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Saturday, July 06, 2013

Global Innovation Index- Political Stability and Innovation capacity

The conceptual framework of GII relies on sub indices- The Innovation Input Sub Index and The Innovation Output Sub Index. Each is built around pillar, 5 for input and 2 for output. Further each pillar is divided into 3 sub pillars and each sub pillar is composed of individual indicators.
Political Environment is a sub pillar with Political Stability as indicator. India is ranked at 123 below countries like Angola, Bolivia, Botswana,Combodia etc. We know things are bad in India but are they so bad?
World Bank defines Political Stability as a measure of perception of a likelihood that the government will be destabilized or overthrown by unconstitutional or violent means including politically motivated violence and terrorism.
Investors are concerned with political/ national risks and credit rating agencies factor risks like:
Expropriation
Breach of Contract
Transfer and Conversibilityrestrictions
Non honouring sovereign financial obligationsG
Adverse regulatory changes
War
Civil disturbance
Terrorism.

Why such low rank for Political Stability for India?
The report says that these indicators defining political environment in relationship to innovation capacity building is based on survey questionnaire.
Is this the best way?


1 comment:

Alok Asthana said...

You are right. The only indicator they have left out is the height and weight of the PM of the country.
Oh, the games these academicians play!