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Intangible capital and firms productivity

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  • E. Marrocu

    ()

  • R. Paci

    ()

  • M. Pontis

Abstract

Firms competitive strategies and performances in industrialised countries is increasingly based on assets, labelled as “intangible capital”, such as the inventions of new processes and products, the improvements of the employees skill, the creation of a reputation for company’s products. The aim of this paper is to evaluate the role of internal intangible capital on firms productivity in addition to the well-known one played by traditional inputs. Moreover, firms productivity is crucially affected by the external socio-economic conditions; thus, we control for the availability of intangible assets specific to the region (human, technological and social capital) as well as for the regional infrastructural endowments. In our empirical application we analyse a large panel of European companies belonging to 116 regions of six countries, considered over the period 2002-2006. The estimation results - robust to various ways of disaggregating the sample data (by country, macro-sector and firms dimension) and to different econometric methodologies (IV, Olley-Pakes, Levinsohn-Petrin) - show the positive influence of the internal intangible capital on firms productivity levels and also the crucial role played by the intangible assets at the regional level. These results remark the importance of policies designed to stimulate the accumulation of intangible capital stocks internal to the firms through appropriate fiscal policies and to create a favourable external environment based on high endowments of human, social and technological capital.

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Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 200916.

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Date of creation: 2009
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Handle: RePEc:cns:cnscwp:200916

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Keywords: firms productivity; intangible capital; local externalities;

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Citations

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Cited by:
  1. A. Arrighetti & F. Landini & A. Lasagni, 2012. "Intangible assets dynamics and firm behaviour," Economics Department Working Papers 2012-EP05, Department of Economics, Parma University (Italy).
  2. Martin Falk, 2013. "New empirical findings for international investment in intangible assets," WWWforEurope Working Papers series 30, WWWforEurope.
  3. A. Arrighetti & F. Landini & A. Lasagni, 2011. "Intangible assets and firms heterogeneity: evidence from Italy," Economics Department Working Papers 2011-EP02, Department of Economics, Parma University (Italy).
  4. B. Dettori & E. Marrocu & R. Paci, 2008. "Total factor productivity, intangible assets and spatial dependence in the European regions," Working Paper CRENoS 200823, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  5. Kümpel, Arndt, 2011. "Устойчивое региональное развитие, инновации и государствeнный потенциал
    [Sustainable regional development, innovation and state capaci
    ," MPRA Paper 33967, University Library of Munich, Germany, revised 08 Oct 2011.
  6. MORIKAWA Masayuki, 2012. "Financial Constraints in Intangible Investments: Evidence from Japanese firms," Discussion papers 12045, Research Institute of Economy, Trade and Industry (RIETI).
  7. Damiana Giuseppina Costanzo & Damiano Bruno Silipo & Marianna Succurro, 2013. "Over-Indebtedness And Innovation: Some Preliminary Results," Working Papers 201304, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).
  8. R. Paci & E. Marrocu, 2012. "Knowledge assets and regional performance," Working Paper CRENoS 201213, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  9. Kümpel, Arndt, 2011. "Sustainable regional development, innovation and state capacity," MPRA Paper 33966, University Library of Munich, Germany, revised 08 Oct 2011.

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