International Innovation Barometer 2025: Embracing the Future of Innovation
Innovation goes beyond being a buzzword; it drives scientific and technological progress. Businesses and governments strive for recognition as “innovative,” and the impacts of innovation continue to grow.
Key Insights for 2025
- Cost Reduction Overtakes Innovation: “Driving innovation” remains a priority, but “cost reduction” now leads as the top business focus.
- R&D Budgets Resilience: R&D budgets increased slightly from 6.4% to 6.6%. Seventy-three percent of firms expect budget increases next year.
- Rise of AI in R&D: Seventy-five percent of firms use AI for R&D activities. Eighty-six percent allocate budgets for AI research and development.
- Growing Preference for Grants: Thirty-seven percent of businesses use innovation grants, now seen as a more secure funding source than R&D tax credits, which only thirty-one percent use.
- Challenges in Grant Navigation: Identifying suitable grant opportunities poses the biggest barrier, with thirty-nine percent of businesses struggling to find the right fit.
New Focus Areas for 2025
This year’s report shifts to the symbiotic relationship between technology and R&D.
We also include Chief Technology Officers (CTOs) in our research to reflect their growing role in innovation.