China entered UN'S Global Innovation Index top 10 for the first time, displacing Germany. Image credit: Visit Our China
Switzerland led the rankings for the 14th year running, followed by Sweden and then the United States. China ranked 10th, while Germany dropped to 11th from ninth last year.
China’s Surge in Research and Development
China has increased its R&D expenditures at a rapid rate to emerge as the globe’s biggest innovator investor. In 2024, it accounted for 25% of all global patent filings, remaining the biggest source of filings.
The US, Japan, and Germany, which together account for 40% of global applications, saw small declines by comparison. Patent filings are a critical indicator of economic strength and technological leadership.
The GII warned that global R&D growth would fall to 2.3% in 2025 from 2.9% in 2024, the weakest since the 2010 financial crisis. Venture capital spending also hasn’t fully rebounded from the sharp fall in 2023. “Ten years of rapid expansion in R&D and venture capital have now given way to a slowdown,” the report said.
But WIPO Director General Daren Tang again emphasized that innovation itself is strong. He further stated that Germany is a powerful standalone driver of industrial innovation but needs to accelerate digital transformation to stay competitive.
Middle-income countries such as India, Turkey, and Vietnam are still rising on the index. African and Central Asian countries such as Senegal, Tunisia, Uzbekistan, and Rwanda are becoming “innovation overperformers,” according to the GII.
Technology Driving Change
The report highlighted some of the key breakthroughs: Green supercomputers breaking efficiency records, battery prices declining, and rising use of clean energy. Electrification of cars, robots, and 5G is already underway in half the world. The cost of genome sequencing is declining, powering personalized medicine.
But approvals of new drugs globally declined 19% in 2024, underscoring the obstacles to pharma innovation in the midst of technological progress.
In Western Europe, France was 13th, Ireland 18th, Italy 28th, Spain 29th, and Portugal 31st, a spotty record of European innovation in the second division.
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