by Adnan Arif
GENEVA — China has reached a major milestone in the China Innovation Index, securing 10th place in the World Intellectual Property Organization’s (WIPO) 2025 Global Innovation Index (GII). Released Thursday, the report marks China’s first-ever entry into the global top 10, reflecting its growing influence in science, technology, and innovation.
Global Innovation Index Highlights China’s Rise
The GII evaluates nearly 140 economies using 80 indicators, including R&D investment, venture capital activity, high-tech exports, and intellectual property filings. Switzerland leads the 2025 list, followed by Sweden, the United States, South Korea, Singapore, the United Kingdom, Finland, the Netherlands, Denmark, and China.
China Innovation Performance Driven by R&D and Clusters
China’s climb in the China innovation ranking reflects its sustained strength in research spending, innovation output, and high-tech exports. Notably, it continues to lead all middle-income economies globally.
For the third consecutive year, China hosts the highest number of top 100 global science and technology clusters. In total, 24 Chinese clusters appear in the 2025 index. Among them, the Shenzhen-Hong Kong-Guangzhou cluster ranked first worldwide for the first time—underscoring China’s growing dominance in regional innovation ecosystems.
China Tech Leadership Amid Global Headwinds
While China’s performance surged, the broader innovation landscape showed uneven progress. R&D growth in 2024 dropped to its lowest level since the 2010 financial crisis. Inflation pressures slowed real business R&D growth to just 1%, far below the previous decade’s average of 4.6%.
Nevertheless, ICT-driven sectors—including AI, software, and pharmaceuticals—expanded their R&D budgets. In contrast, manufacturing industries such as automotive and consumer goods reduced spending due to declining revenues.
Venture Capital and Innovation Trends in 2025
Venture capital rebounded modestly, growing 7.7% in transaction value. However, this uptick was largely fueled by mega-deals in the U.S. and a surge in generative AI investments. Without these, global VC activity would have contracted.
Despite financial headwinds, technological progress continues. According to the GII Global Innovation Tracker, battery prices dropped, supercomputer efficiency improved, and genome sequencing costs declined further.
WIPO on China’s Innovation Momentum
“However, innovation isn’t standing still. It’s recalibrating,” WIPO noted. “New breakthroughs are still reaching people around the world—from green supercomputing and artificial intelligence to smarter batteries, faster internet, and better cancer care.”
WIPO Director General Daren Tang added, “While we see encouraging signs of recovery in areas such as innovation uptake and impact, the global innovation engine is not firing on all cylinders. Slower growth in R&D investments and declining VC activity reminds us that innovation requires sustained upstream and financial commitment.”
Regional Overperformers and Innovation Outlook
Beyond China’s ascent, the report highlights 17 low- and middle-income economies outperforming expectations. India and Vietnam remain consistent overachievers. Sub-Saharan Africa leads in regional overperformance, with South Africa, Senegal, and Rwanda showing strong innovation metrics.
Meanwhile, Southeast Asia, East Asia, and Oceania continue to drive global innovation. Six economies from these regions rank among the top 25, reinforcing their role as hubs of technological advancement.
