For many organizations, the story investors see in financial statements only scratches the surface. With intangible assets now representing over 80% of enterprise value, most of what makes companies innovative and valuable remains invisible in traditional reporting. Rising economic uncertainty and investor scrutiny have created a high-pressure environment in global business. As companies compete for capital and credibility, being able to articulate the value of intellectual property through clear innovation metrics (IP) is becoming essential.
That challenge and opportunity were at the heart of our recent webinar, titled “Leading with IP: How Innovation Metrics Shape Market Perception”. The session brought together Silvan Berg, Head of Customer Success at LexisNexis Intellectual Property Solutions, and Michael Wahlen, Associate Director at Boston Consulting Group, to explore how intellectual property in investor relations can transform the way markets perceive innovation-driven companies.
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Watch the full webinar to see how leading IP teams use innovation metrics to bridge the valuation gap.
The data tells a clear story. According to studies by the WIPO and the CFA Institute, intangible investments have grown 3.7 times faster than tangible investments since 2008, reaching $ 7.6 trillion globally. Yet only 39% of investors say current reporting helps them assess these assets effectively. While 70% of investors link the book-to-market gap to unrecognized intangibles.
“Whenever uncertainty is high, you need to tell the full story, not just the tangible, but the intangible assets that drive your future,” noted Silvan during the session.
Figure: Intangible assets have outpaced tangible investments nearly fourfold since 2008. (Source.)
As both speakers agreed, patents are the most tangible form of intangibles. Each patent represents verified technological progress, documented and peer-reviewed by examiners. Patents also form a network of influence through citations and cross-references, offering measurable proof of innovation quality.
Wahlen shared a case from his consulting work on an acquisition project where a small laser company sought to maximize its sale value. Initially, its tangible assets, such as machinery and facilities, suggested a modest valuation. By analyzing its patent portfolio, Michael and team demonstrated how the company’s technology was unique, rapidly adopted, and well-protected.
“The real value was not in the hard assets,” explained Wahlen. “It was in the IP, the know-how, and the technology trajectory.”
This insight reframed the company’s story, enabling a successful acquisition at a higher valuation. It demonstrates how qualitative patent analytics can convert complex R&D activity into investor-ready evidence of leadership.
While patents provide the raw data, qualitative patent analytics powered by tools like LexisNexis® PatentSight+™ translate that data into the language of business and finance. They leverage innovation metrics to facilitate easier communication of the technology’s value to boards, analysts, and investors through easy-to-understand visualizations. For example, the sunburst chart illustrates the technology areas in which a company has invested resources, enabling stakeholders to get a quick and reliable overview without requiring further explanation.
Wahlen emphasized that industry-proven metrics such as Technology Relevance and Market Coverage simplify the conversion between innovation and valuation.
“You can save yourself a lot of effort by using standardized metrics,” Wahlen said. “They make it easy to explain innovation quality in ways that boards and investors can understand.”
Table: Metrics to evaluate patent portfolios and their benefits for stakeholders.
This approach moves the conversation from “how many patents do we have?” to “what impact do our innovations have?” It shifts focus from volume to value.
As investors demand more transparency on innovation and risk, embedding intellectual property in investor relations is no longer optional. Berg outlined multiple opportunities for IP teams to integrate patent insights into existing communications.
“Investors do not need a patent lecture,” said Berg. “They need to understand how innovation protects 60% of next year’s revenue.”
Including patent analytics in investor communication does more than showcase innovation strength. It provides a common language between R&D, strategy, and finance teams, converting complex technical data into actionable insights that investors can use.
During the webinar, Berg summarized the payoff in two dimensions: for IP leaders and for the organization as a whole.
Patent analytics also helps companies stay competitive in crowded markets. By quantifying technology leadership and mapping it to strategic priorities, organizations can demonstrate to investors precisely how their innovations protect future revenue streams and position them for sustainable growth.
Data alone does not move markets; the story behind it does. Investors respond when patent analytics are tied to strategic themes and tangible outcomes.
In the webinar, the speakers shared examples of what it could look like across industries.
These examples showed how patent analytics can elevate the IP function from a legal necessity to a strategic storytelling tool that enhances trust, attracts investors, and strengthens market perception.
To see the real-world examples of industry leaders who leverage innovation metrics to communicate value to their investors, watch the full recording of the webinar here: https://www.lexisnexisip.com/resources/leading-with-ip-how-innovation-metrics-shape-market-perception/
In closing, Berg challenged IP leaders to drive the change themselves: “When IP is not represented, your company’s story about value creation is incomplete. You have to own that narrative.”
As next steps in reporting, the speakers suggested the following approach:
Integrating patent analytics into investor communications does more than improve reporting. It creates alignment across R&D, finance, and strategy teams. It turns abstract innovation into tangible proof of competitive strength.
Watch the full discussion
Watch the full recording for an in-depth look at how IP reporting has evolved beyond simply quoting numbers to delivering strategic insights. The full webinar dives deeper into:
To see the full discussion between Michael and Silvan about leveraging patent analytics to communicate value to stakeholders, please watch the recording on the link below.
