• Asia is emerging as a global innovation leader, leveraging AI, climate tech and deep tech to drive sustainability and reshape industries.
• Innovation ecosystems across Asia are enabling tech-driven solutions through collaboration, financial innovation and policy alignment.
• The Asian approach can serve as an example, with governments, mission-driven organizations and innovative entrepreneurs working together to scale innovation.

With an estimated population of 4.8 billion people, Asia accounts for nearly 60% of the global population. It is no surprise that many Asian countries count as world leaders in innovation, with several ranking in the top 40 of the Global Innovation Index (GII).

Across the continent, innovation is seen as a strategic lever to unlock economic growth, accelerate transitions and shape new markets. Whether it's policy labs in Thailand, clean energy corridors in China or deep tech clusters in Singapore and Tokyo, innovation is now firmly embedded in Asia’s economic development story.

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While Asia’s economic growth is expected to ease slightly from 4.6% in 2024 to 4.4% in 2025, the region remains a major driver of global expansion even amid geopolitical tensions and policy uncertainties. The momentum is particularly prominent in sectors tied to the energy transition. Advancements in renewable energy, efficiency upgrades in construction and the built environment, mobility and agriculture, as well as circular approaches in manufacturing, could unlock up to $4.3 trillion in revenue by 2030.

As we enter the Intelligent Age, the wave of AI is allowing Asia’s leapfrog into a new era of innovation, reshaping industries, labour markets and investment flows at unprecedented speed. From AI-enabled logistics to predictive climate technologies, we’re seeing startups reimagine solutions tailored for local resilience with global relevance.

Asia’s investment landscape

Approximately 50% of the technologies needed to achieve net zero emissions by 2050 are yet to be developed. To achieve this, the road to a sustainable future will have to be paved by innovation. Early-stage ventures, often seen as high risk and capital intensive, will play a critical role. It does require more than just funding. The success of these ventures will depend heavily on patient capital, supportive policy frameworks and, in some cases, the development of previously untapped sectors.

"Systemic innovation in Asia will hinge on breaking silos—integrating climate technology, policy, finance, and local enterprise into scalable ecosystems that serve both economic and environmental goals. […] For climate investment to evolve from isolated projects to true ecosystem-building, we need catalytic capital that de-risks early innovation, supportive policy frameworks aligned with regional development goals, and stronger cross-border collaboration.”

—Jasandra Nyker, Managing Partner, Saja Climate Partners

Across Asia, investors are already pivoting toward this reality. Traditional focus industries such as Technology, Media and Telecommunications are giving way to deep tech and hard tech, especially in markets like China, where science-led innovation is being fast tracked toward deployment.

"As a venture capitalist, I observe a pronounced strategic shift in investment focus across the region, moving from TMT/platform-based models toward deep tech and hard tech sectors, a transition notably accelerating since 2020. Beyond abundant capital availability, the region's appeal lies in its access to robust manufacturing supply chains. This advantage enabled Gasgene to establish its first pilot plant in just six months with a CAPEX of slightly over $2 million.”

—Dr. Yang Xu, CFO and Co-Founder, Nanjing Gasgene Biochemical Technology Co., Ltd, Vice President, BioTrack Capital, UpLink Top Innovator

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These shifts in capital flow are prompting investors to rethink their strategies — not only in terms of sectors and geographies, but also in the role they play in building innovation ecosystems. Carlo Chen-Delantar, Head of ESG and Partner at Gobi Partners, an Asia-focused VC firm, explains: “We’re evolving our investment thesis to back founders building at the intersection of intelligence, impact and inclusion — and anchoring ecosystems that allow these innovations to scale across borders.”

Ecosystems as Enablers of Scalable Innovation

As investment strategies shift, so does recognition of the vital role ecosystems play in supporting early-stage innovation. Across Asia, accelerators, corporate partners and mission-driven organizations are increasingly working together to bridge gaps in funding, infrastructure, and market access. This is especially true in sectors tied to the sustainability transition.

"Across Asia, we're witnessing a surge in clean energy innovation. Climate fintech is being integrated into supply chains and export finance in Southeast Asia, while green bonds are unlocking project capital. Virtual power plants and smart-grid pilots in Singapore and Tokyo are balancing demand in real-time, while modular solar microgrids in Bangkok and Jakarta are bringing power to under-electrified communities"

—Jie Xiao, General Manager, New Energy Nexus China

These innovations aren’t emerging in isolation. They reflect integrated ecosystems that blend local enterprise, financial innovation, and regional collaboration—positioning Asia as a driving force in shaping the future of investable innovation and sustainable growth.

As the world races to meet climate and development goals, Asia serves as an example of how innovation can be scaled through cooperation and long-term commitment. As innovation continues to reshape industries and unlock new markets, the path forward demands even deeper collaboration across capital, policy, and enterprise.