China has entered the top 10 of the United Nations’ annual ranking of the world’s most innovative countries for the first time, replacing Germany. The Global Innovation Index (GII), which evaluates 139 economies using 78 indicators, placed China in 10th position.
Switzerland maintained its hold on the top spot, a position it has occupied since 2011, followed by Sweden and the United States. Other countries in the top 10 include South Korea, Singapore, Britain, Finland, the Netherlands and Denmark.
The report highlights China’s growing strength in research and development, with firms in Beijing investing heavily to drive innovation. China is also on track to become the largest spender on R&D globally, rapidly narrowing the gap in private sector financing. The GII noted that China accounted for around one quarter of all international patent applications in 2024, continuing as the world’s biggest source. In contrast, the United States, Japan and Germany, which together represent about 40 percent of patent applications, recorded small declines.
Patent ownership is considered a strong indicator of economic power and industrial expertise. Commenting on Germany’s drop to 11th place, GII co-editor Sacha Wunsch-Vincent said it should not cause alarm, noting that the rankings do not take into account the impact of tariffs imposed by the Trump administration in the United States.
World Intellectual Property Organization (WIPO) Director General Daren Tang added, “The challenge for Germany is how…, alongside its strong, decades-long status as a really powerful engine of industrial innovation, to become a powerhouse of digital innovation.”
While China’s rise signals its growing global influence, the report also warns of slowing global innovation investment. Growth in R&D spending is expected to drop to 2.3 percent this year, down from 2.9 percent last year, which was already the weakest level since the 2010 financial crisis.
The GII findings underline both China’s rapid progress and the broader concerns around declining funding for innovation worldwide.
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