Expanded Measures of IP in GDP
J. Steven Landefeld
Director
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IP Investment in GDP
 Intellectual property products (new category
including R&D, software and entertainment,
literary and artistic originals) increased the
growth rate of real GDP by .19 percentage point, a
7.6% share of growth.
 From 1995-2012, incorporating R&D investment
increased the growth rate of real GDP by.07 percentage
point, a 2.8% share of growth.
 Even if IP spillovers are as large as direct effects,
the contribution of IP appears to explain only
about half of the 1/3 of long-term share of growth
accounted for by multi-factor productivity.
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IP Investment in GDP
 In comparison, private investment in
commercial and other types of structures
accounted for just over .4 percent of average
real GDP growth from 1995-2012.
 The contribution to average real GDP growth
from IP products is larger than private
investment in computers and peripheral
equipment.
 Recognition of private R&D as investment
raises private fixed investment by 10 percent in
2012.
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New quarterly detail
[% chg]
Percent Change from preceding period in Real GDP
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Performance During Recessions
1948:IV-1949:IV
1953:II-1954:II
1957:III-1958:II
1960:II-1961:I
1969:IV-1970:IV
1973:IV-1975:I
1980:I-1980:III
1981:III-1982:IV
1990:III-1991:I
2001:I-2001:IV
2007:IV-2009:II
overall average
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Recessions (peak to trough)
% chg. in Real GDP % chg in IP products
-1.1
0.8
-2.4
4.9
-1.9
3.5
-0.7
11.1
-0.4
-1.9
-1.4
1.5
-2.4
2.8
-0.9
5.3
-1.7
5.3
0.2
-2.7
-2.2
1.0
-1.3
2.9
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Performance During Expansions
1950:I-1953:I
1954:III-1957:II
1958:III-1960:I
1961:II-1969:III
1971:I-1973:III
1975:II-1979:IV
1980:IV-1981:II
1983:I-1990:II
1991:II-2000:IV
2002:I-2007:III
2009:III-2013:III
overall average
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Expansions (trough to peak)
% chg. in Real GDP % chg in IP products
7.8
14.3
4.1
9.4
6.7
7.6
5.1
8.3
5.3
5.4
4.5
8.4
4.4
13.8
4.4
9.1
3.8
8.5
2.9
4.6
2.3
3.0
4.7
8.4
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Shares R&D Investment by Industry
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7
New detail by type of IP
Share of Investment in Entertainment, literary and Artistic Originals by Type
Misc.
Music
Theatrical Movies
Books
Long-Lived Television
Source: BEA
www.bea.gov
Total Investment in 2012: $74.8 billion
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