The world’s most innovative countries

illuminem summarises for you the essential news of the day. Read the full piece on The Economist or enjoy below:

🗞️ Driving the news: Germany has dropped out of the top ten in the latest Global Innovation Index published by the World Intellectual Property Organization (WIPO), with China taking its place for the first time
• The annual ranking assesses 139 economies based on innovation performance indicators such as patent filings, R&D investment, and high-tech exports
• Despite filing over 16,700 international patents in 2024, Germany's overall innovation capacity was surpassed

🔭 The context: China’s rise reflects years of sustained investment in research and development, tech infrastructure, and industrial policy aimed at global technological leadership
• The Global Innovation Index, widely used by policymakers and investors, benchmarks both input (e.g. education, R&D) and output (e.g. patents, innovations) metrics
• Historically dominated by high-income economies, the top ten now includes a major emerging power, marking a shift in global innovation dynamics

🌍 Why it matters for the planet: Innovation is central to advancing sustainability solutions — from clean energy and resource efficiency to circular economy models and climate resilience technologies
• China's growing influence in innovation ecosystems will shape the future of green technologies and their global diffusion
• However, the shift also highlights geopolitical competition over technological standards, data governance, and supply chains with implications for international collaboration and climate technology transfer

⏭️ What's next: China’s entry into the top tier places added pressure on European nations and the U.S. to accelerate investment in science and sustainability-driven innovation
• Developing economies will look to China’s model as a potential path to leapfrog in areas like renewable energy, AI, and green infrastructure
• The evolving innovation landscape could influence trade dynamics, regulatory frameworks, and global efforts to meet climate goals under the Paris Agreement and beyond

💬 One quote: “China’s continued ascent in the innovation rankings reflects strategic policymaking and growing R&D intensity, especially in sectors vital to the green and digital transitions.” — WIPO Innovation Report commentary

📈 One stat: Germany filed over 16,700 international patent applications in 2024 — yet still fell out of the global top ten most innovative economies

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