Shifting Global Innovation: China Displaces Germany in New UN Ranking

In a recent United Nations report, China has for the first time cracked the top 10 list of the world's most innovative countries, displacing Germany. The annual Global Innovation Index (GII) 2025, which evaluated 139 economies on 78 metrics, placed Switzerland in the top spot, a position it has maintained since 2011, followed by Sweden and the United States. China's ascent, which pushed Germany to 11th, is attributed to a surge in private sector investment in research and development (R&D). The other top-ranking countries include South Korea, Singapore, the UK, Finland, the Netherlands, and Denmark.

The report highlights China's rapid progress, noting the country is on track to become the largest global spender on R&D. China is expected to contribute approximately 25% of all international patent applications by 2024, solidifying its position as the top contributor. In contrast, the United States, Japan, and Germany, which together account for 40% of global applications, have experienced a slight decline. Patent holdings are traditionally viewed as a key indicator of a country's economic power and industrial advancement.

Despite these advancements, the survey also warns that global innovation is slowing down. The growth of R&D is projected to drop to 2.3% this year from 2.9% last year, a rate not seen since the 2010 financial crisis. According to the report's co-editor, Sacha Wunsch-Vincent, Germany's slight dip in the rankings is not a long-term worry, and the full effects of recent trade tariffs are not yet reflected. Daren Tang, Director-General of the World Intellectual Property Organization (WIPO), noted that Germany's primary challenge is to become a leader in digital innovation, building on its existing strength as an industrial powerhouse.