For the first time, figures reveal that nearly one-third of the value of manufactured goods sold worldwide derives from "intangible capital," such as branding, design and technology, according to a WIPO study of the global value chains that companies use in their production.
That amount, approximately US$5.9 trillion in 2014, highlights that the contribution of intangible capital to the total value of manufactured products is more than double that of buildings, machinery and other forms of tangible capital. This highlights the increasingly important role of intellectual property, which is frequently used to protect intangible and related assets in the global economy.
The "World Intellectual Property Report 2017: Intangible Capital in Global Value Chains" (the 2017 Report) analyzes what portion of income is accounted for by labor, tangible capital, and intangible capital in production through global value chains across the spectrum of manufacturing activity, which accounts for a quarter of total global economic output, with case studies focusing on coffee, solar panels, and smartphones. To present such economic information, it examines national-level accounts and international trade statistics from around the world, as well as data drawn from companies.
"Increasingly, intangible capital will determine the fate and fortunes of companies in today's global value chains; it is behind the appearance, perception, functionality and overall appeal of the products we buy and is the determinant of success in the marketplace," said WIPO Director General Francis Gurry. "Intellectual property, in turn, is the means by which companies use to secure the competitive advantage they derive from their intangible capital."
Source of the publication: WIPO (World Intellectual Property Organization).
