CR ranked the most innovative in Latin America

According to the study by the Economist Intelligence Unit, A new ranking of the worlds most innovative countries, Costa Rica holds the top position in Latin America.

While developed countries continue to top the list of innovators in the medium term, poor business conditions will snap their innovation capacity. Japan, Switzerland, the United States, Sweden and Finland remain at the top of the index.

The high rank for three small wealthy European states reflects the fact that their economic, social and political conditions favor innovation. In addition, there are specific factors that stimulate innovation, including highly skilled labor forces, a long-standing policy support for ICT and R&D, and specialization.

The slippage of the US confirms the gradual erosion in recent years of the country’s traditional position as the world’s technological leader—a trend we expect to continue. To some extent, the erosion in the US’s position reflects the fact that other countries are catching up.

China is rising strongly in the global innovation performance ranking. China now leads the world in the number of people engaged in science and technology. The country accounted for 6% of the number of scientific articles published worldwide in 2005, up from 1.6% in 1995, and it is ranked fifth globally. University graduates with degrees in science and engineering represent 40% of the total, almost twice the OECD average and far above the 15% recorded in the US. Much of China’s FDI will continue to target innovation-intensive sectors, and foreign companies have been opening research centers in the country. The prospects for China are not entirely positive; it also faces barriers to innovation. Weak protection of intellectual property (despite improvements in recent years) stands out.

The report includes innovation predictions for the next five years, and more gains for the emerging world are expected. The Economist Intelligence Unit, http://www.eiu.com/index.asp, provides constant flow analysis and forecasts on more than 200 countries and six key industries. They help executives make informed business decisions through dependable intelligence delivered online, in print, in customized research as well as through conferences and peer interchange.