Berlin: China has entered the top 10 of the United Nations’ annual Global Innovation Index (GII) for the first time, displacing Germany, long regarded as Europe’s industrial powerhouse.
The report, released Tuesday, reflects China’s rising investment in research and development (R&D) as its firms increasingly close the gap with global leaders.
Switzerland retained the number one spot in the Global Innovation Index, a position it has held since 2011, followed by Sweden and the United States. The index, compiled from 78 indicators and covering 139 economies, evaluates innovation capacity and output across industries and governments.
South Korea, Singapore, Britain, Finland, the Netherlands, and Denmark also ranked in the top 10, with China making its debut in 10th place. Germany slipped to 11th, underscoring the shifting balance of innovation power worldwide.
According to the GII, China is on track to become the world’s largest spender on R&D, propelled by surging private sector financing and state-backed initiatives. In 2024, China accounted for roughly a quarter of all international patent applications, remaining the single largest source globally.
By contrast, traditional leaders, the United States, Japan, and Germany, which together represent around 40 percent of global patent filings, each recorded modest declines. Patent ownership is often seen as a key marker of a nation’s technological strength and industrial competitiveness.
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Switzerland🇨🇭, Sweden🇸🇪, the US🇺🇸, the Republic of Korea🇰🇷 and Singapore🇸🇬 top WIPO’s Global Innovation Index 2025
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— World Intellectual Property Organization (WIPO) (@WIPO) September 16, 2025
Despite China’s ascent, the overall picture for global innovation is clouded. The GII warned that R&D growth is slowing, with global expenditure forecasted to expand by just 2.3 percent this year, down from 2.9 percent in 2023. Last year’s figure was already the weakest since the aftermath of the 2008–09 financial crisis, raising concerns about long-term innovation momentum.
“The outlook for innovation is being challenged by weaker investment and uncertainty in global markets,” the report noted.
While Germany’s drop out of the top 10 was notable, experts cautioned against interpreting it as a long-term decline. GII co-editor Sacha Wunsch-Vincent said Germany retains deep industrial strength and resilience, though it faces pressing challenges in adapting to the digital era.
World Intellectual Property Organization (WIPO) Director General Daren Tang emphasized that Germany must build on its long-established industrial base to transition toward digital leadership.
“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,” Tang said.
China’s entry into the elite ranks marks a milestone in the global innovation landscape. With Asian economies like South Korea, Singapore, and now China increasingly climbing the ladder, the traditional Western dominance in high-end innovation is being reshaped.
