Ayesha Saba

China’s success in the Global Innovation Index (GII) owing to its sustained R&D investment, skilled workforce, and strategic collaboration in driving growth and technological advancement offers Pakistan an opportunity to tailor these strategies to its own circumstances in order to stay competitive globally, reports WealthPK.

“Innovation is widely recognized as a driving force for long-term economic growth, as it fosters productivity, creates new markets, and enhances global competitiveness. China's ascension in the GII rankings reflects its strategic investment in R&D, robust policy frameworks, and an ecosystem that supports entrepreneurship and technological advancement,” said Malik Sohail Hussain, Chairman of Coordination of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). “China’s focus on fostering an innovation-driven economy has allowed it to transition from a low-cost manufacturing hub to a global leader in high-tech industries. Pakistan, on the other hand, has faced persistent economic challenges, such as a large informal economy, low productivity, and limited technological adoption,” he said. “Focusing on key areas such as human capital development, infrastructure, and policy reforms that promote innovation and technology will be critical for unlocking the country’s economic potential.

Pakistan must invest in upgrading its manufacturing capabilities to remain relevant in the global market. Similarly, the country can benefit from engaging with the international partners, tapping into the global supply chains, and attracting foreign direct investment,” he said. Speaking on the condition of anonymity, an official from the National Productivity Organization (NPO) said, “We have made significant efforts with a more focused strategy aimed at enhancing total factor productivity (TFP) by investing in human resource development (HRD), demonstrating new technologies, and improving practices, processes, and procedures across the country. This is essential for competing effectively in both local and global markets.” He further said, “NPO is currently developing a key initiative that will provide long-term benefits for the organization and its stakeholders. This includes Rs77 million 'Launching Productivity Movement in Pakistan' project, approved through the PSDP, under the 'Improving Competitiveness through Sustainable National Productivity (SNP)' initiative.”

Source: Pakistan Ranking in the Global Innovation Index 2024. (wipo.int)

The above table shows the rankings of Pakistan over the past four years. Pakistan ranks 91st among the 133 economies featured in the GII 2024. The GII ranks world economies according to their innovation capabilities.

Credit: INP-WealthPk