As I noted in my earlier harangue, there is some interesting information on intangibles that can be teased out of this morning, BEA released its Benchmark Input-Output Accounts of the U.S. Economy, 2002 report. One category in the I-O tables is “Rights to nonfinancial intangible assets”. Total intermediate output (i.e. that going into other industries – or essentially other industries paying for the rights) is $87.5 billion.
Thinking of these rights to intangible assets as input commodities, the largest flow of royalties is from the oil & gas industry. This is probably because the category includes oil royalty companies and oil royalty leasing companies. The next larges was to the category of “Management of companies and enterprises.” This sounds like the internal structuring of royalty holding companies into separate entities. Then comes retail trade, food services & drinking places, and wholesale trade. Probably due to franchising agreements. Then comes the broad category of “Internet service providers, web search portals, and data processing” followed by the categories of electronic instruments, telecommunications, and basic chemical manufacturing. I think that makes sense. Those categories account for over 50% of intermediate production.
But there are others that seem a little strange. For example, “monetary authorities and credit intermediation and related activities” gets over a 1% ($930 million). Is that all the securitization process?
All of this is probably worth further investigation.
Here is the entire list for your own perusal:
Industry and percent of total intermediate production
Oil and gas extraction 16.64%
Management of companies and enterprises 10.18%
Retail trade 7.86%
Food services and drinking places 5.02%
Wholesale trade 4.37%
Internet service providers, web search portals, and data processing 2.62%
Electronic instrument manufacturing 2.47%
Telecommunications 2.39%
Basic chemical manufacturing 2.37%
Motor vehicle body, trailer, and parts manufacturing 1.43%
Software publishers 1.39%
Food manufacturing 1.38%
Educational services 1.33%
Management, scientific, and technical consulting services 1.30%
Computer systems design and related services 1.08%
Monetary authorities, credit intermediation and related activities 1.06%
All other administrative and support services 1.06%
Resin, rubber, and artificial fibers manufacturing 1.00%
Semiconductor and other electronic component manufacturing 0.95%
Scientific research and development services 0.95%
Architectural, engineering, and related services 0.92%
Legal services 0.82%
Accommodation 0.75%
Radio and television broadcasting 0.75%
Plastics and rubber products manufacturing 0.74%
Aerospace product and parts manufacturing 0.74%
Other miscellaneous manufacturing 0.71%
Other professional, scientific, and technical services 0.70%
New nonresidential construction 0.69%
Ambulatory health care services 0.68%
Beverage manufacturing 0.68%
Insurance carriers and related activities 0.67%
Medical equipment and supplies manufacturing 0.66%
Accounting, tax preparation, bookkeeping, and payroll services 0.65%
Cable networks and program distribution 0.63%
Other transportation equipment manufacturing 0.63%
Other chemical product and preparation manufacturing 0.63%
Securities, commodity contracts, investments, and related activities 0.62%
Performing arts, spectator sports, museums, zoos, and parks 0.62%
Petroleum and coal products manufacturing 0.58%
State and local government enterprises 0.56%
New residential construction 0.52%
Printing and related support activities 0.52%
Architectural and structural metals manufacturing 0.50%
Paint, coating, and adhesive manufacturing 0.48%
Support activities for mining 0.47%
Converted paper product manufacturing 0.45%
Employment services 0.41%
Advertising and related services 0.41%
Waste management and remediation services 0.41%
Apparel manufacturing 0.39%
Audio, video, and communications equipment manufacturing 0.38%
Other electrical equipment and component manufacturing 0.35%
Travel arrangement and reservation services 0.35%
Pharmaceutical and medicine manufacturing 0.33%
Nonmetallic mineral product manufacturing 0.33%
Electric power generation, transmission, and distribution 0.32%
Coal mining 0.28%
Pulp, paper, and paperboard mills 0.27%
Forging and stamping 0.26%
Manufacturing and reproducing magnetic and optical media 0.26%
Agricultural chemical manufacturing 0.25%
Amusements, gambling, and recreation 0.24%
Consumer goods and general rental centers 0.20%
Boiler, tank, and shipping container manufacturing 0.19%
Nonmetallic mineral mining and quarrying 0.17%
Commercial and industrial machinery and equipment rental and leasing 0.15%
Lessors of nonfinancial intangible assets 0.15%
Textile mills 0.15%
Real estate 0.15%
Maintenance and repair construction 0.15%
Air transportation 0.15%
Wood product manufacturing 0.14%
Crop production 0.13%
Furniture and related product manufacturing 0.13%
Electric lighting equipment manufacturing 0.12%
Personal and laundry services 0.12%
Soap, cleaning compound, and toiletry manufacturing 0.12%
Iron and steel mills and manufacturing from purchased steel 0.11%
Motion picture and sound recording industries 0.11%
Nonferrous metal production and processing 0.11%
Owner-occupied dwellings 0.10%
Tobacco manufacturing 0.10%
Household appliance manufacturing 0.09%
Foundries 0.09%
Social assistance 0.09%
Federal Government enterprises 0.09%
Motor vehicle manufacturing 0.09%
Specialized design services 0.08%
Cutlery and handtool manufacturing 0.08%
Electrical equipment manufacturing 0.07%
Automotive repair and maintenance 0.06%
Automotive equipment rental and leasing 0.06%
Leather and allied product manufacturing 0.05%
Civic, social, professional and similar organizations 0.05%
Water, sewage and other systems 0.04%
Natural gas distribution 0.03%
Metal ores mining 0.03%
Support activities for agriculture and forestry 0.02%
Electronic, commercial, and household goods repair 0.02%
Ordnance and accessories manufacturing 0.01%
Other information services 0.01%
Internet publishing and broadcasting 0.00%
Religious, grantmaking, giving, and social advocacy organizations 0.00%
Forestry and logging 0.00%
Hospitals 0.00%
Nursing and residential care facilities 0.00%
Fishing, hunting and trapping 0.00%
Funds, trusts, and other financial vehicles 0.00%
Animal production 0.00%
Private households 0.00%
General Federal nondefense government services 0.00%
General state and local government services 0.00%
General Federal defense government services 0.00%
Textile product mills 0.00%
Note that this category of royalty rights all activity (see the Census Bureau’s definition – 2002 NAICS Definitions: 533 Lessors of Nonfinancial Intangible Assets (except Copyrighted Works):
Industries in the Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) subsector include establishments that are primarily engaged in assigning rights to assets, such as patents, trademarks, brand names, and/or franchise agreements for which a royalty payment or licensing fee is paid to the asset holder. Establishments in this subsector own the patents, trademarks, and/or franchise agreements that they allow others to use or reproduce for a fee and may or may not have created those assets.
It does not include establishments primarily engaged in producing, reproducing, and/or distributing copyrighted works; it does not include independent artists, writers, and performers primarily engaged in creating copyrighted works; it does not include establishments that allow franchisees the use of the franchise name, contingent on the franchisee buying products or services from the franchisor are classified elsewhere.
Also note that it captures only establishments that are primarily engaged in assigning rights — not all the leasing activities of companies whose main business is something else (although many of them have set up their own separate leasing entity which should be captured in this data).