New Delhi, Aug 10 (IANS) Intangible investments have shown remarkable resilience compared to tangible investment in the recent past and India is the country among major global economies that experienced the fastest growth in intangible investment from 2011 to 2020, according to a recent report.The World Intellectual Property Organisation (WIPO) said in its report that India recorded the fastest growth in intangible investments, exceeding countries like Sweden and the US -- the two most intensive economies in terms of intangible investment as a share of GDP.
“India’s performance is also comparable with that of certain advanced economies, its intangible investment level in 2020 being close to that of Sweden,” the WIPO report mentioned.
Intangible assets include research and development (R&D), software and data, design, brands and reputation, supply-chain expertise and top-tier skills and all assets that either result from or interact with intellectual property (IP) in some form.
According to the report, despite their intangible nature, such assets have the power to create immense value for companies, economies, societies and individuals alike.
“Although intangible, such assets exert significant influence over the fate and fortunes both of companies and countries in today’s competitive landscape,” said the report.
Intangible investment in India has been growing faster than tangible investment. The difference is even more stark when the informal sector is excluded.
Excluding the informal sector, intangible investment in 2019 made up over 10 percent of India’s GDP, which is comparable to the EU-22 average (about 10 per cent) and higher than in Japan (about 9 per cent).
The report mentioned that the GDP share of intangible investment in India in 2019 (10.4 per cent) was comparable to that in 2020 (9.4 per-cent), indicating a continuing trend despite the pandemic-related disruptions.
In 2023, intangible investment accounted for over 16 per cent of GDP in highly intangible-intensive economies like Sweden, the US and France.
According to the report, the fastest-growing types of intangible asset over the last decade have been software and data, followed by brands, organisational capital and new financial products.
Software and data and brands grew three times faster than R&D between the period 2011–2021.
--IANS