In the modern global economy, the driving force behind growth is shifting from physical infrastructure to intangible assets like knowledge, innovation, and creativity. Formerly, wealth was predominantly linked to tangible assets such as machinery and infrastructure. However, contemporary economic leaders derive their strength from intangible assets, encompassing software, research, brand equity, and expertise.
In several economies, including India, investments in these non-physical assets have surpassed traditional tangible investments, according to a recent 2025 report co-published by the World Intellectual Property Organisation (WIPO) and Luiss Business School. This article will discuss the definition of intangible assets, their significance for growth, and India's position in the intangible investment market.
Also Read: What is GDP? Types, How is it calculated?
What are intangible assets?
Intangible assets are non-physical resources that add long-term value to a company or economy. These include:
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Research and Development (R&D)
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Software and data
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Brands and design
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Business know-how and reputation
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Organisational skills and intellectual property
They don't have a physical form like factories or machinery, but they fuel competitiveness, productivity, and innovation.
Must Try: Top GK Questions With Answer on Intellectual Property Rights (IPR)
Why are intangible assets important for economic growth?
In today’s knowledge-driven economy, the intangible assets are the backbone of progress. Here's why intangible assets are important for economic growth:
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Drive Innovation: For the fuel product development, patents, and cutting-edge tech.
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Enhance Competitiveness: It helps firms to stay ahead in global markets.
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Create Better Jobs: It makes the demand for skilled professionals increase.
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Build National Wealth: Economies investing in intangibles show higher GDP growth.
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Increase Consumer Value: Improve product quality and user experience.
In short, countries that prioritise intangible investments position themselves for long-term success.
Also Read: List of Largest Economies in the World [Updated 2025]
Why does accurate measurement of intangibles matter for the growth of GDP and to build an economy of any country?
For measurement of intangibles to be accurate, it matters for the growth of GDP and to build an economy of any country. Despite their growing impact, intangible assets often go underreported or undervalued in official data. This can lead to:
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Policy Blind Spots: Inadequate data hampers smart economic planning.
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Missed Opportunities: Financial institutions may underfund high-potential sectors.
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Lower Competitiveness: Misallocation of resources limits national and business growth.
Accurate measurement helps design better innovation policies and ensures resources are channelled into the real drivers of economic progress.
Some important key data regarding Global & India's Performance
According to the latest World Intangible Investment Highlights:
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Global Growth: Intangible investments grew 3x faster than tangible investments between 2008 and 2023, even during economic slowdowns.
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GDP Share: In advanced economies like Sweden, the U.S., and France, intangible assets now make up 16% or more of GDP.
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India’s Rise: India had the fastest growth rate in intangible investment from 2011 to 2020 among all large economies. It even outpaced the U.S. and Sweden in growth rate, though its overall share of intangible investment is still developing.
Where does India rank in intangible investments worldwide?
India Leads In Intangible Assets!
— MyGovIndia (@mygovindia) July 10, 2025
According to the report of World Intellectual Property Organization from R&D and software to design, branding, data, and skilled talent India now tops the world in intangible investments. A shift from physical to intellectual capital is powering… pic.twitter.com/QZQUAdBYQ2
According to the World Intellectual Property Organisation (WIPO) report, India ranks 1st in the world in intangible investments, with a compounding annual growth rate between 2014 to 2024. As per the MyGovIndia post on X.com: “India Leads In Intangible Assets!
According to the report of the World Intellectual Property Organisation, from R&D and software to design, branding, data, and skilled talent, India now tops the world in intangible investments. A shift from physical to intellectual capital is powering the new economy.”
What is the significance for India of intangible investments?
India’s rapid growth in intangible investments reflects its digital transformation, booming startup ecosystem, and growing emphasis on innovation and R&D. As India builds world-class capabilities in tech, biotech, and creative industries, intangibles will play a defining role in shaping its economic future. Policymakers need to ensure better tracking, support, and financing for these assets to sustain this momentum.
Conclusion
In 2025, where the ideas are more valuable than infrastructure, intangible assets are becoming true assets for wealth creation. As countries like India are willing to continue to invest in the idea that innovations, intellectual property, and knowledge make the foundations for resilience and a future-ready economy. This will help in tracking, and supporting these assets will no longer be optional but rather essential for sustainable and inclusive growth for GDP growth and boosting the economy worldwide.
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