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– Ten years after the global financial crisis, the world economy remains locked in a cycle of slow or steady productivity growth, despite central bank injections of more than $ 10 trillion.
Minapim by Hernan Valenzuela: Research? The world is at a social, environmental and economic tipping point. Moderate growth, rising inequalities, and accelerating climate change provide the context for a backlash against capitalism, globalization, technology, and elites. There is a stalemate in the international governance system and growing geopolitical and trade tensions are fueling uncertainty. This retains investment and increases the risk of supply shocks: disruptions in global supply chains, sudden price spikes, or disruptions in the availability of key resources.
The Global Competitiveness Report 2019 (WEF) reveals an average of 141 economies covered by 61 points. That is almost 40 points below the “border”. It is a particularly worrying global competitiveness gap as the world economy faces the prospect of a slowdown.
While the $ 10 trillion injection by central banks is unprecedented and has managed to avert a deeper recession, it is not enough to catalyze resource allocation for investments in public and private sector productivity improvements.
However, some of this year’s top performers appear to benefit from global trade tensions through trade diversion, including Singapore (1st) and Vietnam (67th), the most improved country in 2019.
The main culprits
Persistent weaknesses in the drivers of productivity growth are among the main culprits. In advanced, emerging and developing economies, productivity growth began to slow in 2000 and to decelerate further after the crisis. Between 2011 and 2016, “total factor productivity growth” – or the combined growth of inputs such as resources, labor, and products – grew by 0.3% in advanced economies and 1.3% in emerging economies. under development.
The financial crisis has increased this slowdown through “productivity hysteresis” – the delayed and lasting effects of investments being undermined by uncertainty, low demand and tighter credit conditions. In addition to strengthening financial system regulations, many of the structural reforms designed to revive productivity promised by policymakers in the midst of the crisis have not materialized.
The cash injection by the world’s top four central banks may even have contributed to diverting more capital to the financial market rather than investments to increase productivity.
Innovation
What makes a country innovative? The excellence of your academic institutions? How much do you spend creating new ideas or willingness to work with a diverse mix of talent? Where is it easier for ideas to become new goods and services?
All of this and more, according to the WEF World Economic Forum’s latest Global Competitiveness Report, which ranks 141 economies in their ability to innovate – one of the 12 pillars that indicate their competitiveness.
Innovative world Ranking 2019
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Germany
Superb in promoting research, collaboration and marketing.
For the second year in a row, Germany retains the title of the most innovative country in the world, leading the ranking in the Global Competitiveness Report’s innovation capacity pillar. Its score is particularly high for research and development – and it has over 290 patent applications per million of the population.
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United States
Their research institutions were the best in the world.
The US, which also ranks second overall in the 2019 Global Competitiveness Index, remains a powerhouse of innovation. He comes first for the prominence of his research institutions and the number of scientific papers he publishes.
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Switzerland
Among the largest number of trademark applications in the world.
Europe’s second most innovative country, Switzerland leads the ranking by having the most qualified workforce to turn its innovations into products. He likes to collaborate – reaching the top of international co-inventions (71.42) per million inhabitants.
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Taiwan, China
Assumes the same position as last year
Taiwan, China, performs well on most indicators of innovation capacity – coming in fourth place for its diverse workforce and third in the number of patent applications per million population.
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Sweden
Employees are viewed as highly collaborative and willing to share ideas.
Like the US, the Sweden works well with others, ranking fourth for international co-inventions per million inhabitants. It also invests in innovation, spending 3.3% of its GDP on research and development.
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South Korea
Research and development spending is high by more than 4 percent of GDP.
Asia’s second most innovative economy, South Korea leads the ranking of sophisticated buyers to much in patent applications and R&D spending.
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Japan
More patent applications per capita than any other country.
Although it ranks seventh overall in innovation, Japan ranks first in the research and development sub-pillar. With over 490 per million population, it has by far the largest number of patent applications in any country among the top 10 in innovation.
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United Kingdom
Home to strong science and research institutions.
The United Kingdom ranks eighth in innovation, with its strongest indicator in scientific publications, for which it earns 1,289 to 150 points higher than the most innovative country, Germany.
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France
A stronger business culture would further enhance innovation.
France performs well in the research and development sub-pillar, ranking third in its research institutions.
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Netherlands
A fast adopter of new technologies and new ways of working.
The Netherlands has improved this year on all indicators of the research and development sub-pillar and ranks third in multi-stakeholder collaboration, an improvement over last year.
Source: WEF
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