Hong Kong ranked Asia's most innovative economy

Hong Kong has Asia's most innovative economy, thanks to its high level of creativity and well developed financial markets, a study said.

The Chinese territory beat regional rival Singapore, which was in second place in the Asian rankings, said the joint study by international business school INSEAD and the Confederation of Indian Industry released late on Thursday.

Worldwide, Hong Kong ranked third in the Global Innovation Index while Singapore placed seventh, the study showed.

Among the criteria used by the survey, economies were ranked by patents filed, publication of scientific journals, research and development spending and how innovation supported social welfare, competitiveness and growth.

Hong Kong, Singapore and New Zealand were the only Asia Pacific economies to make it to the top 10 in the global rankings.

Iceland topped the global innovation list despite its deep economic woes followed by Sweden, while Switzerland placed fourth after Hong Kong.

Rounding up the global top 10 list was Denmark in fifth spot, followed by Finland, Singapore, Netherlands, New Zealand and Norway.

The US, which took the top spot last year, slid down to 11th place amid growing challenges from other countries which are putting increasing emphasis on education, science and technology, the study said.

The study stressed innovation as a key driver of growth, playing "a critical role not only in facilitating countries' recovery but also in sustaining national competitiveness," it said. "National and business leaders are struggling to balance the near-term needs of survival with the long-term demand to find new sources of growth."

This year's Global Innovation Index Report covered 132 economies that account for 96 percent of the world's gross domestic product.

Japan, Asia's largest economy, ranked 13th in the index and South Korea was seven notches below at 20th spot. Australia was in 18th place.

Taiwan placed 25th and China, widely expected to overtake Japan as the world's second biggest economy, placed 43rd on the global index.

The study said China scored high marks when it came to scientific output as the government supported various moves to boost research and development, but the country was weak in creativity and market sophistication. AFP

Corporate travel to go up

Corporate travel is likely to grow by 10-15 per cent in Asia this year as business activities improve from last year's sharp falls, a major air ticketing and reservations firm said.
Singapore-based Abacus International said the recovery will be gradual because most the austerity measures and travel policies implemented during the global economic downturn are likely to remain.
"As businesses resume to the 'new normal', we should also see an upward adjustment in travel budgets as business activities improve in a more thriving economic climate," said Abacus vice-president for marketing Brett Henry.
"We are expecting to see a gradual 10-15 per cent growth in corporate travel in 2010, especially in traditional corporate travel markets like Singapore, Malaysia and Hong Kong," he said in a statement.
Business travel declined by 15-20 per cent last year and the amount spent during these trips dropped between 25 and 40 per cent, Henry said.
Despite the downturn, overall bookings for Abacus shrank a narrower-than-expected one per cent in 2009 from the year before, thanks to a pickup starting from the second half. Emerging markets in Central Asia as well as Nepal, Bangladesh and South Korea are seen as key growth areas.
"There is certainly a strong sense of renewed energy and vibrancy in the market as the new year starts," Abacus president and chief executive Robert Bailey told reporters.
Abacus meanwhile said that the majority of Asian travel companies have yet to catch up with the use of Facebook and other online social media tools in their marketing strategies.
Asian travel agents should also make full use of mobile technology applications to reach customers, Abacus said.