The value of intangible assets held by global companies has grown dramatically, highlighting their increasingly critical role in the modern economy. In 2024, the global value of intangible assets rebounded to reach a record $80 trillion, representing a 28% increase compared to 2023 and a thirteenfold rise since 1996. This resurgence even surpasses the 2021 peak. Investment in intangible assets grew three times faster than investment in tangible assets between 2008 and 2023, accounting for nearly 75% of all investments made by high-growth companies.
These intangible assets are diverse and include research and development (R&D), intellectual property (patents, trademarks, and designs), software, databases, organizational capital, and skills. Technological innovations, particularly artificial intelligence (AI), contribute to increasing the value of these assets by enhancing software, marketing, and customer relationships.
Dominant Intangible Intensity in Leading Economies and Companies
The share of intangible assets in total corporate value is particularly high in the most advanced economies:
- The United States leads as the most intangible-intensive economy, where the intangible assets of its top 15 companies account for 90% of total corporate value.
- Countries such as Ireland, Denmark, the Netherlands, the United Kingdom, and France closely follow.
- India stands out as the only middle-income economy in the top 10, ranked eighth, demonstrating rapid growth in intangible-intensive sectors. Indonesia (11th), Thailand (20th), Brazil (21st), and Morocco (25th) also rank among the top 25.
Flagship companies illustrate this trend:
- Apple Inc. maintains its position as the most intangible-rich company globally.
- NVIDIA’s rapid valuation growth has been driven by its proprietary chip architecture supporting AI advancements, along with substantial increases in R&D investment.
- Technology and pharmaceutical companies dominate, but sectors such as energy, petrochemicals, and financial services (e.g., Commonwealth Bank of Australia, Nu Holdings Ltd.) are increasingly represented, driven by assets such as software, AI-based analytics, and proprietary platforms.
The Direct Impact of Intellectual Property on the Performance of European Companies
A study conducted by the European Union Intellectual Property Office (EUIPO) and the European Patent Office (EPO), analyzing over 119,000 European companies, confirms a strong link between the ownership of intellectual property rights (IPRs) and economic performance.
Companies that own IPRs:
- Generate higher revenue per employee. On average, revenue per employee is 23.8% higher than in companies without IPRs. A more precise econometric analysis, controlling for other relevant factors, shows a 41% increase.
- Create more jobs and are generally larger, employing on average nearly twice as many workers as companies without IPRs.
- Pay higher wages. Average salaries in IPR-owning companies are 22% higher; for patent owners, wages are 43.3% higher.
This relationship is particularly strong for small and medium-sized enterprises (SMEs). Although fewer than 10% of European SMEs own IPRs, those that do demonstrate remarkable performance:
- Their revenue per employee is 44% higher than that of SMEs without IPRs.
- For large companies, the gain is 16%.
The type of IPR held also influences performance:
- For SMEs, holding trademarks alone or combining patents, trademarks, and designs is associated with the highest revenue-per-employee premiums (47% and 51%, respectively).
- For large companies, combinations including patents (e.g., patents and designs: 38%) yield the highest premiums.
- Sectors with the highest IPR ownership include information and communication (nearly 15% of companies) and manufacturing (14.2%). Scientific R&D shows the highest rate of patent ownership (10.8%).
Mechanisms and Implications
IPRs provide legal protection and expand opportunities to commercialize innovations, allowing companies to better monetize their creative efforts and collaborate more effectively. This stimulates innovation, productivity, and revenue growth.
Although econometric analysis does not definitively establish causation, it strongly suggests a consistent positive correlation between IPR ownership and economic performance. Economic theory supports the crucial role of intangible assets and IPRs in fostering innovation and improving productivity.
Conclusion
The financial valuation of intangible assets is a major issue for companies, as evidenced by their global growth and direct impact on key performance indicators. Recognizing and protecting these assets, particularly through IPRs, is essential for competitiveness and growth in today’s economy. Continued expansion of partnerships and research on these assets, as pursued by the World Intellectual Property Organization (WIPO), is therefore fundamental to better understanding and leveraging their full potential.
