Consider the same pattern in two other highly innovative countries, Sweden and Israel. Israel ranks first in the world in venture-capital investments as a percentage of GDP; the United States ranks second, and Sweden is sixth, ahead of Great Britain and Germany. These nations do well by most measures of innovation, such as research and development spending and the number of high-tech companies as a share of all public companies. Yet all three countries fare surprisingly poorly in the OECD test rankings. Sweden and Israel performed even worse than the United States on the 2012 assessment, landing overall at 28th and 29th, respectively, among the 34 most-developed economies.
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