This year, the Philippines has again shown a significant upward trend in the Global Innovation Index (GII) ranking. From once being seen as a quiet contender, the country now proudly sits in the Top 50 most innovative economies in the world. From being ranked 90th 12 years ago, it has officially stepped into the global spotlight of innovation, climbing back to its highest-ever position in the annual ranking and fifth among the fast-rising countries in the annual index.

This milestone signals more than just a number on a chart — it’s a narrative that tells of a nation steadily transforming its ideas into impact, and showing what it is really capable of. It also reflects the effects of well-directed policies and investments, as well as the creativity, resourcefulness, and ingenuity of Filipino innovators across various disciplines.

The Global Innovation Index serves as a worldwide scoreboard, measuring the effectiveness of different countries in supporting and creating new ideas, inventions, and innovative solutions. It is published annually by the World Intellectual Property Organization (WIPO), in collaboration with university and research partners.

The GII 2025 examined 139 countries, measuring factors such as innovation inputs, the resources a country has for innovation. They answer the question: “Does this country have the right environment and resources to innovate?” Inputs are about preparing the ground for innovation. They also examined the innovation outputs, which are the results or outcomes of the innovation process. They answer the question: “What new things are actually being created?”In short, outputs are about what grows from the seeds of innovation.

In addition to the overall rank, the report shows that the Philippines was the third highest-ranked economy among lower middle-income countries next to India and Vietnam. The country performed well in innovation outputs , particularly in financing of startups and scaleups, market capitalization, domestic market scale, university-industry R&D collaboration, and knowledge absorption.

In terms of innovation outputs, the country scored well in exports of high-tech products where it ranked first globally, utility models, creative goods exports, high-tech manufacturing, and ICT-enabled services. It has also shown improvements in high-tech manufacturing.

The potential for further improvements in the coming years is shown in several pillars where the Philippines has to work on to keep up with our ASEAN neighbors particularly Malaysia, Thailand, and Vietnam. One such area is in human capital and research which includes the indicators for education where the country is ranked 124th. It needs to allocate more budget, work on improving the PISA scores of students particularly on reading, mathematics, and science, and improve the pupil-teacher ratio.

We identify several gaps in the area of research and development that the Philippines needs to address to further improve its position in the GII rankings. It has to increase its number of researchers to really achieve impact in its innovation programs. The current number of researchers and level of funding for research and development (R&D) are among the lowest in the region. These factors are contributing to the low number of scientific and research papers produced. For R&D, we need to increase spending to at least one percent of GDP, up from the current 0.3 percent.

Innovation is absolutely central to the Philippines’ long-term economic development,as it serves as the engine that drives global competitiveness and national productivity. Through new industries, technologies, and business models, it will help create higher-value-added sectors that can propel the country beyond middle-income levels. The Philippines has long relied on remittances and the ICT-enabled services sector as key drivers of growth. While these remain important, they may not be sufficient to help the country escape the middle-income trap.

Innovation will also drive the creation of quality jobs, strengthening the country’s participation in global value chains, and building resilience and inclusivity. For example, it could foster entrepreneurship and startups,generating new employment opportunities beyond traditional enterprises. It will also help local manufacturers to step up the global value chains, from simple assembly to design and technology development. It can push the development of solutions to help the Philippines address its vulnerabilities to disasters and food insecurity.

The Philippine Innovation Act (RA 11293) and the National Innovation Agenda and Strategy Document (2023–2032) provide a roadmap for building a dynamic innovation ecosystem in the country. To drive the innovation agenda forward, the National Innovation Council, chaired by President Ferdinand R. Marcos, Jr. himself, is orchestrating a whole-of-government approach to successfully implement the targets set in the roadmap. Beyond the high GII ranking, the country’s innovation agenda should ultimately lead to improved opportunities and better lives for Filipinos.

Innovation is not just about gadgets or startups—it’s about transforming the entire Philippine economy into one that is more competitive, more resilient, and more inclusive. With it, the Philippines can leapfrog into becoming a truly competitive regional hub for technology and creativity.