- The Global Innovation Index ranks economies based on around 80 indicators, covering innovation inputs (institutions, human capital, and infrastructure) and outputs (knowledge creation and technology impact). Switzerland retains its 1st place in the 2024 ranking, maintaining its long-standing position as the world’s most innovative economy.
- China remains a global innovation powerhouse, ranking 11th in the 2024 index, the same as in 2022 and slightly improving from 12th in 2023. While this shows stability rather than major progress, China remains the top innovator among upper-middle-income economies. The country already leads globally in key technologies such as batteries, 5G, quantum communication, and drones, demonstrating its cutting-edge capabilities.
- While China holds its position, the United States ranks 2nd, and Germany 8th, both maintaining strong innovation leadership. Regionally, China ranks 3rd in Southeast Asia, East Asia, and Oceania, behind Singapore and South Korea.
- China excels in Knowledge & Technology Outputs (3rd globally) and R&D Infrastructure (5th), highlighting its strong support systems for innovation. In Business Sophistication (11th), it fosters a strong R&D environment. It also leads in Science & Technology Clusters, with 26 in the world’s top 100, more than any other nation.
- Despite these strengths, China has not yet broken into the top 10. Weaknesses in Institutions (27th) and Creative Outputs (22nd), along with regulatory constraints and market challenges, hold it back. While it is a leader in specific technologies, these structural factors impact its overall ranking.
- The 2024 Global Innovation Index report highlights a slowdown in innovation investments, creating uncertainty for 2025 and beyond. To climb further, China must sustain investment in emerging tech and research while reducing bureaucratic and regulatory hurdles.
Sinolytics is a research-based business consultancy focused on China. It advises European companies on their strategic orientation and specific business activities in the People’s Republic.