In addition to higher-than-average research and development (R&D) investments towards innovation and progress, IP-intensive industries generate a disproportionately large share of economic productivity and growth and support 57.6 million American jobs. A recent NDP Analytics study finds that intellectual property (IP)-intensive manufacturing industries in the United States – such as biopharmaceuticals, semiconductors, computers and electronics, aerospace and transportation – perform better than non-IP-intensive industries on key economic factors.
How much of an outsized impact do IP-intensive manufacturing industries have?
- They’re more productive. The output per employee in IP-intensive manufacturing industries is 1.4 times that of non-IP-intensive manufacturing industries;
- Productivity of IP-intensive manufacturing industries grew more than twice as fast between 2008-2015 as the productivity of non-IP intensive manufacturing industries; and
- The biopharmaceutical industry leads across these measures, including significantly higher economic output per employee, average wages and R&D investment compared to other IP-intensive and non-IP-intensive manufacturing industries alike.
IP-intensive manufacturing industries also play a crucial role in generating high-value, high-wage jobs. Wages in IP-intensive industries are 45 percent higher than those in non-IP-intensive industries – approximately $67,378 compared to $46,248 per employee annually.
The data show that IP-intensive-industries aren’t just creating the cures, devices and solutions of tomorrow – they are supporting a strong and sustainable economy for the future.
Therefore, intellectual property rights must be nurtured and protected for the sake of these important industries, the tens of millions of workers they support, and the economy at large.