The World’s 10 Most Innovative Economies
In the 21st century, innovation has become the heart and soul of economic policy. Developed and developing nations alike are in the race to leave industrialization behind, adapting instead to technology-focused, entrepreneurial societies.
Customized cancer treatment, faux meat products, and the smart home technologies are frequently positioned as ‘the next big thing’. But which countries are consistently innovating the most?
Today’s graphic comes from the seventh annual Bloomberg Innovation Index and highlights the 10 most innovative economies, and the seven metrics used to rank 2019’s top contenders.
Bloomberg calculated each country’s innovation score using seven equally-weighted metrics.
- R&D Spending
All research and development funding invested in an economy each year.
- Patent Activity
Number of domestic patents filed, total patent grants, patents per population, filings per GDP, and total grants awarded measured against the global total.
- Tertiary Efficiency
Total enrollment at post-secondary institutions, graduation levels, and number of science and engineering graduates.
- Manufacturing Value-added
Manufacturing output levels that contribute to exports and domestic economic growth.
Overall productivity levels of the working-age population.
- High-tech Density
Number of domestic high-tech public companies, measured against the number of domestic public companies and the global total of public high-tech companies.
- Researcher Concentration
Number of professionals currently engaged in research and development roles.
More than 200 countries were initially considered for Bloomberg’s Innovation Index. Any country reporting in less than six categories was automatically eliminated, leaving 95 countries remaining. Bloomberg publishes the results for the top 60 most innovative economies each year.
Notable Countries in the Top 60
The U.S. rejoined the top 10 after dropping to 11th in 2018 for low scores in education. Israel moved up five spots to 5th place, while Romania made the largest overall gain, jumping six spots to rank in the top 30.
|2019 Rank||Economy||Total Score||Change in Ranking|
|#1||🇰🇷 South Korea||87.38||0|
|#8||🇺🇸 United States||83.21||3|
Brazil rejoined the list at number 45, after not being included on the 2018 list. The United Arab Emirates made the list for the first time, marking the highest debut ever at number 46.
Tunisia and Ukraine were the two countries with the largest losses, which both fell out of the top 50 this year. To date, South Africa is the only Sub-Saharan nation to be ranked in the index.
Newcomers to the Innovation Index in 2019 are some of the largest emerging economies, such as India, Mexico, Vietnam, and Saudi Arabia.
Impact of Global Innovation
Innovation is complex─many factors play a role in the ideation, development, and commercialization of any new technology. And while innovation success can fuel economic growth, it is generally more accessible in high-income economies, where R&D funding is readily available.
“The battle for control of the global economy in the 21st century will be won and lost over control of innovative technologies.”
—Tom Orlik, Bloomberg Economics
The focus of an economy that prioritizes innovation, however, is not simply allocating resources for a group of people─it’s discovering new methods, models, and products that create a better quality of life for society.
The $86 Trillion World Economy in One Chart
According to the latest World Bank data, the global economy is now $85.8 trillion in nominal terms. Here’s how it breaks down.
The $86 Trillion World Economy in One Chart
The world economy is in a never-ending state of flux.
The fact is that billions of variables — both big and small — factor into any calculation of overall economic productivity, and these inputs are changing all of the time.
Buying this week’s groceries or filling up your car with gas may seem like a rounding error when we are talking about trillions of dollars, but every microeconomic decision or set of preferences can add up in aggregate.
And as consumer preferences, technology, trade relationships, interest rates, and currency valuations change — so does the final composition of the world’s $86 trillion economy.
Country GDPs, by Size
Today’s visualization comes to us from HowMuch.net, and it charts the most recent composition of the global economic landscape.
It should be noted that the diagram uses nominal GDP to measure economic output, which is different than using GDP adjusted for purchasing power parity (PPP). The data in the diagram and table below come from the World Bank’s latest update, published in July 2019.
The Top 15 Economies, by GDP
|Rank||Country||GDP (Nominal, USD)||Share of World Total (%)|
|#1||🇺🇸 United States||$20.49 trillion||23.89%|
|#2||🇨🇳 China||$13.61 trillion||15.86%|
|#3||🇯🇵 Japan||$4.97 trillion||5.79%|
|#4||🇩🇪 Germany||$4.00 trillion||4.66%|
|#5||🇬🇧 United Kingdom||$2.83 trillion||3.29%|
|#6||🇫🇷 France||$2.78 trillion||3.24%|
|#7||🇮🇳 India||$2.73 trillion||3.18%|
|#8||🇮🇹 Italy||$2.07 trillion||2.42%|
|#9||🇧🇷 Brazil||$1.87 trillion||2.18%|
|#10||🇨🇦 Canada||$1.71 trillion||1.99%|
|#11||🇷🇺 Russian Federation||$1.66 trillion||1.93%|
|#12||🇰🇷 Korea, Rep.||$1.62 trillion||1.89%|
|#13||🇦🇺 Australia||$1.43 trillion||1.67%|
|#14||🇪🇸 Spain||$1.43 trillion||1.66%|
|#15||🇲🇽 Mexico||$1.22 trillion||1.43%|
The above 15 economies represent a whopping 75% of total global GDP, which added up to $85.8 trillion in 2018 according to the World Bank.
Most interestingly, the gap between China and the United States is narrowing — and in nominal terms, China’s economy is now 66.4% the size.
A Higher Level Look
The World Bank also provides a regional breakdown of global GDP, which we helps to give additional perspective:
|Rank||Geographic Region||GDP (Nominal, USD)||Global Share|
|World Total||$85.8 trillion||100.0%|
|#1||East Asia & Pacific||$25.9 trillion||30.2%|
|#2||Europe & Central Asia||$23.0 trillion||26.8%|
|#3||North America||$22.2 trillion||25.9%|
|#4||Latin America & Caribbean||$5.8 trillion||6.8%|
|#5||Middle East & North Africa||$3.6 trillion||4.2%|
|#6||South Asia||$3.5 trillion||4.1%|
|#7||Sub-Saharan Africa||$1.7 trillion||2.0%|
The organization breaks it down by income levels, as well:
|Income Level||GDP (Nominal, USD)||Global Share|
|World total||$85.8 trillion||100.00%|
|High income countries||$54.1 trillion||63.1%|
|Upper middle income countries||$24.4 trillion||28.4%|
|Lower middle income countries||$6.7 trillion||7.8%|
|Low income countries||$0.6 trillion||0.7%|
The low income countries — which have a combined population of about 705 million people — add up to only 0.6% of global GDP.
Looking Towards the Future
For more on the world economy and predictions on country GDPs on a forward-looking basis, we suggest looking at our animation on the Biggest Economies in 2030.
It is worth mentioning, however, that the animation uses GDP (PPP) calculations instead of the nominal ones above.
Ranked: The Autonomous Vehicle Readiness of 20 Countries
This interactive visual shows the countries best prepared for the shift to autonomous vehicles, as well as the associated societal and economic impacts.
For the past decade, manufacturers and governments all over the world have been preparing for the adoption of self-driving cars—with the promise of transformative economic development.
As autonomous vehicles become more of a looming certainty, what will be the wider impacts of this monumental transition?
Which Countries are Ready?
Today’s interactive visual from Aquinov Mathappan ranks countries on their preparedness to adopt self-driving cars, while also exploring the range of challenges they will face in achieving complete automation.
The Five Levels of Automation
The graphic above uses the Autonomous Vehicles Readiness Index, which details the five levels of automation. Level 0 vehicles place the responsibility for all menial tasks with the driver, including steering, braking, and acceleration. In contrast, level 5 vehicles demand nothing of the driver and can operate entirely without their presence.
Today, most cars sit between levels 1 and 3, typically with few or limited automated functions. There are some exceptions to the rule, such as certain Tesla models and Google’s Waymo. Both feature a full range of self-driving capabilities—enabling the car to steer, accelerate and brake on behalf of the driver.
The Journey to Personal Driving Freedom
There are three main challenges that come with achieving a fully-automated level 5 status:
- Data Storage
Effectively storing data and translating it into actionable insights is difficult when 4TB of raw data is generated every day—the equivalent of the data generated by 3,000 internet users in 24 hours.
- Data Transportation
Autonomous vehicles need to communicate with each other and transport data with the use of consistently high-speed internet, highlighting the need for large-scale adoption of 5G.
- Verifying Deep Neural Networks
The safety of these vehicles will be dictated by their ability to distinguish between a vehicle and a person, but they currently rely on algorithms which are not yet fully understood.
Which Countries are Leading the Charge?
The 20 countries were selected for the report based on economic size, and their automation progress was ranked using four key metrics: technology and innovation, infrastructure, policy and legislation, and consumer acceptance.
The United States leads the way on technology and innovation, with 163 company headquarters, and more than 50% of cities currently preparing their streets for self-driving vehicles. The Netherlands and Singapore rank in the top three for infrastructure, legislation, and consumer acceptance. Singapore is currently testing a fleet of autonomous buses created by Volvo, which will join the existing public transit fleet in 2022.
India, Mexico, and Russia lag behind on all fronts—despite enthusiasm for self-driving cars, these countries require legislative changes and improvements in the existing quality of roads. Mexico also lacks industrial activity and clear regulations around autonomous vehicles, but close proximity to the U.S. has already garnered interest from companies like Intel for manufacturing autonomous vehicles south of the border.
How Autonomous Vehicles Impact the Economy
Once successfully adopted, autonomous vehicles will save the U.S. economy $1.3 trillion per year, which will come from a variety of sources including:
- $563 billion: Reduction in accidents
- $422 billion: Productivity gains
- $158 billion: Decline in fuel costs
- $138 billion: Fuel savings from congestion avoidance
- $11 billion: Improved traffic flow and reduction of energy use
Transportation will be safer, potentially reducing the number of accidents over time. Insurance companies are already rolling out usage-based insurance policies (UBIs), which charge customers based on how many miles they drive and how safe their driving habits are.
Long distance traveling in autonomous vehicles provides a painless alternative to train and air travel. The vehicles are designed for comfort, making it possible to sleep overnight easily—which could also impact the hotel industry significantly.
- Real Estate
An increase in effortless travel could lead to increased urban sprawl, as people prioritize the convenience of proximity to city centers less and less.
With the adoption of autonomous vehicles projected to reduce private car ownership in the U.S. to 43% by 2030, it’s disrupting many other industries in the process.
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