No. 3 – Switzerland

Overall score: 2.23
Innovation inputs score: 1.51
Innovation performance score: 2.74
GDP (Purchasing Power Parity): $309.9 billion
Foreign Direct Investment: $621.7 billion

Switzerland is a world leader in pharmaceuticals, thanks to companies such as Novartis (NVS) and Roche (RO.DE). Home to Nestlé (NESR.DE), it's also a leader in food research. Traditionally at the forefront of financial innovation, banks like UBS (UBS) have been badly damaged by the financial crisis.