At a time when countries around the world are struggling because of the global recession, it's all the more important for them to make themselves more attractive to potential investment from multinationals looking for environments that are innovation-friendly, says Andrew. "Countries aren't innovative, companies are," he says. "The choices that countries make can have a profound impact on the ability of companies to be innovative, to attract and retain people and other inputs that go into making innovation successful."
So which countries have the right mix of pro-innovation policies and superior results? Despite the recession—and talk of decline in American manufacturing—the U.S. does well, ranking in the top 10. It's not No. 1, though. To learn more about the 30 countries on BCG's list, and the grades that BCG's consultants gave them for overall ranking as well as inputs and performance, read on.