Do we need even more global innovation to tackle post-covid challenges?

May 5th 2023 may have been for most of us a day like any other, but in the history of humankind it may become the most significant day for decades, as it marks the day when the WHO declared the Covid-19 pandemic to have come to an end—as a pandemic threat to humankind. When this news appeared on our radar, most of us who were fortunate enough to have gone through the Covid-19 crisis without a lasting impact may not have even noticed it at all because we had all returned to what we believe was our pre-Covid life. Also, companies and governments alike have refocused their attention on current opportunities and challenges, whether from geopolitical tensions or weak economies in many parts of the world. So, is all back to normal then?

Recently, I gave a keynote address at the MNC Operation Excellence Day in Shanghai and was a panelist at the Global Trade and Investment Promotion Summit in Beijing. In both events, many speakers emphasized the challenges of the “new normal.” Specifically in the area of technology, many attendees stressed the importance of refuting the notion of decoupling and advocating for openness in joint research, benefiting from open systems and creating global, compliant frameworks in which data and ideas can flow freely and securely. Challenges to this idea are manyfold, and the post-Covid world has by no means returned to it's pre-Covid stage, neither in growth rates, nor in the way globalization is seen by many stakeholders across the globe. Instead, "de-globalization" has become a new buzzword on panels or in articles alike.

Yet, many future opportunities still lie in global innovation. Interestingly, at the Global Trade and Investment Promotion Summit, a panelist in the forum shared his view about the role of innovation in societal and economic development. On the societal side, innovation can effectively address global challenges such as poverty and climate change while significantly improving people’s quality of life in areas such as healthcare, transportation, and communications. On the business side, innovation can help enterprises reduce costs and increase efficiency, greatly increasing productivity.

Where should all this innovation come from, though? Where are the most innovative countries in the world? As is often the case, it depends on how one looks at it. The simplest view on patents filed per country would tell us that China filed 1.59 million patent applications in 2021, twice as many as the United States. However, Switzerland, the United States, and Sweden rank the most innovative countries, according to the 2022 Global Innovation Index issued by the World Intellectual Property Organization (WIPO), whereas China ranks No. 11 and India 40. For both types of ranking (patent or a single global index), it is difficult to draw conclusions, as one tends to compare apples with pears. If one looks at the ranking of income groups, according to WIPO, India ranks #1 in the innovation index of all countries in the lower-middle-income groups, China ranks #1 in the upper-middle-income group, whereas Switzerland tops the high-income group of countries. Such stacking probably makes more sense, as R&D investments from public and private stakeholders are often linked to the available resources. By the end of the day, such country rankings may be an indication on the local R&D capabilities and many more countries, not ranked in the top ranks may well have highly specialized and innovative local conditions.

Now, in this post-pandemic era, it is going to be interesting how creative capacities and innovation systems will be re-started in these leading countries. As companies continuously evaluate the distribution of their R&D investments across the globe, it will be more than ever important for local innovation systems and R&D support to stand out and enable societal and business process innovations. Equally important is, how companies are able to connect the creative minds across many countries and create innovative networks - or "brain trusts" across cultures and locations. Global communication and the exchange of a very diverse number of ideas stimulate our creativity, catalyzing creative thinking that ultimately creates new solutions to adapt to the changing circumstances of the future. Hopefully, this is also true for tackling the many global challenges, like a leaving a livable planet for our children and grandchildren. ?We need to find through collaborative innovation intelligent solutions that allow for the secure connection of people and businesses and fulfil the requests of regulators and business partners alike.

We will need many more events to present, exchange, discuss, argue, and sometimes fight over the best ideas for tackling our challenges together!

(Disclaimer: The ideas, views and opinions expressed in my LinkedIn posts and profiles represent my own views and not those of any of my current or previous employer or organizations I am associated with. Also, any and all comments on my posts from respondents/commenters to my postings belong to, and only to, the responder posting the comments.)