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Impact of Intangible Capital on Productivity and Growth: Lessons from the Indian Information Technology Software Industry

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Author Info
SUPRIYO DE
DILIP DUTTA
Abstract

This paper examines the impact of intangible capital, including human capital and organisational capabilities on productivity, using India as an illustrative example. The research breaks new ground in creating measures of intangible capital at a micro level. Measures of tangible and intangible capital are used to estimate a 'new economy' production function with panel data. Generalised method of moments techniques are used to account for unobserved firm heterogeneity and endogenous explanatory variables. The results indicate that intangible assets have a major impact on software sector output. This has important implications for public policy and corporate strategy towards the information technology industry, including for Australia. Copyright © 2007 The Economic Society of Australia.

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Article provided by The Economic Society of Australia in its journal Economic Record.

Volume (Year): 83 (2007)
Issue (Month): s1 (09)
Pages: S73-S86
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Handle: RePEc:bla:ecorec:v:83:y:2007:i:s1:p:s73-s86

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This page was last updated on 2008-9-29.

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