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Sunday, July 28, 2019

Global Innovation Index
=================
India has progressed in all the input leads and lost out on 1 out of 2 output leads. In effect, innovation ecosystem, or more indirectly economic competitiveness, has improved. Innovation output has lagged partly because India is not invested in sunrise industries and also because research talent is employed by foreign firms in India.

1. Political environment, particularly "political stability and absence of violence" has turned positive, but will this last? Business environment has improved and will continue thus. Regulatory quality remains in doldrums.

2. Educational expenditure has increased (incl. per secondary pupil) but this has not impacted volume indicators like pupil-teacher ratio or years of schooling. However, teacher skill-sets (ie. sharp rise in quality of teacher training degree & trainee numbers, recruitment norms, online catch-up training) are being upgraded, and learning outcomes will benefit by the extra focus on school management (detailed inspections, assessment of school leadership quality, teacher numbers & attendance, upgrades like digital equipment/ course portals/ on-line distance education, financial support for improving state systems, naming & shaming states with poor outcomes), and also by the new education policy which is about to be introduced.

2b. Tertiary education rankings has been bumped by adding "No. of STEM graduates" indicator, while enrolment has increased as well. Expenditure on research has fallen, but "No. of researchers" has increased, perhaps due to employment by foreign firms. QS university grade has improved, but not in a profound way. In this regard, major impact can come from Govt's push in higher education, eg. world-class varsities initiative, research grants & start-up ecosystem; funding for new & expansion of existing IITs, scientific institutes, AIMS/ post-grad medical, nursing colleges; industry-led technical institutes, etc; and through elimination of unwanted engineering institutes, reduction of anti-social elements and various scholarship programmes.

3a. Infrastructure lead is narrowly defined. India has lagged in ICT rankings despite improvements, as other countries are also improving. India has relatively slow data speeds despite converting wholesale to 4G, but, transformation has taken place in data costs, access, and use. If India completes the optic-fibre network, adds 5G and improves 4G speeds in the next year or so, then it can jump in rankings. Logistic performance has disappointed in 2019 and surprisingly so. Electricity output is low due to low per capita incomes, but it will improve sharply due to increased electrification of the economy, eg. full household electrification, full railways electrification, EVs, electric appliances, smart cities lighting, etc.

3b. Gross capital formation will head upwards, particularly due to new factors like $1.5 trillion public infra plan over 5 years along with issue of sovereign foreign currency debt, higher mutual fund investment, mandated increase in equity floats, higher employee social security payments due to formalisation of jobs, govt subsidy for informal pensions, liberalisation of insurance, health cover for poor, Jan Dhan savings account for poor, MUDRA loans and improved credit scene, via banks (subvention schemes, MSME financing support, PSU bank recapitalisation, insolvency resolutions, etc), markets (large companies obliged to use this route) & Govt (public NHAI bonds).

3c. Ecological factors are a big dampener, partly due to a big rise in air pollution. Clean transport policy (esp BS-VI fuel, fall in diesel cars, EV buses, faster roads, e-tolls), access to clean cooking gas, banning of petroleum coke, renewable power, crop residue collection & processing and strict thermal power emission norms will impact air pollution in a big way. Solid & industrial waste will probably continue to accumulate, though govt's Clean India mission, Plastic waste policy and Waste-to-Wealth initiatives will start to tackle pollution.

4. Market sophistication has seen a big jump, mainly due to addition of "Domestic market scale". Improvements are seen in credit and investment, while domestic competition should improve due to GST & formalisation, G-eM/ auctioning & less cronyism, manufacturing supply-side support and better logistics.

5.  Business sophistication has seen a big jump in ranking which is not reflected in scores. Major jumps are seen in "Firms offering formal training", "University/ industry collaborations", "Intellectual property payments" and "High-tech / ICT services imports". It has also improved because "Research talent in business enterprise" indicator was added in 2016.



2019 2018 2017 2016 2015 2014 2013
2019 2018 2017 2016 2015 2014 2013

Country: India Rank Score

Global Innovation Index 52 57 60 66 81 76 66
36.6 35.2 35.47 33.61 31.7 33.7 36.17

Innovation Efficiency Ratio
49 53 63 31 31 11
0.64 0.65 0.66 0.66 0.79 0.82 1.02

Innovation Input Sub-index 61 63 66 72 100 93 87
44.7 42.53 42.84 40.49 35.51 36.97 35.77

Innovation Output Sub-index 51 57 58 59 69 65 42
28.5 27.83 28.11 26.73 27.97 30.42 36.56


















Property Rank Score
1 Institutions 77 80 92 96 104 106 102
59.5 55.89 51.37 50.73 50.05 50.83 51.91
1.1 Political environment 71 80 87 98 109 120 108
53 45.96 43.12 36.16 35.53 43.32 44.36

Political stability and absence of violence/terrorism 91 110 106 113 124 126 123
61.4 42.55 41.51 38.95 34.79 35.17 36.68

Government effectiveness 65 65 66 82 82 82 70
48.8 47.66 44.73 33.37 36.26 36.02 37.62

Press freedom




115 113





58.78 58.78
1.2 Regulatory environment 69 72 73 77 81 83 77
64.5 63.65 59.78 61.94 62.43 62.2 63.65

Regulatory quality 90 91 93 99 107 108 99
35.1 36.24 32.11 33.59 35.21 36.47 40.68

Rule of law 64 66 61 66 63 64 64
46.5 42 37.76 44.89 45 43.5 45.09

Cost of redundancy dismissal 63 60 64 67 70 73 74
88.2 88.17 84.63 84.63 84.74 84.41 84.41
1.3 Business environment 101 106 121 117 130 128 124
60.9 58.08 51.21 54.11 52.18 46.97 47.73

Ease of starting a business 104 114 114 114 125 129 128
81 75.4 74.31 73.59 68.42 62.74 62.4

Ease of resolving insolvency 95 91 111 110 118 105 104
40.8 40.75 32.75 32.59 32.6 27.12 28.3

Ease of paying taxes

118 109 120 120 118


46.58 56.14 55.53 51.04 52.5
2 Human capital and research 53 56 64 63 103 96 105
33.5 32.8 32.31 32.18 19.98 22.65 21.67
2.1 Education 110 112 114 118 126 128 127
28 27.23 26.66 26.03 26.82 24.2 27.63

Expenditure on education 84 82 84 83 90 109 90
32.2 32.17 32.13 31.94 28.88 19.51 20.88

Government expenditure on education per pupil, secondary 72 65 67 83 82 90 92
24.6 19.68 17.54 15.29 12.89 10.76 16.01

School life expectancy 87 82 89 92 95 91 109
37.6 40.16 43.35 41.62 42.4 43.44 38.06

Assessment in reading, mathematics, and science 71 71 71 62 62 62 69
0
n/a 0 n/a 0 4.4

Pupil-teacher ratio, secondary 104 101 104 103 97 92 108
35.3 33.83 27.26 30.55 46.2 46.18 47.18
2.2 Tertiary education 40 45 68 67 123 122 133
38.4 36.88 34.34 34.14 10.54 11.73 6.52

Tertiary enrolment 86 84 88 87 85 86 94
21.3 21.6 21.88 21.11 20.72 23 16.67

Graduates in science and engineering 7 6 10 8 n/a n/a n/a
66 62.67 57.48 57.48 n/a
n/a

Tertiary level inbound mobility 107 102 102 99 112 106 107
0.4 0.56 0.53 0.49 0.36 0.47 1.74

Gross tertiary outbound enrolment





128






1.16
2.3 Research and development (R&D) 35 32 32 31 44 31 30
34.2 34.29 35.94 36.35 22.58 32.03 30.86

Researchers 77 74 81 77 75
n/a
2.5 2.47 1.75 1.75 1.85
n/a

Gross expenditure on R&D (GERD) 50 52 43 40 42 41 43
13.3 14.37 19.05 18.31 18.93 18.33 16.95

Global R&D companies, average expenditure top 3 15 18 14 20



73.9 70.53 73.96 68.29



QS university ranking average score top 3 universities 21 21 21 20 28 27 27
47.3 49.8 49 57.07 46.97 45.73 44.78
3 Infrastructure 79 77 73 87 87 87 89
43 40.44 44.06 37.03 34.59 32.12 27.49
3.1 Information and communication technologies (ICTs) 75 83 80 86 86 99 96
62.5 50.78 49.15 39.23 38.59 25.88 25.6

ICT access 105 105 106 108 115 111 109
38.5 36 33.2 31.33 30.5 25 24.76

ICT use 106 110 109 107 117 112 110
20.8 16.2 12.5 8.53 6.8 6.5 5.65

Government's online service 9 33 33 57 57 56 55
95.1 74.64 74.64 54.33 54.33 53.59 53.59

Online e-participation 15 27 27 40 40 73 72
95.5 76.27 76.27 62.74 62.75 18.42 18.42
3.2 General infrastructure 42 38 32 52 43 33 46
41.9 46.87 48.46 39.25 38.88 43.08 34.39

Electricity output 92 93 94 91 94 95 97
3.9 3.67 3.51 4.82 4.65 4.08 3.86

Electricity consumption





100






2.52

Logistics performance 43 34 34 52 52 46 46
52.1 62.74 62.74 46.24 46.87 58.33 52

Gross capital formation 17 20 12 18 14 14 9
55.8 60.53 63.78 52.97 52.01 54.94 47.97
3.3 Ecological sustainability 117 119 103 109 117 106 102
24.7 23.69 34.57 32.6 26.28 27.4 22.49

GDP per unit of energy use 62 65 65 63 65 80 78
28 25.52 30.01 24.75 31.09 23.57 24.18

Environmental performance 125 123 108 110 126 128 117
30.6 30.57 53.58 53.58 31.23 31.23 36.23

ISO 14001 environmental certificates 70 68 69 66 70
61
6.2 6.26 5.67 6.31 6.77
7.05
4 Market sophistication 33 36 39 33 72 50 49
56.3 53.44 51.87 50.31 46.54 51.22 49.5
4.1 Credit 57 70 74 78 80 80 76
38.7 34.31 31.73 29.44 28.13 33.35 35.48

Ease of getting credit 20 26 40 39 34 27 22
80 75 65 65 65 81.25 81.3

Domestic credit to private sector 69 68 67 62 64 65 64
22.2 19.91 20.32 19.12 15.91 15.75 22.45

Microfinance institutions' gross loan portfolio 23 35 34 43 50 55 58
13.9 8.03 9.88 4.19 3.48 3.05 2.7
4.2 Investment 37 35 36 30 42 41 24
50.8 50.29 46.87 46.6 44.31 44.25 43.09

Ease of protecting minority investors 6 4 13 8 7 32 49
80 80 73.33 73.33 72.5 63.33 61.5

Market capitalization 20 21 22 21 24 27 33
32.4 32.28 30.93 35.29 41.83 40.06 26.08

Total value of stocks traded


21 25 26 27



30.88 27.05 33.07 28.45

Venture capital deals 30 39 40 32 35 24 20
10.7 8.88 9.88 20.16 7.65 21.44 56.31
4.3 Trade, competition, & market scale 9 16 16 20 104 59 106
79.4 75.72 77 74.9 67.19 76.08 69.92

Applied tariff rate, weighted mean 93 96 100 99 109 113 108
67.6 58.5 63.41 57.25 71.29 71.12 58.15

Market access for non-agricultural exports




89 99





81.52 78.66

Intensity of local competition 70 93 91 96 88 22 32
67.6 62.19 62.49 60.57 63.09 75.83 72.95

Domestic market scale 3 3 3 3



91.2 91.09 91.05 90.89


5 Business sophistication 65 64 55 57 116 93 94
31 30.06 34.57 32.2 26.39 28.02 28.28
5.1 Knowledge workers 99 97 83 86 132 110 95
24.1 22.98 31.26 31.38 13.73 25 37.41

Employment in knowledge-intensive services 91 91





23.9 20.32





Firms offering formal training 38 38 36 42 98 97 96
42.9 42.88 42.88 42.88 16.49 15.26 13.99

GERD performed by business enterprise 49 49 46 45 43 43 42
6.9 7.47 8.03 8.4 8.22 8.65 7.28

Females employed with advanced degrees 103 93





4.1 4.04





GMAT mean score





13






88.64

GMAT test takers




57 56





43.93 60.53
5.2 Innovation linkages 41 41 37 43 52 46 51
33.6 37.44 37.78 36.96 37.33 38.92 30.9

University/industry research collaboration 23 25 23 49 48 43 49
60.1 57.25 58.93 47.85 47.85 50 47.48

State of cluster development 25 30 26 28 25 15 29
60.4 57.1 58.73 55.97 58.38 64.67 54.92

Joint venture/strategic alliance deals 48 52 49 37 51 54 44
14.9 13.06 9.08 14.7 12.18 11.89 17.8

Patent families filed in at least two offices 46 41 43 37 52 84 59
2.7 2.69 3.46 10.32 9.86 3.39 3.39
5.3 Knowledge absorption 56 66 55 66 99 100 122
35.4 29.76 34.68 28.25 28.11 20.15 16.54

Intellectual property payments 29 25 29 32 42 35 61
27.4 29.74 30.26 27.15 22.49 25.43 12.25

High-tech imports 27 51 52 66 70 73 81
34.9 29.21 30.07 26 22.3 23.46 18.91

ICT services imports 62 66 78 70 74 75 97
27.2 19.74 14.69 14.92 20.76 14.71 12.45

Foreign direct investment, net inflows 83 80 87 86 98 89 95
51.8 38.55 49.94 26.39 44.1 19.65 20.39

Research talent in business enterprise 46 45 33 31



31.5 31.53 46.22 46.22


6 Knowledge and technology outputs 32 43 38 43 49 50 37
33.5 30.29 30.31 30.96 30.09 32.2 34.47
6.1 Knowledge creation 42 55 55 57 59 57 53
20.9 15.58 14.2 14.44 15.16 18.37 17.09

Patent applications by origin 52 55 53 54 53 52 55
9 8.2 8.37 9.12 11.84 12.16 8.38

PCT international applications by origin 51 54 54 51 49 59 54
3.3 2.54 2.3 2.45 2.26 7.47 6.95

Scientific and technical publications 77 73 79 77 77 74 76
14.3 13.93 9.02 9.91 10.92 14.15 14.06

Citable documents H index 21 21 21 22 23 24 23
38.9 37.66 37.1 36.29 35.61 39.7 38.96
6.2 Knowledge impact 35 42 30 48 84 87 62
43.4 41.38 40.53 39.27 35.03 34.14 35.71

Growth rate of GDP per person engaged 4 4 5 6 38 24 14
93.4 88.61 85.45 82.13 67.69 72.61 70.75

New business density 100 100 100 101 99 87 99
0.4 0.4 0.68 0.68 0.8 0.82 0.58

Total computer software spending 65 65 66 62 68 74 64
20 19.41 21.33 14.09 14.74
n/a
9.13

ISO 9001 quality certificates 65 67 65 59 57 59 56
9 10.03 7.43 11.48 12.28 14.33 13.52

High-tech and medium high-tech output 33 34 40 36 32 33 31
44.4 41.19 42.82 45.1 46.95 44.46 49.5
6.3 Knowledge diffusion 23 25 26 26 34 24 22
36.1 33.92 36.22 39.16 40.08 44.1 41.93

Intellectual property receipts 50 53 53 45 57 61 83
3.1 3.7 4.82 5.93 14.5 12.31 3.07

High-tech exports 46 44 45 37 39 45 39
16.4 12.83 10.86 13.16 14.78 10.01 14.66

ICT services exports 1 1 1 1 1 1 1
100 100 100 100 100 100 100

Foreign direct investment, net outflows 76 73 76 60 92 64 51
24.8 26.54 32.71 38.36 35.58 49.09 50.01
7 Creative outputs 78 75 100 94 95 82 65
23.5 25.36 20.02 22.51 25.86 28.64 38.65
7.1 Intangible assets 81 85 114 98 101 94 44
37.8 36.81 27.57 34.81 37.94 39.43 48.84

Trademark application class count by origin 79 75 77 72 75 69 55
9.7 13.68 13.19 14.51 13.98 14.48 15.51

Industrial designs by origin 77 76 82 72
72

4.3 3.69 2.25 4.32
0.06

ICTs and business model creation 58 82 102 87 84 39 35
61.1 55.88 49.58 51.47 51.73 63.5 66.52

ICTs and organizational model creation 47 50 118 64 86 38 26
59.6 57.44 32.61 53.71 48.1 60 64.5
7.2 Creative goods and services 66 63 104 72 77 58 53
15.2 22.35 5.7 19.12 17.27 21.05 39.4

Cultural and creative services exports 39 47 65 45 59 65

17.2 7.01 2.42 7.58 5.47 3.99

National feature films produced 60 59 54 54 65 58 63
8 7.9 12.17 10.46 5.92 10.53 24.06

Entertainment and media market 60 61
59 58 58 44
0.5 0.51
0.12 0.2 0.17 24.21

Printing, publications & other media output 88 76
84 84 82 85
8.7 15.97
9.29 9.03 6.58 6.93

Creative goods exports 22 17 88 16 18 13 11
31.7 54.54 4.1 48.55 45.62 59.77 87.14
7.3 Online creativity 76 67 65 101 78 78 105
3.2 5.46 19.24 1.29 10.28 14.65 17.5

Generic top-level domains (gTLDs) 98 97 45 98 104 102 95
0.9 0.9 7.29 1.02 1.15 1.22 1.33

Country-code top-level domains (ccTLDs) 91 88 74 84 92 88 85
0.6 0.62 1.34 0.7 0.75 14.91 14.86

Wikipedia yearly edits 105 105 60 96 102 106 108
0.7 0.65 49.1 1.92 1.92 0.9 0.88

Mobile app creation 42 44





10.7 19.69





Video uploads on YouTube


68 68 58 109



1.53 37.29 41.57 52.95