USA vs. Canada: Which is the Most Innovative Country? [Chart]
The Chart of the Week is a weekly Visual Capitalist feature on Fridays.
This week, an in-depth report on global innovation was co-released by Cornell University, INSEAD, and the World Intellectual Property Organization. The 2015 version of the report is not for the faint of heart: it clocks in at 453 pages long and covers a total of 141 countries that make up 98.6% of global GDP.
The methodology of the report uses innovation inputs and outputs to create an overall Global Innovation Index with a score for each country. Inputs include factors such as institutions, human capital, infrastructure, market sophistication, and business sophistication. Outputs deal with actual innovation results such as knowledge, technology, and creative outputs.
Lastly, there is also a curious measure which divides outputs by inputs to find an “efficiency” factor: in other words, which countries are getting the most bang for their buck in terms of innovation.
Global Innovation Index Framework:
The data is quite granular, and each innovation score is based on 79 variables. Rather than comparing all countries together, we decided to look at Canada and the United States to see which of the 49th parallel neighbors is the most innovative country. If you’d prefer to read an executive summary of the report itself, there is an abstract here that includes more analysis on other countries such as Switzerland and the United Kingdom, which came in first and second place respectively in the overall rankings.
USA vs. Canada
Many of the wealthy countries in the report, including Canada and the United States, have a quality set of inputs for innovation: world-class universities, fair regulatory environments, sophisticated economies, and strong knowledge workers.
However, the report shows a few big differences specifically between Canada and the United States that are worth noting.
Firstly, the “quality of innovation” in the United States is higher. University performance, the reach of scholarly articles, the international dimension of patent applications, and other such measures have the USA as the top place within the entire high-income group, followed by countries such as the UK, Japan, Germany, and Switzerland.
This helps the United States get a better score than Canada in terms of Knowledge and Technology Outputs, which make up half of the formula for the overall index. The United States scores a 58.0 on those outputs, while Canada scores 41.9.
Next, the United States holds the top position globally in measures concerning Market Sophistication, which gives it a score of 81.5 compared to Canada’s 73.5 in that category. Canada almost makes up for this with its strong institutions. In terms of Business Environment (a sub-category to “Institutions”) Canada has the best ranking in the world. However, the United States has strong institutions as well, and the difference here is only 5.9 points.
Lastly, Canada’s score was impacted by its weakness in the Human Capital and Research category, where it dropped from 13th to 22nd in ranking since the previous year’s report. This weakness is described by the authors as being linked to “government spending on secondary education per pupil, where [Canada] ranks 65th”.
The 10 Breakthrough Technologies That Will Define 2019
Which innovations will dominate headlines in 2019? According to Bill Gates, watch for these 10 breakthrough technologies to change the world.
The 10 Breakthrough Technologies That Will Define 2019
Gone are the days of turning stones into spears. With the advent of new technologies, we’ve learned to develop tools that not only make living faster and easier every day, but also improve the future of humanity as a whole.
Today’s Chart of the Week draws from the MIT Technology Review, which features Bill Gates’ predictions for the top 10 breakthrough inventions that will capture headlines in 2019.
Top 10 Breakthrough Technologies
1. Gut Probe in a Pill
These swallowable devices can detect and potentially prevent diseases that cause malnutrition and stunted growth in millions of children worldwide.
2. Custom Cancer Vaccines
Personalized cancer vaccines, targeting only the cancerous cells and leave healthy cells alone, could help ensure faster recovery times and pose fewer risks to patients.
3. Meat-free Burgers
Plant-based and lab-grown food products will ideally alleviate the environmental impact of the livestock industry.
4. Smooth-talking AI assistants
The AI assistants of the future will have even more human-like conversations to personally engage customers. Companies would see measurable benefits, with just one breakthrough here garnering a 5% jump in productivity.
5. Sanitation without sewers
Improperly drained sewage causes death in one out of every nine children. Sanitation that doesn’t require sewers would not only prevent exposure diseases but also help turn waste into useful products like fertilizer.
6. ECG on your wrist
While most medical ECGS have up to 12 nodes to detect abnormalities, today’s wearables typically have only one. An ECG on the wrist would help reduce the risk of heart disease by monitoring changes and patterns in daily life.
7. Robot Dexterity
Advancements in robotics will enable the natural dexterity required to complete a greater range of tasks, such as helping an ailing loved one out of bed, doing the laundry, or building toys.
8. Predicting Preemies
Premature births are the leading cause of death for children under five years old. Tests to detect the possibility of a premature birth could be available in doctors’ offices in as little as five years.
9. Carbon Dioxide Catcher
Carbon dioxide catchers filter out CO₂ from the air and capture it for other uses. These include synthetic fuel creation, CO₂ for soft drinks, and plant growth in greenhouses.
10. New-wave Nuclear Power
Traditional nuclear reactors produce ~1,000 megawatts (MW), while these proposed mini-reactors would produce tens of megawatts ─ making them safer, more stable, and more financially viable for potential users.
A Vision for a Better Future
The biggest takeaway?
Seven of the 10 breakthrough technologies stem from the healthtech sector.
While several inventions on this list are years away from becoming a reality, they continue to embody the vision and passion that humans share to create and explore.
How the Modern Consumer is Different
We all have a stereotypical image of the average consumer – but is it an accurate one? Meet the modern consumer, and what it means for business.
How the Modern Consumer is Different
There is a prevailing wisdom that says the stereotypical American consumer can be defined by certain characteristics.
Based on what popular culture tells us, as well as years of experiences and data, we all have an idea of what the average consumer might look for in a house, car, restaurant, or shopping center.
But as circumstances change, so do consumer tastes – and according to a recent report by Deloitte, the modern consumer is becoming increasingly distinct from those of years past. For us to truly understand how these changes will affect the marketplace and our investments, we need to rethink and update our image of the modern consumer.
A Changing Consumer Base
In their analysis, Deloitte leans heavily on big picture demographic and economic factors to help in summarizing the three major ways in which consumers are changing.
Here are three ways the new consumer is different than in years past:
1. Increasingly Diverse
In terms of ethnicity, the Baby Boomers are 75% white, while the Millennial generation is 56% white. This diversity also transfers to other areas as well, such as sexual and gender identities.
Not surprisingly, future generations are expected to be even more heterogeneous – Gen Z, for example, identifies as being 49% non-white.
2. Under Greater Financial Pressure
Today’s consumers are more educated than ever before, but it’s come at a stiff price. In fact, the cost of education has increased by 65% between 2007 and 2017, and this has translated to a record-setting $1.5 trillion in student loans on the books.
Other costs have mounted as well, leaving the bottom 80% of consumers with effectively no increase in discretionary income over the last decade. To make matters worse, if you single out just the bottom 40% of earners, they actually have less discretionary income to spend than they did back in 2007.
3. Delaying Key Life Milestones
Getting married, having children, and buying a house all have one major thing in common: they can be expensive.
The average person under 35 years old has a 34% lower net worth than they would have had in the 1990s, making it harder to tackle typical adult milestones. In fact, the average couple today is marrying eight years later than they did in 1965, while the U.S. birthrate is at its lowest point in three decades. Meanwhile, homeownership for those aged 24-32 has dropped by 9% since 2005.
A New Landscape for Business?
The modern consumer base is more diverse, but also must deal with increased financial pressures and a delayed start in achieving traditional milestones of adulthood. These demographic and economic factors ultimately have a ripple effect down to businesses and investors.
How do these big picture changes impact your business or investments?
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