WIPO | COVID-19 is Increasing Innovation Gap

(24 March 2021) According to WIPO's 2020 Global Innovation Index report, Switzerland, Sweden, the US, the UK, and the Netherlands continue to lead the innovation ranking in 2020, with a second Asian economy—the Republic of Korea—joining the top 10 for the first time (Singapore is number 8). High-income countries held all of the top 10 spots again this year; however, China has retained its place among the 15 most innovative economies, ahead of some countries from the high-income group such as Japan and Canada.

• While the COVID-19 crisis has catalyzed innovation in many sectors, such as IT, fintech, health, education, tourism, and retail, the pandemic's overall impact on innovation activity has been negative. Average Innovation Index scores were lower in 2020 than in 2019 across all world regions and income groups.
• However, the pandemic has disproportionately hindered innovation in developing economies. In low-income and lower-middle-income countries, the 2020 average Innovation Index score declined by 2.5 and 3.7 points, respectively, compared to previous year. In high-income countries, the average score decreased by only 1.8 points compared to 2019.

The growing innovation activity gap between developed countries and the rest of the world poses a serious threat to the goal of closing the income gap between high-income and low-income countries, which is a part of the global development agenda under the UN Sustainable Development Goals initiative.

Notes: World Bank Income Group Classification Based on Gross National Income Per Capita: Low income -$1,025 or less; Lower-Middle Income $1,026-$3,995; Upper-Middle Income $3,996-$12,375; and High Income equal or more than $12,376.