As New Jersey and New York business attorneys, we see the value of intellectual property everyday, from licensing agreements to patented new products. But can you put a price tag on the value of intellectual property (IP) to the overall U.S. economy? The Economics and Statistics Administration (ESA) and the U.S. Patent and Trademark Office recently did exactly that, using data culled from several government databases. The report, Intellectual Property and the U.S. Economy: Industries in Focus, identifies U.S. industries using IP most intensively, and reports on the economic impacts of these industries. The agencies conclude that IP rights support innovation and creativity in virtually every U.S. industry.  There are 75 industries that are the most patent, trademark, and copyright intensive, including:  computer and peripheral equipment, audio and video equipment manufacturing, newspaper and book publishers, pharmaceutical and medicines, semiconductor and other electronic components, and the medical equipment space. Below are several noteworthy findings:
  • The entire U.S. economy relies on some form of IP, because virtually every industry either produces or uses it.
  • IP-intensive industries contributed $5.06 trillion to the U.S. economy or 34.8% of GDP in 2010.  Merchandise exports of IP-intensive industries totaled $775 billion in 2010, accounting for 60.7% of total U.S. merchandise exports.
  • 40 million jobs, or 27.7% of all jobs, were directly or indirectly attributable to the most IP-intensive industries in 2010.  IP-intensive industries directly accounted for 27.1 million American jobs, or 18.8% of all employment in the economy, in 2010.  These sectors also indirectly supported 12.9 million more supply chain jobs throughout the economy.  In other words, every two jobs in IP-intensive industries support an additional one job elsewhere in the economy.
  • Between 2010 and 2011, the economic recovery led to a 1.6% increase in direct employment in IP-intensive industries, faster than the 1.0% growth in non-IP-intensive industries.
  • Growth in copyright, patent, and trademark-intensive industries outpaced gains in non-IP-intensive industries.
The full report is available here. As the report highlights, strong IP protections create tangible benefits for New Jersey and New York businesses. In addition, they are integral to our economy and the future of innovation. If you need assistance in the acquisition, use, and maintenance of intellectual property rights, please contact a member of Scarinci Hollenbeck’s Intellectual Property and Technology Law Group at 201.397.1776.