Value of intellectual property products

Intellectual property investment in Canada is projected to rise 2.0% in 2026, lifting the value of intellectual property products to an estimated $63.4 billion and cementing a robust 3.7% compound annual growth rate over 2021-2026. This steady advance stands out against softer machinery and equipment spending, as businesses continue to channel capital into software, databases and research programs that underpin digital transformation and automation strategies. IP outlays now function as core operating infrastructure for many companies, rather than discretionary upgrades, supporting ongoing deployments of cloud platforms, data analytics and AI-enabled tools across manufacturing, finance and services.

Momentum cooled sharply in 2025, when intellectual property investment edged up just 0.3%, marking a clear break from the pandemic-era surge of 2021-2022 that saw IP investment jump at historically elevated rates. Higher interest rates, even after initial cuts, raised financing costs for long-horizon R&D and software projects, while compressed profit limited internal cash available for innovation. Businesses also navigated heightened trade and industrial-policy uncertainty, prompting some businesses to delay or scale back speculative research and early-stage development, even as they preserved baseline digital and software spending viewed as essential to remain competitive. As rates stabilize and confidence improves, 2026 marks a transitional year in which IP investment growth re-accelerates but clearly shifts from emergency pandemic catch-up to more disciplined, returns-driven allocation.

Over the five years to 2026, the value of intellectual property products has expanded consistently, with investment in intangibles outpacing many forms of traditional capital formation. The early part of the period was defined by a pandemic-driven race to digitize operations, as remote work, e-commerce and virtual service delivery forced companies to accelerate software and cloud adoption timelines by several years. Federal and provincial innovation initiatives, including the national IP Strategy and enhanced support through programs such as Elevate IP and the Innovation Asset Collective, reinforced this upswing by subsidizing IP development and commercialization. At the same time, the Canadian Intellectual Property Office reports sustained growth in patenting and design activity by Canadian and foreign firms, underscoring the broader shift toward knowledge-intensive business models even as trademark activity softened in some consumer-facing sectors.