Synopsis : Global investments in AI, data, and software are outpacing physical assets, signaling a fundamental economic shift, says a new UN-WIPO report. The trend underscores how nations nurturing intangible investments will lead in the emerging digital and innovation-driven economy.
In a landmark shift for the global economy, the United Nations' World Intellectual Property Organization (WIPO) reported that investments in intangible assets like software, data, and AI surged past investments in physical assets in 2024.
The report, co-published with Italy’s Luiss Business School, noted intangible investments across 27 high- and middle-income economies grew 3% in real terms, reaching $7.6 trillion in 2024, up from $7.4 trillion a year earlier. In contrast, investments in physical assets like machinery and buildings have slowed, impacted by high interest rates and uneven economic recovery.
“We're witnessing a fundamental shift in how economies grow and compete,” said WIPO chief Daren Tang, highlighting that while businesses pulled back on factory investments amid global uncertainties, they doubled down on intangible assets critical to technological, digital, and cultural innovation.
The United States led globally in absolute intangible investment, nearly doubling the levels of France, Germany, Japan, and Britain. Meanwhile, Sweden emerged as the world’s most intangible-asset-intensive economy, with such investments making up 16% of GDP, followed closely by the US, France, and Finland at 15%.
India also made notable strides, with intangible investment intensity nearing 10% of GDP, surpassing several EU economies and Japan.
Notably, software and database investments grew by over 7% annually between 2013 and 2022, with WIPO attributing this surge to the ongoing AI boom, which is also driving demand for datasets to train AI systems alongside physical AI infrastructure like chips and data centers.
“People think we are already in the middle of the AI boom, but we are actually just at the beginning,” said Sacha Wunsch-Vincent, head of WIPO’s economics and data analytics department, underscoring how intangible investments are poised to shape global economic competitiveness in the coming decade.
Disclaimer : This article is for informational purposes only and does not constitute investment or policy advice.
