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Understanding the uneven growth of Intellectual Property Products investment in the U.S

Author

Listed:
  • Dennis J. Fixler
  • Eva de Francisco

    (Bureau of Economic Analysis)

Abstract

Given the attention to intangible capital in studying industry dynamics and aggregate investment trends in the last couple of decades, this paper provides a descriptive analysis of Intellectual Property Products (IPP) as measured in the National Accounts (NIPAs) by the Bureau of Economic Analysis (BEA), with attention directed to their three components: R\&D, Software, and Entertainment, literary and artistic originals (ELAO), as well as the relationship among investment in IPP, equipment, and structures within some key sectors in the economy. In particular, we show that for the 7 sectors studied in this paper, there was and still is a lot of heterogeneity in the types of IPP capital that sectors use to produce and deliver goods and services. We also illustrate that this heterogeneity seems to be the combination of different forces: First, the initial composition of the production function in 1980 among structures, equipment, and IPP components is quite persistent, and second, the different evolution of prices of these three types of IPP capital has played an important role in the pace of investment and transformation in these sectors.

Suggested Citation

  • Dennis J. Fixler & Eva de Francisco, 2022. "Understanding the uneven growth of Intellectual Property Products investment in the U.S," BEA Working Papers 0198, Bureau of Economic Analysis.
    • Handle: RePEc:bea:wpaper:0198
    as

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    File URL: https://www.bea.gov/system/files/papers/BEA-WP2022-7.pdf
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    References listed on IDEAS

    as
    1. Crouzet, Nicolas & Eberly, Janice, 2021. "Intangibles, markups, and the measurement of productivity growth," Journal of Monetary Economics, Elsevier, vol. 124(S), pages 92-109.
    2. Ellen McGrattan, 2020. "Intangible Capital and Measured Productivity," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 37, pages 147-166, August.
    3. Carol Corrado & Charles Hulten & Daniel Sichel, 2009. "Intangible Capital And U.S. Economic Growth," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(3), pages 661-685, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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