China enters top 10 most innovative countries, pushing out Germany

In September 2025, China achieved a significant milestone by entering the top 10 of the Global Innovation Index (GII) published by the United Nations, overtaking Germany, which has been Europe's largest economy. This shift in rankings highlights the rapid growth and increasing investment in research and development by Chinese firms, particularly in Beijing. The survey ranks 139 economies based on 78 different indicators, with Switzerland maintaining its first-place position, followed by Sweden and the United States. China now positions itself at 10th place, marking a notable change in the global landscape of innovation. This increase in China's rank is attributed to its substantial contributions to international patent applications, accounting for about a quarter of these applications in 2024. The country remains the largest source for such applications, while traditional leaders in innovation, such as the United States, Japan, and Germany, have reported slight declines in their contributions. Ownership of patents is recognized as a crucial indicator of a nation's economic strength and industrial capabilities, suggesting that China's growth in this area could significantly influence its global economic standing. Despite this optimistic outlook for China, the longer-term picture for global innovation appears concerning. The GII survey indicates that overall growth in research and development is expected to slow down, dropping from 2.9% the previous year to 2.3% in the current year, the lowest growth rate since the post-financial crisis era. This slowdown raises questions about the sustainability of innovation levels as investment trends shift. The forecast for many countries indicates a challenging road ahead as they strive to maintain or improve their innovation capabilities amid declining investments. For Germany, the drop to 11th place should be taken with caution. Experts, including Sacha Wunsch-Vincent, co-editor of the GII, suggest that this change does not fully reflect the impact of external factors such as tariffs imposed during the Trump administration in the U.S. Daren Tang, director general of the UN's World Intellectual Property Organization, emphasizes the importance for Germany to adapt not just as a leader in industrial innovation but also to become a robust player in digital innovation, critical for thriving in future global markets.