Since 2011, economies participating in GEM have calculated what portion of their early-stage entrepreneurs are considered “innovative.” This means that their product or service is considered new in their market and that few or no competitors currently exist. Over the last seven survey cycles since the development of the Innovation Rate indicator, some countries have consistently scored in the top 10 of participating GEM economies by percentage rate.
Below are the countries that have appeared in at least 3 of the top 10 innovative countries since 2011 (note that not all countries have participated every year over this period):
Economy |
Top 10 innovation rate appearances |
---|---|
Chile | 7 |
Ireland | 6 |
Luxembourg | 5 |
France | 4 |
Guatemala | 4 |
Slovenia | 4 |
Canada | 3 |
Colombia | 3 |
Denmark | 3 |
Estonia | 3 |
Lebanon | 3 |
South Africa | 3 |
United States | 3 |
Over this period not only has Chile appeared in the top 10 every year, it has had the highest or second-highest rate of innovative, early-stage entrepreneurs.
Below is the chart of countries in consideration for this analysis with Chile’s position highlighted:
RANK |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
1 |
Chile | 57.6 |
Chile | 56.2 |
Chile | 52.1 |
Chile | 55.2 |
Chile | 54.4 |
Lebanon | 58.7 |
Lux. | 57.1 |
2 |
Den. | 54.1 |
France | 45 |
Colom. | 49.5 |
Lux. | 53.4 |
India | 51.08 |
Chile | 57 |
Chile | 54 |
3 |
UK | 45.9 |
Den. | 44.4 |
S. Africa | 49.2 |
Denmark | 46.3 |
Lux. | 48.5 |
Belize | 48.2 |
France | 48.6 |
4 |
Peru | 44.9 |
S. Africa | 42.9 |
Lux. | 47.9 |
India | 43.5 |
Ireland | 44.8 |
Lux. | 44.5 |
Leban. | 46.9 |
5 |
Switz | 38.8 |
Colom. | 41.6 |
Namibia | 40.1 |
France | 40.1 |
Belgium | 39.7 |
Canada | 40.9 |
Canada | 43.2 |
6 |
Colom. | 38.4 |
Ecuador | 40.2 |
Slovenia | 36.3 |
Puerto Rico | 40 |
Estonia | 39.5 |
Ireland | 40 |
Ireland | 42.7 |
7 |
France | 36.9 |
Slovenia | 37.8 |
Estonia | 34.8 |
Slovenia | 39.5 |
Switz.| 38.5 |
Guat. | 39.1 |
Cyprus | 40.9 |
8 |
S. Africa | 36.3 |
Estonia | 37.7 |
Ecuador | 34.6 |
Ireland | 36.9 |
Leban. | 38.3 |
Switz. | 37.5 |
Qatar | 37.9 |
9 |
Ireland | 35.6 |
Ireland | 37.3 |
Guat. | 34.4 |
USA | 36.7 |
Guat. | 37.1 |
USA | 37.1 |
USA | 35.9 |
10 |
Guat. | 35 |
Belgium | 36.8 |
Portugal | 34.3 |
Sweden | 36.6 |
Canada | 36.1 |
Cyprus | 36.7 |
Slovenia | 34.2 |
Chile’s performance in innovative entrepreneurship stands out in both its regional and development peer group of countries. The explanation for this phenomenon may be explained in the country’s unique mix of “ambitious” entrepreneurs (those that expect to create several jobs through their new venture) and its relative ease of starting a business compared to regional peers.
Below is Chile’s rate of High Growth Expectation (“ambitious entrepreneurs”) rate, compared to Colombia as well as an average of other regional peer countries.
Ambitious entrepreneurial rates are strongly correlated with innovative entrepreneurs according to the Leveraging Entrepreneurial Ambition and Innovation report published by GEM and the World Economic Forum in 2015. The report states that “growth-oriented early-stage entrepreneurs are, on average, 50% more likely than non-ambitious entrepreneurs to state that they have innovative products or services.” This is a major factor in Chile’s innovation rates. And although Colombia does perform better in this area than Chile over the past few years, Chile also has more chances for entrepreneurship relative to its peers; a factor also identified by the GEM / WEF report as important in opening opportunities for innovation.
The most recent World Bank rankings for Doing Business confirms this finding that Chile has a relatively open entrepreneurial ecosystem compared to its peers. Below are the rankings of GEM countries, with their World Bank’s Doing and Starting a Business rankings (out of 190 total countries), in Chile’s peer group:
Doing Business | Starting Business | |
Argentina | 119 | 128 |
Brazil | 109 | 140 |
Chile | 56 | 72 |
Colombia | 65 | 100 |
Peru | 68 | 125 |
Uruguay | 95 | 65 |
Chile’s rankings have improved overall recently, helped by small-business friendly programs. For example, Start-Up Chile, which launched in 2010, provides free equity investment for qualified companies. Other reforms such as one-day, free, business registrations and low-cost bankruptcies are some of the ways the country is making it easier for its population to engage in entrepreneurship.
Analysis by Forrest Wright (GEM Global Data Team)