Milken Institute Ranking Methodology

Overview

Countries were ranked on each indicator based on the top 100 countries in the World Economic Forum's Global Competitiveness Report 2011-2012. They were then placed in a quartile (leading, above average, below average, or lagging) based on their performance.

University-Industry Collaboration in R&D

Measures the extent to which businesses and universities collaborate on research. Data is collected through survey responses.
Source: The Global Competitiveness Report 2011-2012 (World Economic Forum)

Venture Capital Deals

The number of venture capital deals performed in a country.
Source: The Global Source: The Global Innovation Index 2011 (INSEAD)

Gross Expenditures on Research & Development (GERD)

The total expenditure on research and development performed within the country by all sources during the year, calculated as a percentage of GDP.
Source: The Global Source: The Global Innovation Index 2011 (INSEAD)

High-Tech Exports

Products with high R&D intensity, such as computers and pharmaceuticals, are included in this category. This indicator is calculated as a percentage of all manufactured exports. The most recent year for which the majority of countries had data was 2008.
Source: World Development Indicators 2008 (World Bank)

Utility Patents

Most patents issued by the U.S. Patent and Trademark Office (USPTO) are utility patents, or "patents for invention." This indicator captures any patent issued by the USPTO that "pertains to the invention of a new and useful process, machine, manufacture, or composition of matter." The number is given per million inhabitants.

In the individual country profiles, "triadic patents" are frequently referenced. These are patents that have been registered with the USPTO, the European Patent Office (EPO) and the Japan Patent Office (JPO). While not all utility patents are triadic patents, the measure of triadic patents provides a general proxy for patent activity in a given country and is frequently cited by the OECD as a measure of innovation.
Source: The Global Competitiveness Report 2011-2012 (World Economic Forum)

STEM Education

This indicator measures the quality of the science, technology, engineering and math education (STEM) in a given country.
Source: The Global Competitiveness Report 2011-2012 (World Economic Forum)

Business Environment

This indicator is an index that ranks each country’s business environment on a number of factors such as time required to start a business, ease of acquiring electricity, accessing credit, paying taxes, cross-border trading, and more.
Source: Doing Business 2012 (a co-publication of the World Bank and the International Finance Corporation)

Sources

Boston Consulting Group, Innovation 2010: A Return to Prominence—and the Emergence of a New World Order A report produced by the Boston Consulting Group on the state of innovation in companies. It contains a list of the top 50 most innovative companies in the world.

INSEAD, The Global Innovation Index 2011 (http://www.globalinnovationindex.org/gii/) A report produced by the Boston Consulting Group on the state of innovation in companies. It contains a list of the top 50 most innovative companies in the world.

The World Bank, World Development Indicators 2008, 2010 (http://data.worldbank.org/data-catalog/world-development-indicators) The indicators are compiled from a number of officially recognized international sources and are intended to be the most accurate list of global development data available.

The World Bank/International Finance Corporation, Doing Business 2012 (http://www.doingbusiness.org/reports/global-reports/doing-business-2012) A report that ranks countries on their overall business environment based on factors that either constrain or enhance competitiveness.

World Economic Forum, The Global Competitiveness Report 2011-2012 (http://www.weforum.org/issues/global-competitiveness) The most recent edition of a report that ranks countries based on a number of economic "pillars," such as education, infrastructure and innovation.

INNO-Policy TrendCharts 2009 (http://proinno.intrasoft.be/index.cfm?fuseaction=page.display&topicID=263&parentID=52) These reports, produced by PRO INNO Europe (an initiative of Directorate General Enterprise and Industry), are comprehensive reviews of policies regarding innovation in 39 countries.

OECD Science, Technology and Industry Outlook 2010 (http://www.oecd.org/sti/outlook) The STI Outlook reviews key trends in these fields in the OECD countries, as well as a variety of emerging economies.

OECD Reviews of Innovation Policy (http://www.oecd.org/innovation/reviews) These reports are comprehensive reviews of policies regarding innovation (similar to the INNO-Policy TrendCharts, but produced by the OECD).

KPMG and SAVCA: Venture Capital and Private Equity Industry Performance Survey of South Africa covering the 2009 calendar year, May 2010 (http://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/Emerging-markets-Africa/Documents/private-equity-survey-july-2010.pdf) This report presents data from a survey conducted by KPMG on venture capital and private equity in South Africa.

The Global Biomedical Industry: Preserving U.S. Leadership (http://www.milkeninstitute.org/publications) A report that discusses the U.S. biomedical system and its relation to the emerging global biomedical industry.

TThe Wall Street Journal, The Atlantic, The Economist, Forbes, and the Financial Times These publications provided supplementary information and commentary on countries’ innovation policies.