South Korea Remains The World's Most Innovative Economy

South Korea is still the world's most innovative economy, according to the 2017 Bloomberg Innovation Index.

Bloomberg's proprietary index ranks countries according to research and development spending, value-added manufacturing, patent activity, high-tech density, higher education, productivity, research concentration and other factors.

After ranking No. 1 in 2016, South Korea held on to the top spot with a score of 89.00. What's remarkable in South Korea's case is the fact that it ranked a dismal 32nd in productivity among all innovative economies.

South Korea did, however, rank top in the world in R&D intensity, manufacturing value-added and patent activity. It ranked in the top five in high-tech density, tertiary efficiency and research concentration.

Significant Moves

Sweden moved up one spot from 2016 to second place despite the current government's less business-friendly policies including potentially crippling labor taxes. However, the Swedish people, unlike many of its European neighbors, promote an atmosphere of personal ambition as opposed to emphasizing the collective.

Russia was the most notable loser in the index and fell 14 spots from last year to No. 26. The country suffered from economic sanctions and low energy prices.

Israel was the lone country to move into a top 10 spot this year, while France was the lone country to lose its position as one of the top 10 most innovative economies.

Top 10

Here is the full ranking of the top 10 most innovative countries and their respective score:

• 1. South Korea: 89.00.
• 2. Sweden: 83.98.
• 3. Germany: 83.92.
• 4. Switzerland: 83.64.
• 5. Finland: 83.26.
• 6. Singapore: 83.22.
• 7. Japan: 82.64.
• 8. Denmark: 81.93.
• 9. United States: 81.44.
• 10. Israel: 81.23.