Published by Global Banking & Finance Review®
Posted on September 16, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleChina joins UN's top 10 innovative nations, surpassing Germany, as it boosts R&D investment. Global innovation faces challenges with declining investments.
BERLIN (Reuters) -China moved into the top 10 of the United Nations' annual ranking of most innovative countries for the first time on Tuesday, replacing Europe's largest economy, Germany, as firms in Beijing invest heavily in research and development.
Switzerland remained in first place, a position it has held since 2011, followed by Sweden and the United States, while China was in 10th place in the Global Innovation Index (GII) survey of 139 economies that ranks them based on 78 indicators.
China is on track to become the biggest R&D spender as it rapidly closes the gap in private sector financing, the GII showed.
At the same time, the outlook for global innovation is clouded by declining investment, according to the survey.
R&D growth is set to slow to 2.3% this year from 2.9% last year, which was its lowest since 2010 after the financial crisis.
China contributed about a quarter of international patent applications in 2024, remaining the biggest source of them, while the United States, Japan and Germany - which together make up 40% of total applications - all recorded slight declines.
Ownership of patents is widely seen as an important sign of a country's economic strength and industrial know-how.
Looking at the long-term, Germany should not be alarmed by its fall to 11th place, said GII co-editor, Sacha Wunsch-Vincent, adding that the new rankings did not reflect the impact of tariffs imposed by the Trump administration in the U.S.
"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," said WIPO Director General Daren Tang.
The other countries in the list's top 10 - behind the U.S. and ahead of China - were, in order of ranking: South Korea, Singapore, Britain, Finland, the Netherlands and Denmark.
(Reporting by Miranda MurrayEditing by Matthias Williams and Gareth Jones)
China moved into 10th place in the Global Innovation Index for the first time.
Switzerland has remained in first place in the Global Innovation Index since 2011.
R&D growth is set to slow to 2.3% this year, down from 2.9% last year.
China contributed about a quarter of international patent applications in 2024.
Germany needs to transition from being a strong industrial innovator to becoming a powerhouse of digital innovation.
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