“Global Investment Shifts Toward Intangibles as AI and Software Outpace Physical Assets – UN Report”

A significant transformation is underway in the global economic landscape, according to a new report by the United Nations’ World Intellectual Property Organisation (WIPO). The study, released on Wednesday in collaboration with Italy’s Luiss Business School, reveals that investment in intangible assets such as software, data, and artificial intelligence (AI) surged in 2024, outpacing traditional physical asset investment by a factor of three.

The findings underscore what WIPO describes as a “fundamental shift in how economies grow and compete.” In a world increasingly driven by digital and intellectual innovation, countries and businesses are redirecting their capital towards intangible resources that foster long-term competitiveness and growth.

$7.6 Trillion Poured into Intangibles in 2024

The report covers 27 high- and middle-income economies and indicates that intangible investment grew by approximately three percent in real terms last year, reaching $7.6 trillion—up from $7.4 trillion in 2023. In stark contrast, investments in physical infrastructure such as buildings and machinery saw marginal growth, dampened by high interest rates and a slow post-pandemic economic recovery.

“We’re witnessing a fundamental shift in how economies grow and compete,” said WIPO Director General Daren Tang in the report. “While businesses have slowed down investing in factories and equipment during uncertain times, they’re doubling down on intangible assets.”

Tang emphasized the strategic importance of this shift: “Countries that understand and nurture intangible investment will be better positioned to grow and thrive in a global economy increasingly driven by technological, digital, and cultural innovation.”

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US Dominates in Absolute Investment; Sweden Tops Intensity Rankings

The United States continues to lead the world in absolute investment in intangible assets, spending nearly double that of other economic heavyweights including France, Germany, Japan, and the United Kingdom. In terms of investment intensity—measured as a share of gross domestic product (GDP)—Sweden emerged as the most intangible-asset-intensive country in the world, with 16 percent of its GDP stemming from such investments.

Other top-ranking nations included the United States, France, and Finland, each recording intangible investment intensities of 15 percent. India also performed strongly, with a 10 percent intensity rate, placing it ahead of several European Union countries and even Japan.

These metrics reflect not only economic strength but also national strategies aimed at positioning themselves at the forefront of the digital and innovation economy.

AI Boom Accelerates Software and Data Investments

The report attributes much of the intangible investment boom to the rise of artificial intelligence. Between 2013 and 2022, software and databases became the fastest-growing categories within the intangible investment segment, registering over seven percent growth annually.

This acceleration has been further propelled by the current AI surge. While AI is driving tangible investments in hardware like chips and data centers, it is also spurring demand for intangible assets—particularly the datasets and algorithms needed to train advanced AI systems.

“People think that we are already in the middle of the AI boom,” said Sacha Wunsch-Vincent, WIPO’s Head of Economics and Data Analytics. “But we are actually just at the beginning.”

His remarks highlight a long-term trajectory where AI not only shapes technology but also transforms how economic value is created and capital is deployed.

Intangibles Prove More Resilient Than Physical Assets

One of the most striking findings in the report is the resilience of intangible asset investments over time, especially during periods of global economic uncertainty. Between 2008 and 2024, intangible investments have grown at a compound annual rate of approximately four percent—compared to just one percent for physical assets.

This resilience suggests a deeper structural transformation in the global economy, where value is increasingly generated through innovation, knowledge, and digital infrastructure rather than traditional bricks-and-mortar projects.

Implications for Policymakers and Global Competitiveness

The WIPO report calls attention to the need for forward-thinking public policies. As investment patterns evolve, countries that fail to adapt may find themselves lagging behind economically. Governments are encouraged to develop frameworks that foster innovation, protect intellectual property, and incentivize digital infrastructure and talent development.

The report concludes that intangible investment is not merely a financial trend—it is a signal of a broader economic transition. With artificial intelligence, data, and software redefining competitive advantage, nations that embrace this change will be better positioned for long-term growth and prosperity.