Why in the news?

  • Global Innovation Index 2025 was released by World Intellectual Property Organization (WIPO).

Global Innovation Index

  • What is it?:
    • The Global Innovation Index (GII) is an annual ranking of countries’ innovation capacity and output.
    • First published in 2007, currently released by the World Intellectual Property Organization (WIPO) in partnership with Cornell University and INSEAD.
    • Serves as a tool for policymakers, business leaders, and researchers to evaluate innovation ecosystems.
  • Structure of the Index: The GII framework is divided into two sub-indices–
    • Innovation Input Sub-Index (institutions, human capital & research, infrastructure, market sophistication, business sophistication).
    • Innovation Output Sub-Index (knowledge & technology outputs, creative outputs).
  • Indicators: There are 7 pillars for the GII
    • Institutions: Political, regulatory, business environment.
    • Human Capital & Research: Education, R&D, researchers.
    • Infrastructure: ICT, energy, ecological sustainability.
    • Market Sophistication: Credit, investment, trade, market scale.
    • Business Sophistication: Knowledge workers, innovation linkages, knowledge absorption.
    • Knowledge & Technology Outputs: Patents, publications, high-tech exports, productivity.
    • Creative Outputs: Intangible assets, creative goods & services, online creativity.
  • Global Rankings:
    • Switzerland, Sweden and the United States are the top three performers.
    • India is ranked 38th out of 139 economies.
    • India retains its position as the top performer among the countries in Central & Southern Asia.
    • India is at the top among the lower-middle-income group in GII 2025.
  • Significance:
    • Encourages evidence-based policymaking for innovation-led growth.
    • Highlights strengths and weaknesses of national innovation ecosystems.
    • Acts as a benchmark for SDGs, sustainability, and digital transformation.
    • India uses GII insights to support initiatives like Start-up India, Digital India, Atal Innovation Mission, IndiaAI Mission.
  • Challenges for India:
    • Low GERD (Gross Expenditure on R&D).
    • Private sector contribution to R&D is limited compared to developed economies.
    • Brain drain & limited international patent filings.
    • Digital divide & inadequate industry-academia linkages.
  • Way Forward:
    • Increase R&D spending to 2% of GDP (NITI Aayog target).
    • Strengthen university-industry collaboration.
    • Promote inclusive innovation (rural, grassroots).
    • Invest in frontier technologies (AI, green hydrogen, quantum).
    • Enhance IPR ecosystem and ease of patenting.