GDP Going Gaga: Recalculation to Capture Input From Entertainment Industry

The U.S. federal government is changing how it calculates the company’s gross domestic product or GDP. For the first time, the Bureau of Economic Analysis will include expenditures for “R&D and for entertainment, literary and artistic originals as fixed investment.” The new expenditures will be added to the list of intellectual-property investments.

As explained in a recent Wall Street Journal article, including the money Lady Gaga spent writing and recording an album in the GDP represents a significant change. The same goes for adding the time and money it takes to develop the latest smart phone device.

It not only reveals that the U.S. economy is approximately 3 percent larger, but it also “reflects the economy’s quiet transformation from one based principally on industry to one decidedly based on knowledge and information.” The new GDP measure further solidifies the role of innovation and intellectual property (IP) in driving the economy.

As previously discussed here, the U.S. Patent and Trademark Office estimates that IP-intensive industries directly accounted for 27.1 million American jobs, or 18.8 percent of all employment in the economy, in 2010. The industries also accounted for about $5.06 trillion in value added, or 34.8 percent of U.S. gross domestic product (GDP), in 2010.

It makes sense that the Bureau of Economic Analysis would want to fully capture the contributions of IP.

How Can I Help?

If you, or someone you know, need any help with Intellectual Property issues, from filing a patent, trademark or copyright, or just need advice regarding how best to protect your inventions, ideas or your brand, please contact me for a free 30 minute consultation at nvantreeck@usip.com or call TOLL FREE at 1-855-UR IDEAS (1-855-874-3327) and ask for Norman.

– Ex astris, scientia –

I am and avid amateur astronomer and intellectual property attorney in Pasadena, California and I am a Rising Star as rated by Super Lawyers Magazine.  As a former Chief Petty Officer in the U.S. Navy, I am a proud member of the Armed Service Committee of the Los Angeles County Bar Association working to aid all active duty and veterans in our communities. Connect with me on Google +

Norman

One thought on “GDP Going Gaga: Recalculation to Capture Input From Entertainment Industry

  1. A common tactic when facing an unpleasant reality is to give old terms new definitions. Is this a legitimate re-evaluation of how we measure our nation’s wealth, or a semantic slight of hand to divert attention from a debt-ridden economy ?

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