A recent report by the World Intellectual Property Organization (WIPO) has revealed a major shift in global investment trends. In 2024, global investments in intangible assets such as software, data, and artificial intelligence (AI) surpassed those in physical assets like buildings and machinery.
According to WIPO, intangible investment in 27 high- and middle-income economies grew by nearly 3% in real terms, reaching $7.6 trillion in 2024.
Why the shift to intangible investment?
The report highlights that high interest rates and sluggish economic recovery have made physical investments less attractive. In contrast, businesses are increasingly putting their money into tech and digital resources to stay competitive.
“We are witnessing a fundamental transformation in how economies grow and compete,” said Daren Tang, Director General of WIPO.
He added that businesses are slowing down investments in factories and machines but are doubling down on intangible assets, such as AI models, software platforms, and digital tools.
Which countries are leading in intangible investments?
- United States: Led the world in intangible investments, spending nearly double compared to France, Germany, Japan, and the UK.
- Sweden: Ranked as the most intangible-intensive economy, with such investments accounting for 16% of GDP.
- USA, France, Finland: Each had intangible investments equivalent to 15% of GDP.
- India: Surpassed many developed nations like Japan and the EU in growth rate, with 10% of its GDP tied to intangible investment.
AI fueling the boom
WIPO noted that this surge is closely tied to the rapid growth of Artificial Intelligence. AI development is increasing demand for:
- Chips
- Servers
- Data centers
- Training datasets
All of which require both tangible infrastructure and intangible investment.
“People think we’re in the middle of AI development, but we’re just getting started,” said Sacha Wunsch-Vincent, Head of Economics and Data Analytics at WIPO.
