Amman, Oct. 21 (Petra) The Jordan Strategy Forum (JSF) has released a policy brief in its "In Brief" series titled "Intangible Assets: Between the Capability Trap and Transformation Opportunities," highlighting the significance of intangible assets and insights from the World Intellectual Property Organization (WIPO) report "Global Trends in Intangible Investment 2025." The brief defines intangible assets as non-physical resources such as creative ideas, innovations, expertise, and reputation, including intellectual property rights like patents, trademarks, visual identity, designs, copyrights, trade secrets, and software.

While valuing intangible assets is more challenging than tangible assets such as buildings and machinery, the forum emphasizes that they are equally critical, serving as key drivers for business growth, innovation, competitive advantage, and sustainable economic development.

Reviewing the WIPO report, which covered 26 mainly advanced economies representing 52 percent of global GDP, the forum noted that global investment in intangible assets has steadily surpassed investment in tangible assets since 1995. The share of investment in intangible assets as a percentage of global GDP rose from 10.3 percent in 1995 to 13.6 percent in 2024, exceeding tangible assets at 11.1 percent.

The forum highlighted that the estimated global value of intangible assets is $79.4 trillion, with 79 percent of this value not reflected in corporate financial reports, according to the 2024 Global Intangible Finance Tracker (GIFT) by Brand Finance.

Despite their vital role in driving economies, intangible assets remain insufficiently measured in official statistics. Accurate measurement is essential for informed policy-making and effective resource allocation. Ignoring or underestimating these assets can undermine investment levels and the quality of economic decisions.

The brief also warned that most developing countries risk falling into the "capability trap," a state of stagnation in knowledge and technology that prevents progression to high value-added activities reliant on innovation and quality.

To avoid this trap, the forum recommended improving education quality particularly higher and technical education developing digital and legislative infrastructure, fostering innovation, integrating into global value chains, and engaging diaspora communities to transfer knowledge and build local capabilities.

//Petra// AF