Productivity and Growth in UK Industries: An Intangible Investment Approach1. (8th August 2012)

• Record Type: Journal Article
• Authors: Borgo, Mariela Dal; Goodridge, Peter; Haskel, Jonathan; Pesole, Annarosa
• Is Part Of: Oxford bulletin of economics and statistics. Volume 75:Number 6(2013:Dec.)
• Page Start: 806
• Page End: 834
• Publication Date: 2012-08-08
• Subjects: Economic history -- Periodicals; Great Britain -- Economic conditions -- Periodicals; 330.9
• DOI: 10.1111/j.1468-0084.2012.00718.x
• Languages: English
• ISSNs: 0305-9049

Abstract

<abstract abstract-type="main" xml:lang="en"> <title>Abstract</title> <p>This article calculates some facts for the 'knowledge economy'. Using new data, first we document UK intangible investment and find that (i) this is greater than tangible investment by £37bn in 2008; (ii) R&amp;D is 11% of total intangible investment, software 15%, and training and organizational capital 22% each; (iii) the most intangible‐intensive industries are manufacturing and financial services. Next, we measure the contribution of intangible capital to growth for 2000–08. We find that intangible capital accounts for 23% of labour productivity growth and treating intangibles as investment lowers total factor productivity growth in the 2000s by 24% (R&amp;D lowers it by 3%).</p> </abstract>