"Based on its relative-to-the-EU performance in 2018, South Korea is the innovation leader, while Canada, Australia, Japan and the United States are strong innovators," it said.

Canada came in second with 118 points, followed by Australia with 112 and Japan with 111. Innovation performance was compared with the aggregate of the EU as the economic and population size of most global competitors outweigh that of many of the individual EU member states.

The European Innovation Scoreboard said South Korea's performance has increased since 2011, noting South Korea's relative strengths are in business research, development expenditures and intellectual property applications.

South Korea has been seeking to boost artificial intelligence, the hydrogen economy and other innovative sectors as new growth engines amid slowing exports and investment.

Other segments that the government is focusing on include big data, fifth-generation network services, smart factories and bio-health. (Yonhap)