Switzerland has been ranked the most innovative economy in the world, followed by Sweden and the United Kingdom, in the annual Global Innovation Index (GII).

European economies dominated the ranks, but China was fast climbing the ladder, according to a joint study by Cornell University, Insead and the World Intellectual Property Organization (WIPO).

“Investing in innovation is critical to raising long-term economic growth,” Francis Gurry, director general at the WIPO, told CNBC.

“In this current economic climate, uncovering new sources of growth and leveraging the opportunities raised by global innovation are priorities for all stakeholders,” he added.