Bloomberg 2019 Innovation Index: Korea secured world’s top position for the six consecutives years

January 22, 2019

Ministry of Economy and Finance

The Republic of Korea

On January 22, Bloomberg announced its 2019 Innovation Index placing Korea on the first position with a score of 87.38. Since 2014, Korea has maintained the world’s top position for the six consecutive years

* Changes in the top 5 nations’ rankings and scores from 2018 to 2019: ②Germany (fourth→second) 87.30, ③Finland (7th→3rd) 85.57, ④ Switzerland (5th→4th) 85.49, ⑤Israel(10→5)

** Major nations: Japan (6th→9th) 81.96, the US (11th→8th) 83.21, China(19th → 116th) 78.35

This is attributable to the Korean government and companies’ R&D investment expansion and continuous push for innovative growth policies despite difficult situations in and outside the country.

* The percentage of Korea’s R&D expenses out of the GDP is 4.55%, highest in the world. The total R&D expenses are the five largest in the world (Korea Institute of Science and Technology Evaluation/Ministry of Science and ICT, 2017)

** Changes in percentage of Korea’s R&D expenses out of GDP(%): 4.29% in 2014, 4.23% in 2015, 4.24% in 2016, 4.55% in 2017

Bloomberg Innovation Index consists of 7 matrixes, comprehensively measuring a nation’s innovative capabilities.

Korea is ranked second in ‘R&D intensity’ and ‘Infrastructure value-added’ and fourth in ‘high technology density’.

The government will make its utmost efforts to produce tangible outcome for innovative growth in the first half of this year.

It will remove uncertainties in investment in the entire economy and push forward with multi-faceted deregulation efforts to revitalize the economy, while developing innovation strategies for key industries, new industries and service industry to improve economic fundamentals.

The ACRC will also continue to strengthen capabilities for innovation based on active communication with the people at the field and discover and promote policies to enhance innovation capabilities.

□ Method to produce Innovation Index: Indices are produced from data of the bellow 7 metrics. All metrics were equally weighted. Nations are scored from 0 to 100

① R&D intensity: Research and Development expenditure (public and private sector), as % GDP

② Manufacturing value-added: Manufacturing value-added, as % GDP and per capita.

③ Productivity: GDP per employed person aged 15 or older (three year improvement included).

④ High-tech density: Number of domestically listed domiciled high tech public companies, as % domestically listed domiciled public companies and as a share of world’s total public high tech companies

⑤ Tertiary efficiency: Total enrolment in tertiary education, as % the post-secondary cohort; annual new science and engineering graduates as % total tertiary graduates and as % the labor force

⑥ Researcher concentration: Professionals, as % engaged in R&D per 1 million people.

⑦ Patent activity: Number of patents granted per 1 million people; number of patents granted per 100 billion dollar GDP; Number of patents by country as a share of world total.