The Global Innovation Index: what it is, what it is for and what uses it has
Investing is a process that not only involves the action of deciding where your financial capital will go. Part of the process is also to be aware of these latest trends and countries with higher levels of innovation in different branches that can become a great boom in the near future.
There are numerous ways to stay informed of the latest trends, here we will talk about one of them: the Global Innovation Index.
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What is the Global Innovation Index?
This index refers to a ranking that is carried out annually in order to measure the capacity of a country in terms of innovation. The Global Innovation Index, or GII for its acronym in English, had its beginnings in 2007 and is published annually by WIPO (World Intellectual Property Organization).
How is the IIG performed?
The Global Innovation Index for 2021 explains that “132 economies and their innovation trends” were included for this analysis, which was also based on 81 indicators from different sources in order to publish their results related to: global leaders, investments in science and innovation, socioeconomic impact and much more.
These indicators make it possible to establish a ranking where countries can be highlighted that performed better than expected, countries that maintain or increase their level of innovation over the years or, on the contrary, countries whose conditions affected the innovation environment so much that it generated a setback in their progress of previous years.
All this information becomes vital when monitoring trends and investing in conventional and unconventional industries.
What use can be given to the Global Innovation Index?
As an investor, it is vital to keep abreast of the latest trends and developments in world economies, in order to be part of special projects that, thanks to their location and other factors in their environment, may be headed for success.
In addition, knowing who are the global leaders or countries with the best environment for innovation also makes it easier to monitor a specific area. Let’s take as an example the GII published during 2021 which explains that Switzerland, Sweden and the United States have remained in the top 5 for the last 3 years. However, it also states that the Republic of Korea joins this top 5 for the first time, which may attract the attention of investors who will investigate the industries of this country.
Other aspects that can be highlighted are those countries that performed better than expected in terms of innovation and compared to their level of economic development.
The Global Innovation Index: a powerful tool
This index then becomes an analysis tool for the investor or financial advisor and through it can improve their understanding of the economy in general, which will lead to better decision making.
In the case of BBVA New Gen, global reports are constantly analyzed to offer customers accurate information with predictions based on industry, economic and political performance analyses, among others.
Remember that information and analysis are the tools that can lead to the success of your investments.
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