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Knowledge Spillovers, ICT and Productivity Growth

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  • Carol Corrado
  • Jonathan Haskel
  • Cecilia Jona-Lasinio

Abstract

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.
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Suggested Citation

  • Carol Corrado & Jonathan Haskel & Cecilia Jona-Lasinio, 2017. "Knowledge Spillovers, ICT and Productivity Growth," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(4), pages 592-618, August.
  • Handle: RePEc:bla:obuest:v:79:y:2017:i:4:p:592-618
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    Cited by:

    1. Toma Lankauskienė, 2016. "Application of the growth accounting method for the construction industry," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 17(3), pages 430-443, June.
    2. Nicholas Oulton, 2018. "The UK (and Western) Productivity Puzzle: Does Arthur Lewis Hold the Key?," Discussion Papers 1809, Centre for Macroeconomics (CFM).
    3. Falk, Martin & Hagsten, Eva, 2015. "E-commerce trends and impacts across Europe," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 357-369.
    4. Bernadette Biatour & Chantal Kegels, 2015. "Working Paper 06-15 - Labour productivity growth in Belgium - Long-term trend decline and possible actions," Working Papers 1506, Federal Planning Bureau, Belgium.
    5. Chen, Wen & Niebel, Thomas & Saam, Marianne, 2014. "Are intangibles more productive in ICT-intensive industries? Evidence from EU countries," ZEW Discussion Papers 14-070, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    6. repec:bla:revinw:v:63:y:2017:i::p:s49-s67 is not listed on IDEAS
    7. Wen Chen & Robert Inklaar, 2016. "Productivity spillovers of organization capital," Journal of Productivity Analysis, Springer, vol. 45(3), pages 229-245, June.
    8. Sebastian Leitner & Robert Stehrer, 2016. "Development of Public Spending Structures in the EU Member States: Social Investment and its Impact on Social Outcomes," wiiw Working Papers 128, The Vienna Institute for International Economic Studies, wiiw.
    9. Kevin J. Fox & Thomas Niebel & Mary O'Mahony & Marianne Saam, 2017. "The Contribution of Intangible Assets to Sectoral Productivity Growth in the EU," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63, pages 49-67, February.
    10. Oulton, Nicholas, 2018. "The UK (and Western) productivity puzzle: does Arthur Lewis hold the key?," LSE Research Online Documents on Economics 87394, London School of Economics and Political Science, LSE Library.

    More about this item

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts

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