However, the Jewish state ranked just 15th in the creation of an environment and culture conducive to innovation, and fell 12% in governments' support for companies fostering innovation.
A decline was also recorded in the speed in which innovative products reach the market.
On the bright side, business leaders appeared to be satisfied with the company and young generation's support for innovation. In addition, the government's support for innovation was perceived as more organized than the global average.
The GE Global Innovation Barometer surveyed 3,100 industry executives in 25 countries (including Israel) in the fields of IT, telecom and Internet, electronics, energy and health.
The United States ranked first (35%), followed by Germany and China. Israel ranked seventh with 2.59%, preceding most Western countries, including countries which stood out in the field of innovation in recent years, like India (2.55%).
Eight-nine percent noted that in order to succeed in innovation, one must understand customers and foresee developments in the market. Only half of them believe universities and schools provide a strong educational model for innovation.