Global Innovation Index 2025: India Rises to 38th Amid Global R&D Slowdown

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The Global Innovation Index (GII) 2025, released by the World Intellectual Property Organisation (WIPO), shows significant changes in global innovation dynamics. While cutting-edge areas like artificial intelligence (AI) and quantum computing continue to advance rapidly, overall research and development (R&D) growth has slowed considerably.

Global Innovation Trends

Global R&D expenditure, which grew at 2.9% in 2024, is projected to fall further to 2.3% in 2025 the slowest pace since the 2008–2010 financial crisis. Despite the slowdown, established hubs in Europe, North America, and Asia continue to dominate.

• Europe remains a stronghold with 15 countries in the top 25, six of which are in the top 10.

• Switzerland leads the rankings, followed by Sweden and the United States.

• Emerging economies in Southeast Asia, East Asia, and Oceania are increasingly strengthening their innovation ecosystems.

Top Innovative Economies

The top 10 countries in GII 2025 are:

• Switzerland

• Sweden

• United States

• South Korea

• Singapore

• United Kingdom

• Finland

• Netherlands

• Denmark

• China

China’s entry into the top 10 highlights its growing dominance, particularly in patent filings and R&D investment, where it even outperforms Switzerland in knowledge and technology outputs.

India’s Rising Position

India has climbed to 38th place in GII 2025, a significant improvement from 48th in 2020. It remains the top innovator among lower-middle-income countries and the leader in Central and Southern Asia.

• Strong performance in Knowledge & Technology Outputs (22nd) and Market Sophistication (38th).

• Weaknesses include Business Sophistication (64th), Infrastructure (61st), and Institutions (58th).

This mixed profile highlights India’s growing research strength and market potential, while also pointing to structural areas requiring policy focus.

About Global Innovation Index

The GII evaluates 139 economies using more than 80 indicators across seven pillars:

• Institutions

• Human Capital & Research

• Infrastructure

• Market Sophistication

• Business Sophistication

• Knowledge & Technology Outputs

• Creative Outputs

It measures both inputs (enablers of innovation) and outputs (results achieved), offering a holistic picture of how innovation drives growth.

Regional Outlook

• Europe leads globally, powered by innovation champions like Switzerland and Sweden.

• North America remains strong, with the US and Canada in leading positions.

• Asia continues its rise, with South Korea, Singapore, China, and India strengthening their global standing.

• Southeast Asia, East Asia, and Oceania are emerging as rising innovation hubs, reflecting the geographic diversification of global R&D.

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