I was doing some research today regarding Israel and innovation which lead me onto this post regarding the Global Innovation Index and not something I had seen before. What was surprising is to learn that Switzerland has lead the Innovation Index for the last 12 years. One would have thought of the States, Japan or South Korea, but no land locked Switzerland tops the charts. I do get this as many companies have their global HQ's in Switzerland and patents registered with these companies also adds to the innovation scores. This would always sway the numbers in their favor even if it was not the case.
When we think of innovation the subject matter has seriously changed over the years as landline phones became cell/mobile phones, color television, digital cameras, internet which became our main source of communication via emails removing the need for postal services. Innovation is constantly changing especially in the financial world where we will see plenty changes over the next 10 years. Online along with digital has taken over so blockchain technology will be at the forefront.
It is estimated that Switzerland has 10% of Fintech startups which is mainly down to the Government backing and encouraging Fintech development. Banking is that important to the country and hey need to remain at the top of the ladder. Of the 220 or so Fintech companies in Zurich over half are blockchain related which is a surprise considering institutions are anti crypto. Anti crypto for now that is as regulation seems to be hampering innovation more than anything else everywhere, but here. The WEF HQ is based in Switzerland so say no more.
Nearly 3.5% of the Swiss GDP is reinvested into research and development allowing companies access to the smartest minds around the world plus assisting in funding of startups. They even have their own Crypto Valley based in Zug which allows for collaborations and work centers helping with problem solving.
Zug has over 24 000 registered companies when considering the size of the town this is huge. One starts to understand why so much innovation is taking place is such a small country like Switzerland as they have the Head Quarters of 850 multi nationals. A stable economy along with a stable Government system allows for businesses to prosper.
When you look at the innovation world map there are not many shocks as the nations you would expect are ranked. Research and Development costs big money and unless you have the investors on board very little can happen. As you can see Africa, South America and parts of Eastern Europe are lagging behind and that is mainly down to not having the funds freely available. That maybe possibly misleading as I would say those countries have not targeted innovation and embraced it like most of the others have. This is where the future is heading and countries should be at the forefront or they will get left behind even more.
Posted Using LeoFinance Beta