India tops major economies in intangible investment growth: WIPO report

From software and databases to research and organisational know-how, India's investment in intangible assets is growing faster than that of any other major economy, says the report

  India has emerged as the fastest-growing major economy for investment in intangible assets, signalling a shift towards a more knowledge-driven economy powered by software, innovation, research, and intellectual property.

 

According to the latest World Intangible Investment Highlights 2026 report by the World Intellectual Property Organization (WIPO) and Luiss Business School, India recorded the highest recent growth in intangible investment among the world's 15 largest economies.

 

Union Commerce and Industry Minister Piyush Goyal welcomed the findings, saying they reflected India's transition into an innovation-led economy and highlighted the country's growing strength in technology, entrepreneurship, and intellectual property.

 

What are intangible investments?

 

Unlike factories, machinery, or buildings, intangible investments refer to assets that do not have a physical form. These include:

 

 

• Research and development (R&D)
• Software and databases
• Brands and trademarks
• Design
• Organisational know-how
• Other intellectual property

 

According to WIPO, these assets are becoming increasingly important as they drive innovation, improve productivity, strengthen competitiveness, and support higher-paying jobs. Yet, many of them remain undercounted in official economic statistics despite their growing contribution to global growth.

 

India tops growth rankings

 

The report found that India recorded 7.9 per cent year-on-year growth in intangible investment between 2022 and 2023, the highest among the 15 largest economies assessed in the wider study of 29 economies.

 

Japan ranked second with 4.8 per cent growth, followed by the Philippines at 4.6 per cent and the United States at 4.4 per cent. Germany, Spain, Brazil, France, and the United Kingdom followed.

 

WIPO noted that India has traditionally been a tangible investment-heavy economy because of its large investments in infrastructure. However, it is now expanding investment in knowledge-based assets, reflecting a broader transformation of its economy.

 

India's software sector drives the shift

 

One of the report's standout findings is India's heavy focus on software and databases.

 

Nearly 45 per cent of India's total intangible investment in 2023 went into software and databases, the highest share among all countries studied. WIPO attributed this to India's globally competitive information technology and software services industry. The report also found that:

 

• Organisational capital accounted for 21.8 per cent of India's intangible investment
• R&D represented 12.7 per cent
• Brands contributed 9.3 per cent
• Design made up around 11 per cent

 

Software and databases were also identified as India's fastest-growing category of intangible assets, expanding at an average annual rate of 8.2 per cent between 2013 and 2023.  

 

Investment intensity continues to rise

 

Beyond growth rates, India has steadily increased the role of intangible assets within its economy. According to the report, India's intangible investment reached 10 per cent of the formal sector gross domestic product (GDP) in 2023, up from 9.7 per cent in 2011. That places it close to several European economies, including Latvia and Portugal, even though India continues to spend heavily on physical infrastructure.

 

The report added that India's tangible investment remains much higher at 19.3 per cent of GDP because the country continues to build roads, railways, manufacturing facilities, and other physical infrastructure alongside expanding its digital and knowledge economy.

 

Government hails milestone

 

Responding to the report on X, Union Minister Piyush Goyal said the findings demonstrate India's growing innovation ecosystem and reflect the success of policies aimed at strengthening research, entrepreneurship, and intellectual property creation.

 

The minister said this reinforces India's position as a global innovation hub and highlights the country's increasing focus on knowledge-led economic growth. 

 

India is powering the next era of innovation-led growth! ????????  The World Intangible Investment Report 2026, launched by @WIPO and Luiss Business School, reaffirms India's emergence as a global innovation powerhouse.  The report highlights India's growing intangible investment in…

— Piyush Goyal (@PiyushGoyal) July 9, 2026

  As investment increasingly shifts from physical assets to ideas, software, data, and intellectual property, the WIPO report suggests India is well placed to benefit from the next phase of the global digital economy while continuing to expand its traditional infrastructure base.