Intellectual capital index: what ranking for Algeria?

After the analysis in the first articles of the ranking of Algeria in Africa and in the world with regard to social capital (health, equality, security…) and natural capital (biodiversity, water, pollution…), — let us interest Now to another indicator from the think tank Solability: intellectual capital index (or the innovation capital index).

The Intellectual Capital Index measures the potential of nations in terms of education, research and development, creation of new businesses. In particular, it takes into account the overall performance of the school system, the quality of higher education and the country’s capacity to manufacture high-tech products.

Let us therefore focus our attention on the ranking of Algeria in Africa and in the world in relation to the index of intellectual capital.

2021 Intellectual Capital Index World Map

Intellectual Capital Index World Map | Dark: high; Clear: low | Source:

Intellectual capital: catalyst of the dynamics of innovation

Innovation—the daughter of creativity and the fruit of education—allows countries to compete in globalized markets.

To create wealth and maintain it, we need jobs that guarantee income to the population. Generating jobs requires producing goods and providing services that people and businesses, at home or abroad, are willing to buy over those of the competition. Finally, to achieve this advantage, these products and services must be competitive in the global market in terms of quality and price.

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In order to maximize the benefits for the country, the value chain should ideally be covered within the framework of the national economy. Because most of the added value lies in the transformation of raw materials or parts into finished products.

Furthermore, the intellectual capital index, also called innovation capital indexis based on three main indicators: educationthe research and the new businesses. Each of these indicators includes three criteria, according to the following diagram:

Constitution of the intellectual capital index

Countries that score high on intellectual capital are more likely to develop successful economies through industries based on research and technical knowledge. That is to say, industries with high added value that make it possible to achieve high growth rates.

2021 Intellectual Capital Index Ranking

The global average of intellectual capital index for the year 2021 was 40 (out of 100). The difference between the lowest score (Central Africa: 15) and the highest score (South Korea: 78) is striking. It reflects even more strongly the north-south gap than a GNI comparison.

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A high score in the intellectual capital index forms the basis of a nation’s capacity for innovation, and therefore of its future economic success. Unfortunately, poor countries generally perform poorly on intellectual capital. And it raises fears that many parts of Africa remain trapped in poverty.

On the other hand, nearly 60% of all indicators show a positive development at the global level. However, most of these improvements come from Europe, East and Southeast Asia, and the Americas (except Central America).

Intellectual Capital Index 2021 - global trends

The 2021 Intellectual Capital Index global scores and trends. Source:

Here are, moreover, the main observations provided by the examination of the 2021 ranking of the Intellectual Capital Index:

  • Northeast Asian countries (South Korea, China, Japan, Singapore) and the scandinavian nations (Sweden, Denmark) dominate the intellectual capital index.
  • South Korea still dominates the ranking of innovation and competitiveness with a considerable margin over other countries.
  • China occupies the 2erank, the United States, the 6th rank, the United Kingdom, the 8theGermany, 11e and France, 17e.
  • Russia ranks 16eBrazil, 28eand India, 105e.
  • Africa remains the worst performing region in the world in terms of intellectual capital. This portends a prolonged lock-up of the continent in poverty.

Intellectual Capital Index 2021: what place for Algeria in Africa and in the world?

The Intellectual Capital Index gave Algeria a score of 40.3 for the year 2021. With this score below the average, our country reaches the 80e world square (the index ranks 180 countries). Algeria is therefore in the first half of the ranking, but it is far from the best performing countries.

Intellectual capital index 2021 - ranking of Algeria

At the African level, Algeria occupies the 5e rank. It is overtaken by neighboring Tunisia (42e world and best African nation with a score of 48.8), Eswatini (55e), South Africa (65e) and Botswana (69e).

Algeria ranks 5e also in the Arab world. In the first place, we still find the Tunisia. Then comes Oman (51e worldwide), Saudi Arabia (62e) and the United Arab Emirates (64e). The other North African countries are relatively poorly ranked. Morocco occupies the 87e world rank, Egypt, the 89e and Libya, the 130e.

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Finally, let’s recall some recent facts about higher education and technology in Algeria that may explain the country’s score in the ICI 2021:

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