Low scores on the quality and extent of tertiary education and the low level of scientific outputs are the main reasons for Vietnam's medium level of creative productivity compared to other regional economies, according to a new report of Asian Development Bank.
Based on the new Creative Productivity Index (CPI) developed by the ADB and the Economist Intelligence Unit (EIU), Vietnam ranked 18th out of 24 economies, with an overall score of 0.404.
The Asian Development Bank (ADB) said on Sep. 12 that the index gives policymakers a tool to assess how best to foster innovation and creativity in Asian economies.
It measures input and output creative productivity. Vietnam ranked 14th out of 24 economies in both input and output.
"Although the country is average in terms of overall inputs, challenges remain in the provision of human capital, owing to relatively low scores on the quality and extent of tertiary education. Correspondingly, Vietnam’s main weakness on the output side is the low level of scientific outputs," the report said.
Input is measured through 36 indicators on capacity and incentives for innovation such as the number of global top 500 universities in the country, urbanization rate, research and development spending, protection of intellectual property rights, and corruption and bureaucracy, the news report said.
Meanwhile, output assesses through eight indicators to measure innovation which include the number of patents filed, export sophistication, value added to agriculture, and the number of books and films produced.
According to the ADB report, Vietnam’s human capital is poor.
"Although more than 90 percent of the population is literate, Vietnam’s school system and curricula are outdated. There is a general lack of skills in services, IT and banking and finance, as reflected in the country’s low score for enrolment in technical and vocational programmes," it said.
Vietnam’s low ranking for innovation is also driven by poor scientific output, including patents and scientific publications in academic journals, according to the report.
It suggested that the country invest more at higher-education level to facilitate greater enrolment of students in science-oriented programs.
The index ranks Japan as the most efficient among Asian countries in turning innovation, entrepreneurship and creativity into tangible economic outcomes that benefit their people, while Myanmar, Pakistan and Cambodia are ranked the least efficient.
Finland and the US were included for comparison and ranked second and fourth respectively out of the diverse group of 24 economies that include some of the richest and poorest nations in the world.