Intellectual Property Creates Jobs for America

May 2012  |  Contributors: Nam D. Pham, Ph.D.

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Research by the U.S. Department of Commerce has shown that innovation and creativity are key drivers for economic growth and prosperity, with intellectual property (IP)-intensive industries driving America's jobs and economic growth. But how important is IP to each state of the United States? Tasked with filling in the gaps and understanding the “spillover” benefits of IP and the broad impact on other sectors of the economy in the states, ndp|consulting completed an analysis of the total contributions of IP on the U.S. economy and 50 states plus the District of Columbia. These state-by-state fact sheets further demonstrate the economic benefits of IP-intensive industries to state economies, including employment, exports, output, and wages impacts.

“IP Creates Jobs for America” builds on the report by the U.S. Department of Commerce, “Intellectual Property and the U.S. Economy: Industries in Focus.” The Commerce report provided an analysis of the contributions of IP-intensive industries, defined as industries that protect their innovations and creativity through patents, trademarks, and copyrights. However, the Commerce report only estimated direct and indirect contributions of IP along the supply chain, without taking into account the economic contributions of IP outside the supply chain and its broad impact on the U.S. economy. This report expands the “indirect” benefits to include another subset, the “spillover” benefits, on the broader economy.