1

Switzerland ranks 1st among the 39 economies in Europe. 1st

SWITZERLAND

The Global Innovation Index (GII) is a ranking of world economies based on innovation capabilities.

Consisting of roughly 80 indicators, grouped into innovation inputs and outputs, the GII aims to capture

the multi-dimensional facets of innovation.

Switzerland remains the world’s leader in innovation, ranking first in the GII for the ninth consecutive

year. It is ranked 1st in the Innovation Output Sub-Index and in the Knowledge and technology output

pillar since 2012. It is world leader in several key innovation indicators, including PCT patent applications

by origin and IP receipts (page 7). In quality of innovation, Switzerland is ranked 4th.

The following table shows the rankings of Switzerland over the past three years, noting that data

availability and the GII model influence year-on-year comparisons of the GII ranks.

Switzerland’s GII Rankings, 2017 - 2019

GII Innovation

Inputs

Innovation

Outputs

2019 1 2 1

2018 1 2 1

2017 1 3 1

• Switzerland performs better in Innovation Outputs than Inputs.

• This year Switzerland ranks 2nd in Innovation Inputs, the same rank as in 2018 and a better rank

compared to 2017.

• As for Innovation Outputs, Switzerland ranks 1st.

Switzerland ranks 1st among the 50 high-income economies. 1st

Switzerland ranks 1st among the 129 economies featured in the GII 2019. 1st

2

EXPECTED VS. OBSERVED INNOVATION PERFORMANCE

The bubble chart below shows the relationship between income levels (GDP per capita) and innovation

performance (GII score). The trend line gives an indication of the expected innovation performance

according to income level. Economies appearing above the trend line are performing better than

expected and those below are considered Innovation under-performers relative to GDP.

Relative to GDP, Switzerland performs well above its expected level of development.

GII scores and GDP per capita in PPP US$

(bubbles sized by population)

3

EFFECTIVELY TRANSLATING INNOVATION INVESTMENTS INTO

INNOVATION OUTPUTS

The chart below shows the relationship between innovation inputs and innovation outputs, indicating

which economies best translate innovation inputs into innovation outputs. Economies appearing above

the line are effectively translating their costly innovation investments into more and higher-quality

outputs. In contrast, those below the line are not effectively translating innovation inputs into outputs.

As the figure shows, Switzerland produces more innovation outputs relative to its level of innovation

investments.

4

BENCHMARKING SWITZERLAND TO OTHER HIGH-INCOME

ECONOMIES AND THE EUROPE REGION

Switzerland’s scores in the seven GII pillars

High-income economies

Switzerland has high scores in all GII pillars, which are above the average of the high-income group.

Europe Region

Compared to other economies in Europe, Switzerland performs above average in all GII pillars.

Top ranks are found in areas such as Political environment, Ecological sustainability, Knowledge workers,

Innovation linkages, Knowledge absorption, Knowledge creation, and Knowledge diffusion, where the

country ranks in the top 3 worldwide.

5

OVERVIEW OF SWITZERLAND’S RANKINGS IN THE 7 GII AREAS

Switzerland performs the best in Creative outputs, and Knowledge & technology outputs. Its weakest

performance is in Institutions.

12

7

7

3

2

1

1

1

Institutions

Human capital & research

Market sophistication

Infrastructure

Business sophistication

Global Innovation Index 2019

Knowledge & technology outputs

Creative outputs

*The highest possible rank in each pillar is 1.

SWITZERLAND’S INNOVATION STRENGTHS AND WEAKNESSES The table below gives an overview of Switzerland’s strengths and weaknesses in the GII 2019.

Strengths

Code Indicator name Rank

1.1 Political environment 2

1.1.2 Government effectiveness* 2

2.3.3 Global R&D companies, top 3, in mn US$ 3

3 Infrastructure 3

3.1.2 ICT use* 2

3.3 Ecological sustainability 3

3.3.2 Environmental performance* 1

4.2.2 Market capitalization, % GDP 1

5 Business sophistication 2

5.1 Knowledge workers 3

5.1.1 Knowledge-intensive employment, % 3

5.2 Innovation linkages 3

5.2.1 University/industry research collaboration† 3

5.2.2 State of cluster development† 3

5.3 Knowledge absorption 3

5.3.3 ICT services imports, % total trade 1

6 Knowledge & technology outputs 1

6.1 Knowledge creation 1

6.1.2 PCT patents by origin/bn PPP$ GDP 1

6.1.4 Scientific & technical articles/bn PPP$ GDP 3

6.2.3 Computer software spending, % GDP 3

6.2.5 High- & medium-high-tech manufactures, % 3

6.3 Knowledge diffusion 3

6.3.1 Intellectual property receipts, % total trade 1

6.3.4 FDI net outflows, % GDP, 3-year average 1

7 Creative outputs 1

7.1.3 ICTs & business model creation† 1

7.2.3 Entertainment & Media market/th pop. 15–69 2

7.3.2 Country-code TLDs/th pop. 15–69 1

Weaknesses

Code Indicator name Rank

1.3.1 Ease of starting a business* 62

2.1.1 Expenditure on education, % GDP 44

2.2.1 Tertiary enrolment, % gross 49

3.2.3 Gross capital formation, % GDP 55

4.1.1 Ease of getting credit* 66

4.2.1 Ease of protecting minority investors* 93

5.2.3 GERD financed by abroad, % 41

5.3.2 High-tech imports, % total trade 90

6.2.1 Growth rate of PPP$ GDP/worker, %, 3-year average

66

7.2.4 Printing & other media, % manufacturing 50

6

STRENGTHS

• Most of the relative strengths for Switzerland are located in the pillar Knowledge & technology

outputs (1), which itself is a relative strength.

• In Knowledge & technology outputs (1), Switzerland shows strong performance in two of its three

sub-pillars - Knowledge creation (1) and Knowledge diffusion (3) - and in indicators PCT patents

by origin (1), Scientific & technical articles (3), Computer software spending (3), High- & medium-

high-tech manufactures (3), IP receipts (1), and FDI outflows (1).

• The pillar Creative outputs (1) is another relative strength for the country. In this pillar, Switzerland

exhibits strengths in indicators ICTs & business model creation (1), Entertainment & Media market

(2), and Country-code TLDs (1).

• In innovation inputs, Business sophistication (2) is the best-ranked innovation input pillar and the

only input area identified as a relative strength.

• In Business sophistication (2), Switzerland exhibits strengths in all its three sub-pillars -

Knowledge workers (3), Innovation linkages (3), and Knowledge absorption (3) - and in indicators

Knowledge-intensive employment (3), University/industry research collaboration (3), State of

cluster development (3), and ICT services imports (1).

• Other innovation strengths for Switzerland are scattered across the other four GII input pillars.

These include indicators Government effectiveness (2), Global R&D companies’ expenditures (3),

Environmental performance (1) and Market capitalization (1).

WEAKNESSES

• Switzerland’s weaknesses are relatively few. These are present in all seven GII pillars but are

mostly concentrated among innovation inputs.

• In Human capital & research (7), the indicators Expenditure on education (44) and Tertiary

enrolment (49) are relative weaknesses.

• In Business sophistication (2), Switzerland exhibits weaknesses in R&D financed by abroad (41)

and High-tech imports (90).

• Market sophistication (7) presents other two relative weaknesses - Ease of getting credit (66) and

Ease of protecting minority investors (93).

• Among innovation inputs, the indicators Ease of starting a business (62) and Gross capital

formation (55) are also relative weaknesses.

• On innovation outputs, Switzerland exhibits relative weaknesses in only two indicators: Labor

productivity growth (66) and Printing & other media (50).

BUSINESS SOPHISTICATION..……….……………

HUMAN CAPITAL & RESEARCH………………...

INSTITUTIONS………………………………….…….…..

Government funding/pupil, secondary, % GDP/cap…

GERD financed by abroad, %.........................................

Innovation linkages…………..……………………………………..

GERD performed by business, % GDP…………………..……

New businesses/th pop. 15-64………………….…....………….

ISO 9001 quality certificates/bn PPP$ GDP…………..……

Computer software spending, % GDP…………..……………

Growth rate of PPP$ GDP/worker, %……………..…....…….

Trade, competition, & market scale………..…………….

Intensity of local competition†……………………………………

National feature films/mn pop. 15-69………………….………

Industrial designs by origin/bn PPP$ GDP…………..……..

Intangible assets…………………………………….………………..

Gross capital formation, % GDP………………………….…….

Electricity output, kWh/mn pop………………………..…….

5.2.5

Females employed w/advanced degrees, %……………..

Intellectual property receipts, % total trade……………….

FDI net outflows, % GDP…………………………….…………....... ICT services exports, % total trade……………..……..………

Entertainment & Media market/th pop. 15-69…………….

Citable documents H-index…………………….……….……..….

GERD financed by business, %……………………………........

FDI net inflows, % GDP…………………………….…………………. Research talent, % in business enterprise……..…………..

JV-strategic alliance deals/bn PPP$ GDP…………………..

Pupil-teacher ratio, secondary…………………………......….

School life expectancy, years……………….…………….…….

● ◆

● ◆

◆

● ◆

◇

○

Microfinance gross loans, % GDP……………………….…….

Credit……………………………………………………….………………

Applied tariff rate, weighted avg., %………………………….

Printing & other media, % manufacturing…...................Creative goods exports, % total trade………………………..

0.6

0.8

84.7 16.5 8.3

57.7

5.2 7.2

3.3 9.6

n/a 34.1

66.6

4.3 0.8

19.7

High-tech net exports, % total trade……………….….…......

Venture capital deals/bn PPP$ GDP……………….……....

○

○

◆

●

◆

Firms offering formal training, % firms…………………………

Trademarks by origin/bn PPP$ GDP…………..……….….….

Utility models by origin/bn PPP$ GDP……………...…..……

Patent families 2+ offices/bn PPP$ GDP……………………..

University/industry research collaboration†……………….. State of cluster development†.……..………..…………………..

Knowledge workers…………………………………………….….. ● ◆

● ◆

● ◆

● ◆

◆

○

● ◆

● ◆

● ◆

◆

○

Scientific & technical articles/bn PPP$ GDP….…..…..….

PCT patents by origin/bn PPP$ GDP…………..….…….……

Environmental performance*…….……………………………… ISO 14001 environmental certificates/bn PPP$ GDP..

ICTs & business model creation†………………………....……. ICTs & organizational model creation†……………………....

Mobile app creation/bn PPP$ GDP……………..……………..

Domestic market scale, bn PPP$………………………………

19 10 2

28 30 13

3 6 1

21

35 41

55

Ecological sustainability……………………………………….. 70.5

87.4

High- & medium-high-tech manufactures, %………………

ICT access*………………………………………………………….…….

Political environment……………………………………….…... Political and operational stability*……………..………….….

Logistics performance*……………………………………………..

GDP/unit of energy use……………………………………………. 19.2

Wikipedia edits/mn pop. 15-69……………………………………

◆

◆

● ◆

● ◆

○

● ◆

Knowledge absorption……………………………………..……..

n/a

3

6 90

1 13

25

10 28

3 3

3

4

13 41 3

3

5

Intellectual property payments, % total trade………….....

Market capitalization, % GDP………………………………...….

Ease of getting credit*…………………………………..………….. 72.8 60.0 175.3

59.9 50.0

227.3

72.6 1.7

75.5 551.4

0.2

n/a

Domestic credit to private sector, % GDP…………...……

5.5

Researchers, FTE/mn pop……………………………..…...……Gross expenditure on R&D, % GDP………….………..……

Tertiary inbound mobility, %.......................................…. Graduates in science & engineering, %……………….….

58.8 5.1

24.5

49.2 57.9 24.5

77.9 5,257.4

3.4 92.6

17.6

16.2

506.3 9.8

81.6

Ease of resolving insolvency*……………………………….…. Ease of starting a business*………………………………..…… Business environment……………………………..…..……….

7 13

1

27

15

7

26 14

1 9

4 37

5

50 15

2

Knowledge creation………………………………………...........

◆ ● ◆

● ◆

◆

● ◆

● ◆

● ◆

● ◆

● ◆

◆

○

● ◆

77.4 52.9

n/a

62.2

3.1 6.1 4.2

10.6 50.1

2.4 63.5 18.5

63.0 79.1 74.8

9.6

0.1 10.2

80.3 8.2

56.4 59.2

100.0

47.4

34.4

84.7 77.4

62.2

45.5 0.8 19.4

1.2 3.8

94.1 ○

◆

○ ◇

● ◆

95.8

96.4

92.5 95.9

97.4

75.5

94.7

10.1

88.4 62.7

● ◆

● ◆

Regulatory environment……………………………..………..

86.5

Regulatory quality*…………………………………..…………….… Rule of law*……………………………………………..……………..…

Knowledge impact………………………………………..............

Research & development (R&D)……….……………..……

Global R&D companies, avg. exp. top 3, mn US$……

Education…………………………………………………………..……

5.3.1

QS university ranking, average score top 3*……………

Cost of redundancy dismissal, salary weeks…………..

Output rank

Investment……………………………………………………..……….

SWITZERLAND

2.3.3 2.3.2

Online creativity………………………………………..……….……. Generic top-level domains (TLDs)/th pop. 15-69………. Country-code TLDs/th pop. 15-69…………………..………….

Patents by origin/bn PPP$ GDP……………….…………..….…

Government effectiveness*…………………………..………….

Ease of protecting minority investors*…………..………….

MARKET SOPHISTICATION..………….……………

CREATIVE OUTPUTS…….…………………….…………

INFRASTRUCTURE……………………………….......

KNOWLEDGE & TECHNOLOGY OUTPUTS....

6.2.5

Knowledge diffusion……………………………………..…..……. 6.3 6.3.1 6.3.2 6.3.3 6.3.4

7.3 7.3.1 7.3.2 7.3.3 7.3.4

Creative goods & services……………………….…….……….. 7.2 Cultural & creative services exports, % total trade….... 7.2.1

7.2.2

7.2.3 7.2.4 7.2.5

7.1 7.1.1 7.1.2

7.1.3 7.1.4

1

1 2 High EUR 8.5 551.4 64,649.1 1

61.9 7

3 ● ◆

68.4

70.3 ● ◆

56.6 ● ◆

62

2 4 2

7 4

6

44

43

31

NOTES: ● indicates a strength; ○ a weakness; ◆ a strength relative to the other top 25-ranked GII economies; ◇ a weakness relative to the other top 25-ranked GII economies; * an

index; † a survey question. 🕘 indicates that the economy’s data are older than the base year; see Appendix II for details, including the year of the data, at

http://globalinnovationindex.org. Square brackets [ ] indicate that the data minimum coverage (DMC) requirements were not met at the sub-pillar or pillar level.

1.1.1 1.1

1.1.2

1.2.1 1.2.2 1.2.3

1.3

1.2

1.3.1 1.3.2

2.1 Expenditure on education, % GDP………………….…….…. 2.1.1

2.1.2 2.1.3

PISA scales in reading, maths, & science…………......… 2.1.4 2.1.5

GII 2019 rank

Input rank Income Region Population (mn) GDP, PPP$ GDP per capita, PPP$ GII 2018 rank

Score/Value Rank Score/Value Rank

Tertiary education……………………………………….……..…. 2.2 Tertiary enrolment, % gross………………………….….………. 2.2.1

2.2.2

2.2.3

2.3 2.3.1

2.3.4

Information & communication technologies(ICTs) 3.1 3.1.1

ICT use*…………………………….....................................……. 3.1.2 Government’s online service*…………………………….……. 3.1.3 E-participation*…………………………………………………….…….3.1.4

General infrastructure…………………………………………… 3.2 3.2.1 3.2.2 3.2.3

3.3.1

3.3

3.3.2 3.3.3

4.1 4.1.1

4.2.1

4.3

4.2.2 4.2.3

4.3.1

4.2

4.3.2 4.3.3

5.1 Knowledge-intensive employment, %........................... 5.1.1

5.1.2 5.1.3 5.1.4 5.1.5

5.2 5.2.1 5.2.2 5.2.3 5.2.4

5.3

High-tech imports, % total trade………………..……………….. 5.3.2

ICT services imports, % total trade…………..………………... 5.3.3 5.3.4 5.3.5

6.1 6.1.1

6.1.2 6.1.3 6.1.4 6.1.5

6.2 6.2.1 6.2.2 6.2.3

6.2.4

4.1.2

12 67.5 2 ● ◆

4.1.3

89.1

🕘

🕘

🕘

🕘

🕘

🕘

🕘

🕘

🕘

🕘

68.6

68.2

87.1 89.7

47.6 7,096.9

86.0

84.7 84.3

24.0

30 44 27

17 49 32

4 11 4 3 4

7

31 13 27

7

◇

◇

○ ◇

1

9 66

4

21 93

1

26 20

23 36

10

n/a

1

3

4

66

1 5 1

3 1

24

27 1

n/a 3 9

30 3

17

8

DATA AVAILABILITY

The following tables list data that are missing or are outdated for Switzerland.

Missing data

Code Indicator name Country year

Model year

Source

4.1.3 Microfinance gross loans, % GDP n/a 2017 Microfinance Information Exchange

5.1.2 Firms offering formal training, % firms n/a 2013 World Bank

Outdated data

Code Indicator name Country year

Model year

Source

2.1.5 Pupil-teacher ratio, secondary 2016 2017 UNESCO Institute for Statistics

2.2.1 Tertiary enrolment, % gross 2016 2017 UNESCO Institute for Statistics

2.3.1 Researchers, FTE/mn pop. 2015 2017 UNESCO Institute for Statistics; Eurostat; OECD - Main Science and Technology Indicators

2.3.2 Gross expenditure on R&D, % GDP 2015 2017 UNESCO Institute for Statistics; Eurostat; OECD - Main Science and Technology Indicators

4.1.2 Domestic credit to private sector, % GDP 2016 2017 International Monetary Fund

5.1.3 GERD performed by business, % GDP 2015 2017 UNESCO Institute for Statistics; Eurostat; OECD - Main Science and Technology Indicators

5.1.4 GERD financed by business, % 2015 2016 UNESCO Institute for Statistics; Eurostat; OECD - Main Science and Technology Indicators

5.2.3 GERD financed by abroad, % 2015 2016 UNESCO Institute for Statistics

5.3.5 Research talent, % in business enterprise 2015 2017 UNESCO Institute for Statistics; Eurostat; OECD - Main Science and Technology Indicators

7.2.4 Printing & other media, % manufacturing 2013 2016 United Nations Industrial Development Organization

9

ABOUT THE GLOBAL INNOVATION INDEX

The Global Innovation Index (GII) is co-published by Cornell University, INSEAD, and the World

Intellectual Property Organization (WIPO), a specialized agency of the United Nations. In 2019, the GII

presents its 12th edition devoted to the theme Creating Healthy Lives—The Future of Medical

Innovation.

Recognizing that innovation is a key driver of economic development, the GII aims to provide a rich

innovation ranking and analysis referencing around 130 economies. Over the last decade, the GII has

established itself as both a leading reference on innovation and a “tool for action” for countries that

incorporate the GII into their innovation agendas.

The Index is a ranking of the innovation capabilities and results of world economies. It measures

innovation based on criteria that includes institutions, human capital and research, infrastructure, credit,

investment, linkages; the creation, absorption and diffusion of knowledge; and creative outputs.

The GII has two sub-indices: the Innovation Input Sub-Index and the Innovation Output Sub-Index, and

seven pillars, each containing three sub-pillars.