The United States Patent and Trademark Office (USPTO) has released the third edition of its report titled “Intellectual property and the U.S. economy: Third Edition,” which highlights the economic contributions of industries that make greater use of intellectual property (IP) protection, such as patents, trademarks, and copyrights.
Economy and Intellectual Property of the United States
“Intellectual property protection is vital for American innovation and entrepreneurship,” said United States Secretary of Commerce Gina Raimondo. “This report underscores the key benefits associated with a strong intellectual property system and reinforces the Biden administration’s commitment to expanding our innovation economy by ensuring that more Americans have equitable access to the goods, services, and quality jobs that stem from American innovation. Employees working in IP-intensive industries are more likely to earn higher wages compared to non-IP-intensive industries. IP protection isn’t just good for American businesses, it’s good for American workers.”
According to the most recent report, 127 IP-intensive industries in sectors such as manufacturing, wholesale and retail commerce, and professional, technical, management, and administrative services accounted for $7.8 trillion in US GDP in 2019, accounting for 41 percent of total GDP. In 2019, direct employment in these industries accounted for 47.2 million jobs or 33% of total U.S. employment. Indirect employment (jobs produced in other industries that rely at least partially on final sales in IP-intensive businesses) accounted for an extra 11% of total employment in the United States. IP-intensive industries accounted for 44 percent of overall employment in the United States.
Furthermore, for the first time, the study includes information that provides further insight into the demographics of workers in IP-intensive businesses.
“Patents, trademarks, and copyrights are the means for establishing ownership rights to the creations, inventions, and brands that bring tangible economic benefits to their owners,” said Drew Hirshfeld, Performing the Functions and Duties of the Under Secretary of Commerce for Intellectual Property and Director of the USPTO. “For the third report in the series, we describe the contributions of IP-intensive industries, while also showcasing insightful new data on demographics. A strong IP system benefits every innovative community across America, from rural towns to bustling cities.”
The report observed a significant wage premium for workers in IP-intensive sectors, with average weekly wages 60 percent greater than those in other sectors. The Northeast, Mid-Atlantic, Upper Midwest, and West Coast states had the largest concentrations of workers in IP-intensive sectors.
Those in IP-intensive sectors were more likely than workers in non-IP-intensive industries to:
- Earn higher wages
- Work in larger companies (500 employees or more)
- Participate in employer-sponsored health insurance plans
- Participate in employer-sponsored retirement plans
- Have a bachelor’s degree or graduate degree
In terms of general workforce diversity, the survey discovered that women and minorities, with the exception of those of Asian, were underrepresented in IP-intensive businesses. Women made up 43.7 percent of the workforce in IP-intensive sectors, compared to 54 percent in non-IP-intensive businesses. According to the research, Blacks and Hispanics comprised 8.9 percent and 13 percent of the workforce in IP-intensive businesses, respectively, compared to 13.9 percent and 19.5 percent in non-IP-intensive industries.
According to the report, employment in IP-intensive businesses tends to follow general economic ups and downs. Notably, by 2019, IP-intensive businesses looked to have fully recovered from the job losses caused by the dot-com collapse in the early 2000s and the recession of 2007-2009.
This is the most recent update in a series of publications on the economic benefits of IP-intensive sectors. Previous reports were released by the USPTO in 2012 and 2016.
See the report.
You can find the list of US IP Firms here.