A new report released yesterday ranks Iceland as the world’s innovation hotspot, stealing the crown from the USA.
The annual report released yesterday by INSEAD and the Confederation of Indian Industry sees the US fall from top to 11th and Iceland rise from last year’s 20th place up to first. All five Nordic nations feature in the top ten.
According to Soumitra Dutta, an INSEAD professor of business and technology, who oversaw the survey, the rankings show that size matters – although in this case the smaller the better, Business Week reports.
Dutta theorises that the internet is making a large domestic market less of a deciding factor for innovators to succeed, as the whole world is becoming one marketplace for new ideas. This combined with smaller nations’ ability to unite in supporting policies, institutions, and infrastructure that promote innovation is giving them the leading edge; at least in the West.
All of the Nordic countries, Denmark, Finland, Iceland, Norway and Sweden are in the top ten and the biggest country at the top of the list is the Netherlands (8th) with its 16 million people.
This year’s report, financed by Canon India and released on March 3, evaluates 132 countries. Researchers used data from a number of sources, including the World Economic Forum, the World Bank, and the UN, to gauge innovation inputs—things such as education and business climate—as well as outputs to quantify scientific and creative advances.
Here is the Top 10, with 2009’s rankings in brackets:
1. Iceland (20)
2. Sweden (3)
3. Hong Kong (12)
4. Switzerland (7)
5. Denmark (8)
6. Finland (13)
7. Singapore (5)
8. Netherlands (10)
9. New Zealand (27)
10. Norway (14)
So far so good as there are still those who believes and recognizes in the capabilities of Iceland. Just showing to proved that size does not matter. The smallness in size is compensated by the enduring supporting policies, institutions and infrastructure that promotes innovations through qualifying scientific and creative advances. It is brains and brawns.
With this hopefully, building up trust and confidence is possible and a chance that Iceland sooner than later will rise again.
Nice to see Iceland at number 1 but realistically, any ‘index’ with this much volatility is probably either wildly inaccurate or doesn’t measure much at all.
Have a look at the Methodology they use
http://www.insead.edu/facultyresearch/centres/elab/gii/GII%20Final%200809.pdf
For instance
I – Institutions & Policies: Variables
1.1.01 Starting a business – Time (days)
1.1.02 Dealing with licences – Time (days)
1.1.03 Voice & Accountability
1.1.04 Political Stability
1.1.05 Government Eff ectiveness
1.1.06 Regulatory Quality
1.1.07 Rule of Law
1.1.08 Control of Corruption
1.1.09 Laws relating to ICT
1.1.10 Burden of government regulation
1.1.11 Intellectual property protection
1.1.12 Legal Framework
1.1.13 Soundness of banks
1.1.14 Legacy of innovation
1.1.15 R&D expenditure as a % of GDP
Soundness of the Banks!! Legal Framework!! Burden of government regulation !! Political Stability!!
How can a country that has lost all is banks due to terrible regulatory control, corruption, is soon to have a constitutional crisis, fall of government, falling GDP, national bankruptcy and potentially having a brain drain score highly in these areas??
How can a country that has lost all is banks due to terrible regulatory control, corruption, is soon to have a constitutional crisis, fall of government, falling GDP, national bankruptcy and potentially having a brain drain score highly in these areas??
The answer is in the next appendix, Appendix II Definition & Sources.
The report you linked to was last years, 2008/9. But per that appendix, the data sources were mainly 2007, with a very few 2008 but many more 2005/6.
Add a year onto all those and Iceland still looks good.
Another classic example of why people should step back and consider whether the output makes sense before publishing :) .
ICELAND HAS CUT OFF BY A 70% THE MONEY THEY PUT ON RESEARCH. THE GOVERNMENT FINANCED RESEARCH HAS BEEN REDUCED TO THE HALF. MANY BRAINS HAVE JUST ABANDONED THE COUNTRY, specially foreign EXPERTS. They would think about staying for the sake of helping Iceland, but as their salaries has turned into a MISERY of payment and their research projects have been shut down, the wouldn’t continue to be in a country where they have after all being considered as SECOND CLASS CITIZENS by a punch of REDNECKS AND FARMERS WITH NO EDUCATION AT ALL.
THIS NEW HERE is totally wrong, and we go back again to the SAME HISTORICAL MISTAKE OF ICELANDERS. THEY NEED ANYHOW TO BE AT THE FIRST PLACE.
IN INNOVATION?? HAHAHAHA, I LAUGH TIL MY STOMACH HURTS. Iceland has not ITC innovation industry to talk of, space sciences, nanotechnology, biotechnology, and many other of the innovative industries of the 21st century are not developed, not even present in Iceland. Iceland makes a good work in applying RENEWAL ENERGIES, but they do so because they have no other chance for getting electricity. But for the rest Iceland is about HEAVY INDUSTRY of ALUMINIUM and FISHING. Which are nothing of innovative in the industry chain, but just SUPPLIERS OF RAW MATERIALS AS ALUMINIUM AND FISH. NOTHING ELSE.
The CUTS IN EDUCATION SYSTEM, have destroyed any chance for Iceland to develop innovative technology at similar levels as in any other EU country.
INNOVATION HAS TO BE MEASURED BY ITS PRODUCTS AND WHAT THEY BRING INTO A COUNTRIES ECONOMY. Iceland significant exports are just aluminium, fish and wool. Are they highly innovative products?? NO! they are just RAW OR LOW ELABORATED GOODS. WE ARE NOT TALKING ABOUT NOKIA HERE…
ICELAND NEEDS TO WAKE UP, TO START WITH, BY REALIZING WHAT MODESTY AND REALISM MEANS… Not by inviting an Indian professor that uses to fantasize about everything, loves to come to Iceland, and is an irrelevant figure abroad…
I AM A POSTGRADUATE STUDENT AT ICELANDIC UNIVERSITY AND WE ARE STILL WAITING FOR MONEY TO FUND OUR “INNOVATIVE” PROJECTS. The have been calling the general population to come with “innovative ideas” to reactivate the country’s economy WHILE THEY HAVE BEEN SHUTTING DOWN REAL PROJECTS DEVELOPED BY EXPERTS… YEAH now a farmer is going to come out to be the developer of the last ITC and BIOTECHNOLOGY findings of the world…
hahahaha, what a punch of CLOWNS!!
ROLF!!!
Some people will actually believe it…. )o(
I totally agree with misty. The US falling from 1st to 11th place, Iceland rising from 20th to 1st, New Zealand rising from 27th to 9th – in one year??? Clearly there must be something wrong here. Even considering, in Iceland’s case, that the data sources are pre-kreppa…
Flawed methodology used in this report I’m afraid. The index has been calculated using the criteria mentioned by Peter,but it is much too volatile. Nations simply don’t suddenly become more or less innovative overnight. It requires institutional investment and a sound culture of innovation over a number of years.
A much better benchmark is the number of patents granted per capita. Also the number of new small technology related businesses created per year per capita is not a bad measure (although you should also consider business failure rate too).
Island the world’s most innovative village of the world. It has an innovative muscle of max 300.000 citizens. LOL