Philippines Emerges as a Leading Growth Market for R&D and Software Investments, WIPO Reports

The Philippines has secured a prominent position among the fastest-growing economies worldwide in intangible asset investments, according to the World Intellectual Property Organization’s (WIPO) 2026 edition of the “World Intangible Investment Highlights.” Released in collaboration with Luiss Business School, the report highlights the country’s $49.1 billion expenditure on intangible assets in 2022, encompassing research and development (R&D), software, brands, and intellectual property.

From 2012 to 2022, the Philippines achieved a 3.9% compound annual growth rate (CAGR) in real intangible investments, surpassing the global average of 3.5%. This growth rate places the Philippines as the third-fastest growing economy in intangible investments among 29 surveyed economies, trailing only India and Japan.

The report notes a 4.6% rebound in Philippine intangible investments from 2021 to 2022, recovering from pandemic-related slowdowns. Intangible assets, which include organizational knowledge, R&D, software and data, brands, design, and other intellectual property forms, are increasingly significant yet remain undermeasured globally.

Globally, intangible investments are expanding nearly three times faster than tangible investments. The 29 economies covered in the report, representing 57% of global GDP, collectively invested over $10 trillion in intangible assets in 2025.

Within the Philippines, R&D exhibited the fastest growth among intangible asset categories, with a 20.1% CAGR over the decade. Software and databases followed closely with an 18.3% CAGR, making the Philippines the fastest-growing economy in software and database investments among those surveyed.

Although R&D and software combined represent approximately 15% of the country’s total intangible investments, their growth has been remarkable. R&D spending increased more than sixfold, while software and database investments grew more than fivefold from 2012 to 2022.

Organizational capital remains the largest intangible asset category in the Philippines, accounting for 48.3% of total intangible investments, followed by brands at 28.9%.

The report also emphasizes the strategic importance of brands in the era of artificial intelligence. Total brand investment across the surveyed economies reached $1.4 trillion, with the Philippines ranking among the top 12 economies, investing $14.2 billion in brands.

Despite the rapid growth in intangible assets, tangible investments continue to dominate the Philippine economy. Tangible investments represent 20% of GDP, while intangible investments account for 4.4%, a pattern typical of middle-income economies still focused on infrastructure and capital formation.

At the report’s launch in Geneva on July 8, Teodoro Pascua, director general of the Intellectual Property Office of the Philippines, remarked on the significance of these findings as the country attains upper-middle-income status.

"The experience of advanced economies shows that sustained investments in knowledge, technology and IP become the strongest drivers of productivity and growth. As the Philippines enters upper-middle-income status, our rapid gains in R&D, software and brands show that we are paving the way toward that future and that we must reinforce the foundations through innovation-enabling IP policies and programs," Pascua stated.

Marco Alemán, WIPO assistant director general for the IP and Innovation Ecosystems Sector, highlighted the central role of intellectual property in capturing the value of intangible assets.

"These are precisely the assets that intellectual property protects and turns into value, and the report brings various forms of measured and unmeasured intangible assets into view for policymakers and businesses, featuring countries of different levels of development," Alemán said.

The 2026 report marks the first time the Philippines has been included in WIPO’s “World Intangible Investment Highlights,” signaling its growing importance in the global knowledge economy.