IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

The Role of Intangible Investment on Economic Growth in Japan (Japanese)

Listed author(s):
  • MIYAGAWA Tsutomu
  • EDAMURA Kazuma
  • OZAKI Masahiko
  • KIM YoungGak
  • TONOGI Konomi
  • HARADA Nobuyuki
Registered author(s):

    A number of empirical studies on intangibles have shown that the accumulation of intangibles contributes to productivity growth. We overview the effects of intangible investment on the Japanese economy by using data at the aggregate and firm levels. Our estimates show that the amount of intangible investment in Japan was almost 40 trillion yen per annum in the 2000s, and its ratio to gross domestic product (GDP) is about 7%. However, as the growth rate of intangibles in Japan was low in the 2000s, the contribution of intangibles to productivity was the lowest among the advanced countries. When we compare intangible investment by industry between Japan and Korea, in some IT-intensive service industries, the amount in Japan is lower than that in Korea. Intangible investment, in particular, organizational investment including organizational management and human resource management, is also crucial for firm growth. Using the interview surveys on management practices based on the influential Bloom and Van Reenen's study, we compare management scores between Japan and Korea. Although the overall management score in Japan is higher than that in Korea, the gap has contracted. We also find that management score is positively correlated with organizational reform, IT utilization, and human resource management which takes employees' specialties seriously. The results of our survey show that the complimentary role of intangibles' other assets is crucial for productivity growth at the aggregate and firm levels. Thus, the government should take more comprehensive investment enhancing policies, considering the role of intangibles.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Policy Discussion Papers (Japanese) with number 15010.

    in new window

    Length: 58 pages
    Date of creation: Jun 2015
    Handle: RePEc:eti:rpdpjp:15010
    Contact details of provider: Postal:
    11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901

    Phone: +81-3-3501-1363
    Fax: +81-3-3501-8577
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eti:rpdpjp:15010. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (KUMAGAI, Akiko)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.