WIPO publishes report on growth in investment in intangible assets

WIPO publishes report on growth in investment in intangible assets

On June 25, the World Intellectual Property Organization (WIPO) published its report entitled “World Intangible Investment Highlights”. Made annually in partnership with the Luiss Business School (LBS), the document presents significant data that indicates an accelerated growth in investments in intangible assets such as brands, designs, data and software over the last few decades.

Initially, WIPO points out that these assets have proved resilient during periods of economic uncertainty, in contrast to the volatility of tangible investments in more recent crises. In advanced and emerging economies, such as India, Sweden, the United States and France, intangible assets are increasingly integrated into the Gross Domestic Product (GDP), reflecting a continuous movement towards a knowledge-based economy, while also highlighting fact-based policy-making. In addition, the document shows that countries such as the United States and France lead the ranking of investments in intangible assets, with the private sector in these nations being the biggest investors, driving innovation and economic growth.

The report then divides the data presented into 7 groups, seeking to illustrate the different impacts of intangible assets. First, it shows in a graph that between 2008 and 2023, investments in these assets will grow three times faster than investments in tangible assets. Then, another graph shows that intangible assets have been remarkably resilient during recent economic crises, such as the 2008 financial crisis and the COVID-19 pandemic. While investments in tangible assets have suffered significant falls, investments in intangible assets have remained stable or even increased in some cases.

From this perspective, WIPO also takes stock of the types of intangible assets that are booming. Here, the data shows that the software, data and brand sectors have been the fastest growing types of intangible assets between 2011 and 2021. Also, within the domain of organizational capital (a company’s investment in systems, instruments and operational philosophy), the report shows that this specific group represents almost 30% of total investment in intangibles, surpassing other types such as R&D, software and data, brands and industrial design.

Finally, the last three points deal, respectively, with data relating to the growth of the United States, especially its private sector, as a global leader in absolute terms of investment in intangible assets, with levels significantly higher than those of other economies; the increase in the share of investment in intangible assets in the GDP of highly developed economies such as Sweden, the United States and France; and India’s leading role in terms of the country’s significant growth in investment in intangibles, surpassing even some high-income countries in terms of investment intensity in relation to national GDP.

The report states that data from other emerging economies (such as Brazil, China, Indonesia, South Africa and Vietnam) and high-income economies (such as the Republic of Korea) are not yet available in this study but will be considered in future editions.

The document can be accessed via the link: World Intangible Investment Highlights

Note: For quick release, this English version is provided by automated translation without human review.