The Philippines has emerged as one of the world’s fastest-growing economies for investments in knowledge-based assets, signaling a shift toward an innovation-driven economy as the country strengthens its position as an upper middle-income nation.

A new report released by the World Intellectual Property Organization (WIPO) showed that the Philippines generated $49.1 billion in intangible investments in 2022, with annual real growth averaging 3.9 percent from 2012 to 2022—higher than the global average of 3.5 percent.

The country’s intangible investments rebounded by 4.6 percent from 2021 to 2022 after a pandemic-induced slowdown, making the Philippines the third-fastest growing economy among the 29 economies covered by the study, behind only India and Japan.

The report highlights the growing importance of assets such as research and development (R&D), software, data, brands, design, and intellectual property, which are increasingly driving productivity and long-term economic growth worldwide.

Among the country’s knowledge-based investments, R&D recorded the fastest expansion, growing at a compound annual rate of 20.1 percent over the decade. Investments in software and databases followed at 18.3 percent, the fastest pace among all economies surveyed for that category.

Although R&D and software together account for only about 15 percent of the Philippines’ total intangible investments, spending on R&D increased more than sixfold during the period, while software and database investments expanded more than fivefold.

Organizational capital remained the country’s largest intangible asset, accounting for 48.3 percent of total investments, followed by brands at 28.9 percent.

The report also identified brands as an increasingly valuable strategic asset in the artificial intelligence era. Brand investments in the Philippines reached $14.2 billion, placing the country among the world’s 12 largest investors in the category.

Despite the rapid growth of knowledge-based assets, the report noted that the Philippines continues to devote a larger share of investments to physical capital. Tangible investments accounted for 20 percent of gross domestic product, while intangible investments represented 4.4 percent, reflecting the country’s continued focus on infrastructure alongside its expanding innovation ecosystem.

Intellectual Property Office of the Philippines Director General Teodoro C. Pascua said the findings come at a crucial stage in the country’s economic development.

“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 said.

WIPO Assistant Director General Marco M. Alemán underscored the role of intellectual property in transforming intangible assets into economic value.

“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 edition of the World Intangible Investment Highlights marks the Philippines’ first inclusion in the global study, reflecting growing international recognition of the country’s expanding knowledge-based economy.