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China tops Global Innovation Index 2023

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China tops Global Innovation Index 2023

Global Innovation Index shows China overtaking US on number of leading clusters, but UK impresses on intensive smaller clusters

September 20, 2023
John Morgan

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Guangzhou

China has overtaken the US in hosting the largest number of leading science and technology clusters, while Cambridge remains the world’s most intensive cluster judged against size of population, according to a ranking.

The Global Innovation Index (GII) looks at science and technology (S&T) clusters around the world by analysing patent-filing activity and scientific article publication.

According to a snapshot of 2023 findings, released ahead of full publication on 27 September, Tokyo-Yokohama is the top-performing cluster, followed by Shenzhen-Hong Kong-Guangzhou, Seoul, Beijing and Shanghai-Suzhou.

San Jose-San Francisco, home to Silicon Valley and Stanford University, follows in sixth.

“The highest climbers in the ranking are three clusters in China, namely, Zhenjiang (+15 positions), Hefei (+13) and Wuxi (+13),” says the GII report.

“For the first time, in 2023, China is the economy that has the most clusters (24) ranked among the top 100, overtaking the United States with 21 clusters unchanged on the year,” it also says. “Germany follows, with nine clusters in the top 100, with Munich now that economy’s number one cluster followed by Cologne and Stuttgart.”

The ranking also looks at the “intensity” of clusters: “the sum of their patent and scientific publication shares divided by population”.

“Cambridge in the United Kingdom and San Jose-San Francisco, CA, in the United States were found to be the two most S&T-intensive clusters, followed by Oxford (United Kingdom), Eindhoven (Kingdom of the Netherlands) and Boston-Cambridge, MA (United States),” says the GII report.

Irene Tracey, University of Oxford vice-chancellor, said: “I am thrilled to see Oxford recognised as a leading science and technology cluster, and I am extremely proud of the role that the university plays in catalysing innovation through its incredible research and talented people.

“Together with partners across the Oxfordshire ecosystem, such as Oxford University Innovation and Oxford Science Enterprises, alongside investment from the private sector nationally and internationally, we are working to create more space, more opportunities, and secure more investment to provide the optimum environment to accelerate innovation so that we continue to make global impact.”

The GII was founded in 2007 by Soumitra Dutta, now dean of the Saïd Business School at Oxford.

The GII report also says: “Clusters located in China show a relatively weaker performance, with regards to S&T intensity. However, there is one exception: Beijing. With a population estimated at almost 20 million, Beijing ranks 14th by intensity, mid-way between the smaller metropolises of Göteborg (13th) and Stockholm (15th) located in Sweden.

“Apart from Beijing, there is no other S&T cluster located in China or any other middle-income economy that ranks among the top 25 most intensive clusters globally.”

“India, however, does make it into the top 100 by S&T intensity for four clusters: Bengaluru, Chennai, Delhi and Mumbai,” the report adds.

 
China home to two global top 5 science & technology clusters; East Asia dominates top ranking: WIPO
By Global Times
Published: Sep 15, 2022 12:58 PM

Shenzhen Photo: VCG

Shenzhen Photo: VCG

China is home to two of the world's largest five science and technology clusters, making the East Asia at the top of global ranking chart of Global Innovation Index (GII) released by the World Intellectual Property Organization (WIPO) on Wednesday.

Four of the world's five largest science and technology clusters are located in East Asia with Tokyo-Yokohama being the biggest one, followed by the Shenzhen-Hong Kong-Guangzhou cluster in South China and the Beijing cluster in North China. One cluster in South Korea and another in the US ranked fourth and fifth, the chart showed.

China's overall number of science and technology clusters reached 21 in the latest pre-release chart, equal to the cluster number in the US for the first time. Germany and Japan ranked second and third with 10 and five clusters respectively.

Compared with the last chart, three Chinese clusters in Zhengzhou, Central China's Henan Province, Qingdao in East China's Shandong Province and Xiamen in East China's Fujian Province have recorded the fastest growth, followed by Berlin in Germany and Istanbul in Turkey.

Each year, the GII ranks the top-level innovative capacity of around 130 countries and economies around the world. The GII "Science and Technology Cluster" chapter looks to the ground to identify the highest local concentration of science and technology development before the official launch of GII ranks on September 29, 2022, according to the official website of WIPO.

 

China Sits Firmly Atop Global Innovation Index


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September 22, 2023 — 09:50 am EDT

China's goal of self-reliance will certainly rely on innovation. Right now, the second-largest economy sits firmly atop the list of the World Intellectual Property Organization (WIPO) when it comes to innovation on a global scale.

The WIPO noted that East Asia, in particular, is the residence to six out of 10 global science and technology clusters. On a country-by-country basis, China leads in that category.

"According to the 2023 edition of the WIPO's Global Innovation Index, China has 24 sci-tech clusters, up from 21 last year and making China the country with the greatest number of such clusters," a XinhuaNet article said.

Investment capital poured into research and development has certainly helped China's case, as ideas can't become reality without an influx of dollars (public and private). Given this innovation growth, exchange traded fund (ETF) investors may want to give the KraneShares China Innovation ETF (KGRO) a closer look.

"China's remarkable achievements in innovation and output mirror the emergence of new global growth engines, which are inseparable from the great importance the Chinese government attaches to IP strategy and the continuous improvement of the country's IP policies," the article added, quoting the words of WIPO Deputy Director General Wang Binying.

An Active Fund Focused on Innovation

When it comes to identifying investment opportunities in ETFs that target China’s innovation ecosystem, KGRO offers a compelling option, especially given its active management component. Given this, KGRO offers dynamic exposure allowing for portfolio changes when market conditions warrant adjustment. That is imperative given the volatile economic conditions in China currently.

Furthermore, KGRO is essentially a fund of funds that offers exposure to various KraneShares ETF products:

If investors want more targeted exposure to these individual funds, they can solely allocate investment capital into each fund as a separate position. As of September 19, the fund is heavily focused on KWEB, comprising just over 30% of the fund's assets, while KURE comes in second at about 26% of the fund.

The focus on KWEB highlights the strength of technology right now, especially with the focus on artificial intelligence (AI). That said, AI is permeating sectors like the healthcare industry, which warrants exposure to KURE.

 
But the west will not relent on spreading the lies that China can only do copy and paste and will never know how to innovate.
 

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