ALGERIA - WIPO

ALGERIA121stAlgeriaThe Global Innovation Index (GII) ranks world economies according to their innovation capabilities.Consisting of roughly 80 indicators, grouped into innovation inputs and outputs, the GII aims to capturethe multi-dimensional facets of innovation.The following table shows the rankings of Algeria over the past three years, noting that data availability andchanges to the GII model framework influence year-on-year comparisons of the GII rankings. The statisticalconfidence interval for the ranking of Algeria in the GII 2020 is between ranks 115 and 123.Rankings of Algeria (2018–2020)GIIInnovation inputsInnovation outputs202012111112620191131001182018110100116 Algeria performs better in innovation inputs than innovation outputs in 2020. This year Algeria ranks 111th in innovation inputs, lower than last year and lower compared to 2018. As for innovation outputs, Algeria ranks 126th. This position is lower than last year and lower compared to2018.37thAlgeria ranks 37th among the 37 upper middle-income group economies.18thAlgeria1

EXPECTED VS. OBSERVED INNOVATION PERFORMANCEThe bubble chart below shows the relationship between income levels (GDP per capita) and innovationperformance (GII score). The trend line gives an indication of the expected innovation performanceaccording to income level. Economies appearing above the trend line are performing better than expectedand those below are performing below expectations.Relative to GDP, Algeria is performing below expectations for its level of development.2

EFFECTIVELY TRANSLATING INNOVATION INVESTMENTS INTOINNOVATION OUTPUTSThe chart below shows the relationship between innovation inputs and innovation outputs. Economies abovethe line are effectively translating costly innovation investments into more and higher-quality outputs.Algeria produces less innovation outputs relative to its level of innovation investments.3

BENCHMARKING ALGERIA AGAINST OTHER UPPER MIDDLE-INCOMEGROUP ECONOMIES AND NORTHERN AFRICA AND WESTERN ASIAAlgeria’s scores in the seven GII pillarsUpper middle-income group economiesAlgeria scores below average for its income group in all pillars.Northern Africa and Western AsiaCompared to other economies in Northern Africa and Western Asia, Algeria performs below average in allseven GII pillars.4

OVERVIEW OF ALGERIA RANKINGS IN THE SEVEN GII AREASAlgeria performs best in Human capital & research and its weakest performance is in Market sophistication.*The highest possible ranking in each pillar is 1.INNOVATION STRENGTHS AND WEAKNESSESThe table below gives an overview of the strengths and weaknesses of Algeria in the GII 2020.WeaknessesStrengthsCodeIndicator nameRankCodeIndicator nameRank2.2Tertiary education361.2.1Regulatory quality*1282.2.1Tertiary enrolment, % gross562.1.4PISA scales in reading, maths & science772.2.2Graduates in science & engineering, %92.3.3Global R&D companies, top 3, mn US 422.3.1Researchers, FTE/mn pop.552.3.4QS university ranking, average score top 3*772.3.2Gross expenditure on R&D, % GDP614Market sophistication130Credit1293.2General infrastructure424.13.2.3Gross capital formation, % GDP54.1.1Ease of getting credit*1293.3.1GDP/unit of energy use534.2Investment1304.3.3Domestic market scale, bn PPP 344.2.1Ease of protecting minority investors*1295.2.2State of cluster development†584.2.2Market capitalization, % GDP73Computer software spending, % GDP1225.3.2High-tech imports, % total trade496.2.37.1.3Industrial designs by origin/bn PPP GDP566.3Knowledge diffusion1287.1.2Global brand value, top 5,000, % GDP807.3.4Mobile app creation/bn PPP GDP1005

STRENGTHSGII strengths for Algeria are found in five of the seven GII pillars. Human capital & research (74): shows strengths in the sub-pillar Tertiary education (36) and in theindicators Tertiary enrolment (56), Graduates in science & engineering (9), Researchers (55) and Grossexpenditure on R&D (61). Infrastructure (100): demonstrates strengths in the sub-pillar(s) General infrastructure (42) and in theindicators Gross capital formation (5) and GDP/unit of energy use (53). Market sophistication (130): the indicator Domestic market scale (34) reveals a strength. Business sophistication (126): displays strengths in the indicators State of cluster development (58) andHigh-tech imports (49). Creative outputs (118): exhibits strength in the indicator Industrial designs by origin (56).WEAKNESSESGII weaknesses for Algeria are found in five of the seven GII pillars. Institutions (104): the indicator Regulatory quality (128) reveals a weakness. Human capital & research (74): shows weaknesses in the indicators PISA scales in reading, maths &science (77), Global R&D companies (42) and QS university ranking (77). Market sophistication (130): exhibits weaknesses in the sub-pillars Credit (129) and Investment (130) and inthe indicators Ease of getting credit (129), Ease of protecting minority investors (129) and Marketcapitalization (73). Knowledge & technology outputs (125): displays weaknesses in the sub-pillar Knowledge diffusion (128)and in the indicator Computer software spending (122). Creative outputs (118): shows weaknesses in the indicators Global brand value (80) and Mobile appcreation (100).6

DATA AVAILABILITYThe following tables list data that are either missing or outdated for Algeria.Missing dataCodeIndicator nameCountryyearModelyearSource2.1.1Expenditure on education, % GDPn/a2018UNESCO Institute for Statistics2.1.2Government funding/pupil, secondary, %GDP/capn/a2016UNESCO Institute for Statistics2.1.5Pupil-teacher ratio, secondaryn/a2018UNESCO Institute for Statistics4.1.3Microfinance gross loans, % GDPn/a2018Microfinance Information Exchange4.2.3Venture capital deals/bn PPP GDPn/a2019Thomson Reuters5.1.2Firms offering formal training, %n/a2018World Bank6.1.3Utility models by origin/bn PPP GDPn/a2018World Intellectual Property OrganizationOutdated dataCodeIndicator nameCountryyearModelyearSource2.1.3School life expectancy, years20112017UNESCO Institute for Statistics2.1.4PISA scales in reading, maths & science20152018OECD Programme for International StudentAssessment (PISA)2.3.1Researchers, FTE/mn pop.20172018UNESCO Institute for Statistics; Eurostat; OECD –Main Science and Technology Indicators2.3.2Gross expenditure on R&D, % GDP20172018UNESCO Institute for Statistics; Eurostat; OECD –Main Science and Technology Indicators5.1.1Knowledge-intensive employment, %20172018International Labour Organization5.1.3GERD performed by business, % GDP20172018UNESCO Institute for Statistics; Eurostat; OECD –Main Science and Technology Indicators5.1.5Females employed w/advanced degrees, %20172018International Labour Organization5.3.1Intellectual property payments, % total trade20172018World Trade Organization5.3.2High-tech imports, % total trade20172018United Nations, COMTRADE5.3.3ICT services imports, % total trade20172018World Trade Organization5.3.5Research talent, % in business enterprise20172018UNESCO Institute for Statistics; Eurostat; OECD –Main Science and Technology Indicators6.2.5High- & medium-high-tech manufacturing, %20152017United Nations Industrial DevelopmentOrganization6.3.1Intellectual property receipts, % total trade20172018World Trade Organization6.3.2High-tech net exports, % total trade20172018United Nations, COMTRADE6.3.3ICT services exports, % total trade20172018World Trade Organization7.2.4Printing & other media, % manufacturing20152017United Nations Industrial DevelopmentOrganization7.2.5Creative goods exports, % total trade20172018United Nations, COMTRADE8

ABOUT THE GLOBAL INNOVATION INDEXThe Global Innovation Index (GII) is co-published by Cornell University, INSEAD, and the World IntellectualProperty Organization (WIPO), a specialized agency of the United Nations. In 2020, the GII presents its 13 thedition devoted to the theme Who Will Finance Innovation?Recognizing that innovation is a key driver of economic development, the GII aims to provide an innovationranking and rich analysis referencing around 130 economies. Over the last decade, the GII has establisheditself as both a leading reference on innovation and a “tool for action” for economies that incorporate the GIIinto their innovation agendas.The Index is a ranking of the innovation capabilities and results of world economies. It measures innovationbased on criteria that include institutions, human capital and research, infrastructure, credit, investment,linkages; the creation, absorption and diffusion of knowledge; and creative outputs.The GII has two sub-indices: the Innovation Input Sub-Index and the Innovation Output Sub-Index, and sevenpillars, each consisting of three sub-pillars.9WIPO FOR OFFICIAL USE ONLY

Government funding/pupil, secondary, % GDP/cap n/a 2016 UNESCO Institute for Statistics 2.1.5 Pupil-teacher ratio, secondary n/a 2018 UNESCO Institute for Statistics 4.1.3 Microfinance gross loans, % GDP n/a 2018 Microfinance Information Exchange 4.2.3 Venture capital deals/bn PPP GDP