Ethiopia, ranked 130th in the 2024 Global Innovation Index, can learn from Switzerland's top position to boost its economy from factor-driven to innovation-driven. The analysis highlights gaps across seven pillars, urging improvements in institutions, education, and infrastructure. By 2030, Ethiopia aims to expand manufacturing and digital access significantly.
Ethiopia remains a primary commodity-driven economy, with manufacturing value added at 4 percent of GDP in 2024, targeting 17.2 percent by 2030. In the World Intellectual Property Organization's Global Innovation Index 2024, Switzerland leads globally with a 67.5 percent score, while Ethiopia scores 12.3 percent at 130th place. Ethiopia's innovation inputs rank 133rd and outputs 112th, contrasting Switzerland's 2nd and 1st positions.
The comparison spans seven pillars. In institutions, Ethiopia scores 39.6 percent against Switzerland's 87.7 percent, needing better operational stability (26.3 percent vs. 92.4 percent) and regulatory environment (21.4 percent vs. 89.2 percent). Human capital and research show Ethiopia at 7.2 percent versus 61.8 percent, with low tertiary enrollment (4.2 percent vs. 50 percent) and R&D spending (1.4 percent vs. 70.4 percent). Infrastructure gaps include ICT at 26.3 percent versus 82.1 percent.
Market sophistication is 5 percent for Ethiopia compared to 66.5 percent, requiring credit access reforms (5.1 percent vs. 70.8 percent). Business sophistication stands at 13.3 percent against 67.2 percent, emphasizing knowledge workers and linkages. Knowledge and technology outputs are 14.7 percent versus 65.1 percent, with patents per billion PPP$ GDP needing growth. Creative outputs lag at 5.2 percent compared to 67.1 percent, particularly in intangible assets (1.9 percent vs. 61.7 percent).
Ethiopia's 10-Year Development Plan targets 100 percent mobile and internet access by 2030, from current 57 percent subscriptions and 16.7 percent usage. Recommendations include university research commercialization, entrepreneur ecosystems, and venture capital to foster innovation.
