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|
|Contact details of provider:|| Postal: Via J.F. Kennedy 6, 43100 PARMA (Italy)|
Web page: http://economia.unipr.it/de
More information through EDIRC
References listed on IDEAS
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.:
- Oded Galor & Omer Moav, 2004.
"From Physical to Human Capital Accumulation: Inequality and the Process of Development,"
GE, Growth, Math methods
- 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.
- 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.
- 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.
- E. Marrocu & R. Paci & M. Pontis, 2009.
"Intangible capital and firms productivity,"
Working Paper CRENoS
200916, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Greenhalgh, Christine & Rogers, Mark, 2006.
"The value of innovation: The interaction of competition, R&D and IP,"
Elsevier, vol. 35(4), pages 562-580, May.
- 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.
- 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).
- Arrighetti, Alessandro & Landini, Fabio & Lasagni, Andrea, 2014. "Intangible assets and firm heterogeneity: Evidence from Italy," Research Policy, Elsevier, vol. 43(1), pages 202-213.
- 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.
- 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.
- Carol Corrado & Charles R. Hulten & Daniel E. Sichel, 2004.
"Measuring capital and technology: an expanded framework,"
Finance and Economics Discussion Series
2004-65, Board of Governors of the Federal Reserve System (U.S.).
- Carol Corrado & Charles Hulten & Daniel Sichel, 2005. "Measuring Capital and Technology: An Expanded Framework," NBER Chapters, in: Measuring Capital in the New Economy, pages 11-46 National Bureau of Economic Research, Inc.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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, December.
- Johannes G Denekamp, 1995. "Intangible Assets, Internationalization and Foreign Direct Investment in Manufacturing," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(3), pages 493-504, September.
- 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.
- 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.
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.