The world economy is undergoing a major transformation. For the first time, global investments in software, data, and artificial intelligence (AI) have outpaced investments in traditional physical assets like buildings and machines. This trend marks a significant turning point in how countries grow, compete, and innovate, according to a new report by the World Intellectual Property Organization (WIPO).
Intangible Investments Are Leading the Way
The UN agency’s latest report, released in partnership with Italy’s Luiss Business School, highlights a clear shift toward investing in intangible assets — things you can’t touch, like intellectual property, software, and databases.
In 2024, these intangible investments grew three times faster than physical investments, reaching a total of $7.6 trillion across 27 high- and middle-income economies. That’s up from $7.4 trillion the year before.
“This is a fundamental shift in how economies grow and compete,” said WIPO Director General Daren Tang. “Businesses may be slowing down on building factories, but they are doubling down on digital assets.”
What Are Intangible Assets?
Intangible assets are non-physical investments that bring long-term value. These include:
- Software and apps
- AI training datasets
- Brand value and design
- Patents and copyrights
- Research and development (R&D)
- Organizational know-how
These assets are becoming key to modern growth strategies in today’s knowledge-driven, digital world.
The AI Boom is Fueling the Growth
According to WIPO, the ongoing AI revolution is one of the biggest drivers behind this surge. As businesses race to develop smarter AI models and services, they’re investing heavily in both:
- Tangible infrastructure like chips, servers, and data centers
- Intangible tools like large datasets, software platforms, and algorithms
Between 2013 and 2022, investments in software and databases — the fastest-growing intangible asset type — grew by more than 7% annually. This pace is expected to increase further as AI becomes more mainstream.
“We are not in the middle of the AI boom — we are at the beginning,” said Sacha Wunsch-Vincent, head of WIPO’s economics and data analytics department.
U.S. Leads in Overall Investment, Sweden Leads in Intensity
In terms of total investment, the United States remains the global leader. It invested nearly twice as much in intangible assets as countries like France, Germany, Japan, and the UK.
But when we look at intangible investment intensity — or how much of a country’s GDP goes into these assets — Sweden stands out. Around 16% of Sweden’s GDP in 2024 went into intangible investments, the highest in the world.
Other top-ranking countries include:
- United States – 15% of GDP
- France – 15%
- Finland – 15%
- India – Nearly 10%
India’s performance is especially notable as it outpaced several EU economies and even Japan.
A Crisis-Proof Investment Strategy
One of the most interesting findings of the report is that intangible investments are more resilient during times of economic crisis.
From 2008 to 2024, investment in intangible assets grew at a steady rate of 4% per year, even through global recessions and financial slowdowns. In comparison, physical asset investments like factories and equipment only grew at 1% annually during the same period.
This suggests that countries and companies see long-term value in digital tools, even when times are tough.
Big Implications for Policymakers
This shift toward intangible assets has deep policy implications. Governments that understand the importance of software, data, and AI — and create laws and infrastructure to support them — will have a competitive edge.
“Countries that nurture intangible investment will be better positioned to grow in a global economy driven by innovation,” said Daren Tang.
This means:
- Supporting startups and digital entrepreneurs
- Creating stronger IP laws
- Investing in digital education and research
- Building policies that encourage AI and data development
The Future is Digital, and It’s Just Beginning
As the digital economy becomes more powerful, countries must rethink their strategies. No longer can growth rely solely on building physical infrastructure. Instead, smart, intangible investments will shape the future — from AI systems to next-generation software and content creation tools.
This is just the beginning of a new era, where ideas and data drive progress more than bricks and machines ever did.
For similar content visit here
