Factors Impacting the Effectiveness of National Innovation: Lessons Learned From the Five Most Innovative Countries in the World

Abstract

Although several studies have examined issues related to national innovation systems (NISs), few have investigated the factors that make some countries more innovative than others. Per the 17th edition of the 2024 Global Innovation Index (GII), the five most innovative countries in the world were Switzerland, Sweden, the United States of America (U.S.), Singapore, and the United Kingdom (U.K.). This study aims to investigate the factors that enabled the above countries to be the most innovative and to identify lessons that can be learned. This study acknowledges that measuring innovation outputs and their outcomes is not easy because the innovation process is multi-faceted; thus, the GII captures the multi-dimensional facets of innovation by assessing the climate, institutions, and infrastructure for innovation and evaluating associated outcomes. This study indicates that although the five countries had the highest overall GII scores, the scores of their seven GII pillars differed. While some performed well in input innovation pillars (e.g., Singapore), others performed well in innovation output pillars (e.g., Switzerland). In addition, their GII rankings, except for Switzerland, fluctuated over the past eleven years (2014-2024), which may indicate that they have strengths and weaknesses. Overall, those countries were able to put in place favorable conditions for most of the seven GII pillars and put innovation at the center of their national agenda. This study also discusses its implications, limitations, and future research directions.