Wales Emerges as UK Leader in High‑Value Intangible Investments

Wales is emerging as a UK leader in high‑value intangible investments as Welsh firms increasingly prioritise investment in people, skills, branding and digital capability, according to a new report by the Enterprise Research Centre (ERC).

The Productive Investment Decisions in Welsh Firms report, commissioned by Economic Intelligence Wales (EIW), shows that Welsh businesses are investing more consistently and heavily in productivity‑enhancing intangible assets than firms elsewhere in the UK.

Between 2019 and 2024, 87% of Welsh firms invested in staff training or education, compared with 72% across the UK, making training the largest category of intangible investment. Investment was even higher for strategically significant initiatives, reaching 93%. Welsh firms also outperformed the broader UK in investment in branding (51%), business structure and organisational capability (41%), and software or databases (63%).

Economists increasingly view intangible investment — such as training, skills, organisational development and digital systems — as central to long‑term productivity growth. The findings position Wales ahead of the UK average and suggest a growing economy driven by innovation, skills and continuous learning.

The report further found that Welsh companies invested in intangible assets in three of the last six years, compared to two years for tangible assets, indicating a sustained focus on long‑term capability development rather than one‑off purchases. Welsh firms were also confident about investment returns, with 69% expecting returns within five years and 94% stating they were somewhat or very certain those returns would materialise.

Economic Intelligence Wales — a research collaboration between the Development Bank of Wales, Cardiff Business School, Bangor Business School, the Enterprise Research Centre and the Office for National Statistics — compiled the data to provide insight into business investment behaviour in Wales.

Cabinet Secretary for Economy, Energy and Planning Rebecca Evans emphasised that higher‑than‑average investment in skills and training supports a more adaptable, innovative workforce and underpins a stronger, more productive economy.

Professor Stephen Roper, Director of the ERC and author of the report, noted that Welsh firms’ strong emphasis on skills, digital capability, branding and organisational development is a positive sign for competitiveness and future growth.

Rhian Elston, Wales Investment Director at the Development Bank of Wales, welcomed the report’s findings, highlighting that support for intangible investment — including funding solutions — helps Welsh businesses strengthen productivity and capitalise on emerging opportunities.

Professor Melanie Jones of Cardiff Business School said the research provides important evidence on investment in training, organisational capability and digital improvement — investments likely to support long‑term productivity and future living standards.

The full Productive Investment Decisions in Welsh Firms report is available from the Development Bank of Wales.