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Title page 1

Contents 4

Acknowledgments 5

Executive summary 6

Introducing the global network of innovation capabilities 7

Four dimensions reveal patterns in the innovation landscape 8

Innovation capabilities vary in complexity 10

Power is in connections 11

Connections reveal ecosystem maturity 12

Innovation capabilities are dynamic 12

Is the world leveraging its innovation capabilities? 13

Global innovation expansion and growing complexity 13

Who is taking a strategic approach to capability development? 21

So, is the world leveraging its innovation capabilities? 25

Where are the opportunities for innovation? 26

A virtuous cycle: stronger ecosystems unlock more opportunities 26

Where innovation potential remains untapped 30

Opportunities as a road map for strategic innovation policy 35

Glossary 36

Bibliography 38

Tables 8

Table 1.1. Innovation capability fields, by domain and dimension 8

Table 2.1. Innovation growth per capita, by economy and dimension, 2001-2023 14

Table 2.2. Diversity share and population, by economy, 2023 18

Table 2.3. Top 10 fastest growing fields, 2018-2023 21

Table 2.4. Capability diversification strategy by count of years, by economy, 2014-2023 23

Table 2.5. Specialization strategy by count of years, by economy, 2014-2023 25

Table 3.1. Top 10 most rewarding smart diversification opportunities, by economy, 2023 29

Table 3.2. Best-positioned economy for each innovation field, by complexity level, 2023 29

Table 3.3. Share of achieved innovation potential in complex fields, by economy, 2023 30

Table 3.4. Number of untapped innovations, 2023 31

Table 3.5. Innovation potential, by domain and region, 2023 34

Figures 7

Figure 1.1. Share of total international innovations by dimension, top 10 economies vs. rest of the world, 2023 7

Figure 1.2. The innovation capability space, 2023 11

Figure 1.3. Ecosystem complexity and GDP per capita, 2023 12

Figure 2.1. Evolution of innovations per capita and GDP growth, 2001-2023 13

Figure 2.2. Number of capabilities per innovation, 2001-2023 15

Figure 2.3. Average diversity of innovation ecosystems, by region, 2001-2023 16

Figure 2.4. Average complexity of innovation ecosystems, by region, 2001-2023 17

Figure 2.5. Share of economies with economic growth, diversity growth, and complexity growth, 2014-2023 18

Figure 2.6. Capability diffusion, by dimension, 2001-2023 19

Figure 2.7. Average complexity of innovation capabilities, by domain, 2018 vs 2023 20

Figure 2.8. Ecosystem diversity and distance to new attained capabilities, 2018-2023 22

Figure 2.9. Share of economies by type of capability development strategy, 2002-2023 23

Figure 2.10. Share of economies by type of specialization strategy, 2014-2023 24

Figure 3.1. Diversification ease of economies, 2023 26

Figure 3.2. Evolution of diversification ease, 2001-2023 27

Figure 3.3. Ease of diffusion for innovation domains, 2023 28

Figure 3.4. Achieved technological potential of innovation ecosystems, by region, 2001-2023 32

Figure 3.5. Sources of innovation potential by region and type of innovation, 2023 33

Boxes 9

Box 1.1. Data sources and methodology 9

Box 2.1. When does an innovation ecosystem master a field of innovation? 16