Over the last fifty years, the global economy has experienced a profound shift in how value is created. In 1975, tangible assets represented approximately 83% of the market value of companies in the S&P 500. Today, intangible assets account for more than 90% of that value. This “economic inversion” reflects the growing importance of intellectual property, software, data, brands, proprietary processes, and other forms of knowledge capital as drivers of enterprise value.
Yet while the rise of intangible assets is well documented, a more important question is emerging: what conditions allow intangible value to flourish, and what conditions put it at risk? Recent findings from Ocean Tomo’s 2025 Intangible Asset Market Value (IAMV) Study reveal that technology and innovation alone do not determine intangible asset value. Regulatory frameworks, governance transparency, market structure, and investor confidence can significantly influence whether innovation-generated value is preserved, unlocked, or destroyed.
As policymakers around the world grapple with artificial intelligence, digital markets, corporate governance reform, and economic competitiveness, several fundamental questions are coming into focus. Drawing on insights from the IAMV Study, the following five questions offer a framework for understanding how policy decisions increasingly shape the value of intangible assets and, in turn, economic growth.
1. How does government regulation influence the value of intellectual property and other intangible assets?
Regulatory quality is one of the strongest determinants of intangible asset value. The study finds that markets operating under predictable, rule-based regulatory systems tend to preserve and support intangible asset value, while unpredictable intervention can significantly reduce it. The divergence between China and other major markets from 2020 to 2025 demonstrates that regulatory certainty may be as important as technological capability in determining IP-driven market value. Policymakers should recognize that innovation thrives not only through investment in technology, but also through confidence in the rules governing its commercialization.
2. Can corporate governance reforms increase economic value without creating new technology or intellectual property?
Yes. The study identifies Japan as a leading example where governance reforms increased investor confidence and significantly raised intangible asset market value without requiring new inventions, patents, or business models. Greater transparency, improved disclosure, and stronger capital allocation practices helped investors better recognize existing intangible assets. This suggests that governance reform can unlock substantial economic value already present within companies and markets.
3. Are all intangible assets equally resilient during economic disruptions?
No. The study finds significant differences in the resilience of intangible assets. High-quality assets such as patented technologies, essential software platforms, and proprietary process innovations generally retained value through inflation, rising interest rates, geopolitical disruption, and market volatility. By contrast, assets dependent on favorable regulation, speculative growth assumptions, or unproven technologies proved far more vulnerable. Policymakers should distinguish between durable and fragile forms of intangible capital when evaluating innovation ecosystems and economic competitiveness.
4. Has monetary policy become less effective in influencing the value of intangible-intensive companies?
The study suggests that intangible-intensive companies may be less sensitive to interest-rate increases than traditional financial models predict. During the Federal Reserve’s aggressive rate-hiking cycle from 2022 through 2023, U.S. intangible asset market value remained remarkably stable. Strong balance sheets, lower leverage, substantial cash reserves, and resilient business models helped many intangible-driven firms withstand higher borrowing costs. This raises important policy questions about whether traditional monetary policy mechanisms operate differently in economies where most corporate value is intangible.
5. What policies support economic growth in a world where intangible assets represent most corporate value?
The study concludes that policies supporting transparency, predictable regulation, strong intellectual property protection, effective governance, and investor confidence are increasingly important to economic growth. As intangible assets now account for more than 90% of S&P 500 market value, economic policy must evolve beyond traditional measures focused primarily on physical capital. Governments seeking to encourage innovation should create environments that protect knowledge-based assets, reduce uncertainty, and promote long-term investment in intellectual capital.
The Future of Innovation Policy Is Increasingly a Question of Intangible Value
The policy debates surrounding innovation, artificial intelligence, digital markets, competition, and corporate governance are often framed as separate issues. The IAMV data suggest they are deeply interconnected. Across global markets, the factors most consistently associated with intangible asset value are not exclusively technological. They include regulatory predictability, governance transparency, capital allocation discipline, and institutional trust.
For policymakers, the implications are significant. As intangible assets continue to represent the overwhelming majority of enterprise value, economic competitiveness will increasingly depend on creating environments where knowledge-based assets can be developed, protected, commercialized, and accurately valued. The experience of the United States, Europe, China, Japan, and South Korea demonstrates that public policy can either reinforce or undermine those conditions.
For Chief Intellectual Property Officers and corporate leaders, the lesson is equally clear. Intangible asset management is no longer solely a business issue. It has become a strategic intersection of innovation, governance, regulation, and economic policy. Understanding that intersection may prove to be one of the defining leadership challenges of the next decade.
