South Korea pips Germany to be world’s most innovative economy

South Korea has retained its position as the world’s most innovative economy, according to Bloomberg’s Innovation Index.

But second-placed Germany rose two places in the list with a total score of 87.30 – just 0.08 points off the top – resulting in what Bloomberg described as “near-parity” at the top of the annual innovation ranking.

Finland, Switzerland and Israel, which rose more places than any other economy in the top 25, round off the top five.

Bloomberg economist Tom Orlik said: “The battle for control of the global economy in the 21st century will be won and lost over control of innovative technologies. Korea’s number one spot and China’s shift up the rankings is a reminder that the US trade war might slow but won’t stop Asia’s technological rise.”

The US and China both climbed by three places – into eighth and 16th place respectively – despite their escalating tensions.

Sweden, second-placed in last year’s Innovation Index, fell by five places but still retains a respectable seventh place in this year’s list. All four continental Scandinavian economies – Finland, Sweden, Denmark and Norway – are unsurprisingly dominant in the top 20. Iceland appears at 23.

The index – scored against various criteria including R&D intensity, productivity, tertiary efficiency and patent activity – underscores the importance of investing in innovation as the food industry faces down further pressures, as FoodBev explores in the latest issue of FoodBev magazine.

In particular, a number of companies including ADM, Tate & Lyle, Mondelēz International, Tereos and AAK have all invested in the last year alone in research or innovation activity in low-tax, high-tech Singapore – sixth-placed on Bloomberg’s list.

After Sweden in 7th and the US in 8th, France and Japan complete the remainder of the top ten.