IP-intensive industries significant for US economy

The US Commerce Department today released a comprehensive report – Intellectual Property and the US Economy: Industries in Focus – which finds that intellectual property (IP)-intensive industries support at least 40 million jobs and contribute more than $5 trillion dollars to, or 34.8 per cent of, US gross domestic product (GDP).

“This first of its kind report shows that IP- intensive industries have a direct and significant impact on our nation’s economy and the creation of American jobs,” said Commerce Secretary John Bryson. “When Americans know that their ideas will be protected, they have greater incentive to pursue advances and technologies that help keep us competitive, and our businesses have the confidence they need to hire more workers. That is why this Administration’s efforts to protect intellectual property, and modernise the patent and trademark system are so crucial to a 21st century economy that is built to last.”

“Strong intellectual property protections encourage our businesses to pursue the next great idea, which is vital to maintaining America’s competitive edge and driving our overall prosperity,” said Deputy Commerce Secretary Rebecca Blank.

Among the report’s findings:

  • IP-intensive industries contributed $5.06 trillion to the US economy or 34.8 per cent of GDP in 2010.
  • 40 million jobs, or 27.7 per cent of all jobs, were directly or indirectly attributable to the most IP-intensive industries in 2010.
  • Between 2010 and 2011, the economic recovery led to a 1.6 per cent increase in direct employment in IP-intensive industries, faster than the 1.0 per cent growth in non-IP-intensive industries.
  • Merchandise exports of IP-intensive industries totalled $775 billion in 2010, accounting for 60.7 per cent of total US merchandise exports.

“Every job in some way, produces, supplies, consumes, or relies on innovation, creativity, and commercial distinctiveness,” said Under Secretary of Commerce for Intellectual Property and USPTO Director David Kappos. “America needs to continue investing in a high quality and appropriately balanced intellectual property system that will promote innovative, open, and competitive markets while helping to ensure that the US private sector remains America’s innovation engine.”

Michael O’Leary, Senior Executive Vice President for Global Policy and External Affairs for the Motion Picture Association of America (MPAA), said that the report showed that companies that created intellectual property provided the good paying jobs for which Americans are hungry and that are critical to its economy.  “Let’s work together to ensure these industries flourish.  More protections for the property created by America’s finest minds and fastest innovators, from tablet computers to prescription drugs to movies, will help ensure these industries remain vibrant,” he declared.

 

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