Decline in Innovation ranking: Germany drops from the elite group of ten
Germany has experienced a significant shift in its global innovation standing, as revealed in the latest United Nations' Global Innovation Index. The European powerhouse has slipped out of the top ten, ranking 11th in the 2024 report, behind China.
The report, published by the World Intellectual Property Organization (WIPO), highlights a group of emerging economies that have been steadily climbing the ranks for years, including China, India, and Turkey. This shift reflects a broader trend of these countries catching up in innovation and technological advancements.
Despite this setback, Germany's human capital remains a strength, as it ranks 4th in this category. The country's institutions and technology output, business structure, competence, market orientation, and infrastructure all lag in the high double-digit range for other index-relevant indicators.
The WIPO Director General, Daren Tang, has expressed concern about translating Germany's innovative strength in the industrial sector to the digital sector. He commented on this development as a reflection of smaller ranking shifts and highlighted the challenges for Germany's economy.
Technological progress overall remained robust, with improvements in battery technology, the efficiency of supercomputers, and a decrease in the cost of genome sequencing. However, real effective investments increased by only 1%, according to economists, when adjusted for inflation.
The increase in venture capital investments is mainly due to megadeals in the US and the rapidly growing investments in AI. Investments in venture capital have increased, with transaction values rising by 7.7%. If megadeals and AI investments are excluded, the transaction volume would have decreased.
Companies active in new technologies or pharmaceuticals have increased their investments, while large industrial corporations have significantly reduced theirs. This shift in investment patterns could be a sign of a broader transformation in Germany's economy.
The report also notes a 2.9% increase in global research and development spending in 2023, but a 2.3% decline is expected for this year. Despite this, WIPO reports that technological progress is why socio-economic indicators improved: labor productivity increased, life expectancy rose, and poverty continued to decline.
Germany is currently experiencing a deep growth crisis, and this slip in the innovation rankings could be a further cause for concern. The country ranked 8th in the 2023 report and 9th in 2022. The implications of this shift in the global innovation landscape for Germany's future economic prospects remain to be seen.
Read also:
- Tesla is reportedly staying away from the solid-state battery trend, as suggested by indications from CATL and Panasonic.
- Review of the 2025 Lamborghini Revuelto: Blazing Beasts on Wheels
- Tech giant Apple debuts sports app integrating betting odds provided by DraftKings
- Examining Digital Payment Cards in Nigeria (2025)
