In the modern business world innovation is everything. Everyone is looking for the best new way to do things in order to make more money in less time. As a result it is not surprising that many businesses are looking for the most innovative economies in Asia.
There are several ways that the innovative nature of an economy can be evaluated, and Singapore ranks high in all of them.
The first aspect of innovation in an economy is capital investment. The government of Singapore has recently invested a large amount of money for its RIE2020 plan, which stands for research, innovation, and enterprise. The investment totals almost S$19 billion dollars between 2016 and 2020. In addition to government money, Singapore has also seen tremendous increases in its FDI, or foreign direct investment.
The result of all this investment is a very well trained workforce. Singapore beats out every Asian nation in rankings of workforce skill, and this shows with the rising technical output that the country has achieved in recent years. It remains to be seen, however, if the technical output that Singapore achieves will be able to match the amount of innovation input that is currently being invested in it.
Moreover, Singapore was recently ranked as third in the world according to the fifth Global Innovation Index, which is produced by the international business school INSEAD. This is one of several reports that ranks Singapore as the most innovative economy in Asia.
The report cites the deep commitment in Singapore to innovation as the reason for its high ranking, the second consecutive year that Singapore has ranked third in the survey and also the second year that it beat out all other Asian economies.
Another important aspect of Singapore’s score was its focus on internet and technological innovation. All of these factors lead Singapore to actually place first in the world in terms of innovative input. Innovative input is the amount invested in human capital, technological infrastructure, policies, and planning.
One area that Singapore needs to improve upon is that of innovative output. Despite being ranked first in terms of innovative input, Singapore was still only ranked 11th in output. This shows that the investments that Singapore have made are not yet paying off at the expected level. However as more investments come in, and as workforce training increases, it is expected that Singapore will raise in this statistic in the very near future.
Additionally, in the Global Innovation Index, or GII, ranks Singapore as the 6th most innovative economy in the world. This index measures many similar metrics to the INSEAD study, but also takes into account things like research, market sophistication and business sophistication.
If past trends are any indication, Singapore will likely maintain its current place on the worldwide innovation indexes, or move up. Because of the massive investments the country is receiving and making, the training being provided, and the developments in infrastructure and market technologies, it will be no surprise to see Singapore moving up the ranks even further in the coming years.