In the latest Bloomberg Innovation Index, Singapore ranks second with a score of 87.76.
For the Asian in you, that’s an A (but not an A*).
What is the Bloomberg Innovation Index?
The Bloomberg Innovation Index uses seven metrics to assess each economy’s level of innovation.
The seven equally weighted metrics include:
- Research and Development Intensity,
- Manufacturing Value-added,
- Productivity,
- High-tech Density,
- Tertiary Efficiency,
- Researcher Concentration, and
- Patent Activity.
From 3rd to 2nd
Bet you didn’t know this, but in 2020, Singapore ranked 3rd with a score of 87.01.
Our strong education system and the ability to adapt and willingness to explore new methods and ideas were some of the reasons we managed to rank up.
Singapore is the only South-East Asian country to make the top 20 list amongst several European countries.
Other Asian countries who made the top 20 list include South Korea (1st), Japan (12th) and China (16th).
Previously holding the second position, South Korea regained its position as the most innovative economy in 2021. This would be its 7th time reigning victory in its nine years of being published, and I guess you can tell why. What phone are you using now and what cars did you see on the roads this morning?
How did we manage to improve?
Amongst red marks signalling the dethroning of several countries, Singapore managed to improve its standing.
Singapore ranked 1st in Tertiary Efficiency, 3rd in Manufacturing Value-added, and 4th in Patent Activity and 6th in Productivity.
What does that mean?
According to Bloomberg, Tertiary Efficiency takes into consideration the following factors:
- Total enrollment in tertiary education, regardless of age
- Gross graduation of first-degree earners
- Share of the labour force with an advanced level of education
- Total tertiary enrollment.
Which kind of means Singapore’s competitive universities and education system, in general, is the best at encouraging us to get science and engineering degrees.
Manufacturing
If you’re shocked that Singapore ranked 3rd in Manufacturing, so were we, but the Manufacturing Value-added dimension looks at products such as pharmaceuticals, autos, and computers.
It does not look at merely the amount of products manufactured but rather the number of innovative products manufactured.
Currently, Singapore’s manufacturing sector contributes about 21% of our total GDP and hired around 12% of our workforce, making it a significant component of the Singapore economy.
In fact, Trade and Industry Minister Chan Chun Sing unveiled a 10-year plan for Singapore’s manufacturing industry to grow by 50% by 2030.
The Advanced Manufacturing by 2030 Plan has three steps such as investing in our infrastructure to support businesses, innovation and talent, and building a strong research ecosystem to encourage innovation.
The Bloomberg Innovation Index 2021 illustrates a world where economies have been forced to accelerate their technology and innovation efforts to adapt to the restrictions posed by the COVID-19 pandemic.
For Singapore, our efforts in containing the virus through digital means such as the TraceTogether application, advanced digital structure, and vaccine development have been critical in safeguarding our country and placing us in one of the top spots as the second most innovative economy.
What can Singapore do to get the top spot?
As a Singaporean, we’re always striving to be 1st; so that begs the question: how can we improve?
Singapore’s lower scores come from Researcher Concentration, Research and Development Intensity, and High-technology Density; and these are areas we would have to further improve on to increase our position in the Bloomberg Innovation Index.
Researcher Concentration refers to professionals, including postgraduate PhD students, engaged in research and development per population; and Research and Development Intensity refers to expenditures on research and development as a percentage of the GDP.
Singapore has already been consistent in its digitalisation efforts via its Smart Nation initiative.
However, to improve our Research and Development efforts, DPM Heng Swee Keat unveiled the RIE2025 plan. He announced that Singapore will be investing S$25 billion in research, innovation and enterprise (RIE) for the next 5 years.
DPM Heng Swee Keat really is good at making plans — for both the East Coast and Singapore.
Although S$25 billion seems like a lot, it is only 1% of our GDP.
In 2017, Singapore spent about 1.94% on R&D, while South Korea spent 4.55%.
To increase our position, Singapore would need to significantly increase the amount set aside for our R&D efforts.
High-tech density refers to the number of domestically domiciled technologically-oriented public companies such as those in aerospace and defence, biotechnology, hardware, software, semiconductors, Internet software and services and renewable energy industries.
Minister Chan Chun Sing said the prospects for industries such as the semiconductor industry in Singapore is very bright.
The aforementioned 10-year plan also helps to improve our efforts in achieving a higher position in terms of high-tech density.
Featured Image: Igor Plotnikov / Shutterstock.com
Here’s a simplified summary of the South Korea martial law that even a 5-year-old would understand:
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