EDITORIAL - Winning with innovation

Since the annual Global Innovation Index or GII was launched in 2007, the results have indicated that national prosperity is linked with innovation. In this, the Philippines has a long way to go. 

The GII is drawn up by Cornell University, INSEAD and the World Intellectual Property Organization. The WIPO has stressed the importance of innovation for a vibrant, competitive economy. In this year’s index, whose theme is “winning with global innovation,” the Philippines continued its improvement, this time by nine notches. Still, the Philippines remains middling at 74th among 128 economies rated in the index. Worse, the country is lagging behind several of its neighbors – something that has not been emphasized by government authorities.

Never mind overachieving Singapore, which ranked sixth in the GII, behind Switzerland, Sweden, the UK, the US and Finland. Or Asia’s industrial powerhouses South Korea, which ranked 11th, and Japan, which ranked 16th. China placed 25th – marking the first time that a middle-income country had reached such ranking – although it was still behind its administrative region Hong Kong, which placed 14th.

The Philippines, however, also tailed its other Southeast Asian neighbors Malaysia, which ranked 35th and Thailand at 52nd. Even Vietnam beat us, placing 59th. President Duterte may be interested to know that countries he has long associated with the drug menace rated ahead of the Philippines, with Mexico placing 61st and Colombia 63rd. Another Asian nation, India, ranked 66th.

At least the Philippines is still ahead of Indonesia, which placed 88th, and Cambodia, which was at 95th. The Philippines is also ahead of Sri Lanka (91st), Bhutan (96th), Nepal (115th), Bangladesh (117th) and Pakistan (119th).

It’s always better, however, to compare national performance with those who are doing better. Those behind the index have emphasized that sustained investment in innovation is critical for long-term economic growth. China jumped to 25th place due to its score in “innovation quality” – a top indicator based on the caliber of universities as well as the number of patent filings and scientific publications. Japan, the US, UK and Germany stand out in this indicator, with China leaping to 17th place.

The Philippines saw the best improvements in its human capital and research, which includes education. But there’s much room for growth. It’s no coincidence that the most prosperous and competitive economies are also at the top of the innovation index. The Philippines need not be left behind in this area.