The purchase of physical assets was eclipsed last year by a surge in investment in intangible items like software, data and AI, the UN said Wednesday, describing a “fundamental shift in how economies grow and compete”.
Investment in intellectual property-backed assets grew three times faster in 2024 than investments in physical objects like machinery and buildings, which have been hit by high interest rates and a subdued economic recovery, the United Nations’ World Intellectual Property Organization (WIPO) said in a fresh report.
The report, which was co-published with Italy’s Luiss Business School, showed that intangible investment across 27 high- and middle-income economies grew about three percent in real terms last year, reaching $7.6 trillion, up from $7.4 trillion a year earlier.
“We’re witnessing a fundamental shift in how economies grow and compete,” WIPO chief Daren Tang said in a statement.
“While businesses have slowed down investing in factories and equipment during uncertain times, they’re doubling down on intangible assets,” he said, stressing that “this trend has profound implications for policymakers”.
“Countries that understand and nurture intangible investment will be better positioned to grow and thrive in a global economy increasingly driven by technological, digital and cultural innovation.”
Cox’s Bazar Life Desk/BSS
