According to the World Intellectual Property Organisation (WIPO), the Global Innovation Index (GII) 2025 shows that the global innovation environment is undergoing a transformation. Although the industries are being transformed by the fast development in artificial intelligence and quantum computing, the overall rate of research and development (R&D) investment has decreased drastically.
Global Innovation Trends
The global growth in R&D decreased to 2.9% in 2024 and is estimated to reduce further to 2.3% in 2025, the lowest increase since the financial crisis of 2010. Nevertheless, the Europe, North American, and Asian traditional innovation hubs are still predominant. Europe is the most powerful region with 15 out of the 25 countries ranked in the top 25 and six countries in the top 10. First in the world ranking is Switzerland, then there is Sweden and the United States. The East Asian, Southeast Asian and Oceanaian emerging economies are also taking their place in the innovation arena.
Leading Innovative Nations
Switzerland, Sweden, the USA, South Korea, Singapore, the UK, Finland, the Netherlands, Denmark, and China are in the top 10 countries in the GII 2025. Interestingly, China is ranked number 10 having made an impressive performance in patent applications and research and development expenditures, not mentioning that it leads Switzerland in the production of knowledge and technology. Such countries are still enhancing their innovation systems by making high value investments and well established institutional systems.
India's Innovation Journey
India now occupies the 38 th position in GII 2025, which is a significant growth compared to the 48 th in 2020. It is still the leading innovator in the lower-middle-income economies and Central and Southern Asia region. India scores high in Knowledge and Technology Outputs (22 nd) and Market Sophistication (38 th). Nevertheless, it continues to struggle with Business Sophistication (64th), Infrastructure (61 st) and Institutions (58 th). It is an indication of increased research potential of India and a statement of the necessity of more structural reforms to entice long-term investment based on innovation.
About the GII
The Global Innovation Index has ranked 139 economies based on over 80 indicators it is categorised into seven pillars which are Institutions, Human Capital and Research, Infrastructure, Market Sophistication, Business Sophistication, Knowledge and Technology Outputs and Creative Outputs. It measures both the inputs (such as investments in R&D) and outputs (such as patents, research articles and creative products).
Regional Highlights
Europe remains in control and Switzerland and Sweden lead by example. The USA and Canada are doing well as they are ranked number 20 in North America. In the meantime, the emerging power in Asia is becoming apparent as South Korea, Singapore, China and India cement their stances. Southeast Asia and Oceania too are on a rising trend, which indicates the slowing of the global innovation dynamics.