The US, ranked* number one, has always been a leader in innovation. However, after the recession, innovation has taken a backseat in the USA. This could possibly hamper job creation.
India, ranked sixth, is one level higher than the UK in innovation. Its most innovative sectors are energy, healthcare, telecommunications, and fast moving consumer goods.
China is the fourth most innovative country and the second largest investor in R&D in the world. It commands 13 percent of the global R&D spend. It scores the lowest in its potential to harness small and medium enterprises in innovation.
Germany, ranked number two, is one of the few developed economies that stands insulated from another recession. The incremental innovation approach seen in its small and medium enterprises puts Germany in a comfortable position.
Japan ranks third in innovation, but internally, the environment for innovation is perceived as negative. The need for localisation of innovation is also least felt in Japan and is considered the most reserved market for innovation today.
Source: GE Global Innovation Barometer January 2012: Macroeconomic Perspectives (Global Trends in Innovation 2012)
* Countries with the Best Innovation Reputation