The Chinese mainland fell one spot to 35 from last year in the Global Innovation Index 2013, jointly published by Cornell University, INSEAD, and the World Intellectual Property Organization (WIPO).

Hong Kong moved up one to 7th. The United States rejoined the five most-innovative nations while Switzerland retained pole position.

Despite the economic crisis, innovation is alive and well, the release said. Research and development spending levels are passing 2008 levels in most countries and successful local hubs are thriving. A group of dynamic middle- and low-income countries - including China, Costa Rica, India, and Senegal - are outpacing their peers, but haven’t broken into the top of the GII 2013 leader board.

The GII 2013 looked at 142 economies around the world, using 84 indicators, including the quality of universities, availability of microfinance, venture capital deals - gauging both innovation capabilities and measurable results.

Published annually since 2007, the GII has become a chief benchmarking tool for business executives, policy makers and others seeking insight into the state of innovation around the world.