How EC works
  • Introduction
  • How the Economic Machine Works
    • How the Economic Machine Works: “A Transactions-Based Approach”
    • How the Market-Based System Works
    • The Template: The Three Big Forces
    • 1) Productivity Growth
    • 2) The Long-Term Debt Cycle
    • 3) The Short-Term Debt Cycle
  • Debt Cycles: Leveragings & Deleveragings
    • An In-Depth Look at Deleveragings
    • The Ugly Deflationary Deleveragings
    • The Beautiful Deleveragings
    • The Ugly Inflationary Deleveraging
    • A Closer Look at Each
      • United States Depression and Reflation, 1930-1937
      • Japan Depression and Reflation, 1929-1936
      • UK Deleveraging, 1947-1969 UK Deleveraging,1947-1969
      • Japan Deleveraging, 1990-Present
      • US Deleveraging, 2008-Present
      • The Recent Spain Deleveraging, 2008-Present
      • Germany’s Weimar Republic: 1918-23
    • US Deleveraging 1930s
      • Preface
      • Conditions in 1929 Leading up to the Crash
      • 1H1930
      • 2H1930
      • 1Q1931
      • 2Q1931
      • 3Q1931
      • 4Q1931
      • 1H1932
      • 2H1932
      • 1933
      • March 1933
      • 1934-1938
    • Weimar Republic Deleveraging 1920s
      • Overview
      • World War I Period 1914 – November 1918
      • Post-War Period November 1918 - December 1921
      • Hyperinflation
      • Second Half of 1922
      • 1923
      • Stabilization: From Late 1923 Onward
  • Productivity and Structural Reform: Why Countries Succeed & Fail, and What Should Be Done So Failing
    • Part 1: The Formula for Economic Succes
      • A Formula for Future Growth
      • Projections
      • Productivity and Competiveness Measures
      • Our Productivity Gauge
      • Value: What You Pay Versus What You Get
      • A Simple Measure of Cost: Per Capita Income
      • Education
      • Cost of a Productivity Adjusted Educated Worker
      • Working Hard
      • Working Hard Subcomponent: Average Hours Worked
      • Working Hard Subcomponent: Demographics
      • Investing
      • Investing Subcomponents: Aggregate Fixed Investment Rates
      • Investing Subcomponents: Household Savings Rates
      • Culture Components
      • Self-Sufficiency
      • Self-Sufficiency Subcomponent: Work Ethic
      • Self-Sufficiency Subcomponent: Work Ethic - Average Hours Worked
      • Self-Sufficiency Subcomponent: Work Ethic – Labor Force Participation
      • Self-Sufficiency Subcomponent: Work Ethic – Actual Vacation Time
      • Self-Sufficiency Subcomponent: Work Ethic – Retirement Age as Percentage of Life Expectancy
      • Self-Sufficiency Subcomponent: Government Supports
      • Self-Sufficiency Subcomponent: Government Supports – Government Expenditures
      • Self-Sufficiency Subcomponent: Government Supports – Transfers to Households
      • Self-Sufficiency Subcomponent: Labor Market Rigidity
      • Self-Sufficiency Subcomponent: Labor Market Rigidity – Unionization
      • Self-Sufficiency Subcomponent: Labor Market Rigidity – Ease of Hiring and Firing
      • Self-Sufficiency Subcomponent: Labor Market Rigidity – Minimum Wage as Percentage of Average Income
      • Savoring Life Versus Achieving
      • Savoring Life Versus Achieving Subcomponents: Observed Outcomes
      • Savoring Life Versus Achieving Subcomponent: Expressed Values
      • Innovation and Commercialism
      • Innovation and Commercialism Subcomponent: Outputs
      • Innovation and Commercialism Subcomponent: Inputs
      • Bureaucracy
      • Corruption
      • Rule of Law
      • Our Indebtedness Gauge
      • Debt and Debt Service Levels
      • Debt Flow
      • Monetary Policy
      • Summary Observations
    • Part 2: Economic Health Indices by Country, and the Prognoses That They Imply
      • India's Future Growth
      • China's Future Growth
      • Singapore's Future Growth
      • Mexico's Future Growth
      • Thailand's Future Growth
      • Argentina's Future Growth
      • Korea's Future Growth
      • Brazil's Future Growth
      • USA's Future Growth
      • United Kingdom's Future Growth
      • Russia's Future Growth
      • Australia's Future Growth
      • Canada's Future Growth
      • Germany's Future Growth
      • France's Future Growth
      • Hungary's Future Growth
      • Spain's Future Growth
      • Japan's Future Growth
      • Italy's Future Growth
      • Greece's Future Growth
      • Appendix: List of Statistics that Make Up Our Gauges
    • Part 3: The Rises and Declines of Economies Over the Last 500 Years
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  1. Productivity and Structural Reform: Why Countries Succeed & Fail, and What Should Be Done So Failing
  2. Part 1: The Formula for Economic Succes

Innovation and Commercialism Subcomponent: Inputs

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Last updated 7 years ago

Ultimately what matters for commercial innovation is whether there is a strong spirit of finding new things and building new businesses in the society. Whether a country is investing its resources in new innovations and whether it has a culture of risk-taking are good signs this spirit is strong. So to measure the inputs to innovation we look at human and capital investment through R&D expenditure as a percentage of GDP and the proportion of researchers in the population. We look at entrepreneurial spirit by examining whether people express a fear of failing in a new business endeavor in surveys and whether there is a prevalence of entrepreneurs in the population.

最重要的是商业创新的重要性在于是否有强烈的发现新事物和在社会上建立新的业务的精神。一个国家是否投入资源进行新的创新,是否有风险的文化,这个精神是好的迹象。因此,为了衡量创新投入,我们通过研发支出来研究人力和资本投入占GDP的比例和人口中研究人员的比例。我们看企业精神,考察人们是否表示担心调查中的新业务发生失败,以及人口中企业家是否流行。

As with the outputs of innovation, the innovation inputs we measure are highly correlated to income, again to be expected since richer countries have more resources and higher levels of education to devote to finding new ideas. To account for this and get at the underlying spirit of innovation and commercialism we simply take out the effect of income. Here again we see India and China behind many rich countries on our raw indicators, and then at the top of the list after taking into account their level of income; on the other hand, certain rich countries are at the bottom of the list after excluding the effect of income—for example, Italy and France. As observed when we looked at its score on our outcomes measure, Korea has the highest score for inputs to innovation and commercialism. That's because it devotes a high amount of spending and people to research while also having a healthy amount of entrepreneurship (despite some apparent fear of business failure). Within the developed world, the US, Germany and Japan stand out as the countries most oriented toward innovation and commercialism, near the top of all countries. Japan stands out because of the resources it devotes—its level of researchers relative to its population and R&D expenditure—which outweigh an apparent fear of business failure. The US, on the other hand, is strong on all measures, with a healthy willingness to take risk.

与创新产出一样,我们测量的创新投入与收入高度相关,再次预计,由于富裕国家拥有更多资源和更高水平的教育,致力于寻找新的想法。为了解决这个问题,掌握创新和商业主义的基本精神,我们只是拿出收入的效果。再次,我们看到印度和中国在许多富国的背后是我们的原始指标,然后考虑到他们的收入水平,列在名单的顶部;另一方面,某些富国排除了收入的影响,如意大利和法国,处于名单的底部。观察我们对结果测量的评分时,韩国对创新和商业主义的投入评分最高。那是因为它花费了大量的开支和人力来研究,同时也有一个健康的创业精神(尽管有一些明显的恐惧的企业失败)。在发达国家中,美国,德国和日本作为最具有创新和商业主义的国家,在所有国家中排名第一。日本脱颖而出,因为它所投入的资源 - 研究人员相对于人口和研发支出的水平 - 这超出了对商业失败的明显恐惧。另一方面,美国在所有措施上都是坚强的,有健康的冒险意愿。

Below you can see a more granular view of how each country scored for each measure.