Switzerland is the world’s most innovative economy, followed by Sweden, Singapore, Hong Kong and Finland, according to a study.
The Global Innovation Index 2011, released on Thursday, evaluated 125 economies. Last year, Switzerland ranked fourth.
The index recognises the key role of innovation as a driver of economic growth and prosperity. Although Switzerland did not rank first in any of the individual criteria, its overall performance earned it first place.
Contributing factors included the stable political and economic conditions, very good education system, high spending on research and development, efficient infrastructure, high demands of the domestic market and the ability to channel these strengths into successful innovations.
The report is published by strategy consultants Booz & Company, the INSEAD business school, Alcatel-Lucent, the Confederation of Indian Industry and the World Intellectual Property Organization.
“Innovation is a crucial element for the competitiveness and therefore the growth possibilities of a country, a sector and an individual company,” said Carlos Ammann, CEO of Booz & Company in Switzerland.
“Switzerland needs to maintain this ability and develop it further in order to stay competitive despite the high labour costs and the strong franc.”