Intellectual capital: one of your most valuable assets

Did you know that 90% of the market value of companies in the S&P 500 today consists of intangible assets, such as brand and reputation? This shows how central these assets have become to business success.

A recent report by Ocean Tomo, a firm specializing in intellectual property and intangible assets, shows that companies' value tied to intangible assets is a staggering 90%.

In 1975, the market value of companies in the S&P 500 was largely tied to tangible assets, which made up 83% of their value. By 2020, this ratio had almost completely inverted, with 90% of their value tied to intangible assets — such as intellectual property, brand equity, and reputation — compared to just 10% in tangible assets. The shift between 1995 and 2020 saw intangible assets rise from 68% to 90%.

Generally, intangible assets, which include the brand, can account for up to 60-80% of corporate value in certain sectors such as technology, luxury, and consumer goods, according to Brand Finance and Kantar.

As of 2024, Apple remains the world’s most valuable brand, valued at over 11.1 trillion SEK (1 trillion USD). The brand has seen significant growth of 74% due to its strategic diversification and premium offerings, where the company has reduced its reliance on iPhone sales and instead focused on products like wearables and services. The total brand value of the 100 most valuable global brands rose by 20% in 2024, reaching 91.1 trillion SEK (8.3 trillion USD).

In other words, intellectual capital is one of your most valuable yet under-leveraged assets. At Nordic Notions, we provide strategic management of your intangible assets, ensuring that innovations, patents, and processes are not only protected but also optimized for long-term growth and investor appeal.

Let us help you harness your intellectual capital to stay ahead in an innovation-driven marketplace.