After last year being ranked the second most innovative country worldwide by the Bloomberg index, the Scandinavian nation has dropped to seventh place in the 2019 edition.
To create the index, Bloomberg measures factors across seven criteria: research and development spending, manufacturing capability, concentration of high-tech public companies, patent activity, research personnel concentration, tertiary education, and productivity.
South Korea retained first place position, which it has held in six of the seven editions of the ranking, and was followed by Germany and Finland in the second and third spots, up from fourth and seventh place respectively.
That left Sweden as the second most innovative Nordic country, with Denmark in 11th place and Norway at 17th.
Sweden's highest scores were in research and development spending, where it was ranked 4th worldwide, research personnel concentration (5th), and concentration of high-tech public companies (6th).
In July last year, Sweden dropped one place in another global innovation ranking, but was still ranked third in the study compiled by World Intellectual Property Organization (WIPO), Cornell University and France's INSEAD business school.