Assessment of Industrial and Financial Applications of Innovation Development

The purpose of this study is to make an analysis of indicators and methods used to calculate the Global Innovation Index (GII), which assesses the level of innovation development in a country . Within this index the shortcomings lead to overestimation for the developing countries . These indicators predominantly reflect not the achieved innovation development level, but‎the‎country’s‎potential‎to‎achieve it. The GDP (less than the resource rent ), calculated using the purchasing power parity and normalized per the number of people employed in a country, was chosen as baseline. In calculating the integral indicator (Ri), the baseline was adjusted‎for‎the‎country’s‎ competitiveness level and the Gini coefficient. The integral indicator values were derived for the selected states of OECD and BRICS (total of 38 countries) and the countries were ranked respectively . To substantiate the validity of the suggested methodology and the objectiveness of the assessment, a comparison with the estimates using the GII was carried out. It is offered to estimate the achieved innovation level by the outcome indicators, namely, by the indicators reflecting the attained level of social and economic development on the premise that this level has been reached due to innovation and these indicators‎are‎invariant‎to‎the‎countries’‎development‎level. The suggested methodology can be considered either separately in the process of assessing the innovation development level of a country or as a complementary to the assessment using the GII , which allows to analyze the country’s‎ prospects‎ in‎ terms of innovation‎proceeding‎from‎the‎‘attained‎level’.