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On September 1, 2025, the World Intellectual Property Organization released the innovation cluster ranking of its Global Innovation Index 2025. The Shenzhen-Hong Kong-Guangzhou cluster ranked first, displacing Tokyo-Yokohama, which had long held the top spot. Venture capital deals were added as a new indicator this year.
Overview
On September 1, 2025, the World Intellectual Property Organization (WIPO) released the innovation cluster ranking of its Global Innovation Index (GII) 2025. According to a report by JETRO, China's Shenzhen-Hong Kong-Guangzhou cluster ranked first in the world, while Japan's Tokyo-Yokohama cluster, which had held the top position for many years, came second. San Jose-San Francisco in the United States rose to third from sixth the previous year, followed by Beijing in fourth and Seoul in the Republic of Korea in fifth. According to People's Daily, the Shenzhen-Hong Kong-Guangzhou cluster had previously ranked second in the world for five consecutive years.
Background
The GII assesses the innovation capabilities of economies using around 80 indicators across seven pillars: institutions, human capital and research, infrastructure, market sophistication, business sophistication, knowledge and technology outputs, and creative outputs. The cluster ranking identifies and ranks the places where innovation activity is most concentrated, based on data on patent filings, scientific publications and venture capital (VC) activity. In the 2025 edition, the number of VC deals was added as a new indicator, reflecting greater emphasis on the role of startups and spin-off companies. Because clusters are identified without regard to administrative boundaries, a cluster such as Shenzhen-Hong Kong-Guangzhou, which spans mainland China and Hong Kong, is assessed as a single unit. The ranking therefore reflects the combined strength of an entire region in research, academic output and capital rather than the performance of any one city.
Key Points
| Indicator | Shenzhen-Hong Kong-Guangzhou | Tokyo-Yokohama |
|---|---|---|
| PCT patent applications (2020-2024) | 117,542 | 135,129 |
| Scientific articles (2019-2023) | 193,635 | 115,773 |
| VC deals | 6,916 | 5,154 |
- Tokyo-Yokohama led in PCT patent applications, while Shenzhen-Hong Kong-Guangzhou led in scientific articles and VC deals.
- According to WIPO, China had the largest number of clusters in the global top 100, with 24, followed by the United States with 22, Germany with 7, and India and the United Kingdom with 4 each.
- In the ranking of cluster intensity, which measures activity in proportion to population density, the leaders were San Jose-San Francisco, Cambridge in the United Kingdom, Boston-Cambridge in the United States, Ningde in China and Oxford in the United Kingdom.
- A spokesperson for the Hong Kong SAR Government said the cluster had performed outstandingly in channeling capital effectively and helping turn innovative ideas into tangible results. The Hong Kong government plans to introduce an enhanced Innovation and Technology Venture Fund in 2026 and to launch a new investment program for innovation and technology industries.
Implications for Japan-Shenzhen Exchange
The result appears to show the growing strength of the Shenzhen-centered Guangdong-Hong Kong-Macao Greater Bay Area both in generating research output and in financing startups. At the same time, Tokyo-Yokohama still exceeds the top-ranked cluster in patent applications, underscoring the depth of Japan's technological development capabilities. Because the two clusters have different strengths, attention is turning to the scope for partnerships between Japanese and Shenzhen companies that combine technology with speed of commercialization. The fact that the world's top two innovation clusters are located in Japan and in South China may also be a useful reference point for exchanges among research institutions, universities and startups. For Japanese companies looking for R&D partners or investment opportunities, developments in the Greater Bay Area, with its active venture capital scene, are likely to remain worth watching closely.
Outlook
WIPO said it would publish the overall GII rankings of economies on September 16. Because cluster rankings can change from year to year with trends in patents, publications and VC investment, it remains to be seen whether the current order will hold in future editions.
From the Association
Both Shenzhen and Japan are home to some of the world's leading innovation hubs. The Association will continue to follow science, technology and industry developments on both sides and to provide opportunities for companies, universities and research institutions to interact and learn about each other's strengths.
Sources
This article is based on publicly available information and is provided for reference only; accuracy and completeness are not guaranteed.