India outpaces major economies in growth of intangible investments

India has recorded the fastest growth in intangible investments from 2011 to 2020 among major global economies, exceeding countries like the US, France, Germany, and the UK, highlighting significant value creation by its companies, ToI reported on August 10. In 2020, India ranked 14th in absolute levels of intangible investments among 26 advanced economies, positioned between Denmark and ahead of Finland and Portugal, said the report (by Rupali Mukherjee).

This growth underscores India’s expanding role in global innovation and intellectual property. The report released by the World Intellectual Property Organisation (WIPO) marks the first time data on intangible investment is available for India. Intangible assets include R&D, know-how, software and data, design, brands, and reputation, all of which contribute significantly to value creation for companies and economies.

“India showed the fastest growth in intangible investment, surpassing the growth rates of many developed economies, mainly driven by its strength in software and data,” said Sacha Wunsch-Vincent, head of the department of economics and data analytics at WIPO and one of the report’s authors.

Excluding the informal sector, intangible investment constituted over 10% of India’s GDP in 2019. This is comparable to the EU-22 average and higher than Japan’s 9%. The data indicates India’s intangible investment intensity is higher than expected for its development level.

The primary drivers of India’s growth in intangible assets are software and data, new financial products, and increased investment in domestic brands. These factors collectively contribute to India’s robust performance in the global intangible investment landscape.

India’s advancements in intangible investments reflect a broader trend of recognizing the crucial role of intellectual property and innovation in national economic growth. The country’s impressive growth rate in this sector sets it apart from both emerging and advanced economies, supporting its burgeoning presence on the world stage.