Geneva (AFP) – Artificial intelligence is fuelling a rebound in investment in innovation, with corporate research and development spending reaching record highs, the United Nations said Tuesday. The UN’s World Intellectual Property Organization (WIPO) reported that more money is going into venture capital, even as the number of VC deals is shrinking and becoming increasingly concentrated on AI firms. WIPO, the UN patent and innovation agency, stated that AI is shortening the paths of discovery and fuelling much of the world’s economic growth.
“AI is not just a breakthrough technology; it’s going to change the way that we innovate and create,” WIPO chief Daren Tang told reporters. “A new generation of deep-science startups is translating breakthroughs into products and transforming fields such as life sciences, space, robotics, and clean energy.” Tang noted that innovation investment has remained resilient this year and is even “beginning to see growth again.” Global research and development is expected to reach $3.4 trillion this year, growing faster than GDP growth, while corporate R&D reached a record $1.5 trillion in 2025, up 5.8 percent, according to WIPO.
And while the number of venture capital deals dropped for the fourth straight year, their value rose by 28 percent to $510 billion in 2025. AI accounted for 53 percent of global VC deal value last year and 77 percent in the first half of 2026. “AI might reverse this productivity slump that we have seen for the last 15 to 20 years in high-income economies,” said Sacha Wunsch-Vincent, co-editor of WIPO’s annual Global Innovation Index. If applied correctly, artificial intelligence could benefit every sector, he told reporters.
“The open question here really is how can we broaden this innovation spurt beyond this one technology only, which is currently mostly LLM (large language models). We see a lot of the traditional big R&D spenders—pharma, cars, construction—cutting back on their R&D spend,” he noted. Tang expressed hope that AI will be “a rising tide that lifts all boats because a healthy innovation ecosystem needs to be able to have strength in as many areas of technology as possible.”
For the 16th consecutive year, Switzerland led the Global Innovation Index, which tracks innovation drivers in the world’s economies. Sweden and the United States retained second and third place for the fourth year running, followed by South Korea and Singapore. China has dramatically improved its position, rising from 35th place in 2013 to 10th position, while India climbed from 66th to 38th place during the same period. The report also highlighted significant jumps by countries such as Vietnam, Turkey, and the Philippines.
The top five innovation clusters remain unchanged in 2026, led by Shenzhen-Hong Kong-Guangzhou, followed by Tokyo-Yokohama, San Jose-San Francisco, Beijing, and Seoul. Further down, Osaka-Kobe-Kyoto and Paris overtook Los Angeles, which dropped two places to 12th. Most of the notable risers were in China, with Ningde making the most significant leap, up 24 places to 75th. Outside China, Miami rose six places to 61st, while Chennai climbed five places to 79th. The biggest fallers were Pittsburgh and Oxford, both dropping eight places to 84th and 85th, respectively.
© 2024 AFP
