On September 16, the World Intellectual Property Organization (WIPO) released the 2025 edition of the Global Innovation Index (GII). Once again, Switzerland, Sweden, the United States, South Korea, and Singapore occupy the top ranks. Notably, China has secured its place in the top 10, maintaining a standout position among middle-income countries.
Slowing Global R&D Investment
The most striking finding of this year’s report is the evident slowdown in research and development (R&D) spending. Growth in 2024 was only 2.9%, the lowest level since the 2010 financial crisis. WIPO predicts a further slowdown in 2025. Corporate R&D, too, was hit by inflation, with real growth at just 1%, far below the 10-year average of 4.6%.
Behind this trend lie a global economic slowdown, rising uncertainty, and geopolitical risks. While investments continue in key areas such as semiconductors and green technologies, the overall shift appears to be toward “selective investment.”
Cooling Venture Capital
Another major trend is the continued decline in venture capital (VC) deals, now falling for the third consecutive year. In 2024, the number of deals dropped by 4.4%. Apart from hot fields like generative AI and biotech, investor sentiment has become increasingly cautious. This directly affects startups’ fundraising environment and risks stifling the early growth of innovation.
China and Asia’s Rising Presence
China continues to show strong momentum in R&D spending, high-tech exports, and intellectual property filings. Asian economies such as South Korea and Singapore also rank among the top, underscoring that the “center of innovation” is no longer limited to Western advanced economies but is expanding across Asia.
Implications for Japan
The report carries important messages for Japan as well:
- Amid the slowdown in R&D investment, in which fields should Japanese companies concentrate their resources?
- With the shrinking VC market, how can Japan strengthen its support systems for startups?
- Through intellectual property utilization and international standardization strategies, how can Japan ensure its technologies spread globally?
Innovation is not merely “technological development”; it emerges from the combined strength of investment, IP systems, and industrial policy. Even under global headwinds, long-term vision and strategic efforts are more essential than ever.