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Germany ranks third globally in intangible investments

German industry invests little in factories and machinery, but according to a study by the World Intellectual Property Organization (WIPO), it is among the top performers in intangible assets such as research and development.

Germany ranks third globally in intangible investments
Photo: tagesspiegel.de

German industry invests little in factories and machinery, but according to a study by the World Intellectual Property Organization (WIPO), it is among the top performers in intangible assets such as research and development.

Public and private spending on intangible goods totaled around 728 billion US dollars last year, according to the Patent and Trademark Office (DPMA) in Munich. This puts Germany behind Japan (810 billion) and the United States (nearly five trillion dollars) in third place. China is not included in the survey due to a lack of available data.

The UN organization counts research and development, software, design, brands, and financial products as intangible investments – in other words, everything that does not fall under the classic definition of machinery, equipment, or factories. In 2025, these expenditures accounted for 11.7 percent of Germany’s gross domestic product, significantly higher than traditional tangible investments (10.4 percent).

DPMA Eva Schewior said: “Know-how and intellectual property rights are increasingly decisive factors for international competitiveness and global prosperity.” She added that Germany’s leading position in intangible investments is a positive sign.

However, the study also highlights structural weaknesses in German industry: while tangible investments have stagnated in Germany, they have risen in the United States. Similar trends are seen in Canada, while they have even declined in Japan.

Source: www.tagesspiegel.de