The U.S. has lost its claim to being the world's most innovative nation, according to a new report by INSEAD and the Confederation of Indian Industry. Last year, the U.S. ranked first in the world in terms of innovation; this year, Iceland claimed the crown, and the U.S. dropped to 11th place. America's score was dragged down by a hostile political climate, poor K-12 education and lackluster technological infrastructure, the report said.

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