Survey Ranks U.S. Tops In Fostering Innovation - But Rest of The World Gaining

A recent survey recognized the leadership role that the US has played in innovation over the last century , but notes how other countries are gaining.

"The U.S. maintains the top spot as the global technology leader in innovation," said Mark Jensen, national managing partner of Deloitte's Venture Capital Services. "While the U.S. isn't losing ground, the globalization of innovation is underway. The rest of the world is finding out what they're good at, and venture capitalists recognize where those strengths lie."

In Europe, the focus is on life sciences and clean technologies, two high growth areas that are attracting capital and a growing legion of workers. In Asia, technological innovation has moved to the forefront, though selected life science research centers are becoming common as private and government funding in Asian economies increases.

In Singapore, for example:

A key focus of the economic strategy has been the subsidized attraction of investment by multinational companies, and later in the period the lower employment cost of foreign workers. As the economy grew, labor became limiting, and immigration policy became a key economic growth tool.

Taken as a whole, it is policy, culture and strategic planning that results in effective innovation, for not only countries, but for individual companies. Often ignored by entrepreneurs and more often by large corporations, is understanding how innovation fits into the framework of the existing company.

While out-of-the-box thinking often results in new products and services that change the world, that thinking is usually most effective when it exists with the underpinnings that make an effective launch possible. We see this in failed and successful innovative ventures around the world.

"The Japanese government was one of the first to recognize the value of developing and maintaining a pervasive, high-speed broadband infrastructure throughout the country, fueling significant innovation around the next generation of broadband applications,"

Hence Japan as has attracted venture capital and interest from growing internet firms like Yahoo!. As more firms capitalize on this framework, more innovation results.

In Germany, a country that has a long history of interest in all things green, new eco technology innovation is thriving.

"Germany is the beneficiary of a well conceived, stable public policy that has ensured attractive markets for alternative energy technologies. This combined with a strong general technology base, has fostered substantial innovation in the space," said David Prend, partner, Rockport Capital. "As a result, for example, Germany, a country with marginal sun, is a leader in solar photovoltaic technology that they export to the rest of the world. Venture capital follows quality technology and innovation."

But don't worry about the U.S., venture capitalists still view the US as the leader in innovation. Whether or not that will continue to remain the case, remains to be seen.