Innovation in 2024: Are We Thinking Differently Enough?

Global Innovation Index 2024: Highlights and Insights

Erez Tsalik

“How do you keep yourself updated?” This is a question I am often asked. To be honest, it is also a question I ask innovation experts when I meet them. In a field that, by definition, is ever-changing, it is mandatory to dedicate time and effort to learning and staying current. I have a few answers to this question, and today I would like to share one of them with you.

Once or twice a year, I go over the main innovation reports and studies to learn what is happening in the world of innovation and maybe extract some interesting and useful insights. I am happy to share with you some highlights from my last review.

Top 10 Most Innovative Countries

According to the Global Innovation Index 2024, the world's most innovative countries are:*

1. Switzerland - Leading global innovation with a score of 69.4 (14 consecutive years)
2. Sweden - Ranked second with a score of 67.2
3. United States - Third place with a score of 65.0
4. Singapore - Fourth position with a score of 64.8
5. United Kingdom - Fifth place with a score of 61.6
6. Republic of Korea - Sixth position with a score of 61.2
7. Finland - Seventh place with a score of 59.4
8. Netherlands - Eighth position with a score of 59.1
9. Germany - Ninth place with a score of 58.7
10. Denmark - Tenth position with a score of 57.1

* The mechanism used to rate and compare the countries is in the appendix at the end.

For 14 years running, Switzerland has held the title of the most innovative country. Sweden, the United States, and Singapore consistently follow close behind. What do these countries have in common? A robust and adaptive innovation ecosystem that bridges startups, established industries, academia, and government policy.

As I reviewed the Global Innovation Index 2024, along with other key reports, I noticed not just where innovation is happening, but how, and why some systems excel while others stall.

Here are my takeaways and insights: Robust Innovation Ecosystems Win Big Countries like Switzerland and Sweden thrive not because of short-term successes, but because they have built systems designed to sustain innovation over decades.

What they get right:

• Universities and industries collaborate closely.
• Investments in R&D remain high, even during global slowdowns.
• Innovation extends beyond tech into healthcare, sustainability, and social entrepreneurship.
• Planning for long-lasting business and not only for Unicorns and “Exits.”

Insight: If your organization or country is not innovating at the level you want, look at the system, not just the output. Are the right connections, policies, and investments in place to support long-term progress? How can you activate a system-wide innovation mentality?

Emerging Trends

Generative AI Innovation - A Double-Edged Sword

Two key examples of innovation through generative AI:

1. New Product and Service Ideation:

• Iterative Process: Generative AI enables iterative ideation from incremental to breakthrough ideas.
• Human-Machine Collaboration: Emphasis on collaboration between humans and machines.
• Case Study: Mattel quadrupled visual product ideas for Hot Wheels using GenAI.

2. Dynamic and Hyper-Personalized Customer Journeys:

• Conversational Capabilities: GenAI enables more personalized customer experiences.
• Case Study: L'Oréal's Beauty Genius, an AI-powered beauty advisor trained on thousands of images and customer service conversations.

Here is my takeaway: These innovations are inspiring, but they raise a critical question: If we are all using the same AI models (like open LLM platforms), how do we ensure our ideas aren’t identical to those of competitors?

Innovating During Times of Transition

The AI revolution is here, but its full impact—on industries, jobs, and markets—will hit within 3-5 years. That leaves us in a unique “innovation gap.” What does this mean in the short, medium, and long terms?

• Short-term: Organizations need to solve immediate challenges and deliver value today.
• Medium-term: Agility is key as AI reshapes markets and workflows.
• Long-term: Leaders must prepare for disruption while keeping an eye on emerging opportunities.

Here is my takeaway: Innovating during transitions requires a careful balance: deliver now, adapt continuously, and plan for what is next.

The Innovation System Reboot: Challenges to Solve

One of the most striking observations from the GII report is that many innovation systems are struggling.

• The Innovation Readiness Gap: Organizations know innovation is critical but lack the resources, processes, or readiness to act.
• Investment Slowdowns: Global economic pressures have led to reduced R&D budgets and risk aversion.
• Social Impact Expectations: Sustainability and societal value are no longer optional—they are imperative.

Here is my takeaway: Leaders must rethink how innovation is prioritized and funded. Are you balancing short-term performance with long-term societal value?

This comprehensive overview reflects the dynamic nature of global innovation in 2024, highlighting both challenges and opportunities across various sectors and regions.

What Does This Mean?

After reviewing these trends/index, I share some questions and further insights:

1. What is the best way to innovate in a context where AI is impacting access to ideas?
2. Are we prepared to navigate the “in-between”—the transition period before AI’s full impact arrives? What about after?

Here is my takeaway: How can we respond to this? With action. Strengthen your innovation ecosystems, sharpen your strategies for AI, and prepare to lead through the coming disruptions.

What are your insights? How would you prioritize your innovation objectives differently from reading this summary? Let us continue the conversation.

Sources: Analysis based on the Global Innovation Index 2024, European Innovation Scoreboard 2024, and WEF Annual Report 2022-23