India tops growth in investment in intangible assets, says global report | Today’s news
New Delhi: India has emerged as the world’s fastest-growing major economy in investment in knowledge-based assets in 2022-23, with spending on software, research, brands and other intangible assets growing by 7.9%, according to a report by the World Intellectual Property Organization (WIPO).
The World Intangible Investment Highlights 2026 report says India recorded the highest year-on-year growth in intangible investment among the top 15 economies covered in 2022-23, ahead of Japan (4.8%), the Philippines (4.6%) and the US (4.4%).
While India remains a tangible asset-intensive economy, the report says its investment in knowledge-based assets is growing rapidly alongside traditional capital spending. India’s gross capital formation to grow from 32% of GDP in 2021 to 33% in 2023.
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In absolute terms, India’s intangible investment stood at $78 billion in 2023, surpassing that of several European economies, including Denmark, the Czech Republic and Finland, the report said.
The report defines intangible investment as spending on assets such as software and databases, research and development (R&D), organizational capital, brands, design, new financial products and other intellectual property products. She said these assets are increasingly important to support innovation, productivity and economic activity.
Software, databases dominate
India’s investment profile is dominated by software and databases, which accounted for nearly 45% of the country’s total intangible investment in 2023, the highest share of any economy covered in the report. Corporate capital accounted for 21.8%, research and development 12.7%, brands 9.3% and design 11% of India’s total intangible investment.
Indian software and databases expanded at a CAGR of 8.2% between 2013 and 2023.
Globally, software and databases were the fastest-growing category of intangible assets during 2013-23, up 7.3%, followed by organizational capital at 4.9% and brands at 4.4%, the report said.
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The report states that artificial intelligence (AI) is expected to reinforce this trend by increasing investments in software, data, organizational capital and research. While recent AI spending has largely focused on physical infrastructure such as chips and data centers, the report says its long-term economic impact will increasingly depend on investments in intangible assets that enable firms to reorganize processes, develop proprietary data and boost innovation capabilities.
Investment in brands
India also ranked among the fastest growing economies in brand investment. Brand investment grew at a CAGR of 7.2% from 2013 to 2023, placing India behind Luxembourg, Lithuania and Denmark, but ahead of several advanced economies. The report states that fast-growing middle-income economies, including India, are investing in brands as they seek to move up value chains and strengthen their market position.
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The report states that around 62% of total intangible investment is not captured in the official national accounts, as categories such as organizational capital, brands, design, operating models and skills are not generally recognized as investments under existing accounting frameworks.
The report is jointly published by WIPO and the Luiss Business School using the global INTAN-Invest database, which covers 29 economies representing about 57% of global GDP in nominal terms and about 45% on a purchasing power parity basis.
