Page 12 - Policy_Economic_Report_September2020

Policy and Economic Report:
Oil & Gas Market

How does Switzerland outshine others?

Switzerland has been a high scorer across all seven areas of the index. The country scores particularly high
on R&D expenditure and for having an innovative business sector. It has ranked highly on innovation as
well where it stands second only to the United States. This is thanks to the high-quality of its universities
and scientific publications and the efforts that goes into internationalizing its inventions.

Source: World Economic Forum

How is Innovation Measured?

The index is largely based on two sub-indices indices - the Innovation Input Sub-Index and the Innovation
Output Sub-Index. While the former takes into account the elements of national economies that go into
enabling innovative activities such as research and development, the latter examines the results
generated by these investments. An average of these two is then taken to give the overall score, with each
given equal weighting.

Apart from WIPO, the World Economic Forum's Global Competitiveness Report also looks at the
innovation capability of global economies. In the previous year’s edition, while Germany occupied the top
spot, the US and Switzerland stood at second and third places respectively.

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September 2020