A global comparison of digital competitiveness

Digitalization is a key driver of innovation. It connects technologies and creates new opportunities for added value and better products. A new study published by the Bavarian Industry Association uses patent analysis to map the progress of digitalization in different countries. The study focuses on patents at the interface between application technologies and advanced digitalization technologies. The analysis focuses exclusively on so-called world-class patents, referring to patents that are frequently cited and filed in multiple countries.

The U.S. holds the largest number of world-class digitalization patents

In 2025, the United States held around 53,700 world-class patents at the interface of digitalization and application technologies. China followed with just under 46,300. The EU and Japan followed at considerable distance, with around 13,300 and 13,100 patents, respectively. South Korea rounded out the top five research locations.

The pace of digitalization in these research locations differs significantly. Between 2020 and 2025 the number of Chinese world-class patents increased by 29,1 percent. By contrast, the U.S. recorded a growth of just nine percent. If the number of Chinese patents continues to grow at this rate China will overtake the U.S. in 2026. The number of patents in the EU increased by 12.9 percent.

Germany is at the heart of Europe’s digital innovation

With approximately 6,200 world-class patents in digital application technologies, Germany is the fifth-largest research hub in the world behind the U.S., China, Japan, and South Korea. Germany accounts for approximately 46 percent of EU world-class patents. Most European patents at the interface of digitalization and key technologies such as industrial robots, sensors, and connected vehicles, originate in Germany.

Bavaria is an attractive location for research and innovation

In 2025 approximately 38 percent of Germany’s world-class patents in digital application technologies came from Bavaria. Most of these patents are held by companies. Universities and research institutes also contribute to Bavaria’s success, but they play a less prominent role than elsewhere in the world.