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EU competitiveness: the critical role of intangible assets in labour productivity growth

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  • Felix Roth
  • Alessio Mitra

Abstract

Analysing 14-EU member states and the UK from 1995–2019 and using growth regressions, we find that Research and Innovation (R&I) are crucial for labour productivity growth (LPG). We contribute to the literature by distinguishing between Information and Communication Technology (ICT) and non-ICT tangibles and focusing on four key intangibles: research and development (R&D), software, organisational capital, and training. We also differentiate between the goods- and services-sectors, as well as the periods before and after the 2007/8-crisis. We find that LPG in the goods-sector benefits the most from non-ICT tangibles, while in the services-sector, from intangibles other than R&D, including software, organisational capital, and training.

Suggested Citation

  • Felix Roth & Alessio Mitra, 2025. "EU competitiveness: the critical role of intangible assets in labour productivity growth," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 28(4), pages 485-504, October.
    • Handle: RePEc:taf:jpolrf:v:28:y:2025:i:4:p:485-504
    DOI: 10.1080/17487870.2025.2571479
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    Cited by:

    1. Roth, Felix & Rammer, Christian, 2025. "Intangible Assets and Productivity at the Firm Level: R&D versus non-R&D Intangibles," Hamburg Discussion Papers in International Economics 20, University of Hamburg, Department of Economics.

    More about this item

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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