The world's most innovative nations lead the way in everything from artificial intelligence (AI) to infrastructure.
Sluggish growth, high inflation, and the lingering effects of the pandemic have all hampered invention to a degree. But forward-thinking countries are still making great strides – and some of the most pioneering places might surprise you.
Read on to discover the Global Innovation Index (GII) 2023's 30 most innovative countries and find out which trailblazing nation takes the #1 spot. The ranking is compiled by the United Nations' World Intellectual Property Organization (WIPO). All dollar amounts in US dollars.
Of the 132 economies covered by the index, Angola is the lowest-scorer, with just 10.3 points. Despite the two nations' historic links, Portugal fares significantly better, with its score of 44.9 securing 30th place on the GII ranking.
Each country's total score is based on its performance in seven areas (and 80 indicators within those). Among them are Institutions, Infrastructure, and Creative Outputs, the three factors that Portugal scores most impressively in.
The country is known for initiatives such as its digital nomad visa and the various tax benefits available to companies carrying out research and development (R&D). Moreover, Portugal has a decent number of unicorns and minicorns – businesses valued at over $1 billion (£796m) and $1 million (£796k) respectively – in relation to its gross domestic product (GDP). The European Central Bank ranks it second on the continent for business innovation.
Scoring 45.9, Spain is fractionally ahead of its neighbour, with its top-rated categories listed as Institutions and Infrastructure.
The country places a strong focus on R&D, with abundant research centres, technology parks, and specialised universities. It's also a world leader in agritech, with only the US and India boasting more companies that operate in this field.
Notable Spanish agritech start-ups include plant-based meat company Novameat and Raw Data Team, which is using AI and Big Data to transform farming.
When it comes to innovation, Cyprus packs an impressive punch – especially as the compact island nation is much smaller than other countries on this list.
Scoring 46.3 in last year's Global Innovation Index, Cyprus is best ranked for the Creative Outputs, Knowledge & Technology Outputs, and Business Sophistication factors.
Cyprus's Education ranking is top-notch, and it's little wonder; Invest Cyprus notes that the country boasts 11 public and private universities and 40 higher education institutions. All that for a population of just 1.25 million.
The Cypriot government's Business Attraction Strategy is luring in a wealth of talented professionals from around the world, with the nation home to more than its fair share of dynamic start-ups. Among them are mobile games developers, AI firms, and fintech companies, including PumaPay, ZoidPay, and Finery Markets.
New Zealand scores best for the Institutions factor but falls short on Knowledge & Technology Outputs.
According to the GII, the nation is the world leader for its low-cost redundancy dismissals, scoring second place for both operational stability for businesses and school life expectancy, which bodes well for the future.
The nation's most innovative legacy companies include ANZ Bank and Air New Zealand. New Zealand is also home to plenty of exciting start-ups, with AI avatar firm Soul Machines and blockchain company Centrality among the ones to watch.
With its high levels of corruption and organised crime, it's no huge surprise that Italy's scores are pretty lacklustre across the board, with Institutions its lowest-scoring factor in a lowly 52nd place.
The GII ranks the country most highly for Knowledge & Technology Outputs, although at position #18, even that's not particularly impressive.
On the brighter side, Italy has 105,000 tech companies and Europe's fastest-growing life science sector, according to official government documents. The same literature also notes that the country is a "leader in renewable energy, the pharmaceutical industry, and robotics".
Another small island nation that ranks high for innovation, Malta gets it right in many ways, though the country scores pretty low for Market Sophistication, Knowledge & Technology Outputs, and Human Capital & Research.
The Maltese government is fostering innovation with a multi-pronged approach. Recently described by the Times of Malta as “Europe's equivalent of a Silicon Valley”, the country has been doing everything from embracing cryptocurrency to awarding generous grants and residency programmes to talented entrepreneurs.
Australia's forte is its Human Capital and Research, and the country is placed seventh globally by this metric. Even more impressively, the nation – home to world-class universities and admired research institutions – is joint top in the world for school life expectancy.
The only issue? The country isn't great at commercialising the fruits of its outstanding research. The Australian government is all too aware of the issue and is investing $1.3 billion (£1bn) over the next decade to help kickstart the process.
Belgium ranks best for Business Sophistication, with the country rated exceptionally high for the sizeable amounts of money its companies spend on R&D. Other strong areas include Human Capital & Research and Knowledge & Technology Outputs.
While Belgium's Infrastructure placement (it ranks 44th in this category) could do with some improvement, the country is still an excellent place for innovation. This is reflected in the large number of foreign doctoral students Belgium attracts and the growth in business process innovations among small and medium-sized firms.
The Eurozone's fastest-growing economy ranks well for Institutions, Business Sophistication, and Knowledge & Technology Outputs.
Long renowned for its creativity, Ireland is home to the headquarters and key outposts of some of the world's principal tech companies, including Google, Apple, and Amazon. The Emerald Isle has also emerged as a global pharmaceuticals and medtech leader.
Its big weakness, however, is funding. Finance for start-ups is less readily available in Ireland than in many other countries, although the government is working to remedy this through the seed funder, Enterprise Ireland.
Tiny Luxembourg outperforms many larger nations in terms of innovation. It scores joint top in the world for knowledge-intensive employment, and IT services imports and intellectual property payments as a proportion of GDP.
Luxembourg has a high number of unicorns and is also a magnet for foreign doctoral students, with the country run by a pro-business and pro-innovation government (its Luxinnovation national innovation agency offers much support).
One area for improvement? Its R&D spending could be higher.
Classified by the EU as a "strong innovator", Iceland takes the 20th spot in the WIPO index – and for good reason.
Finance can be less than forthcoming, but Iceland is ranked the highest in the world for venture capitalist funding recipients in relation to GDP.
It's also in the top position for feature films and top-level internet domains per capita, among others. Noteworthy Icelandic start-ups include green tech firms IceWind and Laki Power, with Iceland long regarded as a leader in sustainability, as well as the fintech firm Indo and e-mobility company Hopp.
Norway's innovative prowess is formidable, although the nation doesn't fare as well in the rankings as its Nordic neighbours Finland, Sweden, and Denmark.
In terms of the GII factors, Norway pulls in high scores for Institutions and Infrastructure, while other bonuses include its highly educated and skilled workforce. As is the case with Iceland, Norway is noted for its green tech industry. The weaker areas are the country's tariffs, which disincentivise trade, and the comparatively low number of tech exports.
Austria was hailed an Innovation Champion at last year's Consumer Electronics Show (CES) in Las Vegas.
The country's government is putting a strong focus on innovation and is working to improve digital infrastructure, tweak the regulatory framework, and engage in other action-stimulating activities to nurture ingenuity. High on the agenda are digital humanism and ethical AI.
Its total R&D spending is substantial, but some areas could be improved, including the relatively low volume of venture capitalist investments. Top Austrian start-ups include virtual learning firm GoStudent and digital asset exchange Bitpanda.
Hong Kong has long been lauded for its innovation. China's special administrative region is a stellar place to create and do business, and it's received high ratings in the GII in acknowledgement of its ease of funding, creative goods exports, and the global value of its brands.
Hong Kong isn't perfect, though, and scores less well across indicators ranging from tech exports to education expenditure.
Its most innovative companies include veterans like HSBC Hong Kong and newcomers such as fintech disrupter WeLab Bank and logistics company Lalamove.
Estonia's reputation as a hotbed of tech innovation is not to be sniffed at. Despite its modest size, the country has birthed a disproportionate number of game-changing tech companies and innovations in recent years, ranging from Skype to money-sending platform Wise.
Government policies promoting entrepreneurship and a top-tier digital infrastructure have made the country very appealing to foreign investors, who have flooded its businesses with money.
Education in the Baltic state is the only real stumbling block, with ratings for higher education and university R&D on the low side.
Conversely, Canada scores well for Human Capital & Research, which covers education, with a global ranking of 10th. Infrastructure seems to be its Achilles heel, although that's arguably to be expected – much of the vast country is sparsely populated.
Venture capitalist deals are abundant in Canada and credit is easy for businesses to come by. This is reflected in the multitude of globally successful Canadian start-ups, such as Shopify, Wave, and Kik Interactive.
The war with Hamas is unsurprisingly impacting innovation in Israel, with funding issues for start-ups among the many repercussions.
In relation to its GDP, it spends more than any other country on R&D. Funding is a cinch to secure and venture capitalist investment is robust, so it's little wonder that Israel had the largest number of unicorns in relation to its GDP in 2022.
On the downside, Institutions is Israel's lowest-ranking area, with its cost of redundancy dismissal indicator ranked at #114 in the world.
Over the years, Japan has brought the world laptops, camera phones, hybrid vehicles, and countless other inventions that have changed the way we live.
Once sitting in pole position on the GII, the country has slipped down the global rankings in recent years, with its economy stagnating. But it still has much to offer in 2024. While some of the indicators within Infrastructure could certainly do with an update and foreign investment is low, Japan's government and banks are in favour of start-ups.
R&D spending is deep-pocketed, and the country counted 289,530 patent applications in 2022. Only the US and China filed more.
China has been accused of wholesale intellectual property theft, corruption is relatively widespread, and the government's extensive involvement in businesses can stifle innovation. But despite the negatives, China still scores well in the GII.
Creative goods exports continue to flourish, and the country had the world's highest volume of trademark applications in 2022.
Chinese startups such as TikTok, Alibaba, and Shein are global household names, and China is a leader in renewable energy, electric cars, AI, and other modern innovations.
France has climbed the rankings in recent years. This is partly a result of President Macron's drive to create a "start-up nation", which involves the government pumping $33 billion (£26bn) into innovation investment.
France scores best for its Creative Outputs (for which it's ranked #6 globally) and Market Sophistication (#9). But it doesn't do well when it comes to Institutions (#27), with government assistance seemingly lacking despite Macron's support.
Innovation is a crucial driver of the South Korean economy. It produces more semiconductors than any other country apart from Taiwan. Homegrown tech firms such as Samsung fuel much of the invention, while South Korea has the second-highest R&D spending as a proportion of GDP in the world. R&D is actually the nation's strongest-scoring area in the WIPO index, where it takes the global top spot.
However, investment can be tricky to come by, one of South Korea's few innovation-related weaknesses. That said, the country scores highly for many key indicators, from number of patents to education spending.
Denmark is perceived as being the least corrupt country in the world, according to Transparency International's 2022 Corruption Perceptions Index. This reassuringly upstanding environment is highly conducive to innovation.
As well as bagging a strong score for its Institutions, Denmark has an exceptional rating for Infrastructure and, as the European Commission has highlighted, the country leads on innovation thanks to its "open, excellent and attractive research systems, linkages and entrepreneurship, and intellectual assets".
Denmark is a haven for burgeoning firms, with around 950 experiential tech (XTech) start-ups alone.
Germany's engineering ingenuity has been instrumental in making the country one of the world's biggest and most advanced manufacturers.
While its Infrastructure score isn't a particular standout, R&D spending in Germany is bountiful and the nation is excellently rated for Creative Outputs and Knowledge & Technology Outputs.
Giant German multinationals such as Volkswagen Group, Bosch, and BASF continue to invent wow-factor technology, while start-ups in AI, fintech, renewable energy, and other futuristic fields are blossoming.
The Dutch government goes all out to encourage innovation, with start-ups supported via tax credits and grants.
Offering an open and uplifting environment, the country is now among the world's chief producers of high-tech products and is regarded as a global leader in nanotechnology. It's also home to ASML, the world's largest supplier for the semiconductor industry.
The Netherlands' legacy companies are just as innovative as its start-ups, with the venerable Amsterdam-based Philips one of the first businesses in the world to launch a lights-out robot-operated factory.
Similarly, the Finnish state is working hard to empower innovation, with comprehensive support available for research projects and start-ups.
Infrastructure is rated number one in the world, which makes sense as Finland was the first country to deploy 5G. Finland has also become a leader in health and green tech, and the nation has more digital start-ups per capita than any other. The hall of fame includes Angry Birds video game creator Rovio, food delivery service Wolt, and music instrument learning app Yousician.
Singapore entered the top five of the GII last year. The city-state has the most pro-innovation institutions in the world, with government stability, effectiveness, and support all consistently dependable.
The government helps develop start-ups through schemes such as Enterprise Singapore's Startup SG, and is renowned for its eagerness in adopting new technologies, making for a cutting-edge Infrastructure rank.
Other strong points include Singapore's highly educated and skilled workforce, finely tuned high-tech manufacturing and abundant venture capital.
British inventions have had an unfathomable impact on the world, and the UK continues to help shape the future.
A sterling innovation all-rounder, the UK has well-funded globally acclaimed universities and research institutions, ranging from the universities of Oxford and Cambridge to the London-based Francis Crick Institute.
It also offers lavish tax breaks for R&D business expenditure and boasts solid scores across the Creative Outputs indicators. Innovation success stories from the UK include Deliveroo and online banks Monzo and Revolut.
America is an innovation superstar and leads the index in 15 of the 80 indicators. The nation's many claims to fame include being the home of Harvard, the world's top university for science, and copious distinguished research institutions.
America is the global number one for corporate R&D investment and, unsurprisingly, has more billion-dollar unicorns than any other country. Its tech titans, including Apple, Microsoft, and Alphabet, dominate the global sector.
The country also leads the way in AI, medical research, and various other technologies. The only real drawback is its infrastructure, which is lacking in some areas.
Sweden has no such issues, with its Infrastructure factor ranked second in the world by the GII.
The Scandi nation has many other attributes that make it a locus of awe-inspiring innovation. Education is almost matchless, with its working population among the most highly qualified and skilled on the planet. The country's R&D is prioritised by the government, though entrepreneurship policies could be improved.
Start-ups thrive nonetheless and Sweden has incubated some major names in recent years, including Spotify and Klarna.
Switzerland topped WIPO's index for the 13th year running in 2023, with the wealthy nation perfectly geared towards innovation.
Government policies are extra-favourable for doing business and R&D spending is substantial. The nation ranks top for both Knowledge & Technology and Creative Outputs, ranking particularly well for patents and intellectual property receipts.
Medtech and pharmaceuticals are among Switzerland's strengths, and its many unicorns in these fields have included neurotherapeutics start-up MindMaze, AI medical software maker SOPHiA GENETICS, and biotech firm Actelion, with the latter now owned by Johnson & Johnson.
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