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What is the U.S. gross investment in intangibles? (At least) one trillion dollars a year! Author info | Abstract | Publisher info | Download info | Related research | Statistics Leonard Nakamura
This paper argues that the rate of intangible investment – investment in the development and marketing of new products – accelerated in the wake of the electronics revolution in the 1970s. The paper presents preliminary direct and indirect empirical evidence that US private firms currently invest at least $1 trillion annually in intangibles. This rate of investment roughly equals US gross investment in nonresidential tangible assets. It also suggests that the capital stock of intangibles in the US has an equilibrium market value of at least $5 trillion.
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Paper provided by Federal Reserve Bank of Philadelphia in its series Working Papers with number
01-15.
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Date of creation: 2001Date of revision:
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Keywords: Gross domestic product ; Investments ; Other versions of this item:
This paper has been announced in the following NEP Reports :
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Baruch Lev, 2003.
"Remarks on the measurement, valuation, and reporting of intangible assets ,"
Economic Policy Review ,
Federal Reserve Bank of New York, issue Sep, pages 17-22.
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Carol Corrado & Charles Hulten & Daniel Sichel, 2006.
"Intangible capital and economic growth ,"
Finance and Economics Discussion Series
2006-24, Board of Governors of the Federal Reserve System (U.S.).
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"Measuring capital and technology: an expanded framework ,"
Finance and Economics Discussion Series
2004-65, Board of Governors of the Federal Reserve System (U.S.).
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"Equity Prices, Productivity Growth and 'The New Economy ,"
FRU Working Papers
2004/11, University of Copenhagen. Department of Economics. Finance Research Unit.
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Jakob B. Madsen & E. Philip Davis, 2004.
"Equity Prices, Productivity Growth, and the 'New Economy' ,"
EPRU Working Paper Series
04-05, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
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"Equity Prices, Productivity Growth, And ‘The New Economy’ ,"
Economics and Finance Discussion Papers
03-04, Economics and Finance Section, School of Social Sciences, Brunel University.
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