#29 in the Global Innovation Index

According to the annual report released by INSEAD, China now ranks #29 (up fromĀ #43) in the global innovation index – and #1 among developing countries.
Source: INSEAD (2011) Global Innovation Index
As with many synthetic indexes, it is always worthwhile to dig further into the data. It turns out that China has a number of strengths and weaknesses. Among the former, the report lists patent applications, gross capital formation, high-tech imports and exports (a large majority are MNC-driven). Among the latter, one can find regulatory quality, press freedom and time to start a business. True enough, both business and market sophistication have notably increased over the years and so has scientific output.If China aims to reach the top 20 or higher it will have to wiork hard (and fast) on its institutions.