Value of intellectual property products

Intellectual property investment is projected to grow 1.5% reach $63.4 billion in 2026, representing annualized growth of 2.2% over the five years through 2026. This sustained performance demonstrates that IP investment has proven remarkably resilient compared to traditional capital expenditure, maintaining consistent growth momentum even as machinery and equipment investment contracted throughout 2023-2026. The current investment level reflects businesses' ongoing commitment to digital transformation initiatives, research and development programs, and knowledge-based assets that are increasingly viewed as essential for competitive positioning rather than discretionary enhancements.

The modest 1.5% growth in 2025 represents a deceleration from the exceptional expansion rates achieved during 2021-2022, signaling that IP investment growth is normalizing after pandemic-driven acceleration. This moderation reflects multiple factors, including elevated interest rates that increased capital costs despite recent cuts, profit margin compression that reduced cash available for innovation spending, and cautious business sentiment amid trade policy uncertainty that is causing companies to defer some discretionary R&D initiatives. The near-stagnant growth in 2025 (0.9%) followed by weak 2026 expansion suggests IP investment may be entering a transitional period where the extraordinary digital transformation urgency of the pandemic era gives way to more measured, selective investment aligned with tighter economic conditions.