Cheonggyecheon River is a modern public recreation space in downtown Seoul, South Korea Image Credit: stari4ek/Wikimedia Commons
Just imagine the path to sustainable high growth and what factor comes to your mind first?
But is innovation a standalone factor?
The ability of societies and nations to innovate, in turn, derives its strength from the quality of research and conditions necessary for experimentation and creativity, especially at institutions of higher learning.
So, judging a country in terms of innovation skills of its people needs a look at the level of productivity, registration of patents, quality of education and health of its people – a collective conducive environment, which favors advancement and critical thinking. It’s the very foundation that builds the envisioned future.
Innovation has been a hallmark of developed nations. The United States and before it Britain, France, Germany and Japan have long relied on innovation as a cutting edge tool to make fast-paced progress.
It has only been in recent decades that some new countries have made it to the top of the list among innovative economies.
South Korea has one of the highest graduation rates in the world and has been consistently ranked as the most innovative economy.
According to the 2019 Bloomberg Innovation Index retains its position on top of the list, followed closely by Germany. The U.S. has bounced back to be among top ten after dropping out from the coveted bracket due to its education scenario.
The annual Bloomberg Innovation Index takes into account a series of metrics including research and development spending, manufacturing capability and concentration of high-tech public companies.
Released on the eve of World Economic Forum in Davos, Switzerland, the rankings give some food for thought to world leaders about the way forward at a time when globalization -a movement of people and ideas – faces new challenges in the face of Brexit, growing protectionism and U.S.-China trade wars.
Among large countries, China has made rapid rise on the index, which ranks first 60 countries, and has moved past Britain.
So what makes South Korea so competitive?
Over the past few decades South Korea has developed huge automobile and entertainment industries and also done great in international sports competitions – meaning it has achieved all-round progress.
Half a century ago, South Korea famously studied Pakistan’s economic development model and hired the services of Pakistani economist to make progress. A contrast between the two nations’ current standing on development index speaks volumes about what makes nations move forward.
“Investments in strategic technologies and a regulatory program that encourages startups,” Khoon Goh, head of research at Australia & New Zealand Banking Group Ltd. in Singapore, told Bloomberg.
“Innovation is becoming increasingly important to drive economic performance, particularly in the higher-income Asian economies where there is no longer a demographic dividend and higher value-added manufacturing assembly is being shifted to lower-cost countries in the region,” Goh said, according to the Bloomberg report.
What are the lessons for developing countries?
The quality education, encouragement of creativity and innovation, research and facilitation of new businesses, especially in the fields of science, industrial and information technologies determine the pace and scope of a country’s development.
That means much more spending on human resource development, particularly allocation of resources for education and research.
Much of the conflict-hit Middle East and several countries in Africa and Asia continue to lag far behind on all these indications. In South Asia, India is making some strides but Pakistan still fares far behind its potential with its annual education budget stagnated below the desired level.
The countries in all these regions have one glaring common problem – ineffective governance, which is unable to stem corruption and honor merit and creative thinking.
Together with improving good governance and allocating more resources to education and research, the developing countries should prioritize development plans with a focus on human development. While natural resources are a great gift, they alone cannot bring nations fast-paced development in the era of artificial intelligence and smart planning.
Will the release of rankings serve as a ringing bell for developing nations to improve their governance systems?
