China Joins Top 10 in Global Innovation Index 2025
Geneva, Wednesday, 17 September 2025.
China achieves a milestone by entering the top 10 of WIPO’s Global Innovation Index 2025, marking a significant shift in innovation dynamics amid slowing global R&D investment.
Global Innovation Dynamics Shift
The World Intellectual Property Organization (WIPO) has released its Global Innovation Index (GII) 2025, marking a pivotal moment in global innovation dynamics as China enters the top 10 for the first time. This development underscores China’s rapid advancements in research and development (R&D), particularly in high-tech exports and innovation outputs. China now hosts 24 of the top 100 global science and technology innovation clusters, illustrating its growing influence in the global innovation landscape [1][2].
Slowing R&D Investment Growth
Despite these advancements, the GII 2025 report highlights a concerning trend: a slowdown in global R&D investment growth. The growth rate fell to 2.9% in 2024, the lowest since the 2010 financial crisis, and is projected to decrease further to 2.3% in 2025. Corporate R&D spending, in particular, has been affected, with growth slowing to just 1% due to high inflation pressures. This slowdown poses a potential risk to sustaining innovation momentum globally [1][3][4].
Venture Capital and Innovation Clusters
Venture capital (VC) activity has shown mixed signals. Although VC investment values rebounded by 7.7% in 2024, driven by significant deals in the United States and surging interest in generative AI, the number of VC deals globally decreased by 4.4%. This reflects a cautious approach among investors, despite the promising technological advancements in areas such as artificial intelligence and quantum computing [1][5].
Implications for Global Economies
The GII 2025 findings are crucial for policymakers and business leaders as they navigate the evolving landscape of innovation. With countries like China making significant strides, the competitive environment is becoming more dynamic. The report serves as a vital tool for assessing competitive landscapes and aligning investment strategies to harness innovation as a driver of economic growth and resilience [1][2][3].