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It’s the first time the U.S. has fallen off the top 10 list since Bloomberg began its index.
23 January, 2018
<p></p><p dir="ltr">South Korea again took first place in the <a href="https://www.bloomberg.com/technology" target="_blank">Bloomberg Innovation Index</a>, while the U.S. dropped out of the top 10 for the first time since the gauge began.</p> <p></p><p dir="ltr"><span>Bloomberg has been publishing its innovation index for six years, scoring countries across seven equally weighted categories:</span></p> <p></p><ul class="ee-ul"> </ul><p></p><li>Research and development intensity</li> <p></p><li>Manufacturing value-added</li> <p></p><li>Productivity</li> <p></p><li>High-tech density</li> <p></p><li>Tertiary efficiency</li> <p></p><li>Researcher concentration</li> <p></p><li>Patent activity</li> <p></p> <p></p><p>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.</p> <p></p><ul class="ee-ul"> </ul><p></p> <p></p><p dir="ltr">“I see no evidence to suggest that this trend will not continue,” <a href="https://www.bloomberg.com/news/articles/2018-01-22/south-korea-tops-global-innovation-ranking-again-as-u-s-falls" target="_blank">said Robert D. Atkinson</a>, 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.”</p> <p></p><p dir="ltr"><span><br></span></p> <p></p><p dir="ltr"><img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xODI0MTA0OC9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTY2ODcxMDMzMX0.Zd5vPTceRoqOYG1HZ9k-8oDjaFfWzNkYXUEDqe9OS5E/img.png?width=980" id="caf8d" class="rm-shortcode" data-rm-shortcode-id="a06a936552d4e8b986e83569c15d061b" data-rm-shortcode-name="rebelmouse-image"></p> <p></p><p dir="ltr"><span>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. <span id="docs-internal-guid-80a4ac58-2417-761a-dd91-0f384a4e3d1e"><span>What accounts for the East Asia nation’s dominance?</span></span></span></p> <p></p><p dir="ltr"><span>For one, it’s necessary to understand just how radical the country’s economic transformation has been since the Korean War.</span></p> <p></p><p dir="ltr">In the 1960s, South Korea was an agricultural-based society and one of poorest nations in the world. But thanks in part to national emphasis on increasing low-cost manufacturing exports, the evolution of Korean conglomerates like Samsung, and heavy investing into research and development, South Korea is now a global leader in innovation and the world’s 11th largest economy.</p> <p></p><p dir="ltr"><span>“Korea has had to make its own path in a region where it competes with China's low labor costs, and Japan's high-tech, capital-intensive industries. Spending more on R&D than any other economy not only reflects a domestic consumer base with a high demand for new technological developments, but also the government's objective to build a creative economy,” Kyle Ferrier, Director of Academic Affairs and Research at the Korea Economic Institute of America (KEI), </span><a href="http://www.dw.com/en/why-innovation-is-king-in-south-korea/a-19038625"><span>told</span></a><span> the German broadcaster DW.</span></p> <p></p><p dir="ltr"><span>Other notable changes from the previous year include Singapore jumping from sixth to third place, Sweden retaining its second-place slot, and Japan rising one spot to sixth. Check out other past-year changes below:</span></p> <p></p><p><img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xODI0MTA0OS9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTY0NTU0MTMzMn0.uGwdzhOdYOPMaFv39-uqnMpg0st9_tYd2K1THCuVHN4/img.png?width=980" id="071ea" class="rm-shortcode" data-rm-shortcode-id="8d37b7c427e3fca8a9ae540dc22738d6" data-rm-shortcode-name="rebelmouse-image"></p> <p></p><p> </p> <p></p><div class="video-full-card-placeholder" data-slug="what-is-driving-todays-innovation-explosion" style="border: 1px solid #ccc;"> <div class="rm-shortcode" data-media_id="AarWonYF" data-player_id="FvQKszTI" data-rm-shortcode-id="cce6f433cf5f1725dfa069dae6ad3f1f"> <div id="botr_AarWonYF_FvQKszTI_div" class="jwplayer-media" data-jwplayer-video-src="https://content.jwplatform.com/players/AarWonYF-FvQKszTI.js"> <img src="https://cdn.jwplayer.com/thumbs/AarWonYF-1920.jpg" class="jwplayer-media-preview"> </div> <script src="https://content.jwplatform.com/players/AarWonYF-FvQKszTI.js"></script> </div> </div> <p></p><p> </p>
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