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The global landscape of innovation is at a critical juncture, shaped by rapid technological advancements and economic turbulence. The question remains: Is innovation accelerating or slowing down in the face of elevated inflation, rising interest rates, and geopolitical conflicts in the aftermath of the COVID-19 pandemic? The Global Innovation Tracker 2023 examines these pressing concerns, evaluating four key stages of the innovation cycle: science and innovation investment, technological progress, technology adoption, and the socioeconomic impact of innovation.
Introduction: Charting the Pulse of Global Innovation
Welcome to the 16th edition of WIPO’s Global Innovation Index (GII), where we assess the state of innovation worldwide, ranking the performance of 132 countries and identifying the top 100 science and technology clusters. In an era defined by rapid technological progress, the innovation landscape presents a mix of extraordinary opportunities and formidable challenges.
On one hand, groundbreaking advancements continue to reshape industries and societies. As highlighted in last year’s GII, two transformative innovation waves are driving progress: the digital innovation wave, powered by artificial intelligence (AI), supercomputing, and automation, and the deep science innovation wave, fueled by biotechnologies and nanotechnologies. Key indicators of technological progress remain strong—computing power continues to scale in line with Moore’s Law, green supercomputing is becoming more efficient, renewable energy is increasingly affordable, and the cost of genome sequencing is steadily decreasing. Encouraged by these opportunities, corporate R&D spending surpassed USD 1 trillion for the first time, with ICT firms leading the charge.
On the other hand, global innovation is facing headwinds. Economic uncertainty, high inflation, and the lingering effects of the pandemic have dampened growth. After a remarkable boom in 2021, venture capital (VC) funding fell sharply in 2022, declining by 40%, signaling a more cautious investment climate. While overall deal value remains historically high at USD 380 billion, the long-term outlook for innovation finance remains uncertain.
The critical challenge ahead is translating innovation potential into widespread societal benefits. While technology adoption is on the rise—more people than ever have access to the internet, safe sanitation, and electric vehicles—the pace of change remains slow. For the second year in a row, the socio-economic impact of innovation has stalled, raising concerns about whether emerging technologies are delivering broad-based improvements in quality of life.
In this polarized innovation environment, WIPO remains committed to supporting countries at all stages of development. Encouragingly, 21 middle-income and emerging economies have outperformed expectations in this year’s GII rankings. However, it remains to be seen whether the pandemic’s effects will have a lasting impact, particularly in the Global South.
What is certain is that the data, insights, and trends presented in this year’s report offer a fresh perspective on global innovation. Whether you are a policymaker, researcher, investor, entrepreneur, or industry leader, we hope this report serves as a valuable tool for fostering pro-innovation policies worldwide. Despite today’s uncertainties, the future holds tremendous promise—advancements in AI, energy, medicine, and transportation are on the horizon. WIPO will continue working alongside its Member States to drive innovation-led growth, creating new opportunities and ensuring that breakthroughs benefit all of humanity.
Science and Innovation Investment
In 2022, science and innovation investment demonstrated a mixed performance amid global challenges, including a downturn in innovation finance. While the number of scientific publications continued to rise, their growth rate slowed. Global government R&D budgets were projected to grow in real terms, and corporate R&D expenditures saw a substantial increase. However, the impact of surging inflation remains uncertain. International patent filings stagnated, and venture capital investments experienced a sharp decline in value following the extraordinary highs of 2021. This reflects a deteriorating climate for risk finance.
Technological Progress
Despite economic challenges, technological progress remains robust, particularly in the fields of information technology, healthcare, mobility, and energy. Breakthroughs in these sectors continue to create new opportunities for global development. Computing power is historically strong, and the costs of renewable energy and genome sequencing continue to decline, making these technologies more accessible and cost-effective.
Technological Progress: Breakthroughs and Challenges
Technological progress remains a powerful driver of economic growth, societal transformation, and scientific discovery. However, while computing power continues to expand at an unprecedented rate, certain challenges—such as rising production costs, material shortages, and geopolitical uncertainties—pose potential roadblocks to future advancements. The interplay between hardware innovations, energy efficiency, and the global supply chain will shape the trajectory of technological development in the coming decades.
The Evolution of Computing Power
Supercomputers have become indispensable in advancing fields such as neuroscience, genetics, climate modeling, materials science, and vaccine development. The steady growth in computational power has fueled innovation across industries, with recent exascale computers surpassing one quintillion floating-point operations per second (FLOPS). However, the increasing complexity and cost of semiconductor manufacturing present a major challenge. The rising cost of advanced chips—exceeding $20 billion for a single fabrication facility—has limited participation in the semiconductor race to a handful of countries and companies.
Moore’s Law, which predicts that transistor counts on integrated circuits will double every 18–24 months, has largely held true, though concerns remain about its long-term viability. Advances in chip architecture, such as 3D stacking and the transition to new materials, are sustaining the trend for now. However, the enormous financial and technical barriers to semiconductor production mean that only a few nations and corporations can compete at the cutting edge.
Green Supercomputing and Renewable Energy
While computing speed is a critical metric, energy efficiency has emerged as an equally important factor. The world’s leading supercomputers consume massive amounts of energy, equivalent to that of a small city. Efforts to improve efficiency have led to substantial gains, with the performance of the greenest supercomputers more than doubling between 2021 and 2022. Notably, while the United States and Japan continue to dominate in computational power, European nations such as France, Germany, and Sweden are leading in energy-efficient computing.
The broader energy landscape also reflects mixed trends. The cost of solar and wind power generation has declined significantly, making renewable energy sources more competitive than fossil fuels. However, material shortages and supply chain disruptions have led to increased prices for electric batteries, reversing a decade-long trend of declining costs. This rise in battery prices highlights the delicate balance between technological advancements and resource availability.
Breakthroughs in Genome Sequencing and Pharmaceuticals
Beyond computing and energy, progress in biotechnology has also been remarkable. The cost of sequencing a human genome has plummeted from approximately $100 million in 2001 to just over $500 in 2022, vastly outpacing the expectations set by Moore’s Law. This dramatic reduction has enabled breakthroughs in personalized medicine, genetic diagnostics, and disease prevention. However, ensuring global accessibility—particularly in low- and middle-income countries—remains a challenge that must be addressed.
Meanwhile, pharmaceutical innovation has encountered some setbacks. In 2022, the number of new drug approvals in the United States dropped by 26% compared to the previous year, raising concerns about the pace of medical advancements. While cutting-edge technologies like CRISPR and mRNA vaccines hold great promise, the decline in drug approvals suggests that regulatory hurdles, clinical trial complexities, and economic factors may be slowing the introduction of new treatments.
Looking Ahead
The trajectory of technological progress is shaped by both breakthroughs and constraints. While computing power, green energy, and genome sequencing continue to advance, challenges such as rising costs, geopolitical uncertainties, and regulatory barriers must be navigated carefully. The next decade will likely see a shift towards more sustainable computing, accelerated biomedical research, and the continued push for energy-efficient solutions. Ensuring equitable access to these technologies will be crucial in maximizing their benefits for global development.
Technology Adoption: Progress and Challenges
The adoption of new technologies is gradually improving access to essential services such as safe sanitation and digital connectivity. The electric vehicle (EV) market is experiencing a boom, and automation is driving an increase in industrial robot installations. However, overall penetration rates for most innovation indicators remain at medium-to-low levels. Critical healthcare technologies, such as radiotherapy for cancer treatment, continue to be inadequate in many parts of the world, highlighting disparities in technological access.
The global state of technology adoption presents a mixed picture, with significant advancements in certain areas alongside persistent challenges. While access to safe sanitation has improved, over 40 percent of the world’s population still lacks it. The adoption of industrial robots has surged, largely driven by supply chain disruptions and the push for automation, leading to greater efficiency and reshoring. The electric vehicle (EV) market is experiencing rapid growth, with positive spillover effects on battery production and supply chains. However, disparities in access to critical healthcare technologies, such as radiotherapy for cancer treatment, highlight persistent gaps in global technology penetration. Despite progress, overall adoption rates remain medium to low, with mobile broadband being one of the few exceptions.
Safe Sanitation: Progress and Remaining Challenges
The Global Innovation Tracker now includes data on the availability of safe sanitation, an essential indicator of health-related innovation adoption. The past two decades have seen steady improvement, with the proportion of the global population with access to safe sanitation rising from 32 percent in 2000 to 57 percent in 2022. This growth has been particularly strong in Central and Southern Asia, driven by substantial progress in India, and in East and Southeast Asia, where China has played a key role. However, despite these gains, 3.5 billion people—almost half of the world’s population—still lack safe sanitation. Rural areas remain disproportionately affected, with only 46 percent of residents having access, compared to 65 percent in urban areas. In sub-Saharan Africa, the situation is particularly critical, with safe sanitation coverage reaching just 24 percent of the population. To meet the Sustainable Development Goal (SDG) target of universal coverage by 2030, the annual rate of progress would need to triple, rising from the current 2.4 percent to 7.4 percent.
Connectivity and the Digital Divide
Fixed and mobile broadband adoption continues to grow, but at a slower pace than in previous years. In 2022, fixed broadband subscriptions increased by 4.8 percent, while mobile broadband subscriptions grew by 6 percent, both below the 10-year average. Mobile broadband remains more widely adopted, with 87 subscriptions per 100 inhabitants, while fixed broadband penetration lags at just 17.6 subscriptions per 100 inhabitants. Given its importance for advanced applications, fixed broadband’s limited reach in low-income economies remains a concern. The expansion of 5G networks could help bridge this gap by enabling faster, more reliable data transmission and supporting the growing Internet of Things (IoT) ecosystem. However, as of 2021, only 19 percent of the global population was covered by 5G, with Europe leading at 52 percent coverage. High infrastructure costs, device affordability, and regulatory barriers continue to pose challenges to widespread 5G adoption, potentially exacerbating the digital divide.
Robots and Automation: A Surge in Industrial Adoption
The use of industrial robots is expanding rapidly as companies turn to automation to counter supply chain disruptions and labor shortages. In 2021, new robot installations hit a record high of 500,000 units, representing a 31.4 percent increase from the previous year. Advancements in user-friendly interfaces and sensor technologies have made robots easier to program, increasing accessibility for non-experts. The top five markets for industrial robots—China, Japan, the United States, South Korea, and Germany—accounted for 78 percent of global installations in 2022. China remains the dominant player, with over half of all new installations. The trend toward automation is expected to continue, reshaping global industries and accelerating the shift toward smart manufacturing.
Electric Vehicles: A Transformative Market
The EV market is experiencing explosive growth, with global sales jumping from 4 percent of total vehicle sales in 2020 to 14 percent in 2022. In 2022 alone, more than 10 million EVs were sold, marking a 55 percent year-over-year increase. This rapid expansion is also fueling demand for batteries, spurring investment in domestic supply chains, particularly in response to policy initiatives like the European Union’s Net Zero Industry Act and the U.S. Inflation Reduction Act. However, while EVs are the fastest-growing segment in the Global Innovation Tracker, they still represent only 2.1 percent of all vehicles on the road. China leads in EV adoption, with 13.8 million EVs in operation, followed by Europe, which accounts for 30 percent of the global stock. Looking ahead, the growth of electric buses, trucks, and three-wheelers—particularly in markets like India—will further drive the transition toward sustainable transportation. Nevertheless, maximizing the environmental benefits of EVs will require addressing challenges related to electricity sourcing, raw material extraction, and battery disposal.
Cancer Radiotherapy: A Persistent Healthcare Gap
Despite advancements in healthcare technology, access to radiotherapy for cancer treatment remains inadequate in many parts of the world. The availability of linear accelerators (LINACs), which deliver high-energy radiation for therapeutic purposes, has stagnated or even declined. Between 2020 and 2022, the global availability of LINACs dropped by 1.4 percent, continuing a decade-long trend of insufficient expansion. The growing number of cancer cases requiring radiotherapy has not been matched by an increase in treatment capacity, resulting in longer wait times and, in some cases, forcing patients to seek care abroad. As of 2022, only 20.9 percent of countries met the minimum recommended radiotherapy resource levels. The primary barriers to wider adoption include financial constraints, shortages of trained personnel, infrastructural challenges, and a lack of awareness about the critical role of radiotherapy in cancer treatment.
The trajectory of technology adoption presents a landscape of both remarkable progress and ongoing disparities. While advancements in automation, electric vehicles, and broadband connectivity are transforming industries and societies, persistent gaps in healthcare infrastructure and basic sanitation continue to highlight global inequalities. Addressing these challenges will require sustained investment, innovative policy frameworks, and international collaboration to ensure that the benefits of technological progress are accessible to all.
Socioeconomic Impact of Innovation
The broader socioeconomic impact of innovation remains weak. The volatility triggered by the COVID-19 crisis has stalled labor productivity, and life expectancy has declined for a second consecutive year. Although healthy life expectancy is still increasing, its growth rate has slowed. Carbon dioxide emissions continued to rise in 2022, albeit at a lower rate than the post-pandemic surge of 2021, but there is still no sign of a global reduction in emissions.
Science and Innovation Investment Landscape
The innovation landscape presents both immense opportunities and significant challenges. Over the past three years, economic disruptions have been more erratic and persistent than typical business cycles, with supply chain disruptions, widespread inflation, and armed conflicts hindering economic recovery and innovation. However, innovation has not stalled, thanks to the ongoing digital transformation and the rise of deep science innovation waves. Fields such as artificial intelligence, quantum computing, genome sequencing, green technologies, and robotics continue to push the boundaries of technological progress.
While economic growth is projected to slow, it is expected to remain positive in 2023. Persistent investment in innovation will be crucial for recovery and productivity growth, leveraging emerging technological opportunities to drive sustainable progress.
Scientific Publications
The COVID-19 pandemic led to a substantial surge in scientific publications, with exceptional growth rates of 8.6% in 2020 and 8.3% in 2021. This increase was driven primarily by research on COVID-19 and other health-related topics, with many studies being published in early-access formats to accelerate knowledge dissemination. However, research funding was redirected away from areas less closely associated with the virus.
By 2022, health-related research levels had stabilized, with only a 1.5% increase in scientific publications compared to 2021. In addition to health sciences, research in environmental and energy fields continues to grow. Environmental sciences saw a solid 10.5% growth rate, while publications in energy and fuels increased by 13.2%. Public, environmental, and occupational health research also expanded by 13.4%. India has emerged as a key player in scientific research, ranking fourth in global publication output in 2022, surpassing the United Kingdom and closing in on Germany.
Research and Development (R&D)
Global R&D investment grew strongly in 2021, increasing by 5.2% in real terms, up from 3.2% in 2020. This nearly matched the pre-pandemic growth rate of 6% in 2019. Business R&D expenditures, which constitute the largest share of global R&D, grew by 7% in 2021—the highest rate since 2014.
The five largest R&D-spending economies experienced significant growth in 2021. The United States led with a 5.6% increase, followed by China (9.8%), Japan (3.6%), Germany (2.7%), and South Korea (7.1%). Even excluding the contributions of the U.S. and China, global R&D spending still increased by 2.7% in 2021. In contrast to 2020—when these two countries were the sole drivers preventing a global decline in R&D—2021 saw broad-based growth in business R&D, which rose by 4.1% worldwide.
While data for 2021 remain incomplete for many middle-income economies, initial findings suggest that R&D expenditures in high-income, upper-middle-income, and low-income economies have already surpassed pre-pandemic levels. Most global regions have also returned to or exceeded pre-pandemic R&D investment levels, with the exception of Latin America and Central and Southern Asia.
Government R&D Budgets (2020–2022)
Government R&D budgets saw robust growth in 2020, particularly in high-income countries, where R&D expenditures were used as a counter-cyclical measure to sustain innovation during economic downturns. However, in 2021, government R&D spending diverged. Major economies such as Japan (-10.9%) and the United States (-8.8%) experienced declines, largely due to budget adjustments following heavy health-related R&D investments during the pandemic. In contrast, South Korea (+10.2%), Türkiye (+9.6%), Germany (+5.6%), and France (+2.5%) increased their R&D budgets.
China’s government R&D budget remains undisclosed, but official statistics indicate a 6% increase in 2020 and a 10% rise in 2021. For 2022, the outlook is mixed. Japan planned a significant 15.2% budget increase, with South Korea following at 6.5% and Germany at 1.0%. Meanwhile, the United States projected a 1.8% decline, though this was offset by increases in other countries, ensuring that the total global government R&D budget grew in real terms in 2022.
Corporate R&D Spending (2022–2023)
Corporate R&D investment continued to rise, with around 1,700 of the top 2,500 global corporate R&D spenders reporting data for 2022–2023. For the first time, worldwide corporate R&D expenditure surpassed the $1.1 trillion mark in 2022, reflecting a 7.4% nominal growth in spending. Although this was lower than the exceptional 15% growth recorded in 2021—driven by a 21% increase in corporate revenues—2022’s R&D growth remained in line with pre-pandemic trends of 7–8% annually.
The primary drivers of corporate R&D growth in 2022 were software and ICT services, ICT hardware, and pharmaceuticals. Software and ICT services saw 19% growth in R&D spending, making it the second-largest industry for corporate R&D investments for the first time, surpassing pharmaceuticals and biotechnology. The leading industries in corporate R&D spending were ICT hardware and electrical equipment (1st), followed by software and ICT services (2nd), pharmaceuticals and biotechnology (3rd), automobiles (4th), construction and industrial metals (5th), industrial engineering and transportation (6th), and travel, leisure, and personal goods (7th).
While fewer firms increased R&D spending in 2022 compared to the exceptional year of 2021, the travel, leisure, and personal goods sector was a notable exception, where more companies raised their R&D budgets. The pharmaceutical industry maintained the highest R&D intensity, investing 15.9% of revenue into R&D, followed by software and ICT services.
Innovation Leaders in 2023
Switzerland continues to dominate as the world’s leading innovation powerhouse, maintaining its top position for the 13th consecutive year in the Global Innovation Index (GII). It ranks first in both Knowledge and Technology Outputs and Creative Outputs, solidifying its reputation as the global leader in innovation. Sweden has overtaken the United States, moving into second place with strong performances in Business Sophistication (1st), Infrastructure (2nd), and Human Capital and Research (3rd). It also leads in key areas such as Researchers (1st) and Knowledge-Intensive Employment (3rd). Meanwhile, the United States remains highly competitive, leading the world in 13 of the 80 GII indicators, including Global Corporate R&D Investors, Venture Capital Received, the quality of its universities, and the valuation of its unicorn companies, among others.
Singapore has made significant strides, entering the top five and securing the top position in the South East Asia, East Asia, and Oceania (SEAO) region. Finland, ranked 6th, moves closer to the top five after climbing three places this year and leading globally in Infrastructure. Denmark (9th) and the Republic of Korea (10th) maintain their top 10 positions, while France (11th) advances one rank, bringing it closer to the elite group. Japan remains steady as the 13th most innovative economy, while Israel re-enters the top 15 at 14th place.
China, after a remarkable rise over the past decade, now ranks 12th, dropping one position from 2022. It remains the only middle-income economy among the top 30 and continues to lead the SEAO region’s upper middle-income group. Belgium (23rd) has re-entered the top 25, climbing three places. Meanwhile, all eight Nordic and Baltic economies improved their rankings this year, except for Iceland, which remains at 20th place. Estonia has gained two positions, reaching 16th place and edging closer to the top 15. Norway (19th) re-enters the top 20, while Lithuania (34th) and Latvia (37th) show impressive progress, gaining five and four ranks, respectively. Latvia re-enters the top 40.
Apart from China, four other middle-income economies have made it into the top 40: Malaysia (36th), Bulgaria (38th), Türkiye (39th), and India (40th). The United Arab Emirates remains stable at 32nd place, just outside the top 30, while Saudi Arabia (48th) and Qatar (50th) enter the top 50. Several Middle Eastern economies, including Bahrain (67th), Oman (69th), Jordan (71st), and Egypt (86th), have improved their innovation rankings. Bahrain and Oman have entered the top 70, while Jordan closely follows. These positive trends signal systematic innovation growth in the Middle East.
Brazil (49th) has made it into the top 50, overtaking Chile (52nd) as the most innovative economy in Latin America and the Caribbean. Uruguay (63rd) and El Salvador (95th) are the only other economies in the region that improved their rankings in 2023. In Asia, Thailand (43rd) and Vietnam (46th) have consolidated their positions in the top 50, while the Philippines (56th) moves closer. Vietnam and the Philippines continue their upward trajectory after a minor setback in 2022, gaining two and three ranks, respectively. Indonesia (61st) is rapidly approaching the top 60 following steady progress in recent years. Alongside China, India, Iran (62nd), the Philippines, Türkiye, and Vietnam, Indonesia is among the middle-income economies that have climbed the most in the GII rankings over the past decade.
Over the last four years, and particularly since the onset of the pandemic, Mauritius (57th), Indonesia, Saudi Arabia, Brazil, and Pakistan have seen the most significant rank improvements. In Central and Southern Asia, Kazakhstan (81st) and Uzbekistan (82nd) are approaching the top 80, while Pakistan (88th) continues to overperform in innovation.
In Sub-Saharan Africa, nine out of the 26 economies covered in this year’s index have improved their rankings. South Africa (59th) has entered the top 60, while Rwanda (103rd), the leader among low-income economies, continues to progress. Senegal (93rd) and Nigeria (109th) have made some of the biggest leaps forward. Excluding island economies, Senegal has emerged as Sub-Saharan Africa’s third most innovative economy in 2023.
Overall, the 2023 Global Innovation Index highlights the continued dominance of traditional innovation powerhouses while also showcasing the steady rise of middle-income economies, particularly in Asia, the Middle East, and Africa.
Conclusion
Despite economic headwinds, the innovation ecosystem remains resilient, driven by advancements in deep science and digital transformation. The pace of innovation is still strong, particularly in key technology sectors. However, maintaining sustained investment in R&D and ensuring equitable access to innovation will be critical for long-term global progress.
The Global Innovation Index (GII)’s Global Innovation Tracker offers a comprehensive, data-driven perspective on the latest innovation trends and their impacts. The 2023 edition highlights several key findings regarding the state of global innovation.
Following a remarkable surge in 2021, investments in science and innovation displayed a more mixed performance in 2022. While scientific publications, research and development (R&D), and venture capital deals continued to rise, reaching historically high levels, the pace of growth slowed compared to the exceptional rates seen the previous year. Despite the emergence of new waves of innovation that present unprecedented possibilities, the decline in venture capital investment raises concerns about the potential impact of tighter monetary conditions on innovation financing. This uncertainty casts a shadow over the outlook for 2023 and 2024.
A critical question that remains unanswered is whether the pandemic and the subsequent economic downturn will have lasting negative effects on less mature innovation ecosystems, particularly in middle- and low-income economies. Emerging firms and start-ups in these regions may face additional challenges in securing funding and scaling their innovations. However, the full impact of these economic shifts remains unclear, as the necessary data from 2021 and 2022 is not yet available in most cases.
Despite these challenges, technology adoption continues to grow worldwide. However, penetration remains uneven across different sectors. As noted in previous GII reports, industries such as agri-food, green technologies, and medical innovations face significant barriers to widespread adoption. Overcoming these obstacles will require novel, demand-driven innovation approaches, updated regulatory frameworks, and fresh policy initiatives to stimulate investment and integration.
Finally, the socioeconomic impact of innovation appears to have stagnated or even declined in recent years, largely due to the lingering effects of the COVID-19 pandemic. The extent to which these trends will reverse as the global economy stabilizes remains an open question. As the world moves forward, fostering inclusive and sustainable innovation will be essential to ensuring long-term economic resilience and technological progress.
