Intangible assets dynamics and firm behaviour
We study the adoption of different intangible investment strategies in manufacturing firms. Contrary to most of the previous literature, we find such strategies to be highly differentiated. In particular we identify three types of investment behaviour: high and persistent, low and persistent, discontinuous. Using as a reference the capability-based view of the firm, we define and provide support for a set of hypotheses on the determinants of such behaviours. We obtain the following results: first, absorptive capacity led by R&D expenditures is a key competence in sustaining the adoption of an intangible investment strategy, which may be either persistent or discontinuous; second, the implementation of a persistent intangible investment strategy necessarily requires specific investments in the quality of human resources to be made; third, firms with a greater propensity to operate in international markets are more likely to adopt a persistent intangible investment strategy than they are to adopt a discontinuous one; fourth, firms that undertake a growth path that is based on highly uncertain demand segments and high organisational flexibility are likely to adopt a discontinuous intangible investment strategy; and five, the historical intangible asset base represents an important constraint on firms’ investment behaviour.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: Via J.F. Kennedy 6, 43100 PARMA (Italy)|
Web page: http://economia.unipr.it/de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jalava, Jukka & Aulin-Ahmavaara, Pirkko & Alanen, Aku, 2007. "Intangible Capital in the Finnish Business Sector 1975-2005," Discussion Papers 1103, The Research Institute of the Finnish Economy.
- Emanuela Marrocu & Raffaele Paci & Marco Pontis, 2012.
"Intangible capital and firms' productivity,"
Industrial and Corporate Change,
Oxford University Press, vol. 21(2), pages 377-402, April.
- Bronwyn H. Hall & Adam Jaffe & Manuel Trajtenberg, 2005. "Market Value and Patent Citations," RAND Journal of Economics, The RAND Corporation, vol. 36(1), pages 16-38, Spring.
- Teece, David J., 1980. "Economies of scope and the scope of the enterprise," Journal of Economic Behavior & Organization, Elsevier, vol. 1(3), pages 223-247, September.
- Christine Greenhalgh & Mark Rogers, 2004.
"The Value of Innovation: The Interaction of Competition, R&D and IP,"
Economics Series Working Papers
192, University of Oxford, Department of Economics.
- Greenhalgh, Christine & Rogers, Mark, 2006. "The value of innovation: The interaction of competition, R&D and IP," Research Policy, Elsevier, vol. 35(4), pages 562-580, May.
- Alfred D. Chandler, 1992. "Organizational Capabilities and the Economic History of the Industrial Enterprise," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 79-100, Summer.
- Braunerhjelm, Pontus, 1996. "The relation between firm-specific intangibles and exports," Economics Letters, Elsevier, vol. 53(2), pages 213-219, November.
- Maria Elena Bontempi & Jacques Mairesse, 2008. "Intangible Capital and Productivity: An Exploration on a Panel of Italian Manufacturing Firms," NBER Working Papers 14108, National Bureau of Economic Research, Inc.
- Giorgio Marrano, Mauro & Haskel, Jonathan, 2007.
"How Much Does the UK Invest in Intangible Assets?,"
CEPR Discussion Papers
6287, C.E.P.R. Discussion Papers.
- Oded Galor & Omer Moav, 2004.
"From Physical to Human Capital Accumulation: Inequality and the Process of Development,"
Review of Economic Studies,
Oxford University Press, vol. 71(4), pages 1001-1026.
- Oded Galor & Omer Moav, 2004. "From Physical to Human Capital Accumulation: Inequality and the Process of Development," GE, Growth, Math methods 0410005, EconWPA.
- Oded Galor & Omer Moav, 1999. "From Physical to Human Capital Accumulation: Inequality in the Process of Development," Working Papers 99-27, Brown University, Department of Economics.
- Galor, Oded & Moav, Omer, 1999. "From Physical to Human Capital Accumulation: Inequality in the Process of Development," CEPR Discussion Papers 2307, C.E.P.R. Discussion Papers.
- James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," Review of Economic Studies, Oxford University Press, vol. 70(2), pages 317-341.
- Sandner, Philipp G. & Block, Joern, 2011. "The market value of R&D, patents, and trademarks," Research Policy, Elsevier, vol. 40(7), pages 969-985, September.
- Delgado-Gomez, Jose M. & Ramirez-Aleson, Marisa & Espitia-Escuer, Manuel Antonio, 2004. "Intangible resources as a key factor in the internationalisation of Spanish firms," Journal of Economic Behavior & Organization, Elsevier, vol. 53(4), pages 477-494, April.
- Arrighetti, Alessandro & Landini, Fabio & Lasagni, Andrea, 2014.
"Intangible assets and firm heterogeneity: Evidence from Italy,"
Elsevier, vol. 43(1), pages 202-213.
- A. Arrighetti & F. Landini & A. Lasagni, 2011. "Intangible assets and firms heterogeneity: evidence from Italy," Economics Department Working Papers 2011-EP02, Department of Economics, Parma University (Italy).
- Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, vol. 35(12), pages 1504-1511, December.
- Teece, David J., 2011. "Dynamic Capabilities and Strategic Management: Organizing for Innovation and Growth," OUP Catalogue, Oxford University Press, number 9780199691906, May.
- Johannes G Denekamp, 1995. "Intangible Assets, Internationalization and Foreign Direct Investment in Manufacturing," Journal of International Business Studies, Palgrave Macmillan, vol. 26(3), pages 493-504, September.
- Mowery, David C & Oxley, Joanne E, 1995. "Inward Technology Transfer and Competitiveness: The Role of National Innovation Systems," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 67-93, February.
When requesting a correction, please mention this item's handle: RePEc:par:dipeco:2012-ep05. 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: (Andrea Lasagni)
If references are entirely missing, you can add them using this form.