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Intangible Capital in France and Germany: Is there a Measurement Issue?

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  • Nonnis, Alberto
  • Roth, Felix
  • Bounfour, Ahmed

Abstract

In this article, we highlight important differences in capital investment and capital stock in intangible assets between France and Germany, which we attribute to potential measurement issues between the two countries. Using data from the latest EUKLEMS/INTANProd release for the period between 1995 and 2020, we identify investment in software and databases, along with investment in organizational capital, as key drivers of these differences. Investment in software appears to be four times higher in France than in Germany, while organizational capital is about two and a half times larger in France. Given the comparable economic growth patterns of these two countries over recent decades, we believe these measurement discrepancies could have significant implications for understanding both past growth trends and future growth perspectives.

Suggested Citation

  • Nonnis, Alberto & Roth, Felix & Bounfour, Ahmed, 2024. "Intangible Capital in France and Germany: Is there a Measurement Issue?," Hamburg Discussion Papers in International Economics 18, University of Hamburg, Department of Economics.
    • Handle: RePEc:zbw:uhhhdp:18
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    References listed on IDEAS

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    1. Felix Roth & Ali Sen & Christian Rammer, 2023. "The role of intangibles in firm-level productivity – evidence from Germany," Industry and Innovation, Taylor & Francis Journals, vol. 30(2), pages 263-285, February.
    2. Carol Corrado & John Haltiwanger & Daniel Sichel, 2005. "Measuring Capital in the New Economy," NBER Books, National Bureau of Economic Research, Inc, number corr05-1, January-J.
    3. Audretsch, David B. & Belitski, Maksim, 2020. "The role of R&D and knowledge spillovers in innovation and productivity," European Economic Review, Elsevier, vol. 123(C).
    4. Carol Corrado & John Haltiwanger & Daniel Sichel, 2005. "Introduction to "Measuring Capital in the New Economy"," NBER Chapters, in: Measuring Capital in the New Economy, pages 1-10, National Bureau of Economic Research, Inc.
    5. Nonnis, Alberto & Roth, Felix & Bounfour, Ahmed, 2024. "Is the EU ready for the next generation of investment? The case of France and Germany," Hamburg Discussion Papers in International Economics 16, University of Hamburg, Department of Economics.
    Full references (including those not matched with items on IDEAS)

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