A new Creative Productivity Index developed by the Asian Development Bank (ADB) and Economist Intelligence Unit (EIU) ranks Japan and the Republic of Korea as countries most efficient in the Asia and Pacific region at turning creative inputs into tangible innovation.
Myanmar, Pakistan, and Cambodia, by contrast, are ranked as the least efficient innovators.
“As countries seek to innovate to avoid middle-income traps, all governments—especially those with limited resources—need to be sure that their investments boost both efficiency and productivity, benefiting their economies and people, and move to a knowledge-based economy,” said Bindu N. Lohani, Vice-President for Knowledge Management and Sustainable Development at ADB.
Creative productivity is an important attribute for knowledge-based economic development and the new index gives policymakers a unique tool to assess how to best foster innovation and creativity.
While measures will differ by country, policies that make it easier to set up businesses and create flexible labor markets would benefit everyone, as would greater investment in education, skills, information and communications technologies, and internet access.
The Creative Productivity Index differs from existing innovation-related indices by focusing on how efficiently countries turn their creative inputs into innovation outputs rather than just the absolute level of creative inputs. This allows countries to seek the most effective—and affordable— innovation investments.
The index also captures elements of creativity that are more relevant in less developed countries, such as agricultural innovation.
The index uses 36 input indicators to measure the capacity and incentives for innovation, including how many global top 500 universities a country has, the urbanization rate, spending on research and development, protection of intellectual property rights, and corruption and bureaucracy.
The eight output indicators to measure innovation include the number of patents filed, export sophistication, value added to agriculture, and the number of books and films produced.
On innovation inputs alone, Singapore topped the rankings with strong political institutions, protection of intellectual property, and contract enforcement.
Among Asian countries, Hong Kong, China topped the list in terms of innovation outputs due to a high level of export sophistication and its prolific film production industry.