IP-intensive industries provide better paying jobs, employ one-third of total workforce, and account for 44% of U.S. gross domestic product: new USPTO study
New report offers insight into the economic contributions of industries that predominately rely on intellectual property protection
ALEXANDRIA, VA—America’s Innovation Agency, the United States Patent and Trademark Office (USPTO), today released the latest edition of its series of reports highlighting the profound economic contributions of industries that predominantly rely on intellectual property (IP) protection, including patents, trademarks, and copyrights, titled “Intellectual property and the U.S. economy in 2024.”
"Intellectual property rights are indispensable to key sectors of the U.S. economy," said Under Secretary of Commerce for Intellectual Property and 60th Director of the USPTO John A. Squires. "The continued growing prominence of IP-intensive industries over the past several years demonstrates clearly how important their contribution is to the U.S. economy as a whole, and the substantive benefits that accrue to the workers employed by them. Every piece of intellectual property we put into circulation is a potential job, a new business, a competitive advantage, and an investible asset. Today’s report is remarkable and proof-positive of the effect of American ingenuity at scale."
The new report found that, in 2024, 128 IP-intensive industries in sectors such as manufacturing, wholesale and retail trade, and professional, technical, management, and administrative services:
- Accounted for $11.4 trillion in U.S. gross domestic product (GDP), or 44% of total GDP
- Provided direct employment to 49.6 million workers, or 33% of total U.S. employment
- Provided indirect employment—that is, jobs created in other industries that depend at least partially on final sales in IP-intensive industries—that accounted for an additional 11% of total U.S. employment
Overall, IP-intensive industries contributed 44% of U.S. employment.
In a new analysis section, the report finds that the contribution of IP-intensive industries to output and employment varies by industrial sector. The sectors where the IP-intensive industries contribute the most are the information services and manufacturing sectors, where IP-intensive industries’ shares of output and employment exceed 90% and 80%, respectively.
The report found a substantial wage premium for workers in IP-intensive industries, with average weekly earnings 53% higher than those received by workers in other industries. Workers in the copyright-intensive and utility patent–intensive industries are compensated particularly well, with wage premiums of roughly 130% and 90%, respectively. Overall, the wage premium for workers in the IP-intensive industries rose by 13% over the past decade.
The IP-intensive industries also contribute to U.S. exports. Of the 104 industries identified as commodity-exporting industries, 76 are IP-intensive. These IP-intensive industries, led by the aerospace, petroleum, and pharmaceutical industries, accounted for 81.5% of all U.S. commodity exports.
See the full report online.
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