The World Intellectual Property Organization (WIPO) has just released the 2025 edition of Global Innovation Index (GII). The report reviews nearly 140 economies worldwide on their innovation capabilities and outputs, as well as compiling the most important developments. It assesses the IP growth of nations and its creative capability.
Below, we compile key takeaways from the report that IP professionals should be aware of:
Patent Filings: Stabilization Amid Fragile Growth
After a decline in 2023, international patent filings saw a modest increase of 0.5% in 2024. While this indicates a rebound, the overall growth remains fragile and uneven across regions according to WIPO. Some countries, such as China and the Republic of Korea continue to see strong patent activity, while countries such as Japan, USA and Germany showed decline in patent filings. Furthermore, lower-income and middle-income economies remain behind. For IP professionals, it is important to closely monitor regional patent landscapes and emerging markets to identify where innovation momentum is gaining or losing steam.
Innovation Investment Trends and Their Impact on IP Activity
Corporate R&D investment reached a record USD 1.3 trillion in 2024, but growth rates have slowed sharply compared to previous years. Venture capital (VC) deal counts declined globally by 4.4% for the third consecutive year, despite a slight increase in deal values driven largely by megadeals in the U.S. and AI-related sectors.
This concentration of investment poses challenges for broad innovation diversification and suggests that IP portfolios may become increasingly focused on a narrower set of technologies and geographies.
China’s Ascendancy in Patent Filings and Innovation
China’s rise to the top 10 innovation economies is a significant development for the global IP landscape. It is the result of recent efforts by the country to strengthen its IP.
Notably, China’s innovation clusters, particularly Shenzhen–Hong Kong–Guangzhou and Beijing, dominate both patent activity and venture capital investments. IP professionals should be mindful of China’s expanding influence when advising on global patent strategies and monitoring competitor innovation.
The Power of Innovation Clusters in Concentrating IP Activity
Innovation activity remains heavily concentrated in specific geographic clusters. The top 100 innovation clusters worldwide account for approximately 70% of global patent filings and VC deals. Leading this list are Shenzhen–Hong Kong–Guangzhou (China), Tokyo–Yokohama (Japan), San Jose–San Francisco (U.S.), Beijing (China), and Seoul (South Korea).
Emerging clusters in middle-income countries, such as Bengaluru, Delhi, Mumbai (India), and Mexico City, are gaining ground, reflecting growing innovation ecosystems beyond traditional centers. These clusters offer new opportunities for IP professionals to track nascent innovation and advise clients on strategic IP protections in emerging markets.
Sectoral Shifts Influencing Patent and R&D Activity
The technology landscape shows a marked divide: ICT, AI, software, and pharmaceutical sectors are expanding their R&D budgets and patent portfolios, while traditional manufacturing industries like automotive and consumer goods are cutting back on innovation spending. For IP professionals, strategic focus may need adjustment accordingly to capture growth areas while managing risks in contracting fields.
Rising Middle-Income Economies: Growing IP Potential
Several middle-income economies continue their climb in innovation rankings, driven by strong investments in education, digital infrastructure, and business sophistication. Countries such as India, Türkiye, Viet Nam, Morocco, and the Islamic Republic of Iran are notable for their rapid progress. For IP professionals, these countries represent new markets for commercialization and IP investments activities.
Indonesia is Improves Despite Challenges
According to the report Indonesia ranks 55th out of 139 economies, placing it among the fastest-improving middle-income countries. This progress reflects positive developments strength in market size, entrepreneurship, and creative industries, however challenges remain in R&D investment and patent activity. A certainty is that for Indonesian IP professionals, there is real opportunity to build on current momentum.
Conclusion
As IP professionals, it is wise to keep a close eye on the growing developments, both global and local. Pay close attention to which regions have strong IP and which sectors are rising or declining. By continuously tracking these developments, practitioners can better anticipate shifts, identify new opportunities for IP protection, and maximize the long-term value of their portfolios.
For more questions regarding this topic or other IP related matters, contact us at ambadar@ambadar.co.id
