Recalibrating Innovation: Venture Capital’s Transformative Role in the 2025 WIPO Global Innovation Index (GII) Cluster Rankings

The World Intellectual Property Organization (WIPO) has released its 2025 Global Innovation Index (GII) Cluster Rankings, and this year’s edition introduces a pivotal shift in how innovation is measured globally. For the first time, venture capital (VC) deal activity has been included as a core metric alongside international patent filings and scientific publications. This recalibration has not only reshuffled the global leader board but also offered a more nuanced view of how innovation translates into commercial impact.

Figure 1: Top 100 Innovation Clusters worldwide 2025. Blue points (noise) refer to all inventor/author rounded locations, with at least five records, not classified as being within a cluster. Source: WIPO Statistics Database, May 2025.

A New Lens on Innovation

Historically, WIPO’s cluster rankings have focused on patent filings under the Patent Cooperation Treaty (PCT) and scientific output. These remain critical indicators of inventive and academic activity. However, the addition of VC deal volume brings a welcome dimension - capturing the real-world translation of ideas into startups, products, and services.

This shift has had a significant effect on the cluster rankings, with the Shenzhen-Hong Kong-Guangzhou cluster overtaking Tokyo-Yokohama to claim the top spot. The inclusion of VC data has also propelled San Jose-San Francisco into third place, underscoring the commercial dynamism of Silicon Valley.

Table 1: GII Ranking of World’s Top 15 Innovation Clusters by Size, 2025
Clusters have been colour-coded according to country where there are more than two clusters in that country in the top 15. Movement of some of the countries is indicated by arrows.

London’s Rise and the Quiet Strength of Cambridge

Closer to home, London, has notably jumped from 21st to 8th place. This dramatic rise is largely attributed to its position as third-highest cluster for VC deal activity worldwide, behind only San Jose–San Francisco and New York City. With over 10,000 VC deals recorded between 2019 and 2023, the UK capital is now firmly established as a global hub for startup investment.

Table 2: London top PCT applicants 

Table 3: London top publishing organisations 

London’s rise might invite a closer look at how location assignment works in WIPO’s cluster methodology . Inventors may be assigned addresses attributed to the location of the company headquarters, which may not reflect where their R&D activity actually occurs. For example, Nicoventures is headquartered in London, and, on review of the EP Register, some of the inventor addresses correspond to the London HQ. This HQ-centric attribution can inflate the innovation metrics of regional hubs and capital cities like London, New York, or Paris, especially when it comes to corporate filings. In contrast, university-driven clusters might be expected to reflect a more authentic geographic correlation between inventive activity and location.

While London grabs headlines, it is Cambridge that quietly continues to punch well above its weight. Ranked as one of the most innovation-intensive clusters globally relative to population size, alongside San Jose-San Francisco and Boston-Cambridge (US), Cambridge exemplifies the power of concentrated, high-quality innovation. Its strength lies not in volume but in density: a compact ecosystem where world-class research, entrepreneurial ambition, and IP strategy converge.

Cambridge’s innovation output is underpinned by deep scientific expertise and a robust patenting culture, particularly in life sciences, AI, medical technology and advanced materials. Its proximity to world-class institutions and a culture of spin-out entrepreneurship make it a model for high-density innovation. The city’s ability to attract both public and private investment, including from global VC funds, is a key factor in its sustained performance. Cambridge-based innovators are increasingly sophisticated in leveraging IP to secure funding and scale internationally.

Importantly, Cambridge’s patenting activity, though smaller in absolute terms, is strategically focused and often tied to high-value technologies. With experience working with Cambridge-based inventors, we have observed a growing sophistication in how IP is leveraged - not just for protection, but as a tool for attracting investment, forming strategic partnerships, and entering global markets.

Table 4: Innovation clusters with most intensive activity

A Broader View of UK Innovation

The HQ-based attribution model raises important questions about how we measure and interpret innovation. While London’s rise is impressive, it’s essential to recognise the distributed nature of UK innovation. Many London-headquartered firms rely on R&D centres in Bristol, Manchester, Nottingham, Southampton or Edinburgh, where the actual inventive work takes place.

This decentralised model is a strength, not a weakness. It reflects the UK’s ability to leverage regional expertise while maintaining global-facing corporate structures in the capital. For policymakers and IP strategists, this underscores the need to support regional innovation ecosystems, ensuring they receive the recognition and resources they deserve.

A Global Perspective

The 2025 rankings highlight the growing innovation capacity of middle-income economies. India clusters, for example, has seen dramatic gains, with Bengaluru rising from 56th to 21st place as a result of strong performance in VC deals. Clusters in Brazil, Egypt, Iran, and Türkiye also feature in the top 100, reflecting a more geographically diverse innovation landscape.

China remains dominant, with 24 clusters in the top 100 and three in the top six. The US follows closely with 22 clusters, while the UK holds its own with four - London, Cambridge, Oxford, and Manchester.

Implications for IP Strategy and Policy

The inclusion of VC data in WIPO’s methodology is more than a statistical tweak - it signals a broader shift in how innovation is valued. It’s no longer enough to produce patents or publish papers; the ability to convert knowledge into commercial ventures is now a key metric of success. Securing venture capital funding is widely regarded as an indicator of both innovation readiness and market potential.

For companies, this highlights the necessity of ensuring that IP strategies are closely aligned with their broader commercial goals. Robust patent portfolios are not just defensive tools; they are critical assets in fundraising, valuation, and market positioning. Intellectual property is increasingly seen as a strategic asset in venture creation and scaling. The UK’s top innovation clusters, particularly London, Cambridge, and Oxford, are well-positioned to lead in this new environment, provided they continue to view IP as a strategic enabler, not an afterthought.

Conclusion

WIPO’s updated GII Cluster Rankings offer a more holistic view of innovation, one that better reflects the journey from lab bench to market. For the UK, the results are encouraging. London’s rise signals a thriving VC environment, while Cambridge’s continued excellence reaffirms its status as a global innovation powerhouse. By helping innovators across the UK build robust IP portfolios and navigate international protection strategies, ideas born in labs from Leeds to Loughborough can be given every chance to succeed on the global stage.

As we look ahead, the challenge will be to sustain this momentum - ensuring that our innovation clusters not only generate ideas but also remain fertile ground for ideas, investment, and impact.