The INSEAD business school in Fontainebleau,France has conceived a Global Innovation Index(GII), a model to show how countries are responding to the challenge of long term economic growth through innovation. The index is based on data from a variety of sources, some objective and some subjective, and includes things such as GDP growth rates, university enrollment rates, and results from the World Economic Forum's annual Executive Opinion Survey.
The GII has in INSEAD's terminology 8 pillars, five input pillars and three output pillars. The input pillars, which support a country's ability to generate and use ideas for innovation, are (1) institutions and policies,(2)human capacity,(3)infrastructure,(4)technology sophistication,(5)business markets and capital. The output pillars, which represent the total benefits of innovation, are (1)knowledge,(2)competitiveness, and(3)wealth.
Out of the 107 countries measured, the GII shows that the US is the most innovative country by a wide margin, followed by Germany, the UK,Japan, and France.India ranks 23rd and China 29th .Because of its recent rapid growth India will presumably move up the GII ranks in future.