The Value of Intangibles: Brand, Data, and Intellectual Property

In today’s business landscape, companies derive most of their worth from invisible sources of power. Understanding this shift is essential for leaders, investors, and innovators alike.

Understanding the Rise of Intangible Assets

Intangible assets have become the cornerstone of corporate valuation. According to Ocean Tomo and Brand Finance, Global intangible assets reached $97.6 trillion by the end of 2025, marking a record high and reflecting a remarkable transformation in how value is created and perceived.

This phenomenon follows a 13-fold increase compared to 1996 levels, driven by unprecedented investments in brands, intellectual property, data, software, and research and development. As tangible assets like machinery and real estate recede in prominence, companies invest more heavily in ideas, innovation, and relationships.

Historical Trends: From Tangible to Thought Value

The modern economy has experienced a dramatic shift over the last five decades, often termed “economic inversion.” While tangible assets dominated in the mid-20th century, intangibles now define corporate worth.

• 1975: Tangible assets comprised 83% of the S&P 500 market cap, with intangibles at just 17%.
• 1985–2005: Rapid growth in software, brands, and R&D drove intangible share from 32% to 79%.
• 2020–2025: Intangibles stabilized around 90% of S&P 500 value, despite global interest rate increases challenging theories of asset sensitivity.

Ocean Tomo’s co-founder James Malackowski notes that, unlike the century-long pace of the Industrial Revolution, profound transformation in value creation has occurred within a single human lifetime.

Leading Firms Defining the New Economy

At the forefront of this revolution are the world’s most intangible-rich companies. In 2025, eight of the top ten firms by intangible value were based in the United States.

• NVIDIA: Tops the list with $4.3 trillion in intangible assets, thanks to proprietary AI chip architecture and R&D advances powering the global AI boom.
• Microsoft: A leader in software, cloud services, and enterprise platforms.
• Apple: Renowned for brand equity, design innovation, and ecosystem stickiness.
• Amazon: Dominates e-commerce and cloud infrastructure through data-driven logistics and AI.
• Alphabet: Thrives on search, advertising algorithms, and moonshot research initiatives.

Intangible Intensity: Economies and Markets

Intangible intensity measures the ratio of intangible assets to total enterprise value. It highlights markets where the new economy is most deeply rooted.

This table illustrates how markets in North America and Europe lead in intangible investment, while emerging economies like India and Indonesia are rapidly catching up.

Key Sectors and Drivers of Growth

The intangible revolution cuts across industries, but certain sectors stand out as engines of innovation and value creation.

• Technology: Software platforms, AI research, and cloud services.
• Pharmaceuticals: R&D pipelines, patent portfolios, and biotech breakthroughs.
• Financial Services: Data analytics, algorithmic trading, and proprietary fintech solutions.

Several forces propel this growth forward:

• AI boosting software marketing and relationships, enhancing personalization and customer engagement.
• Data, intellectual property and brands serving as strategic assets in competitive landscapes.
• IP finance innovations enabling companies to monetize patents and R&D more effectively.

Challenges and Risks Ahead

Despite sky-high valuations, intangible assets require vigilant management. Sectors like pharmaceuticals and oil & gas experienced notable declines due to patent expirations and commodity price swings. Annie Brown from Brand Finance warns that active management of intangible assets is critical to navigate volatility and sustain long-term growth.

Traditional financial theory suggests that firms with high intangible exposure should be vulnerable to rising interest rates. Yet recent data challenge this assumption, as intangible-rich indices remained resilient even under monetary tightening, highlighting the unique nature of long-duration cash flows and collateral linked to intangibles.

Looking Forward: The Future of Intangible Investment

As we look ahead, the momentum behind intangible assets shows no signs of slowing. Upcoming reports from WIPO and Brand Finance will shed further light on global investment trends, especially in emerging markets where digital transformation is accelerating.

Leaders and investors must adapt their strategies to this new reality, prioritizing innovation, brand equity, and data mastery. By doing so, they can harness the full potential of intangible assets and secure a competitive edge in an economy increasingly defined by ideas rather than physical capital.

In this era of rapid change, recognizing the true drivers of corporate value is not just advantageous—it is essential for survival and success.