India is 64th on Global Innovation Index

India stands in 64th position out of the 141 countries in the overall innovation performance, according to a report by the Global Innovation Index 2012 (GII). Amongst the 8 Central and Southern Asian economies (CSA), India is ranked first followed by Sri Lanka (94th), the Islamic Republic of Iran (104th), Bangladesh (112th), Nepal (113th) and Pakistan (133rd). Its ranking dropped from 62nd in 2011 to 64th in 2012.

India has achieved a high efficiency ration as its relative strength on the Output Sub-Index is ranked 40th over the Input Sub-Index, which is ranked 96th; and thus it is ranked 2nd after China in 2012 in innovation efficiency index. In the Global Innovation Efficiency Index, China and India lead the top 10 league of countries. Four of the top 10 countries in the Efficiency Index are lower-middle income countries.

GII is published by INSEAD, the leading international business school in France, and the World Intellectual Property Organization (WIPO), a specialized agency of the United Nations; knowledge partners of GII are Alcatel-Lucent, Booz & Company, the Confederation of Indian Industry (CII). This year's GII's theme is the 'Stronger innovation linkages for global growth', which underlines the importance of productive interactions among innovation actors-firms, the public sector, academia, and society-in modern innovation ecosystems.

India has emerged as one of the business-friendly communitiies in ICT sector - India is ranked 4th in computer and communication exports at 70.5% of commercial services exports. It is position in 108th and 117th place in ICT access and use.

The report says, India's major weaknesses are institutions (125th) and human capital and research (131st). Its bes scores are in market sophistication (46th), knowledge and technology outputs (47th) and creative outputs (34th).

Soumitra Dutta, Roland Berger Professor of Business and Technology at INSEAD and the founder of the GII noted, "The GII seeks to update and improve the way innovation is measured. Today's definitions must capture an environment which is context-driven, problem-focused and interdisciplinary. The 2012 variables were broadened in an effort to find the right mix which captures innovation as it happens today."

The report notes a need for the BRIC countries (Brazil, the Russian Federation, India, and China) to invest further in their innovation capabilities to live up to their expected potential. China's performance on the key knowledge and technology outputs pillar is outpaced only by Switzerland, Sweden, Singapore, and Finland. However, the report notes that both China and India have weaknesses in their innovation infrastructure and environment. The report also notes that Brazil has suffered the largest drop among the BRICs.

"Innovation is becoming the spearhead of competition - at a regional level, on a national level, and for companies," said Ben Verwaayen, CEO of Alcatel-Lucent. "How to deal with that challenge will determine the destiny of competiveness for all players."