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Treating research and development as a capital asset

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Author Info

  • Emma Edworthy

    (Office for National Statistics)

  • Gavin Wallis

    (HM Treasury)

Abstract

Presents work undertaken and some estimates of the productivity impact of R&D on business sector firms.Treating research and development as an asset requires a number of important steps. The first step is to determine the components of research and developmentexpenditure to be included as investment and then to translate those expenditure components into a National Accounts compatible format. The second step isthe construction of appropriate deflators for research and development assets. The final step requires the estimationof appropriate depreciation rates for research and development capital. This article presents work undertaken by theOffice for National Statistics on these three steps for the UK business sector and also some estimates of the productivityimpact of research and development on business sector firms. Economic & Labour Market Review (2007) [1], 16–25; doi:10.1057/palgrave.elmr.1410024

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Bibliographic Info

Article provided by Palgrave Macmillan in its journal Economic & Labour Market Review.

Volume (Year): 1 (2007)
Issue (Month): 2 (February)
Pages: 16-25

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Handle: RePEc:pal:ecolmr:v:1:y:2007:i:2:p:16-25

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Cited by:
  1. Eberhardt, Markus & Helmers, Christian & Strauss, Hubert, 2010. "Do spillovers matter when estimating private returns to R&D?," Economic and Financial Reports 2010/1, European Investment Bank, Economics Department.

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