## China Surges into Top 10 Most Innovative Nations, Overtaking Germany **News Title:** China bumps Germany off the top 10 list of most innovative nations **Report Provider:** CNN (Reuters) **Date:** Published September 16, 2025 --- ### Key Findings and Conclusions: * **China's Innovation Leap:** For the first time, China has entered the top 10 of the United Nations' annual Global Innovation Index (GII), ranking **10th** out of **139 economies**. This marks a significant achievement, displacing Germany from the top tier. * **Germany's Decline:** Europe's largest economy, Germany, has fallen to **11th place** in the GII rankings. * **Investment Drivers:** China's ascent is attributed to substantial investments in research and development (R&D) by its firms. The GII indicates China is on track to become the largest global R&D spender, rapidly narrowing the gap in private sector financing. * **Patent Powerhouse:** China remains the leading source of international patent applications, contributing approximately **a quarter** of all applications in 2024. In contrast, the US, Japan, and Germany, which collectively account for **40%** of total applications, experienced slight declines. * **Global Innovation Outlook:** The GII survey highlights concerns about declining global investment in innovation. R&D growth is projected to slow to **2.3%** this year, down from **2.9%** last year, which was the lowest rate since 2010 following the financial crisis. --- ### Key Statistics and Metrics: * **Global Innovation Index (GII) Ranking:** * **1st Place:** Switzerland (held since 2011) * **2nd Place:** Sweden * **3rd Place:** United States * **10th Place:** China (new entry) * **11th Place:** Germany (previously in top 10) * **Number of Economies Surveyed:** 139 * **Indicators Used:** 78 * **China's Contribution to International Patent Applications (2024):** ~25% (approximately a quarter) * **US, Japan, Germany Contribution to International Patent Applications (2024):** 40% (collectively) * **Projected Global R&D Growth (This Year):** 2.3% * **Global R&D Growth (Last Year):** 2.9% (lowest since 2010) --- ### Top 10 Countries in the GII (in order, behind the US and ahead of China): 1. South Korea 2. Singapore 3. Britain 4. Finland 5. Netherlands 6. Denmark --- ### Important Recommendations and Perspectives: * **Germany's Challenge:** Daren Tang, Director General of the UN's World Intellectual Property Organization (WIPO), stated that Germany needs to transition from being a "powerful engine of industrial innovation" to a "powerhouse of digital innovation." * **Germany's Outlook:** Sacha Wunsch-Vincent, GII co-editor, advised that Germany should not be overly alarmed by its fall to 11th place, noting that the rankings do not yet reflect the impact of tariffs imposed by the Trump administration in the US. --- ### Significant Trends and Changes: * **Shift in Innovation Leadership:** China's entry into the top 10 signifies a major shift in the global innovation landscape, challenging established economic powers. * **R&D Investment Focus:** The news highlights the critical role of R&D investment in driving innovation and economic strength, as evidenced by China's strategic focus. * **Patent Ownership as an Indicator:** The ownership of patents is recognized as a crucial measure of a country's economic prowess and industrial expertise. --- ### Notable Risks or Concerns: * **Declining Global Investment:** The survey expresses concern over a general slowdown in global innovation investment, which could hinder future progress. * **Impact of Trade Policies:** While not fully reflected in the current rankings, potential impacts of trade policies like US tariffs on innovation are a background concern. --- ### Material Financial Data: * **R&D Spending:** China is on track to become the biggest R&D spender globally. * **Private Sector Financing:** China is rapidly closing the gap in private sector financing for R&D.
China bumps Germany off the top 10 list of most innovative nations | CNN Business
Read original at CNN →Berlin Reuters — China moved into the top 10 of the United Nations’ annual ranking of most innovative countries for the first time 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. China contributed about a quarter of international patent applications in 2024, remaining the biggest source of them, while the US, 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. 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.
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 US. “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 Daren Tang, director general of the UN’s World Intellectual Property Organization, which publishes the innovation index.
The other countries in the list’s top 10 – behind the US and ahead of China – were, in order of ranking: South Korea, Singapore, Britain, Finland, the Netherlands and Denmark.
