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Defining and Measuring Investment in Organisational Capital: Using US Microdata to Develop a Task-based Approach

Author

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  • Mariagrazia Squicciarini

    (OECD)

  • Marie Le Mouel

    (OECD)

Abstract

This work seeks to quantify investment in Organisational Capital (OC) by looking at the task content of occupations. It relies on the literature suggesting OC to be embodied in a firm’s workforce and defines OC as those tasks performed by employees – irrespective of their occupational titles – likely to affect a firm’s medium to long-term functioning. Using US Occupational Information Network (O*NET) data, it operationalises the task-based definition and identifies 84 occupations, including 22 managerial occupations, performing OC related tasks. Employment and earnings data from the US are used to calculate investment in OC at macro and 2-digit sectoral levels. Estimates suggest that previous measures seemingly underestimated investment in OC at the macro level, and that large sectoral differences exist. Manufacturing shows significant own-account investment in OC relative to the value added it generates. Services appear as larger purchasers of OC from external sources, relative to own-account investment. Building on the insights of the labour mobility literature about the disruptive effect of (voluntary) job separations, this work uses employee tenure and turnover data for the US to obtain sector specific depreciation rates. Estimates mainly range between 10% and 25% and suggest that OC depreciates more slowly than previously assumed.

Suggested Citation

  • Mariagrazia Squicciarini & Marie Le Mouel, 2012. "Defining and Measuring Investment in Organisational Capital: Using US Microdata to Develop a Task-based Approach," OECD Science, Technology and Industry Working Papers 2012/5, OECD Publishing.
    • Handle: RePEc:oec:stiaaa:2012/5-en
    DOI: 10.1787/5k92n2t3045b-en
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    Cited by:

    1. Sandro Montresor & Antonio Vezzani, 2016. "Intangible investments and innovation propensity: Evidence from the Innobarometer 2013," Industry and Innovation, Taylor & Francis Journals, vol. 23(4), pages 331-352, May.
    2. Urban Pauli, 2016. "Enhancing SMEs’ Growth by Investing in Organizational Capital," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 4(3), pages 103-116.
    3. Sandro Montresor & Antonio Vezzani, 2022. "Financial constraints to investing in intangibles: Do innovative and non-innovative firms differ?," The Journal of Technology Transfer, Springer, vol. 47(1), pages 1-32, February.
    4. 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.
    5. Marie Le Mouel & Mariagrazia Squicciarini, 2015. "Cross-Country Estimates of Employment and Investment in Organisational Capital: A Task-Based Methodology Using the PIAAC Database," Discussion Papers of DIW Berlin 1522, DIW Berlin, German Institute for Economic Research.
    6. Chan, Konan & Guo, Re-Jin J. & Wang, Yanzhi A. & Yang, Hsiao-Lin, 2022. "Organization capital and analyst coverage," Journal of Empirical Finance, Elsevier, vol. 69(C), pages 81-105.
    7. van Rens, Thijs & Vukotic, Marija, 2020. "Delayed Adjustment and Persistence in Macroeconomic Models," The Warwick Economics Research Paper Series (TWERPS) 1245, University of Warwick, Department of Economics.
    8. Michael S. Dahl & Mirjam van Praag & Peter Thompson, 2014. "Entrepreneurial Couples," Tinbergen Institute Discussion Papers 14-055/V, Tinbergen Institute.
    9. Sandro Montresor & Antonio Vezzani, 2019. "Financial constraints and intangible investments. Do innovative and non-innovative firms differ?," JRC Working Papers on Corporate R&D and Innovation 2019-07, Joint Research Centre.
    10. Wen Chen & Robert Inklaar, 2016. "Productivity spillovers of organization capital," Journal of Productivity Analysis, Springer, vol. 45(3), pages 229-245, June.
    11. Marie Le Mouel & Mariagrazia Squicciarini, 2015. "Cross-Country Estimates of Employment and Investment in Organisational Capital: A Task-Based Methodology Using Piaac Data," OECD Science, Technology and Industry Working Papers 2015/8, OECD Publishing.

    More about this item

    Keywords

    embeddedness; O*NET; organisational capital; tasks; US Current Population Survey (CPS); US Job Openings and Labor Turnover Survey;
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