Global investments: brand, design, data and software outpace machinery

Intangible investments - such as brands, design, data and software - are accelerating globally and outpacing those in tangible assets. This is the finding of the 'World Intangible Investment Highlights' report produced by the Luiss Business School in collaboration with the World Intellectual Property Organisation (Wipo, a UN agency), which shows a rapid expansion of investments in intangible assets globally. Since 2008, their growth rate has grown three times faster than those in tangible assets such as machinery and equipment. Sweden, the United States and France are on the podium of the largest investors (share of GDP), but the record for fastest growth goes to India, with a strong acceleration between 2011 and 2020. Software, data and brands are the fastest growing intangible assets.

Despite the unsettling global crises and the recent rise in interest rates, the report notes, aggregate investment in intangible assets reached $6.9 trillion in 2023, more than double the $2.9 trillion in 1995. Since 2008, the growth rate of intangible investment has tripled that of investment in tangible assets to $4.7 trillion in 2023, showing strong resilience to economic downturns. Investment levels in intangibles have shown greater resilience than tangible investments during recent economic crises, despite higher interest rates hampering other investment flows.

Investment in intangibles accounts for an increasing share of gross domestic product (GDP) in both high-income and emerging economies, such as India. Sweden, the United States and France lead the way: Sweden, the United States and France have the highest share of investments in relation to GDP. In the United States, for example, the share of investment in intangible goods is twice that in tangible goods in 2023. High growth in emerging economies: India showed the fastest growth in intangible investment from 2011 to 2020 (latest available data), outpacing the growth rates of many high-income economies and matching the investment-to-GDP rates of Germany and Japan.

"In today's manufacturing world, investing in intangible assets has become essential to cope with digital transformation, adapt quickly to new global challenges and remain competitive," says Cecilia Jona-Lasinio, Professor of Applied Economics at Luiss Business School and co-author of the report, "This is why the data and analysis produced by Global-INTAN Invest, the database that provides the latest estimates on the value of intangible investments, is a fundamental tool for more effective strategic planning and more informed economic policy."

"As an institution of higher education, closely linked to the entrepreneurial fabric, we have a duty to bring academic research closer to the needs of businesses and institutions, providing managers and policy makers with useful evidence for understanding economic and sectoral dynamics and improving policies in favour of growth. The partnership we have formed sees the Luiss Business School working alongside Wipo and other prestigious international organisations to make a concrete contribution with its expertise on issues of global relevance," emphasises Raffaele Oriani, Dean of the Luiss Business School.