There is an index that tries to measure innovation called the Global Innovation Index (http://en.wikipedia.org/wiki/Global_Innovation_Index_%28INSE...), interestingly Israel comes in at 14th, you'd think they would be number one if this article is to be believed.
What logic? What are you talking about? The US is above Israel on every sub-index. Besides it is obvious that it is relative to population because in absolute terms the US would far outstrip any competitors.
