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05.25.2012 Blog

"IP Creates Jobs for America" Report - Global Intellectual Property Center

This week, the Global Intellectual Property Center, an affiliate of the US Chamber of Commerce, released its IP Creates Jobs for America Report.  The GIPC states that it "is leading a worldwide effort to champion intellectual property rights as vital to creating jobs, saving lives, advancing global economic growth, and generating breakthrough solutions to global challenges."  In the Report, the GIPC measures the impact that "IP-intensive" industries have on each state in America. 

According to the accompanying press release, for companies in every state and DC, the study looks at research and development expenses against outputs—which are evaluated from the perspective of a company's IP portfolio.  An executive summary of the study states, “In this report, we define IP-intensive companies as those who reported positive R&D expenditures in manufacturing and non-manufacturing sectors, companies that apply registered trademarks to products such as consumer goods, and those in six copyright-concentrated industries (motion pictures, newspapers, performing arts, broadcasting, independent artists, and software).”

It probably comes as no surprise that California topped the list with IP-intensive industries providing 7.5 million jobs and an output of $922.8 billion.  Texas came in second with 4.6 million jobs attributable to IP-intensive industries, Illinois third at 2.8 million and New York close behind at 2.7 million IP related jobs.

In the factsheet on Virginia, for instance, the Report concludes:

  • IP supports 1.36 million jobs, 42% of Virginia’s private sector jobs.
  • IP-intensive companies in Virginia generate 85% greater output per employee.
  • In Virginia, $160,893 of output per IP job creates a total of $315,578 output in the state economy.
  • IP-intensive companies in Virginia pay 32% higher than non-IP companies.
  • In Virginia, $57,705 wages paid to an IP job creates a total of $255,800 wages in the state.
  • Virginia ranked 13th in the US in R&D expenditures, at $6.14 billion.


This new study, like the one released last month by the U.S. Department of Commerce, is intended to give substantive arguments to advocates of stronger IP protections.