Context:
Recently, 18th edition of the Global Innovation Index (GII) 2025 was released by the World Intellectual Property Organisation (WIPO) in partnership with the Portulans Institute.
Key Global Findings in GII 2025:
1. Top Innovators and Shifts in Rankings
o Switzerland remains at 1, followed by Sweden, USA, South Korea, Singapore.
o Notably, China has entered the top 10 for the first time, currently at 10th place. Germany slipped out of top 10.
2. Innovation Over‐performers
o Some middle‐ and lower‐income countries are doing better than what their income levels predict (“over-performers”). India is one such country, along with Viet Nam, among others.
3. Slowing Innovation Investment
o Global R&D growth has slowed: from ~4.4% (previous year) down to 2.9% in 2024, with projections for 2025 at 2.3%.
o Corporate R&D growth is weak, especially outside sectors like ICT, AI and pharma. Manufacturing and consumer goods have cut back.
4. Venture Capital (VC) Trends
o VC deal values rose by about 7.7% in 2024, largely driven by large deals in the US and investments in generative AI.
o But the number of VC deals fell ~4.4%, for the third consecutive year.
India’s Performance in GII 2025:
1. Rank & Trend
o India is ranked 38th out of 139 economies in GII 2025. India leads Central & Southern Asia and is the best among lower‐middle income countries in this categorization.
2. Over‐performer Status
o India has been an innovation over‐performer for 15 consecutive years (since 2011), meaning its innovation performance is better than what is predicted by its income level.
3. Strengths
o Strong ICT (Information & Communication Technology) services exports. Vibrant startup ecosystem: unicorn valuations, late‐stage VC deals, intangible assets.
o Better knowledge creation: growth in scientific publications, patent filings.
o Innovation clusters: India has four innovation clusters in global top‐100 (Bengaluru, Delhi, Mumbai, Chennai).
About Global Innovation Index (GII)
- The Global Innovation Index is published annually by the World Intellectual Property Organization (WIPO) in partnership with the Portulans Institute.
- It was established in 2007, evaluates innovation performance of ~139 economies using around 80 indicators.
Conclusion:
India has significantly progressed in innovation, reaching the 38th rank in the Global Innovation Index (GII) 2025 from its previous 48th position in 2020 and 39th in 2024. This ascent is attributed to increased investment in research and development (R&D) and high-technology exports, alongside a substantial rise in intellectual property filings.
