South Korea again took first place in the Bloomberg Innovation Index, while the U.S. dropped out of the top 10 for the first time since the gauge began.
Bloomberg has been publishing its innovation index for six years, scoring countries across seven equally weighted categories:
- Research and development intensity
- Manufacturing value-added
- High-tech density
- Tertiary efficiency
- Researcher concentration
- Patent activity
The U.S. dropped to 11th place this year, in part due to losses in the education-efficiency category, which measures the share of new science and engineering graduates in the labor force. And while American productivity increased, the U.S. was also docked points in value-added manufacturing, defined as the balance between inputs in the manufacturing process and the value of what results.
“I see no evidence to suggest that this trend will not continue,” said Robert D. Atkinson, president of the Information Technology & Innovation Foundation in Washington, D.C., to Bloomberg. “Other nations have responded with smart, well-funded innovation policies like better R&D tax incentives, more government funding for research, more funding for technology commercialization initiatives.”
While the U.S. dropped rank, South Korea maintained its first-place slot on Bloomberg’s innovation index for the fifth year in a row. What …