INTANGIBLE ASSETS AS THE CORNERSTONE OF TECH INDUSTRY GROWTH AND INNOVATION

Аннотация

With an emphasis on technology companies, this article examines the importance of intangible assets, especially intellectual property (IP). Intellectual property, goodwill, patents, and trademarks are examples of intangible assets, which are described by IAS 38 as identifiable non-monetary assets devoid of physical substance. These assets are essential for long-term economic performance. A thorough discussion of IP's function in the technology industry is given, emphasizing how it can lead to market dominance and competitive advantages. The review of the literature sheds light on how intangible assets affect financial performance. Research indicates that higher R&D and technology-related asset investments have a positive impact on important financial metrics like return on equity (ROE), return on assets (ROA), return on invested capital (ROIC), net profit margin, and asset turnover (ATO). With a focus on the growth of brand value and the strategic significance of intellectual property for digital companies like Apple, Google, and Microsoft, the article goes into additional detail about the intangible assets' increasing market worth over time. An examination of businesses' increasing reliance on intangible assets as a source of value and financial leverage is presented in the paper's conclusion.