Switzerland: Lessons from the innovation leader
Switzerland retains its position at the top spot with a consistent and impressive performance and an exceptional innovation ecosystem. Over 14 consecutive years, Switzerland has dominated as the world leader in innovation because of substantial and competitive investment in research and development.
Published: 04:02 PM,Feb 16,2025 | EDITED : 08:02 PM,Feb 16,2025
According to some famous researchers, innovation is the capacity to respond to change in an external environment and the ability to shape and influence it. Innovation is decisively the most powerful tool for stimulating economic growth and improving people's living standards in the long term. The Global Innovation Index (GII) was started in 2007 by INSEAD and the British Magazine World Business.
GII is published by the World Intellectual Property Organization (WIPO). GII ranks 133 countries on 81 indicators divided into two sub-sections: innovation input (factors enabling innovation, such as institutions, human capital, infrastructure, market sophistication, and business sophistication) and innovation output (results of innovation activities, including knowledge creation and creative outputs). GII measures innovation metrics based on political, educational, knowledge creation, and economic infrastructure indicators.
The top five countries for 2024 are Switzerland, Sweden, the USA, Singapore, and the UK. Switzerland retains its position at the top spot with a consistent and impressive performance and an exceptional innovation ecosystem. Over 14 consecutive years, Switzerland has dominated as the world leader in innovation because of substantial and competitive investment in research and development.
The first factor contributing to its exceptional innovation ecosystem is that Switzerland spends 3.4% of its GDP on R&D, which ranks highest among the G7 countries. Some countries spend a higher percentage of their GDP on investment in R&D, like South Korea, 4.9%; the USA, 3.5%; and Israel, 5.6%, but still, interestingly, Switzerland is the global leader in innovation. Emerging countries like India and China are steadily increasing investments in research and development. In Switzerland, the innovation is primarily driven by the private sector.
The second factor is that Switzerland has world-class education and talent, with renowned universities like ETH Zurich and EPFL to harness talent and foster innovation and creativity. These facilities boast of high research potential and contribute to making Switzerland one of the world's most prolific countries. It stands strong with 8.8 scientific publications per thousand inhabitants.
They also have a high innovation density relative to population size. With patent filing surpassing 1000 applicants annually, it also occupies the top position regarding quality, Scopus publications, and citation frequency.
The third contributing factor is the public and private collaborations, a hallmark of Swiss innovations. The Swiss innovation agency Innosuisse promotes cooperation between science and the market through innovation projects, networking, training, and coaching. The interdisciplinary collaboration between science and industry is the backbone of Switzerland’s innovation. Innosuisse has an annual funding budget of around 200 million Swiss francs.
The fourth factor is the business-friendly and stable political ecosystem with strong IP laws to ensure and safeguard entrepreneurship and innovations. The Swiss legal system, both stable and liberal, offers substantial protection for intellectual property and a high degree of investment security for R&D activities. It is also a member of all the crucial intellectual IP treaties and organizations.
The fifth factor contributing to their leadership in innovation is that Switzerland has strong global connectivity because of its central location with markets and innovation hubs. This serves a two-purpose advantage: first, Switzerland has become the choice of destination for startups, and it serves as a gateway for international trade and collaboration.
Our planet, economy, and society require innovation to improve the lives of 8 billion (the number grows with time) people and for the sustainability of natural environments. Switzerland's unparalleled success in innovation exemplifies the nation's holistic approach and supportive policies. Other countries must develop strategies integrating education, research, and industry collaborations.
They must also develop regulatory, infrastructural, and workforce competencies by crafting unique strategies for their specific environmental contexts to improve innovation and drive home sustainable growth.
The author is an assistant professor at the marketing and management department of the College of Banking and Financial Studies in Muscat.
GII is published by the World Intellectual Property Organization (WIPO). GII ranks 133 countries on 81 indicators divided into two sub-sections: innovation input (factors enabling innovation, such as institutions, human capital, infrastructure, market sophistication, and business sophistication) and innovation output (results of innovation activities, including knowledge creation and creative outputs). GII measures innovation metrics based on political, educational, knowledge creation, and economic infrastructure indicators.
The top five countries for 2024 are Switzerland, Sweden, the USA, Singapore, and the UK. Switzerland retains its position at the top spot with a consistent and impressive performance and an exceptional innovation ecosystem. Over 14 consecutive years, Switzerland has dominated as the world leader in innovation because of substantial and competitive investment in research and development.
The first factor contributing to its exceptional innovation ecosystem is that Switzerland spends 3.4% of its GDP on R&D, which ranks highest among the G7 countries. Some countries spend a higher percentage of their GDP on investment in R&D, like South Korea, 4.9%; the USA, 3.5%; and Israel, 5.6%, but still, interestingly, Switzerland is the global leader in innovation. Emerging countries like India and China are steadily increasing investments in research and development. In Switzerland, the innovation is primarily driven by the private sector.
The second factor is that Switzerland has world-class education and talent, with renowned universities like ETH Zurich and EPFL to harness talent and foster innovation and creativity. These facilities boast of high research potential and contribute to making Switzerland one of the world's most prolific countries. It stands strong with 8.8 scientific publications per thousand inhabitants.
They also have a high innovation density relative to population size. With patent filing surpassing 1000 applicants annually, it also occupies the top position regarding quality, Scopus publications, and citation frequency.
The third contributing factor is the public and private collaborations, a hallmark of Swiss innovations. The Swiss innovation agency Innosuisse promotes cooperation between science and the market through innovation projects, networking, training, and coaching. The interdisciplinary collaboration between science and industry is the backbone of Switzerland’s innovation. Innosuisse has an annual funding budget of around 200 million Swiss francs.
The fourth factor is the business-friendly and stable political ecosystem with strong IP laws to ensure and safeguard entrepreneurship and innovations. The Swiss legal system, both stable and liberal, offers substantial protection for intellectual property and a high degree of investment security for R&D activities. It is also a member of all the crucial intellectual IP treaties and organizations.
The fifth factor contributing to their leadership in innovation is that Switzerland has strong global connectivity because of its central location with markets and innovation hubs. This serves a two-purpose advantage: first, Switzerland has become the choice of destination for startups, and it serves as a gateway for international trade and collaboration.
Our planet, economy, and society require innovation to improve the lives of 8 billion (the number grows with time) people and for the sustainability of natural environments. Switzerland's unparalleled success in innovation exemplifies the nation's holistic approach and supportive policies. Other countries must develop strategies integrating education, research, and industry collaborations.
They must also develop regulatory, infrastructural, and workforce competencies by crafting unique strategies for their specific environmental contexts to improve innovation and drive home sustainable growth.
The author is an assistant professor at the marketing and management department of the College of Banking and Financial Studies in Muscat.