DP10057 Knowledge Spillovers, ICT and Productivity Growth

Author(s): Carol Corrado, Jonathan Haskel, Cecilia Jona-Lasinio
Publication Date: July 2014
Keyword(s): economic growth, ICT, intangible assets, intangible capital, productivity growth, spillovers
JEL(s): E01, E22, O47
Programme Areas: Labour Economics, Industrial Organization
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=10057

This paper looks at the channels through which intangible assets affect productivity. The econometric analysis exploits a new dataset on intangible investment (INTAN-Invest) in conjunction with EUKLEMS productivity estimates for 10 EU member states from 1998 to 2007. We find that (a) the marginal impact of ICT capital is higher when it is complemented with intangible capital, and (b) non-R&D intangible capital has a higher estimated output elasticity than its conventionally-calculated factor share. These findings suggest investments in knowledge-based capital, i.e., intangible capital, produce productivity growth spillovers via mechanisms beyond those previously established for R&D.