The Global Innovation Index 2025: LatAm's Innovation Challenges

The Global Innovation Index 2025 (GII), published by the World Intellectual Property Organization (WIPO), places Chile (51st) and Brazil (52nd) as the top-ranked economies in Latin America. Both countries entered the global top 60, positioning themselves as regional leaders in innovation and highlighting new business opportunities across the region.

Global Ranking and Latin America’s Position

At a global level, Switzerland, Sweden, and the United States retained the top three positions, followed by South Korea and Singapore. Notably, China entered the top 10 for the first time, a milestone driven by sustained investment in R&D and patent growth.

Latin America’s ranking is led by:

• Chile (51st)
• Brazil (52nd)
• Mexico (58th)
• Uruguay (68th)
• Colombia (71st)

Further down the list are Costa Rica (72nd), Argentina (77th), Peru (80th), and Panama (82nd). Toward the bottom of the regional table appear Guatemala (123rd), Nicaragua (130th), and Venezuela (136th).

Methodology in Brief

The GII is calculated as the average of two sub-indices:

• Innovation Inputs, which evaluate enablers such as institutions, human capital and research, infrastructure, market sophistication, and business sophistication.
• Innovation Outputs, which measure tangible results such as knowledge creation, technology, and creative outputs.

This structure allows the comparison of very different economies while highlighting the areas where countries need to improve to translate inputs into measurable results.

Key Findings from the Global Innovation Index 2025

The GII evaluates 139 economies through more than 70 indicators, covering institutions, human capital, infrastructure, market sophistication, and innovation outputs.

One of the report’s central findings is a slowdown in R&D spending growth. Global investment in R&D rose only 2.9% in 2024 and is projected to decline further in 2025. Meanwhile, venture capital funding showed a mixed picture: while megadeals in the U.S. and AI-related investments drove dollar values upward, the number of transactions fell for the third consecutive year.

“These dynamics suggest increasing concentration of capital in fewer geographies and sectors, creating both challenges and opportunities for emerging economies,” the report highlights.

Why Chile and Brazil Stand Out

Chile’s strengths lie in digital infrastructure, tertiary enrollment, and institutional stability that encourage private investment and university-industry collaboration. Brazil, on the other hand, stands out in scientific production and a growing entrepreneurial ecosystem that has gained sophistication in recent years.

Despite their progress, both countries still face the challenge of translating strong innovation inputs into tangible results. Strengthening private sector R&D and expanding financing mechanisms to scale startups remain critical tasks.

Business Opportunities in Latin America

For investors and entrepreneurs, the Global Innovation Index 2025 underscores the importance of key drivers such as human capital, market sophistication, and institutional quality. Countries like Chile and Brazil are proving that innovation-friendly policies and strong academic-industry linkages can open opportunities for scaling businesses in Latin America.

Central American countries, while currently ranking lower, can leverage these insights to build capacity in areas like digital infrastructure, venture financing, and applied R&D. Positioning innovation as a cross-sector priority could help narrow the gap with the region’s leaders.

the Global Innovation Index 2025 highlights both the progress and the gaps in Latin America’s innovation landscape. While Chile and Brazil lead the region with strong institutional frameworks, human capital, and entrepreneurial ecosystems, other countries face the challenge of turning inputs into measurable outputs.