The U.S.-China Innovation Gap Is Getting Narrower

The innovation gap between the United States and China is getting narrower. According to the Global Innovation Index by the World Intellectual Property Organization (WIPO), the gap between the two economic rivals is currently only 5.1 points. In 2015, it was 12.6 points.

The U.S. performed particularly well last year on indicators such as late-stage VC deals, software spending and the entertainment and media market. In 2024, the North American country also accounted for nearly half of total R&D spending in the sample (47 percent), while Asia accounted for a 30 percent share, driven largely by China (18 percent), Japan (7 percent) and the Republic of Korea (3 percent).

Meanwhile, China stood out for areas such as patent filings, creative goods exports and industrial designs. The world's second-largest economy also performed well in the category of scientific research. Global output hit a record-breaking 2 million articles in 2024, driven partly by China’s 14 percent growth and India’s 7.6 percent increase.

The index evaluated innovation levels across 139 economies, focusing on a long list of criteria such as human capital, institutions, technology and creative output as well as market and business sophistication, among others.