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China has been ranked for the first time in the United Nations' "Top 10 Most Innovative Countries," 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 world's largest spender on R&D, while rapidly closing the gap in private sector funding, the GII showed.
China contributed about a quarter of international patent applications in 2024, remaining their largest source, while the US, Japan and Germany - which together account for 40% of total applications, all recorded slight declines.
Patent ownership is widely seen as an important sign of a country's economic strength and industrial knowledge.
The outlook for global innovation is bleak as investment falls, the survey said. R&D growth is expected to slow to 2.3% this year from 2.9% last year, the lowest since 2010 after the financial crisis.
Looking at the long term, Germany should not be alarmed by its drop 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 on the US.
“The challenge for Germany is how…, alongside its strong and decades-long status as a truly powerful engine of industrial innovation, to become a powerhouse of digital innovation ,” said Daren Tang, director-general of the UN World Intellectual Property Organization, which publishes the innovation index.
The other countries in the top 10 of the list, after the US and ahead of China – were, in order: South Korea, Singapore, the UK, Finland, the Netherlands and Denmark.
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