Pakistan ranks fourth among 125 countries in terms of "innovation efficiency", according to an INSEAD survey, "Global Innovation Index (GII) 2011". Simply put, given the circumstances the country has been judged to be making efficient responses in terms of the innovativeness of its outputs. However the GII also presents some alarming trends for the country. This index has defined innovation broadly; "Knowledge production is centred mostly around the firm where research is increasingly context-driven, problem-focused, application-oriented, and interdisciplinary. New or significantly improved product, processes and methods in the provision of services; in business and organisational models; in low-tech industries; through creative imitation and technological catch-up; at the public level or at the level of society, all constitute innovations". The GII is calculated as the simple average of two sub-indices; Input and Output. The Innovation Efficiency Index is the ratio of the two. The Input sub-index gauges elements of the national economy that enable innovative activities, grouped in five pillars; institutions, human capital and research, infrastructure, market sophistication and business sophistication. The output sub-index captures actual evidence of innovation outputs, in two categories; scientific outputs and creative outputs. In all, the index traces 80 separate indicators among 125 countries, including Pakistan. The country appears almost at the bottom of the inputs scale, ranking 123rd. However, on the Outputs scale, it manages to outdo a host of countries with more enabling inputs to rank 67th among 125 countries. This is why the countrys innovation efficiency is high. However it is disturbing to note that the countrys overall ranking of the innovation index has dropped over the years. Back in 2009, Pakistan had ranked 93rd; it dropped to 103rd position in 2010 and this year, the country appears at 105th position; sandwiched between Tanzania and Uganda. The sub-indices provide clarity regarding the reasons for the countrys ranking on the GII. The country scored poorly in the political environment comparison, ranking 121st among 124 countries. Similarly the rule of law is considered to be better than just 15 countries of the world. The GII points to the utter lack of importance accorded to education in the country, as it is placed in last position in the education comparison, while it is ranked second last in the human capital and research sub-index. The fact that the people of this country are extremely efficient in coming up with innovative solutions, even in the face of severe limitations is a testament to their resilience. However the fact that it is placed in absolute last place when it comes to imparting education to the nation speaks volumes about national priorities and the complete lack of governments commitment to the progress of the people.
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Sub-index Score Rank
(0-100) (among 125)
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Institutions 46.7 108
Human capital & research 14 124
Infrastructure 19.5 114
Market sophistication 28.1 111
Business Sophistication 24.7 109
Scientific Outputs 17.5 98
Creative Outputs 36.3 53
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