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Measuring the Contribution of Intangibles to Productivity Growth: A Disaggregate Analysis of Japanese Firms

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  • Pablo Gonzalo Ramirez

    (Science of Institutional Management of Technology (SIMOT), Department of Industrial Engineering & Management, Tokyo Institute of Technology, 2-12-1 W9-51 Ookayama, Meguro-ku, Tokyo 152-8550, Japan)

  • Toyohiko Hachiya

    (Department of Industrial Engineering & Management, Tokyo Institute of Technology, 2-12-1 Ookayama, Meguro-ku, Tokyo 152-8550, Japan)

Abstract

In this study we examined Japanese firm-level data to test whether increments in intangible assets will leads to differences in productivity growth. Our results show that the marginal contribution of inputs varies a greatly among sectors, industries and depending on firm's size. Therefore, marginal increments in intangibles investments are not always associated with productivity growth suggesting that when intangibles exceed a threshold, additional investments could be inefficient. We conclude that among intangibles, firm-specific organizational capital and advertising are two of the critical factors in determining the productivity growth.

Suggested Citation

  • Pablo Gonzalo Ramirez & Toyohiko Hachiya, 2008. "Measuring the Contribution of Intangibles to Productivity Growth: A Disaggregate Analysis of Japanese Firms," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 11(02), pages 151-186.
    • Handle: RePEc:wsi:rpbfmp:v:11:y:2008:i:02:n:s0219091508001301
    DOI: 10.1142/S0219091508001301
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    References listed on IDEAS

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    1. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 339-376.
    2. Andrew Atkeson & Patrick J. Kehoe, 2002. "Measuring Organization Capital," NBER Working Papers 8722, National Bureau of Economic Research, Inc.
    3. Carol Corrado & John Haltiwanger & Daniel Sichel, 2005. "Measuring Capital in the New Economy," NBER Books, National Bureau of Economic Research, Inc, number corr05-1, March.
    4. Baruch Lev & Suresh Radhakrishnan, 2003. "The Measurement of Firm-Specific Organization Capital," NBER Working Papers 9581, National Bureau of Economic Research, Inc.
    5. Bronwyn H. Hall., 1993. "The Value of Intangible Corporate Assets: An Empirical Study of the Components of Tobin's Q," Economics Working Papers 93-207, University of California at Berkeley.
    6. Dieter Sadowski & Oliver Ludewig, 2003. "Organisational Capital: The Power of an Economic Metaphor: Organisational Capital in German Establishments," IAAEG Discussion Papers until 2011 200302, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
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    Cited by:

    1. Tomohiro Yamaguchi, 2014. "Intangible Asset Valuation Model Using Panel Data," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 21(2), pages 175-191, May.
    2. Daria Ciriaci, 2011. "Intangible resources: the relevance of training for European firms innovative performance," JRC Working Papers on Corporate R&D and Innovation 2011-06, Joint Research Centre.
    3. Mitchell Oler, 2015. "Determinants of the length of time a firm’s book-to-market ratio is greater than one," Review of Quantitative Finance and Accounting, Springer, vol. 45(3), pages 509-539, October.
    4. Roth, Felix, 2019. "Intangible Capital and Labour Productivity Growth: A Review of the Literature," Hamburg Discussion Papers in International Economics 4, University of Hamburg, Department of Economics.
    5. Tomasz L. Nawrocki, 2015. "R&D Activity And Core Business Efficiency On The Example Of Technology Companies," Oeconomia Copernicana, Institute of Economic Research, vol. 6(4), pages 59-72, December.

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    More about this item

    Keywords

    Intangibles; productivity growth; sectors; industries; firm size;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G2 - Financial Economics - - Financial Institutions and Services
    • G3 - Financial Economics - - Corporate Finance and Governance

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