Recently I wrote an article for E-Commerce Times that discusses Market Capitalization the ratio of the value of the intellectual property to the annual output it generates.
Props to Intellectual Property
If intellectual property is generated on a per-employee basis in the private sector and generates outsized outputs — for instance, $400 thousand per person compared to $100 thousand in California — creating these employees is absolutely critical. The increase in wages certainly pays off on a macro-economic scale.
What is the real value of intellectual property in the United States?
Let’s estimate this using the most inclusive definition of intellectual property: patents, copyrights, trademarks, trade secrets, customer lists, business know-how, and other secret sauce.
Relationship to Market Capitalization
An oft-cited statistic is the relationship of intellectual property to market capitalization. Consider the analyses by the investment bank Ocean Tomo and supported by the excellent work of Kevin Hassett and Robert Shapiro.
Both estimate that around 80 percent of market capitalization is due to intellectual assets, including patents, copyrights, trademarks and business know-how.
Read more at E-Commerce Times.
As a brief analysis, it opens up some interesting ideas for consideration.
What are your thoughts?