Innovation and International Trade in the World

Innovation and Export in the World

Innovation and International Trade in the World

Innovation and International Trade in the World

Innovation is the action or act of innovating, that is, modifying customs, models, legislations, products or processes. Renewal or create a novelty.

The concept of innovation is broad and can be used in all sectors, be it academic, business, environmental or economic. In this sense, the act of innovating means the need to create different ways or strategies, by the usual means, to achieve a certain goal. To innovate is to invent, whether ideas, processes, tools or services.

For Joseph Schumpeter (economist, 1883-1950), innovation is the process of creating the new and destroying what is becoming obsolete. It is the company’s ability to overcome perfect competition by establishing a temporary monopoly situation by creating a new market for its products.

 

Innovation and International Trade in the World

And where do we find the connection between Innovation and Export?

The more innovative a country is, the more products and services it can make available in the global marketplace, overcoming perfect competition and creating a temporary monopoly situation. The theory of economic growth also has an export cause, because economic growth only occurs as a result of productivity or export.

There is no magic. Countries only also have Economic Growth if they increase their Productivity and/or increase their Exports.

In the image above we can see the 10 countries that most filed patent applications for innovative products and services in 2018, among which the first 4 are USA (56,142 patents), China (53,345 patents), Japan (49,702 patents) and Germany (19,883 patents).

It is no coincidence that these same 4 countries with the most patent applications for innovative products and services were also the 4 most exporting countries on the planet in 2018!

Just to record the disparity and comparison, these are the patent application quantities for innovative products and services from the World, by WIPO – World Intellectual Properties Organization in 2018:

       Who filled the most PCT patents applications in 2018

 

Countries

Code

2018

1 United States of America US 56013
2 China CN 53345
3 Japan JP 49706
4 Germany DE 19753
5 Republic of Korea KR 17014
6 France FR 7921
7 United Kingdom GB 5638
8 Switzerland CH 4566
9 Sweden SE 4163
10 Netherlands NL 4137
11 Italy IT 3330
12 Canada CA 2420
13 India IN 2012
14 Israel IL 1898
15 Finland FI 1834
16 Australia AU 1827
17 Austria AT 1475
18 Denmark DK 1443
19 Spain ES 1395
20 Turkey TR 1323
21 Belgium BE 1296
22 Russian Federation RU 951
23 Singapore SG 929
24 Norway NO 766
25 Saudi Arabia SA 663
26 Ireland IE 622
27 Brazil BR 617
28 Africa R1 434
29 Luxembourg LU 392
30 Poland PL 335
31 South Africa ZA 275
32 New Zealand NZ 275
33 Mexico MX 275
34 Liechtenstein LI 263
35 Portugal PT 250
36 Chile CL 241
37 Panama PA 184
38 Czech Republic CZ 180
39 Iran IR 176
40 Colombia CO 160
41 Ukraine UA 156
42 Hungary HU 153
43 Malaysia MY 143
44 Slovenia SI 116
45 Greece GR 115
46 Thailand TH 102
47 Barbados BB 96
48 Antigua and Barbuda AG 96
49 United Arab Emirates AE 92
50 Bulgaria BG 60
51 Slovakia SK 50
52 Iceland IS 49
53 Estonia EE 49
54 Morocco MA 49
55 Malta MT 45
56 Egypt EG 44
57 Argentina AR 42
58 Cyprus CY 40
59 Croatia HR 39
60 Lithuania LT 37
61 Peru PE 37
62 Romania RO 32
63 Latvia LV 31
64 Ecuador EC 31
65 Belarus BY 23
66 Viet Nam VN 22
67 Monaco MC 21
68 Serbia RS 20
69 Philippines PH 18
70 Kazakhstan KZ 18
71 Sri Lanka LK 18
72 Low-income W4 17
73 Algeria DZ 17
74 Qatar QA 15
75 Azerbaijan AZ 15
76 Oman OM 14
77 Costa Rica CR 13
78 Jordan JO 13
79 Uruguay UY 8
80 Kenya KE 8
81 Montenegro ME 8
82 Cuba CU 7
83 Indonesia ID 7
84 Tunisia TN 7
85 Andorra AD 7
86 Georgia GE 6
87 Armenia AM 6
89 Trinidad and Tobago TT 6
90 Lebanon LB 6
91 Sudan SD 6
92 North Macedonia MK 6
93 Kuwait KW 6
94 Republic of Moldova MD 5
95 Bahamas BS 4
96 Bosnia and Herzegovina BA 4
97 Mauritius MU 4
98 Dominican Republic DO 4
99 Senegal SN 4
100 Saint Kitts and Nevis KN 4
101 San Marino SM 3
102 Namibia NA 3
103 Lao People’s Democratic Republic LA 3
104 Seychelles SC 2
105 Democratic P. Republic of Korea KP 2
106 Nigeria NG 2
107 Uzbekistan UZ 2
108 Mongolia MN 2
109 Libya LY 2
110 United Republic of Tanzania TZ 2
111 Zambia ZM 2
112 Syrian Arab Republic SY 1
113 Belize BZ 1
114 Zimbabwe ZW 1
115 Guatemala GT 1
116 Samoa WS 1
117 Cameroon CM 1
118 Bahrain BH 1
119 Brunei Darussalam BN 1
120 El Salvador SV 1
121 Uganda UG 1
122 Madagascar MG 1
123 Yemen YE 1
124 Nicaragua NI 1
125 Democratic Republic of the Congo CD 1
126 Niger NE 1
127 Fiji FJ 1
128 Rwanda RW 1
129 Guyana GY 1
130 Tajikistan TJ 1
131 Venezuela VE 0
132 Albania AL 0
133 Saint Vincent and the Grenadines VC 0
134 Pakistan PK 0
135 Côte d’Ivoire CI 0
136 Kyrgyzstan KG 0
137 Jamaica JM 0
138 Burundi BI 0
139 Ghana GH 0
140 Bangladesh BD 0
141 Vanuatu VU 0
142 Gabon GA 0
143 Botswana BW 0
144 Angola AO 0
145 Marshall Islands MH 0
146 Honduras HN 0
147 Iraq IQ 0
148 Liberia LR 0
149 Eswatini SZ 0
150 Dominica DM 0
151 Togo TG 0
152 Benin BJ 0
153 Bolivia BO 0
154 Congo CG 0
155 Guinea GN 0
156 Paraguay PY 0
157 Sierra Leone SL 0
158 Micronesia FM 0
159 Grenada GD 0
160 Equatorial Guinea GQ 0
161 Saint Lucia LC 0
162 Mozambique MZ 0
163 Chad TD 0
164 Burkina Faso BF 0
165 Eritrea ER 0
166 Ethiopia ET 0
167 Haiti HT 0
168 Cambodia KH 0
169 Mali ML 0
170 Myanmar MM 0
171 Malawi MW 0
172 Papua New Guinea PG 0
173 Turkmenistan TM 0
174 Tonga TO 0

 

Innovation and Export in the World. It is important that the countries, especially the least developed countries, have to work harder to generate Programs and Projects to improve Innovation – and consequently improve their Productivity and Exports.

(Alfredo Kleper Lavor, economist)

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