A Review of “The Global Innovation Index 2014: The Human Factor in Innovation” (Editors: Soumitra Dutta, Bruno Lanvin and Sacha Wunsch-Vincent)

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AU J.T. 18(1): 48-52 (Jul. 2014)
Book Review
48
Book Review
A Review of “The Global Innovation Index 2014: The Human
Factor in Innovation” (Editors: Soumitra Dutta, Bruno
Lanvin and Sacha Wunsch-Vincent)
Dutta, S.; Lanvin, B.; and Wunsch-Vincent, S. (eds.) 2014. The Global Innovation Index
2014: The Human Factor in Innovation. Cornell University, Ithaca, New York, NY,
USA; Institut Européen d'Administration des Affaires (INSEAD), Fontainebleau, Île-de-
France, France; and World Intellectual Property Organization (WIPO), Geneva, Swit-
zerland. Available: <http://www.globalinnovationindex.org/userfiles/file/reportpdf/GII-
2014-v5.pdf>.
Dobri Atanassov Batovski
Department of Communication and Computer Network Technology
Vincent Mary School of Science and Technology
Assumption University of Thailand
E-mail: <dbatovski@au.edu>
The Global Innovation Index 2014 (GII
2014) is a joint publication between: Cornell
University, Ithaca, New York, NY, USA;
Institut Européen d'Administration des Affaires
(INSEAD), Fontainebleau, Île-de-France,
France; and World Intellectual Property
Organization (WIPO), Geneva, Switzerland
(international standard serial sumber (ISSN):
2263-3693; and international standard book
number (ISBN): 978-2-9522210-6-1).
It was launched globally on 18 July 2014
in Sydney, Australia, in the context of the
Business 20 (B20) / Group of Twenty (G20)
summit preparations.
The different chapters of GII 2014 have
been written by the following authors sorted
alphabetically by their last name: Ilham
Bennani, Alexandra L. Bernard, Marwan
Berrada, Ahmad Bin Byat, Nour-Eddine
Boukharouaa, Abdelhak Chaibi, Salma Dinia,
Soumitra Dutta, Abdesselam El Ftouh, Omar
Elyoussoufi Attou, Adil El Maliki, Rafael
Escalona Reynoso, Karima Farah, Naushad
Forbes, Leonid Gokhberg, Bruno Lanvin,
Yassine Ouardirhi, Valentina Poliakova,
Michaela Saisana, Andrea Saltelli, Martin
Schaaper, Richard Scott, Sibusiso Sibisi,
Osman Sultan, Stéphan Vincent-Lancrin,
David Walwyn and Sacha Wunsch-Vincent.
The total number of pages in GII 2014 is
426 pages including initial pages (26 pages), 8
chapters (132 pages) and 5 appendices (268
pages). Blank even pages iv, viii, x, xii, xvi,
xxii, xxvi, 2, 40, 52, 76, 84, 92, 100, 112, 122,
132, 134, 136, 284, 286, 370, 372, 386, 388
and 394 are used for space-filling and content
separation.
The GII publications were initiated by
Dutta and Caulkin (2007). Subsequently, GII
2008-2009 (Dutta 2009) and GII 2009-2010
(Dutta 2010) became available. Since 2011, the
content expansion of the GII series was
entrusted to different authors being selected in
accordance with distinct annual themes. The
following three releases preceded the current
publication: GII 2011 (Dutta 2011, ISBN: 978-
2-9522210-1-6), launched globally on 30 June
2011 in Geneva, Switzerland; GII 2012 (Dutta
2012, ISBN: 978-2-9522210-2-3), launched
globally on 2 July 2012 in Geneva,
Switzerland, with parallel events in Singapore
and Abu Dhabi; and GII 2013 (Dutta and
Lanvin 2013, ISBN 978-2-9522210-3-0),
launched globally on 1 July 2013 in Geneva,
Switzerland. The main GII goal is to find
suitable metrics and practical ways to better
describe the multiple aspects of innovation in
the modern society. This can be done
statistically by collecting reliable information
about an extended list of indicators in addition
to the basic data on published research papers
and research and development (R&D) efforts.

AU J.T. 18(1): 48-52 (Jul. 2014)
Book Review
49
Table 1. Distinct numbers of indicators and
countries included in consecutive GII
publications.
GII publication
Number of
indicators
Number of
countries
GII 2007
n/a
107
GII 2008-2009
Over 90
130
GII 2009-2010
Over 60
132
GII 2011
80
125
GII 2012
84
141
GII 2013
84
142
GII 2014
81
143
There is an ongoing selection process of
a sub-optimal number of indicators as shown in
Table 1 which also includes the number of
evaluated countries throughout the years. It
should be noted that in all tables that follow
missing data is marked as not available (n/a).
The top layer of the GII framework
consists of the average GII and the Innovation
Efficiency Ratio (IER) supported by seven
pillars. There are five input pillars and two
output pillars. The input pillars are related to
the innovative activities of a given country
such as: (1) Institutions; (2) Human capital and
research; (3) Infrastructure; (4) Market
sophistication; and (5) Business sophistication.
The output pillars are related to the results of
the innovative activities within the country
such as: (6) Knowledge and technology
outputs; and (7) Creative outputs. The
individual pillars are divided into three sub-
pillars. A sub-pillar contains several individual
indicators.
The average GII and the IER are obtained
from two additional indices: the Innovation
Input Sub-Index (IISI) - the average of the
scores of the five input pillars; and the
Innovation Output Sub-Index (IOSI) - the
average of the scores of the two output pillars.
The average GII is defined as the average of
IISI and IOSI. The IER is defined as the ratio
of IOSI and IISI. Therefore, it is useful in
highlighting the efficiency gain of an
innovation strategy. Once all the scores (0-100)
or values (hard data) of a particular
index/ratio/indicator are obtained for all listed
countries, corresponding ranks are finally
assigned. The smaller the rank number, the
better the performance achieved.
The emphasis of GII 2014 is on the
human factor in innovation which is related to
the second pillar concerned with human capital
and research (HC&R). The three sub-pillars of
the second pillar are: (2.1) Education; (2.2)
Tertiary education; and (2.3) Research and
development. The individual indicators in each
sub-pillar of the second GII pillar are listed
below:
2 Human capital and research
2.1 Education
2.1.1 Expenditure on education
2.1.2 Government expenditure on education
per pupil, secondary
2.1.3 School life expectancy
2.1.4 Assessment in reading, mathematics,
and science
2.1.5 Pupil-teacher ratio, secondary
2.2 Tertiary education
2.2.1 Tertiary enrolment
2.2.2 Graduates in science and engineering
2.2.3 Tertiary inbound mobility
2.3 Research and development (R&D)
2.3.1 Researchers
2.3.2 Gross expenditure on R&D (GERD)
2.3.3 QS Quacquarelli Symonds Ltd. (London,
England, UK) university ranking
average score of top 3 universities.
The median scores by regional group for
human capital and research (GII 2014, p. 32)
show that the highest scores are obtained for
Northern America (NAC, 2 countries), the
European Union (EU, 28 countries), Europe
(EUR, 39 countries), and Southeast Asia and
Oceania (SEAO, 17 countries) followed by
Northern Africa and Western Asia (NAWA, 19
countries), Latin America and the Caribbean
(LCN, 22 countries), Central and Southern
Asia (CSA, 11 countries) and Sub-Saharan
Africa (SSF, 33 countries).
The regional approach of calculating
median scores being based on the United
Nations (UN) Classification (2012) of regional
groups is the preferred choice in GII 2014.
However, it is worth comparing also the GII
ranks of countries which are members of some
of the well-established business and political
coalitions/groups such as B20, G7, BRICS and
the Association of Southeast Asian Nations
(ASEAN). Therefore, globalization involving
diverse collaborations between countries from
distant parts of the world can be addressed
from the viewpoint of innovation effectiveness.

AU J.T. 18(1): 48-52 (Jul. 2014)
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Table 2. GII ranks of the B20 countries.
B20 countries
GII ranks
2011
2012
2013
2014
Argentina
58
70
56
70
Australia
21
23
19
17
Brazil
47
58
64
61
Canada
8
12
11
12
China
29
34
35
29
France
22
24
20
22
Germany
12
15
15
13
India
62
64
66
76
Indonesia
99
100
86
87
Italy
35
36
29
31
Japan
20
25
22
21
Mexico
81
79
63
66
Russian Federation
56
51
62
49
Saudi Arabia
54
48
42
38
South Africa
59
54
58
53
Republic of Korea
16
21
18
16
Turkey
65
74
68
54
United Kingdom
10
5
3
2
USA
7
10
5
6
Table 3. IER ranks of the B20 countries.
B20 countries
IER ranks
2011
2012
2013
2014
Argentina
8
51
20
43
Australia
97
107
116
81
Brazil
7
39
69
71
Canada
54
74
68
86
China
3
1
14
2
France
39
64
63
64
Germany
15
11
40
19
India
9
2
11
31
Indonesia
80
25
6
4
Italy
63
75
62
52
Japan
64
88
112
88
Mexico
90
101
56
79
Russian Federation
52
43
104
49
Saudi Arabia
98
127
61
70
South Africa
113
116
99
93
Republic of Korea
25
69
95
54
Turkey
28
40
29
11
United Kingdom
50
44
60
29
USA
26
70
86
57
Tables 2-5 show the GII, IER and HC&R
ranks as well as the income classification of
the B20 countries since 2011 excluding only
the European Union economy (n/a). The G7
group includes Canada, France, Germany, Italy,
Japan, the United Kingdom and the United
States of America (USA). The BRICS group
includes Brazil, the Russian Federation, India,
China and South Africa.
Table 4. HC&R ranks of the B20 countries.
B20 countries
HC&R ranks
2011
2012
2013
2014
Argentina
63
58
51
41
Australia
9
24
11
7
Brazil
76
83
75
62
Canada
19
25
25
13
China
56
84
36
32
France
21
17
18
15
Germany
11
16
19
14
India
104
131
105
96
Indonesia
96
92
99
92
Italy
39
41
34
33
Japan
20
19
12
17
Mexico
73
81
66
56
Russian Federation
38
43
33
30
Saudi Arabia
53
40
39
47
South Africa
92
103
102
70
Republic of Korea
7
8
2
3
Turkey
80
82
76
54
United Kingdom
16
21
13
10
USA
13
22
6
11
Table 5. Income of the B20 countries.
B20 countries
Income
2011
2012
2013
2014
Argentina
UM
UM
UM
UM
Australia
HI
HI
HI
HI
Brazil
UM
UM
UM
UM
Canada
HI
HI
HI
HI
China
LM
UM
UM
UM
France
HI
HI
HI
HI
Germany
HI
HI
HI
HI
India
LM
LM
LM
LM
Indonesia
LM
LM
LM
LM
Italy
HI
HI
HI
HI
Japan
HI
HI
HI
HI
Mexico
UM
UM
UM
UM
Russian Federation
UM
UM
UM
HI
Saudi Arabia
HI
HI
HI
HI
South Africa
UM
UM
UM
UM
Republic of Korea
HI
HI
HI
HI
Turkey
UM
UM
UM
UM
United Kingdom
HI
HI
HI
HI
USA
HI
HI
HI
HI
All the G7 and BRICS countries are also
members of the B20 coalition. The comparison
of GII 2014 with GII 2011, GII 2012 and GII
2013 illustrates the stability at the top GII ranks
and the gradual innovation improvement of
most of the B20 countries. There is even a
more noticeable tendency of an overall
improvement of the GII, IER and HC&R ranks
of the BRICS countries.

AU J.T. 18(1): 48-52 (Jul. 2014)
Book Review
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Table 6. GII ranks of the ASEAN countries.
ASEAN countries
GII ranks
2011
2012
2013
2014
Brunei Darussalam
75
53
74
88
Cambodia
111
129
110
106
Indonesia
99
100
85
87
Lao PDR
n/a
138
n/a
n/a
Malaysia
31
32
32
33
Myanmar
n/a
n/a
n/a
140
Philippines
91
95
90
100
Singapore
3
3
8
7
Thailand
48
57
57
48
Viet Nam
51
76
76
71
Table 7. IER ranks of the ASEAN countries.
ASEAN countries
IER ranks
2011
2012
2013
2014
Brunei Darussalam
101
104
119
139
Cambodia
87
128
39
67
Indonesia
80
25
6
4
Lao PDR
n/a
135
n/a
n/a
Malaysia
77
84
52
72
Myanmar
n/a
n/a
n/a
80
Philippines
62
32
24
35
Singapore
94
83
121
110
Thailand
56
61
76
62
Viet Nam
20
27
17
5
Table 8. HC&R ranks of the ASEAN countries.
ASEAN countries
HC&R ranks
2011
2012
2013
2014
Brunei Darussalam
77
66
65
95
Cambodia
121
134
131
127
Indonesia
96
92
99
92
Lao PDR
n/a
140
n/a
n/a
Malaysia
42
42
40
35
Myanmar
n/a
n/a
n/a
112
Philippines
116
121
116
121
Singapore
1
2
3
2
Thailand
87
101
46
36
Viet Nam
85
107
98
89
Table 9. Income of the ASEAN countries.
ASEAN countries
Income
2011
2012
2013
2014
Brunei Darussalam
HI
HI
HI
HI
Cambodia
LI
LI
LI
LI
Indonesia
LM
LM
LM
LM
Lao PDR
n/a
LM
n/a
n/a
Malaysia
UM
UM
UM
UM
Myanmar
n/a
n/a
n/a
LI
Philippines
LM
LM
LM
LM
Singapore
HI
HI
HI
HI
Thailand
LM
UM
UM
UM
Viet Nam
LM
LM
LM
LM
Tables 6-9 show the GII, IER and HC&R
ranks as well as the income classification of
the ASEAN countries since 2011. The income
classification in Tables 5 and 9 includes high-
income (HI) countries, upper-middle-income
(UM) countries, lower-middle-income (LM)
countries, and low-income (LI) countries in
accordance with the World Bank Income
Group Classification (2013). Positive changes
from previous years in Tables 5 and 9
concerning the income status of China, the
Russian Federation and Thailand are
highlighted.
Considering the HC&R ranks of the B20
countries, the comparison of GII 2014 with GII
2013 shows than most countries have better
ranks with the exception of Japan, Saudi
Arabia, Republic of Korea, and the USA which
apparently are high-income countries.
The G7 countries also have better HC&R
ranks with the exception of Japan and the USA.
All the BRICS countries have better
HC&R ranks as compared to the previous year.
In particular, South Africa has the most
noticeable change of its HC&R rank from 102
to 70. Among the ASEAN countries, with the
exception of Brunei Darussalam and the
Philippines, the HC&R ranks of GII 2014 are
better than the ones of GII 3013.
Most noticeable is the HC&R rank
improvement of Thailand from 46 to 36.
Thailand also has a substantial change of its
GII rank from 57 to 48 and its IER rank from
76 to 62. This is an example that the HC&R
rank of the second GII pillar can partially
influence the average GII and the IER.
Singapore, Malaysia and Thailand have the
best HC&R ranks within ASEAN in GII 2014.
In addition, Thailand (48th) enters the list of the
upper-middle income 10 best performers.
On a final note, the observed rank
fluctuations in consecutive years may pose an
open problem. Similarly to most publications
containing numerical output, there is limited
information about the precision of the raw
data. The uncertainty during the calculation of
the simple averages of the GII framework may
account for suspected discrepancies rather than
the actual dynamics of innovation indicators.

AU J.T. 18(1): 48-52 (Jul. 2014)
Book Review
52
References
Dutta, S.; and Caulkin, S. 2007. The World’s
Top Innovators. The World Business/
INSEAD Global Innovation Index 2007 in
Association with BT (British Telecom).
World Business (8): 26-37, January-
February 2007. Available: <https://www.
globalinnovationindex.org/userfiles/file/gii-
2007-report.pdf>.
Dutta, S. 2009. Global Innovation Index 2008-
2009. INSEAD, Fontainebleau, Île-de-
France, France. Available: <https://www.
globalinnovationindex.org/userfiles/file/gii-
2008-2009-report.pdf>.
Dutta, S. 2010. Global Innovation Index 2009-
2010. INSEAD, Fontainebleau, Île-de-
France, France. Available: <https://www.
globalinnovationindex.org/userfiles/file/gii-
2009-2010-report.pdf>.
Dutta, S. (ed.) 2011. The Global Innovation
Index 2011: Accelerating Growth and
Development. INSEAD, Fontainebleau, Île-
de-France, France. Available: <http://www.
wipo.int/edocs/pubdocs/en/economics/gii/gii
_2011.pdf>.
Dutta, S. (ed.) 2012. The Global Innovation
Index 2012: Stronger Innovation Linkages
for Global Growth. INSEAD, Fontainebleau,
Île-de-France, France; and WIPO, Geneva,
Switzerland. Available: <http://www.wipo.
int/edocs/pubdocs/en/economics/gii/gii_201
2.pdf>.
Dutta, S.; and Lanvin, B. (eds.) 2013. The
Global Innovation Index 2013: The Local
Dynamics of Innovation. Cornell University,
Ithaca, New York, NY, USA; INSEAD,
Fontainebleau, Île-de-France, France; and
WIPO, Geneva, Switzerland. Available:
<http://www.wipo.int/edocs/pubdocs/en/eco
nomics/gii/gii_2013.pdf>.