The World Economic Forum’s 2016-2017 Global Competitiveness Report shows that Israel is the second best place for innovation in the world, following Switzerland. The annual report assesses the competitiveness landscape of 138 economies.

Israel also ranks high on university-industry collaboration in R&D (3rd), company spending on R&D (3rd), quality of scientific research institutions (3rd), PCT patents (5th), availability of latest technologies (6th), and availability of scientists and engineers (8th).

The Global Competitiveness Report’s competitiveness ranking is based on the Global Competitiveness Index (GCI), which was introduced by the World Economic Forum in 2005. The WEF says scores are calculated from 12 categories: institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labor market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation.

Israel's performance index as rated by the World Economic Forum for the Global Competitiveness Report 2016–2017.
Israel’s performance index as rated by the World Economic Forum for the Global Competitiveness Report 2016–2017.

“The report is an annual assessment of the factors driving productivity and prosperity in 138 countries. The degree to which economies are open to international trade in goods and services is directly linked to both economic growth and a nation’s innovative potential,” reads a statement.

While Israel proved second best in innovation, its overall ranking was 24th (up three positions from last year).

The world’s three most competitive economies are Switzerland, Singapore and the United States, according to the report.