Pakistan in bottom 10 on Global Innovation Index

LAHORE: Pakistan is ranked 134 among 143 economies in the Global Innovation Index (GII) released this week jointly by Johnson Cornel University, INSEAD, and the World Intellectual Property Organization.
The GII 2014 covers 143 economies around the world and uses 81 indicators across a range of themes. The report scrutinises the entire set up of an economy that could help a country to make plans for improvements in every of the 81 indicators scrutinised. Pakistan’s average score in these 81 indicators was 24 out of 100.
In the innovation output sub index, it was ranked 107 out of 143 with a score of 22.6 out of 100. In the innovation input index its score was 25.4 but ranked 139 among the economies surveyed. The innovation efficiency ratio of the country was dismally low at 0.9 percent. The country showed an improvement over its 2013 rank when it was placed at 137 in rank with an overall score of 23.3 percent. China at 29 and India at 79 are way above Pakistan in this index.
Innovation efficiency is determined by Innovation input and innovation output. Innovation input comes from quality of institution, human capital and research, infrastructure, market sophistication, and business sophistication. The output of innovation comes from knowledge and technology outputs and creative outputs.
Among the indicators that determined the strength of its institutions, Pakistan’s scores were 40.1 but the country was ranked 135 out of 143 economies. The strength of institutions was determined from political environment, regulatory environment, and business environment. The score on political environment was 22.8 ranking 141 that included political stability where it ranked 143 with zero score.
In government effectiveness Pakistan was ranked 120 with a score of 19.8. In press freedom it was ranked 131 with a score of 48.7. In regulatory environment Pakistan was ranked 125 with a score of 43.5. This included regulatory quality where its score was

29.8, rule of law 21.3, and cost of redundancy, dismissals, and salary weeks its score was 27.2. Under the head of business environment Pakistan’s score was 53.9 and it was placed at 107 among 143 economies. Under this head its score on ease of doing business was 78.2, in ease of resolving solvency the score was 40 and in ease of paying taxes its score was 43.
The theme for this year’s GII is the ‘Human Factor in Innovation’. All top 25 economies are in the high- income group with rich human capital. The report observed that some nations take the lead in innovation capability over others. A major factor for this disparity of innovation prowess is the quality of human capital linked to the innovation activities carried out in these nations. Other factors, such as technology and capital, also influence the innovation process; these directly correlate with the human factor. Hence nurturing human capital at all levels and in all sections of society can be crucial for developing the foundation for innovation.
In Human Capital and Research Pakistan was lowly placed at 139 with a score of only 9.8 out of 100. This sub index was evaluated on the basis of general education where the score was 107 out of hundred; in tertiary education the score was 8.9. In research and development the score was 9.8 where gross expenditure on R&D was only 0.3 percent of the GDP.
The report states improving skills is one of the most important ways to raise innovation, productivity, and economic growth, and to improve social welfare and equality. Education systems that narrowly focus on test-based academic performance and numbers of students enrolled in science and technology subjects are not necessarily those that will produce young people with the creativity, critical thinking, and communication skills that innovative societies require.
In infrastructure, Pakistan was ranked 124 with a score of 22.2. In infrastructure subsector it scored 19.8 points in information technology and communications; 18.4 points in general infrastructure including electricity output and logistic performance, and in ecological sustainability its score was 28.5. In market sophistication Pakistan was ranked 140 with a score of 35.8. In its subsectors the score of credit was 22.6, investment 28.6, and trade and competition 586.2.
In business sophistication the country was ranked 133 with a score of 19.3 only. In its subsectors the scores were for knowledge of workers 17.5, innovation linkages 20.1 and knowledge absorption 21.9.
Under the head of knowledge and outputs it was ranked 101 with a score of 21.9. In creative outputs Pakistan scored 23.2 and ranked 110.