Exam Relevance:
UPSC GS-II: International Organisations | Government Policies and Interventions
UPSC GS-III: Science and Technology | Innovation | Intellectual Property Rights | Economic Development
HPAS GS-III: Science and Technology | Industrial Development | Research and Innovation
HP-Specific Focus: Pharmaceutical Research | Horticultural Technology | Startups | University–Industry Collaboration

Why in News?

The World Intellectual Property Organization (WIPO) released the Global Innovation Index (GII) 2026.

India ranks 38th globally, while Switzerland retains the top position. This edition focuses on “Powering Entrepreneurs at the Frontier of Science.” It examines innovation performance, emerging technologies and the conditions needed to turn scientific research into economic and social benefits.

What Is the Global Innovation Index?

The GII evaluates the innovation capabilities and performance of economies.

• Publisher: World Intellectual Property Organization.
• First published: 2007.
• 2026 edition: 19th edition, covering 139 economies.
• Indicators: 79 indicators, commonly described as approximately 80.
• Coverage: National innovation performance, global innovation trends and the world’s top 100 innovation clusters.

The index helps policymakers identify strengths, compare performance and address weaknesses in their innovation systems.

How Is the Index Calculated?

The GII comprises two equally weighted sub-indices, organised into seven pillars.

The overall GII score is the simple average of the input and output sub-index scores.

Prelims point: The input sub-index has five pillars and the output sub-index has two, but both contribute equally to the overall score. The score is not calculated by averaging their ranks.

Which Economies Lead the GII 2026?

Switzerland ranks first for the 16th consecutive year, demonstrating sustained strength in its innovation system.

The leading economies within the different income groups are:

• High-income: Switzerland.
• Upper-middle-income: China.
• Lower-middle-income: India.
• Low-income: Rwanda.

Where Does India Stand?

India’s Overall Performance

India’s output ranking is stronger than its input ranking. This indicates comparatively strong innovation results relative to its position in the resources and conditions supporting innovation. It does not mean that investment in research, skills or infrastructure is sufficient.

India’s Major Strengths

• ICT services exports: Ranked 1st globally.
• Late-stage venture capital deals: Ranked 4th.
• Intangible asset intensity: Ranked 13th.
• Digital entrepreneurship: Digital services and venture capital are important drivers of India’s innovation performance.

Concept clarification: Intangible assets include non-physical assets such as software, research, designs, brands and organisational knowledge.

What Are Innovation Clusters?

Innovation clusters are geographical concentrations of researchers, inventors, universities, firms and investment activity.

WIPO identifies clusters using a bottom-up approach, based on the locations of:

1. Inventors named in international patent applications.
2. Authors of scientific publications.
3. Firms receiving venture capital investment.

Therefore, a cluster need not follow administrative boundaries and may extend across adjoining cities or jurisdictions.

Top Five Innovation Clusters

China hosts 25 of the top 100 clusters, followed by the United States with 20 and Germany with seven. India and the United Kingdom have four each.

India’s Innovation Clusters

India’s four clusters in the top 100 are Bengaluru, Delhi, Mumbai and Chennai. WIPO’s main announcement places Bengaluru at 25th, while its detailed cluster chapter places Delhi at 27th, Mumbai at 43rd and Chennai at 79th.

Data note: The detailed chapter lists Bengaluru at 24th, differing from WIPO’s main announcement and summary, which report 25th. For revision, the main announcement’s 25th rank is used here.

What Does India’s Performance Mean for Policy?

India’s results highlight the potential of digital services, entrepreneurship and knowledge-based industries. They also raise important policy questions:

• Strengthening innovation inputs: Better research facilities, advanced skills and reliable infrastructure can support sustained progress.
• Converting research into applications: Universities and laboratories need stronger links with industry.
• Supporting early-stage research: Strong late-stage venture capital performance does not automatically ensure funding for experimental technologies.
• Expanding opportunities beyond major hubs: Smaller cities and regional institutions need access to laboratories, mentors and finance.
• Measuring wider benefits: Innovation should improve productivity, public services, environmental sustainability and employment.

These are policy implications of the findings, rather than separate rankings assigned by the GII.

Beyond the GII: Frontier Technologies Readiness Index

The Frontier Technologies Readiness Index is published by UN Trade and Development (UNCTAD) as part of its Technology and Innovation Report.

It assesses preparedness to use, adopt and adapt frontier technologies through five dimensions:

• ICT deployment
• Skills
• Research and development
• Industrial capacity
• Access to finance

India ranked 36th in the 2025 assessment.

Prelims distinction:
GII → WIPO → Overall innovation performance
Frontier Technologies Readiness Index → UNCTAD → Preparedness for frontier technologies

Way Forward

India should strengthen research capacity, improve scientific and technical education, support early-stage innovation and deepen collaboration between universities and businesses.

Mains Practice Question:
“India’s innovation outputs outperform its innovation inputs, but sustained progress requires stronger research and institutional capacity.” Discuss with reference to the Global Innovation Index 2026. (250 words)