GE survey ranks world's most innovation nations

Canada's image as an innovative nation barely registers on the global radar but business leaders here overwhelmingly believe the country's innovation reputation is solid, according to a new report on global innovation released last month by General Electric. Canadian business leaders are satisfied with how the country's innovation framework has evolved over the past five years and are optimistic about the value it brings to society, with health care and energy seen as areas where innovation can have the greatest impact.

But those same business leaders express frustration in accessing private funding for innovation, particularly since the economic crisis. They are also critical of the efficiency of government in supporting innovation.

The second annual GE Global Innovation Barometer ranks the views of 2,800 high-level business executives from 22 countries with direct involvement in their firm's innovation strategies. This is the first year Canada was included in the survey, which doubled the number of countries surveyed in the inaugural edition.

The survey found that the US has the best reputation as an innovative nation by a wide margin, followed by Germany, Japan, China, Korea, India and the UK. Canada ranks 13th or middle of the pack, but ahead of nations such as Australia, Finland, Norway, Taiwan and the Netherlands.

Business leaders from all nations strongly correlate innovation with high levels of per capita income and 90% view it as the "main lever to make the economy more competitive and to to create jobs". They also see an increase in collaboration and inter-disciplinary R&D as positive.

The report states that innovation is at a "very challenging juncture". There is widespread concern that the current economic environment may threaten innovation and R&D investment.

"A vast majority of companies report greater difficulties in accessing both private and government funding for innovation. Some 70% of companies reporting a deterioration in government policy or funding are cutting R&D spending," states the report.

Concern in North America and Europe is rising over the speed at which emerging nations are embracing innovation, with the potential for an increase in protectionist measures. The report can be found at www.ge.com/innovationbarometer.