No.33 Issues in Intangible Assets and Their Implications on Policy in Developing Economies

This paper discusses the importance of intangible assets and their implications on policy in developing countries. Intangible assets refer to assets that lack physical form but hold value for companies and nations, such as patents, brand value, know-how, and software. In advanced economies, where information and knowledge are becoming increasingly important factors in economic activity, intangible assets are considered growth drivers, equal to or even more significant than physical assets. Intangible assets are expected to become essential for the development of lower-income countries as well, though this discussion remains in its early stages. This study explains the fundamental nature of intangible assets and their role in the economy, providing a brief review of the assets recorded in the firms of developing countries. Expecting that intangible assets will play a more prominent role in driving the economies of developing countries, a shift in development policies will be necessary across a wide range of areas including trade and macro-financial policies, corporate human capital investment strategies, intellectual property rights protection, social policies, and institutional governance. The role of international coordination and cooperation as well as the areas for further research should also be addressed.

Keywords: Intangible assets, Productivity growth, Innovation.