Innovating for the Future: Insights from the Global Innovation Index 2024

has long been the driving force behind technological advancements and societal shifts. The Global Innovation Index (GII) 2024, an annual report published by the World Intellectual Property Organization (WIPO), provides analysis of global innovation ecosystems. It serves as a vital tool for academics, policymakers, and businesses seeking to understand and promote innovation by highlights leading nations and emerging players while addressing the ongoing challenges that continue to shape the field by examining 133 economies across the globe.

First introduced in 2007 by a British magazine and a business school, the GII initially focused on traditional measures like research and development (R&D) spending and patent filings. Over time, however, the index has evolved to include social innovations, creative industries, and new business models. Since 2011, after WIPO took over its publication, the GII has become an invaluable tool for assessing how different countries contribute to global innovation and aligning national strategies with broader development goals.

The GII evaluates innovation using a broad range of metrics. These are grouped into seven key pillars: Innovation Inputs, which include institutions, human capital, infrastructure, market sophistication, and business sophistication, and Innovation Outputs, which focus on knowledge and technology outputs, as well as creative outputs. These pillars offer a detailed view of how economies foster, sustain, and translate innovation into real-world results.

However, the GII has faced criticism, particularly for its heavy reliance on traditional indicators that tend to favor high-income, developed nations. It often overlooks innovative approaches in lower-income regions, such as open-source collaboration and grassroots innovations. Additionally, the focus on R&D spending misses the important role of entrepreneurs, who take research and transform it into practical, market-ready solutions.

For the GII to remain relevant in the future, it must adapt to the changing landscape by incorporating indicators that capture open innovation, commercialisation of research and cross-sector collaborations.

Global Leaders: Sustaining Innovation Dominance

For the year 2024, Switzerland, for the 14th consecutive year, holds the top position, reaffirming its excellence in Knowledge and Technology Outputs, intellectual property (IP) payments, and research collaborations. It also ranks in the top 5 of all the other GII pillars, with the exception of Infrastructure (7th). Its robust ecosystem, characterised by seamless university-industry R&D partnerships and high volumes of PCT patent applications, underscores the importance of a holistic innovation strategy.

Sweden ranked second, excels in Infrastructure and Business Sophistication while leading globally in IP receipts and researcher. The United States, securing third place, showcases dominance in quality of its universities, the impact of its scientific publications (H-index), software spending and IP receipts. The valuation of unicorn companies further solidifies its role as a leader in technological growth.

Singapore emerges as a standout fourth-place performer, excelling in Global corporate R&D investors, Unicorn valuation and Intangible asset intensity but lags in creative outputs, ranked 19th, suggesting an opportunity for enhanced cultural and artistic innovation. Similarly, the Republic of Korea (6th) and China (11th) demonstrate how focused policies, and strategic investments can position nations as powerhouses of industrial and technological advancement.

The Rise of Emerging Innovators

While high-income nations dominate the rankings, emerging economies are rapidly making their mark. Vietnam (44th) and Indonesia (54th) exemplify this trend, leveraging strengths in high-tech exports, labor productivity, and policy stability. China’s ascent, particularly among upper-middle-income economies, is driven by high-tech exports and robust industrial design sectors, underscoring the potential of middle-income countries to challenge traditional leaders.

Singapore’s innovation ecosystem reflects the benefits of proactive government policies, vibrant entrepreneurship, and ICT-focused investments. Likewise, the Republic of Korea demonstrates the transformative impact of advanced manufacturing capabilities and technological expertise on global rankings.

Regional Perspectives: Uneven Progress Across the Globe

The regional breakdown of the GII 2024 highlights striking disparities in innovation performance.

Europe: Hosting seven of the top 10 economies, Europe remains a dominant force in innovation. Switzerland and Sweden lead the region, with Germany (9th) and France (12th) showcasing robust public-private R&D collaborations. Luxembourg’s entry into the top 20 reflects the growing role of niche economies leveraging financial and technological innovation.

Asia and Oceania: With seven economies in the global top 25 namely Singapore (4th), the Republic of Korea (6th), China (11th), Japan (13th), Hong Kong, China (18th), Australia (23rd) and New Zealand (25th), the region cements its status as a hub of dynamic innovation. Singapore, Korea, and Japan lead high-income economies, while Vietnam (44th) and Indonesia (54th) spearhead progress among lower-middle-income nations. India (39th), exemplifies innovation-driven growth through its thriving ICT sector and venture capital ecosystem.

Latin America and the Caribbean: This region presents a mixed picture. Brazil (50th) leads, followed by Chile (51st) and Mexico (56th). While creative goods exports and high-tech manufacturing show promise, the region risks falling behind due to inadequate innovation outputs.

Sub-Saharan Africa: Mauritius (55th) leads, excelling in market sophistication and venture capital. However, systemic inefficiencies in larger economies, such as South Africa (69th) and Nigeria (113th), hinder their ability to capitalise on innovation inputs.

Overperformers vs. Underperformers: Lessons from the Index

The GII 2024 underscores the disparity between overperforming and underperforming economies. Overperformers like Vietnam, India, and China achieve remarkable innovation outputs despite resource constraints. Vietnam’s strength lies in high-tech exports and creative goods production, while India leverages its ICT sector and digital economy to maintain its leadership among lower-middle-income economies. China’s dominance in high-tech exports, industrial designs, and R&D intensity demonstrates the potential of focused investments.

Conversely, underperformers such as Nigeria and South Africa face systemic barriers, including inconsistent policy frameworks and limited infrastructure. Addressing these challenges through improved governance, cross-sector collaboration, and resource allocation is essential to unlock their potential.

The Transformative Role of Social Entrepreneurship

The Global Innovation Index 2024 highlights the growing role of social entrepreneurship in addressing social and environmental issues. By merging financial sustainability with mission-driven goals, social enterprises are solving problems often overlooked by traditional markets and governments.

Their hybrid models not only address local challenges but also offer scalable solutions to systemic gaps. This theme reflects a global trend where social enterprises are becoming key players in fostering societal and economic resilience through innovative solutions.

In Asia, social enterprises are making significant strides across various sectors, including housing, healthcare, education, and environmental sustainability. For example, India’s Bandhu uses artificial intelligence to connect migrant workers with affordable housing, helping over 60,000 workers secure housing through local “champions,” often women. Similarly, iKure offers primary healthcare in rural India via a hub-and-spoke model, reaching 3 million people across 6,400 villages.

In Southeast Asia, social enterprises are addressing climate resilience and urban-rural inequalities with scalable, sustainable solutions adaptable to local contexts. Social enterprises excel in community engagement, ensuring their solutions are locally relevant and sustainable. Eco Femme, for instance, produces organic reusable menstrual pads and educates women about menstrual health, distributing 1.4 million pads to 90,000 women and preventing millions of disposable pads from ending up in landfills. Similarly, the Community Design Agency in South Asia works on participatory design to improve public housing, benefiting over 25,000 people. These grassroots innovations tackle both social and environmental challenges at a community level.

However, the dual objectives of financial viability and social impact often present unique challenges for social enterprises. Securing funding remains one of the most significant hurdles, especially in regions with limited infrastructure and resources. Many enterprises rely on grants, self-funding, or niche impact investments because traditional funding mechanisms, like loans or equity investments, are often not suitable. In South Korea, 60% of social enterprises receive government grants, but in countries like Indonesia and Pakistan, that figure drops to less than 10%. In India and Sri Lanka, about 40% of social enterprises rely on debt financing. While blended financing models—combining public, private, and philanthropic capital—are emerging as potential solutions, challenges such as small ticket sizes and high transaction costs still hinder growth. In India, for example, the impact investing space is still developing, and social enterprises like Bandhu are innovating to secure funding for projects such as their AI-driven housing platform.

Supportive policies are also vital to the success of social enterprises. Legal frameworks like Benefit Corporations in the U.S. and Community Interest Corporations in the U.K. have formalised the dual mission of social enterprises, easing their access to funding and partnerships. South Korea’s Social Enterprise Promotion Act provides a robust legal structure that supports social enterprises in their growth. In India, social entrepreneurship continues to flourish despite infrastructural challenges, demonstrating the importance of both policy and innovation in fostering sustainable solutions. However, the global adoption of such frameworks remains inconsistent. Policymakers worldwide need to collaborate with social entrepreneurs to develop adaptable, accountable systems that address local needs while supporting broader global objectives.

At the core of these efforts is innovation. From Eco Femme’s reusable menstrual pads to Thaki, which refurbishes devices for refugee education, social enterprises are driving change through grassroots ingenuity. These ventures demonstrate how innovation can have a transformative impact on both social and environmental challenges. To fully realise this potential, standardised metrics for measuring social impact and more cross-sector collaboration will be essential. By combining innovation with collaboration, social enterprises can continue to thrive and remain a vital part of solving global challenges.

Challenges Strategic Implications

The current economic instability has cast a long shadow over global innovation investments, leaving many regions grappling with the consequences. In 2023, corporate R&D growth slowed to just 6.1%, a noticeable dip from 7.5% in the previous year. On top of that, venture capital (VC) funding worldwide dropped by 40%. Latin America took the hardest hit, with VC investments plunging by a staggering 67%. North America and Europe also saw sharp declines of 40%, and Asia-Pacific dropped by 38%. Even Africa, which experienced the smallest decrease at 30%, felt the weight of reduced investments. For low- and middle-income countries, these setbacks are particularly devastating, as they already face significant challenges in maintaining their innovation momentum.

Asia, which has long been seen as a rising innovation powerhouse, was no exception to this downturn. The number of VC deals in Asia fell by 20% in 2023, dropping from around 9,600 in 2022 to just 7,700. The total value of VC investments in the region also dropped by 38%. The decline was largely driven by tighter monetary policies and broader economic factors. However, despite the slowdown, Asia’s long-term potential is still undeniable. Over the past 25 years, Asia’s share of global VC investments has grown from just 3% in 1997 to 28% in 2023, signaling the region’s growing importance in the global innovation landscape. That said, not all sectors are moving at the same pace. While fields like computing power and genomics have made impressive strides, other areas, particularly green technologies, are facing slower progress. Cost reductions in solar and wind energy, have slowed significantly, now averaging just 3.9% and 3.5% annually. The energy efficiency of supercomputers has also declined compared to historical rates. This is worrying, especially in the context of urgent global sustainability goals.

The divide between high-income economies and other regions is also growing. While wealthy countries continue to dominate global innovation rankings, regions like Sub-Saharan Africa, Latin America, and parts of Asia are struggling to catch up. For example, Africa’s fixed broadband penetration is a mere 0.8 per 100 inhabitants, compared to Europe’s 36 per 100. Similarly, the digital divide is stark when it comes to 5G access, with many developing regions still lacking the infrastructure needed to deploy these advanced technologies. These disparities, combined with data gaps in developing regions, make it difficult to create effective policies that can help close the innovation gap.

However, Asia continues to lead in several key technological areas. The region is a major player in robotics, with China, Japan, and South Korea controlling a significant portion of the global market, particularly in industries like electronics and automotive manufacturing. In the renewable energy sector, Asia is making notable progress in solar and wind energy. Even though the rate of cost reduction in solar power has slowed, Asia’s solar photovoltaic systems remain 29% cheaper than fossil fuels, giving the region a distinct edge in renewable energy deployment. Asia has also made substantial advances in battery technology, with lithium-ion battery prices falling to USD 139/kWh in 2023, largely driven by China’s manufacturing capabilities and the rise of lithium iron phosphate cells.

Asia’s progress in 5G deployment is also notable, though there’s still room for improvement. By 2023, 42% of Asia’s population had access to 5G networks. While this is an improvement since the technology’s rollout in 2019, it still lags behind Europe (68%) and the Americas (59%). South Korea, Japan, and China have been leading the charge, but other parts of Asia, especially developing economies, are gradually catching up.

In the electric vehicle (EV) market, Asia has seen explosive growth. China, in particular, dominates the global EV market, accounting for 95% of global EV sales. This strong position is bolstered by China’s collaboration with Europe and the US. In countries like India, Thailand, and Indonesia, EV sales have tripled since 2021, fueled by government incentives, subsidies, and the emergence of local manufacturers like Tata Motors.

Despite these advancements, significant disparities still exist within Asia itself. High-income countries like Japan and South Korea lead in fields like robotics and cancer treatment, while lower-middle-income countries face considerable challenges. Access to critical healthcare technologies, such as linear accelerators (LINACs) for cancer treatment, is severely limited in many parts of Asia. While wealthier nations have met their basic healthcare needs, others continue to struggle with even the most fundamental healthcare infrastructure. Similarly, while sanitation has improved in countries like India and China, only 65% of the global population is expected to have access to safe sanitation by 2030, far below the UN’s target.

Innovation gaps are a global challenge that requires building more equitable innovation ecosystems requires a long-term commitment to investing in research, education, and infrastructure. Policymakers must prioritise funding for initiatives that support startups and small-to-medium enterprises (SMEs), especially in emerging markets. A focus on public-private partnerships and international financing can scale up green technology development and sustainable financing. The future of innovation depends on balancing progress with sustainability and inclusivity to face tomorrow’s challenges.

Strategic Implementation and Future Outlook

To overcome these challenges and build more equitable innovative ecosystems, sustained investments in research, education, and infrastructure are essential. Policymakers must prioritise funding initiatives that empower startups and small-to-medium enterprises (SMEs), particularly in emerging markets where innovation has the potential to drive transformative growth.

Advancing green technology development is equally critical in addressing climate change. Strategic public-private partnerships and international financing should focus on scaling renewable energy, enhancing battery storage, and fostering sustainable manufacturing practices. Collaborative approaches can accelerate the adoption of clean technologies, making them accessible and impactful on a global scale.

Bridging regional disparities requires a concerted effort to expand access to essential technologies and infrastructure. Investments in broadband connectivity, 5G networks, and reliable energy systems are vital to empower underserved communities. Policymakers and the private sector must work together to deliver affordable, inclusive solutions that close the digital and energy divides. Additionally, improved data collection and standardisation are necessary to enable evidence-based interventions and facilitate meaningful global benchmarking.

Innovation will remain dynamic but uneven. High-income economies like Switzerland, Sweden, and the United States are expected to maintain their leadership, while middle-income countries such as China, India, and Vietnam are increasingly asserting their presence through strategic investments in R&D, high-tech exports, and creative industries. Key sectors like artificial intelligence, biotechnology, and clean energy will dominate, with advances in computing power transforming industries and breakthroughs in genomics and precision medicine revolutionising healthcare. Key sectors like artificial intelligence, biotechnology, and clean energy will dominate, with advances in computing power transforming industries and breakthroughs in genomics and precision medicine revolutionising healthcare. However, achieving ambitious climate goals, including net-zero targets, hinges on accelerated progress in green technologies.

Geopolitical tensions and economic uncertainties pose risks to global collaboration, underscoring the need for diversified funding, resilient ecosystems, and strengthened international partnerships. By adopting these strategies, the global innovation ecosystem can transition into a more inclusive and sustainable framework, fostering equitable growth, resilience, and a brighter future for all.

2024 GII: Science and Technology Cluster

The 2024 Global Innovation Index (GII) Science & Technology (S&T) report highlights the world’s leading innovation clusters, showcasing Asia’s growing dominance alongside traditional hubs in North America and Europe. This year, Asia boasts 26 clusters in the top 100, reflecting its rising influence in global innovation.

Japan’s Tokyo–Yokohama cluster leads the rankings, contributing nearly 7% of global PCT applications. China’s Shenzhen–Hong Kong–Guangzhou secures second place, powered by Huawei and top research institutions. Together, these two clusters account for 20% of global PCT filings, cementing Asia’s technological leadership. Beijing (3rd) and Shanghai–Suzhou (5th) also maintain strong positions, while Nanchang and Kunming debut in the top 100. Hefei and Zhengzhou emerged as the fastest-growing clusters.

South Korea’s Daejeon stands out for innovation intensity, ranking 7th, driven by key players like LG Chem. Beijing climbed to 11th, while Tokyo–Yokohama improved to 15th. India made notable gains, with Bengaluru (56th), Delhi (63rd), Chennai (82nd), and Mumbai (84th) joining the top 100. Newcomers include Malaysia’s Kuala Lumpur (93rd) and Egypt’s Cairo (99th), marking North Africa’s debut.

The top 10 clusters, led by Tokyo–Yokohama and Shenzhen–Hong Kong–Guangzhou, contributed 65% of global PCT filings, focusing on fields like computer technology and pharmaceuticals.

Overall, Asian clusters dominate the GII’s top 100, with a combined presence that underscores the region’s growing role as a global leader in science, technology, and innovation.

IP Trends in a nutshell: World Intellectual Property Indicators

The global intellectual property (IP) landscape in 2023 reflected significant shifts, driven by economic dynamics, technological advances, and regional strategies. Key developments in patents, trademarks, industrial designs, and geographical indications (GIs) showcased the interplay between innovation growth and regional priorities.

Patents

Global patent filings reached a record 3.55 million in 2023, a 2.7% increase over 2022, marking a continued recovery post-COVID-19. Asia, led by China, dominated with 68.7% of filings. China’s National Intellectual Property Administration (CNIPA) handled 1.68 million applications, contributing nearly half of the global total. Resident filings grew by 4.9%, signaling strong local innovation, while non-resident filings declined by 2.2%. India’s 17.2% growth in patent filings, where resident applications surpassed non-residents for the first time, highlighted the success of domestic initiatives like Make in India.

Sectors such as computer technology, electrical machinery, and medical technology were the primary drivers of patent growth, underscoring the technological pivot in innovation.

Trademarks

In 2023, global trademark filings declined by 1.3% to 11.6 million, marking a second consecutive year of decrease after a decade-long growth streak, driven largely by a 4.4% drop in filings in China, the largest filing office. Non-resident filings made up 15.8% of global filings, with sectors like technology, health, and clothing leading demand. Trademark registrations also fell by 18.7%, yet active trademarks grew by 6.4%, reaching 88.2 million globally. India ranked fourth with 520,862 filings (up 4.1%), driven by resident applications and strong activity in health (21.9%), agriculture (15.3%), and clothing (12.8%).

Industrial Designs

In 2023, global industrial design applications reached a record 1.19 million, up 4% from 2022, with Asia dominating 69% of filings, driven by China’s significant contributions, followed by Europe (23.5%) and smaller shares from other regions. Key sectors included textiles, furniture, and tools, representing over 63% of filings. Resident applications formed 82% globally, with China’s 97.3% share leading, while non-resident filings grew notably in the US, UK, and EUIPO via the Hague System. India showed remarkable growth with a 24.9% rise in resident filings and a 294.1% surge in non-resident filings, reflecting its growing design industry and appeal to foreign applicants. Despite high filing activity, global design registrations fell by 7% due to rejections or slow processing, with significant disparities in processing speeds across IP offices.

Plant Variety

In 2023, global plant variety applications reached 29,070, marking a 6.6% increase and continuing an eight-year growth trend, driven largely by China, which accounted for 55.7% of filings. Asia emerged as the dominant region, capturing 62.1% of applications, reflecting a strong focus on agricultural innovation. While Europe remains significant, its share has declined, and regions like North America and Oceania have seen decreases in filings. Plant variety titles issued globally surged by 41.8%, led by China’s backlog-clearing efforts and the UK’s post-Brexit adjustments. With 195,610 active titles worldwide by year-end, the data underscores the rising strategic importance of plant variety protection.

Geographical Indications

As of 2023, global Geographical Indications (GIs) totaled approximately 58,600, dominated by upper-middle-income economies (52.2%) and led by Europe (52.5%) and Asia (39.5%), with China holding the highest number (9,785). Wines and spirits accounted for 48.1% of GIs, driven by Europe, while agricultural products and foodstuffs comprised 44.8%, led by China. Handicrafts, significant in Asia and India, represented 4.2%, reflecting cultural and artisanal heritage.