SINGAPORE - Singapore has been ranked the seventh most innovative among 142 economies surveyed by business school Insead for the Global Innovation Index 2013.
But this is four places lower than the third position it garnered last year, according to the report, released on Monday.
Mr Bruno Lanvin, the report's co-editor and executive director of Insead's European Competitiveness Initiative, said methods for the ranking were tweaked this year, adding, among other things, an emphasis on quality and impact. As a result, the United States shot up to third position from 10th.
Singapore is one of two Asian economies in the top 10, the other being Hong Kong, in sixth spot on the Global Innovation Index (GII). Switzerland and Sweden took the top two positions respectively.
Singapore did well in top criteria such as government support for innovation, logistics, human capital and research and sophisticated business operations.
But the Republic's key weaknesses included low returns on investment in innovation despite heavy government support and a lack of quality and impactful research.
A clear indication of this is in the innovation output and input figures. While Singapore is ranked No. 1 in terms of innovation input, as reflected by government support, its is ranked 18th in terms of innovation output which refers to results arising from innovation and research efforts.
As a result, the Republic's so-called "innovation efficiency ratio" fell from 0.7 last year to 0.6 this year, sending Singapore's innovation efficiency ranking tumbled from 83 to 121.