WIPO: AI reshaping innovation investment as deep-science startups boom

Artificial intelligence (AI) is driving a rebound in venture capital and R&D spending, while a new generation of deep-science startups is turning frontier research into new industries, said the World Intellectual Property Organization (WIPO) on Tuesday.

WIPO's Global Innovation Index 2026 (2026 GII) shows that Switzerland, Sweden, the United States, the Republic of Korea and Singapore lead the 2026 rankings. China, India, Vietnam, Türkiye, the Philippines, Morocco and Indonesia have climbed quickly over the past decade.

According to the report, global R&D expenditure grew by more than 3.3% in real terms in 2025 and is expected to reach $3.4 trillion in 2026. Corporate R&D rose 5.8% in 2025 to a record $1.5 trillion, driven by software, AI and defense-related research.

Venture capital funding for innovative startups grew by 28% to $510 billion in 2025, the strongest gain since 2021. But investment is increasingly concentrated, with AI accounting for 53% of global venture capital deal value even as deal numbers fell for a fourth consecutive year. African startups raised about $3.2 billion in 2025, up 40%.

Deep-science startups are booming. More than 30,000 have been created since 2000, nearly 10 times the 2010 figure, and their share of venture-backed startups reached 16% in 2025. Together they are worth $7.6 trillion, up 23% from 2024. The United States leads with 12,752 firms, followed by China (3,466) and the United Kingdom (2,133). Growth since 2020 has been fastest in Central and Southern Asia, Latin America and the Caribbean, and Sub-Saharan Africa. These ventures span semiconductors, robotics, quantum computing, life sciences, space and advanced materials.

"AI is opening new technological frontiers across all fields of science," said WIPO Director General Daren Tang. "Our 2026 GII report shows that a new generation of deep-science startups is translating breakthroughs into products and transforming fields such as life sciences, space, robotics and clean energy."

Published annually, the WIPO GII ranks 139 economies on their innovation ecosystems using 79 indicators.