?

Because innovation is so entwined with the economic growth strategies of companies and nations alike, the WIPO notes that the potential decline may not be as severe as historical trends might suggest.

No Stopping Human Innovation

Thankfully, innovation opportunities are not solely contingent on the level of capital infused during any given year. Instead, the cumulative results of continuous innovation stimuli may be enough to maintain growth, while strategic cash reserves are put to use.

What the GII ranking shows is that inputs don’t always equal outputs—and that innovative strides can be made with even modest levels of capital flow.

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Visualizing the World’s Top Social Media and Messaging Apps

From Twitter to TikTok, this infographic compares the universe of social media and messaging platforms by number of monthly active users.

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The Social Media Universe in 2022

For a time, life in the social media universe was mostly uneventful. Consider these spicy (at the time) headlines:

In hindsight, the years leading up to 2016 were downright sleepy in comparison with what would follow. Donald Trump’s meteoric, tweet-powered rise to the presidency. The Cambridge Analytica scandal. Congressional hearings on privacy and bias. TikTok at the center of souring U.S.–China relations. Each new day brought a fresh wave of controversy the shores of once infallible social media platforms.

Today, the honeymoon phase is long over and the messiness of running a global social platform is now on full display. Nowhere is this more evident than Twitter during the current Elon Musk transitional period—but more details on that later.

For now, let’s explore the social media universe in 2022.

Mapping the Social Media and Messaging Universe

In 2022, the social universe is looking more crowded than in previous years.

The scale of Meta’s platforms still dominate thanks to their global reach, but there are a number of smaller networks fighting for market share. Here’s a look at popular platforms, organized from largest to smallest active userbase:

Visualisation showing the largest social media platforms by monthly active users

Meanwhile, here are the top 10 social media and messaging platforms by publicly-available monthly active users:

RankPlatform NameParent CompanyPrimary FunctionMonthly Active Users
#1FacebookMeta PlatformsSocial network2.9 billion
#2YouTubeAlphabetVideo content2.3 billion
#3WhatsAppMeta PlatformsMessaging2.0 billion
#4MessengerMeta PlatformsMessaging1.3 billion
#5InstagramMeta PlatformsVideo content1.2 billion
#6WeChat TencentMessaging1.2 billion
#7TikTokByteDanceVideo content732 million
#8Telegramn/aMessaging700 million
#9DouyinByteDanceVideo content600 million
#10QQTencentMessaging 595 million

YouTube is the only true competition for Meta’s scale and reach. Alphabet’s video content hub with social features boasts more than two billion monthly active users. YouTube’s embrace of the creator economy is nudging the platform further into pure social media territory with the introduction of “handles”.

As seen in the visualization above, China has its own ecosystem of large social and messaging platforms—the largest of these being WeChat.

The only platform in the top 20 that is not based in either the U.S. or China is the privacy-focused messaging app, Telegram. The Dubai-based company has a unique backstory. It was created after the founders of Russian social network VK left the country after resisting government pressure to release data on the social network’s users in Ukraine.

Today, there are also a number of smaller, special interest platforms. OnlyFans, for example, is focused on adult content creators. Parler and Truth Social appeal to users who want fewer constraints on the content they post and consume. BeReal aims to create more authentic moments by prompting users to post a photo at a random time each day.

Below, we dig into a few of these platforms into more depth.

zuckerberg meta 2022

Big Trouble in Little Metaverse

Having a figurehead CEO is a double-edged sword. When things are going well, the market rallies around the successful leader. Case in point, Mark Zuckerberg was named Time’s Person of the Year in 2010. Even as recently as 2016, Glassdoor named the Facebook founder the “most admired tech CEO”.

On the flip side, when the tide turns, it turns fast. After a series of controversies, Zuckerberg took a multi-billion-dollar gamble by renaming his entire company Meta and pivoting its focus to the burgeoning idea of a metaverse. Meta’s New Horizons platform is rumored to have plateaued at about 200,000 active users, which is underwhelming for a company that still reaches a sizable slice of humanity with its other services.

Part of Meta’s near-term success hinges on VR headsets being a hot gift this holiday season. Meta’s cheapest headset is $400, which could be a tough sell in today’s economic environment.

Chart showing falling consumer sentiment in the united states in 2022

Of course, it’s too early to know whether Zuckerberg’s gamble will pay off. As always, all is forgiven once a business unit takes off and becomes profitable.

elon musk twitter 2022

Microblogging with Macro Expectations

Twitter has a complicated history.

The company was launched in the shadow of Facebook’s massive growth, and was saddled with expectations that were tough to meet. Although Twitter has an engaged and influential audience, it hasn’t managed to monetize them at the level of Meta’s platforms (for better or worse). The introduction of Twitter Blue in 2021 did not resonate with users at the scale the company hoped, and “fleets” were essentially written off as a failed experiment.

In addition, Twitter is a magnet for criticism and debate around free speech, in part because of its central place in political discourse.

These issues are directly related to the company’s recent sale to Elon Musk. At the time of this article, Twitter finds itself in the midst of a painful, and very public, internal restructuring.

If reports of an exodus of talent and advertising dollars are to be believed, then the future of one of world’s most influential social media platforms could be at risk.

social media TikTok Douyin 2022

TikTok

Social media has always been dominated by Facebook and its related apps. When a new challenger came along, Facebook either acquired it (Instagram, WhatsApp), or “acquired” their features (Snapchat). TikTok is the first challenger to keep its momentum and growth, even as Instagram rolled out very similar features.

TikTok is also a rare case of a Chinese tech product crossing over into Western markets. The ascendancy of TikTok was not without controversy though. Suspicion over Chinese access to user data continues to be an issue both in the U.S., and in other large markets around the world. TikTok has been banned in India since 2020.

Despite these headwinds, TikTok remains wildly popular. The short-form video platform was the number one downloaded app on the planet, and it remains a favorite of the all-important Gen Z demographic.

nextdoor neighbors citizen 2022

We Shall Surveil

In recent years, neighborhood-based social networks have sprung up and gained traction. NextDoor used physical letters sent to adjacent addresses to supercharge its growth, while Neighbors piggybacked off the popularity of Ring’s doorbell cameras. Although members post about more benign topics such as lost cats and where to find a good plumber, crime is an increasingly common theme as well.

Apps like Neighbors and Citizen have a more overt focus on crime and safety. While the growth of these apps reflects an obvious interest preventing crime, critics point out that the ubiquity of personal surveillance equipment and forums built purely around public safety promote a culture of suspicion in communities.

This type of social network is still quite new, so it remains to be seen if they remain niche communities, or grow into something bigger.

Chaos and Opportunity

It was Sun Tzu who famously said, “In the midst of chaos, there is also opportunity”.

This is the risk and opportunity in the social media universe today. With their massive networks and high switching costs (e.g. personalization, library of existing posts), the largest platforms have created moats that make life hard for upstart brands looking to replace established platforms. On the other hand, controversy on platforms like Twitter and Facebook may cause some users to consider new options.

The multi-billion-dollar question—is dissatisfaction with major platforms temporary, or will emerging networks like Mastodon or BeReal hit critical mass and become new staples for people connecting online. Time will tell.

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Visualized: FTX’s Leaked Balance Sheet

As Sam Bankman-Fried’s crypto exchange FTX files for bankruptcy, this graphic visualizes FTX’s balance sheet leaked by the Financial Times.

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Visualizing FTX’s Balance Sheet Before Bankruptcy

In a difficult year for the crypto space that has been full of hacks, failing funds, and decentralized stablecoins going to zero, nothing has compared to FTX and Sam Bankman-Fried’s (SBF) rapid implosion.

After an astronomical rise in the crypto space over the past three years, crypto exchange FTX and its founder and CEO SBF have come crashing back down to earth, largely unraveled by their misuse of customer funds and illicit relationship with trading firm Alameda Research.

This graphic visualizes FTX’s leaked balance sheet dated to November 10th, and published by the Financial Times on November 12th. The spreadsheet shows nearly $9 billion in liabilities and not nearly enough illiquid cryptocurrency assets to cover the hole.

How did FTX wind up in this position?

How FTX’s Bankruptcy Unfolded

FTX’s eventual bankruptcy was sparked by a report on November 2nd by CoinDesk citing Alameda Research’s balance sheet. The article reported Alameda’s assets to be $14.6 billion, including $3.66 billion worth of unlocked FTT and $2.16 billion of FTT collateral.

With more than one-third of Alameda’s assets tied up in FTX’s exchange token FTT (including loans backed by the token), eyebrows were raised among the crypto community.

Four days later on November 6th, Alameda Research’s CEO, Caroline Ellison, and Sam Bankman-Fried addressed the CoinDesk story as unfounded rumors. However, on the same day, Binance CEO Changpeng Zhao (CZ) announced that Binance had decided to liquidate all remaining FTT on their books, kicking off a -7.6% decline in the FTT token on the day.

Back and Forth with Binance’s CZ

While Ellison publicly offered to buy CZ’s FTT directly “over the counter” to avoid further price declines and SBF claimed in a now-deleted tweet that “FTX is fine. Assets are fine.”, FTX users were withdrawing their funds from the exchange.

Less than 24 hours later on November 7th, both SBF and CZ tweeted that Binance had signed a non-binding letter of intent for the acquisition of FTX, pending due diligence.

The next day, the acquisition fell apart as Binance cited corporate due diligence, leaving SBF to face a multi-directional liquidity crunch of users withdrawing funds and rapidly declining token prices that made up large amounts of FTX and Alameda’s assets and collateral for loans.

FTX’s Liabilities and Largely Illiquid Assets

In the final days before declaring bankruptcy, FTX CEO Sam Bankman-Fried attempted a final fundraising in order restore stability while billions in user funds were being withdrawn from his exchange.

The balance sheet he sent around to prospective investors was leaked by the Financial Times, and reveals the exchange had nearly $9 billion in liabilities while only having just over $1 billion in liquid assets. Alongside the liquid assets were $5.4 billion in assets labeled as “less liquid” and $3.2 billion labeled as “illiquid”.

When examining the assets listed, FTX’s accounting appears to be poorly done at best, and fraudulently deceptive at worst.

Of those “less liquid” assets, many of the largest sums were in assets like FTX’s own exchange token and cryptocurrencies of the Solana ecosystem, which were heavily supported by FTX and Sam Bankman-Fried. On top of this, for many of these coins the liquidity simply wouldn’t have been there if FTX had attempted to redeem these cryptocurrencies for U.S. dollars or stablecoin equivalents.

While the liquid and less liquid assets on the balance sheet amounted to $6.3 billion (still not enough to equal the $8.9 billion in liabilities), many of these “less liquid” assets may as well have been completely illiquid.

Relationship with Alameda Research

When looking at FTX’s financials in isolation, it’s impossible to understand how one of crypto’s largest exchanges ended up with such a lopsided and illiquid balance sheet. Many of the still unfolding details lie in the exchange’s relationship with SBF’s previous venture that he founded, trading firm Alameda Research.

Founded by SBF in 2017, Alameda Research primarily operated as a delta-neutral (a term that describes trading strategies like market making and arbitrage that attempt to avoid taking directional risk) trading firm. In the summer of 2021, SBF stepped down from Alameda Research to focus on FTX, however his influence and connection with the firm was still deeply ingrained.

A report from the Wall Street Journal cites how Alameda was able to amass crypto tokens ahead of their announced public FTX listings, which were often catalysts in price surges. Alongside this, a Reuters story has revealed how SBF secretly moved $10 billion in funds to Alameda, using a bookkeeping “back door” to avoid internal scrutiny at FTX.

While SBF responded to the Reuters story by saying they “had confusing internal labeling and misread it,” there are few doubts that this murky relationship between Alameda Research and FTX was a fatal one for the former billionaire’s empire.

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