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The Bloomberg Innovation Quotient

By Bloomberg Rankings - 2012-06-14T07:11:08Z

Photograph by Ken James/Bloomberg

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We modeled the Bloomberg Innovation Quotient after IQ scales, assigning a score of 140 to the top-ranked country and a score of 100 to the 81st country. Scores for the remaining countries were calculated according to their distance from the first- and last-ranked countries.

Data used were from 2000 through 2010, except for research- and development-related data. The latest figures available from the World Bank were for 1998 through 2008.

The weightings:

20% R&D Intensity. R&D as percentage of gross domestic product.

20% Manufacturing Capability. Manufacturing value-added as a percentage of GDP; products with high R&D intensity (aerospace, computers,
pharmaceuticals, scientific instruments and electrical machinery) as a percentage of total manufactured exports.

10% Productivity. GDP per employed person, total annual hours worked.

10% High-tech Density. High-tech public companies -- such as aerospace and defense, biotechnology, hardware, software, semiconductors, internet software and services and renewable energy companies -- as a percentage of publicly listed companies.

10% Tertiary Efficiency. Enrollment and graduation ratios in all subjects for post-secondary students; tertiary graduation ratio of students who majored in science, engineering, manufacturing and construction; annual new graduates as a percentage of the total workforce (population aged 15-64).

20% Researcher Concentration. R&D researchers per one million people.

10% Patent Activity. Patents granted as a percentage of applications submitted and applications granted worldwide; resident filings per $1 million of R&D spent.

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