IDEAS home Printed from https://ideas.repec.org/a/jns/jbstat/v232y2012i1p12-30.html
   My bibliography  Save this article

Measuring the Knowledge Economy – Intangible Spending and Investment in Germany

Author

Listed:
  • Berger Florian

    (Research Associate, Chair of Innovation Economics, Technische Universität Berlin, Müller-Breslau-Straße (Schleuseninsel), 10623 Berlin, Germany)

Abstract

Intangible assets are largely ignored by the “traditional” System of National Accounts (SNA), although they play an increasingly important economic role. The reasons for this are the substantial measurement and valuation problems. This article applies a methodology based on Hulten (1979) and Corrado et al. (2005) to provide some indications on the amount of investment in intangible goods in the German economy. I discuss the proposed categorization approach and quantify the different components for the German economy, drawing on a number of different data sources. I show that the amount of investment in intangibles is significant. An inclusion into the SNA would add around Euro 142.4 bn to total investment in the German economy in 2004. This corresponds to an increase of almost 70%. However, an international comparison shows that Germany falls short in terms of intangible spending relative to the US and UK.

Suggested Citation

  • Berger Florian, 2012. "Measuring the Knowledge Economy – Intangible Spending and Investment in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(1), pages 12-30, February.
    • Handle: RePEc:jns:jbstat:v:232:y:2012:i:1:p:12-30
    DOI: 10.1515/jbnst-2012-0104
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/jbnst-2012-0104
    Download Restriction: no
    File URL: https://libkey.io/10.1515/jbnst-2012-0104?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mendonca, Sandro & Pereira, Tiago Santos & Godinho, Manuel Mira, 2004. "Trademarks as an indicator of innovation and industrial change," Research Policy, Elsevier, vol. 33(9), pages 1385-1404, November.
    2. Cockburn, Iain & Griliches, Zvi, 1988. "Industry Effects and Appropriability Measures in the Stock Market's Valuation of R&D and Patents," American Economic Review, American Economic Association, vol. 78(2), pages 419-423, May.
    3. Mauro Giorgio Marrano & Jonathan Haskel, 2006. "How Much Does the UK Invest in Intangible Assets?," Working Papers 578, Queen Mary University of London, School of Economics and Finance.
    4. 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.
    5. Carol Corrado & Charles Hulten & Daniel Sichel, 2009. "Intangible Capital And U.S. Economic Growth," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(3), pages 661-685, September.
    6. Christine Greenhalgh & Mark Rogers, 2007. "The value of intellectual property rights to firms and society," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 23(4), pages 541-567, Winter.
    7. Landes, Elisabeth M & Rosenfield, Andrew M, 1994. "The Durability of Advertising Revisited," Journal of Industrial Economics, Wiley Blackwell, vol. 42(3), pages 263-276, September.
    8. Christine Greenhalgh & Mark Rogers, 2007. "The Value of Intellectual Property Rights to Firms," Discussion Papers 06-036, Stanford Institute for Economic Policy Research.
    9. Kyoji Fukao & Tsutomu Miyagawa & Kentaro Mukai & Yukio Shinoda & Konomi Tonogi, 2009. "Intangible Investment In Japan: Measurement And Contribution To Economic Growth," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(3), pages 717-736, September.
    10. 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.
    11. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    12. Nelson, Philip, 1974. "Advertising as Information," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 729-754, July/Aug..
    13. Mauro Giorgio Marrano & Jonathan Haskel & Gavin Wallis, 2009. "What Happened To The Knowledge Economy? Ict, Intangible Investment, And Britain'S Productivity Record Revisited," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(3), pages 686-716, September.
    14. Landes, William M & Posner, Richard A, 1987. "Trademark Law: An Economic Perspective," Journal of Law and Economics, University of Chicago Press, vol. 30(2), pages 265-309, October.
    15. François Lequiller & Nadim Ahmad & Seppo Varjonen & William Cave & Kil-Hyo Ahn, 2003. "Report of the OECD Task Force on Software Measurement in the National Accounts," OECD Statistics Working Papers 2003/1, OECD Publishing.
    16. van Ark, Bart & Hao, Janet X. & Corrado, Carol & Hulten, Charles, 2009. "Measuring intangible capital and its contribution to economic growth in Europe," EIB Papers 3/2009, European Investment Bank, Economics Department.
    17. Carol J. Simon & Mary W. Sullivan, 1993. "The Measurement and Determinants of Brand Equity: A Financial Approach," Marketing Science, INFORMS, vol. 12(1), pages 28-52.
    18. Ulrich Schmoch & Stephan Gauch, 2009. "Service marks as indicators for innovation in knowledge-based services," Research Evaluation, Oxford University Press, vol. 18(4), pages 323-335, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carolina Hintzmann & Josep Lladós-Masllorens & Raul Ramos, 2021. "Intangible Assets and Labor Productivity Growth," Economies, MDPI, vol. 9(2), pages 1-21, May.
    2. Roth,Felix & Thum, Anna-Elisabeth, 2010. "Does intangible capital affect economic growth?," CEPS Papers 3667, Centre for European Policy Studies.
    3. Arrighetti, Alessandro & Landini, Fabio & Lasagni, Andrea, 2014. "Intangible assets and firm heterogeneity: Evidence from Italy," Research Policy, Elsevier, vol. 43(1), pages 202-213.
    4. Alain de Serres & Naomitsu Yashiro & Hervé Boulhol, 2014. "An international perspective on the New Zealand productivity paradox," Working Papers 2014/01, New Zealand Productivity Commission.
    5. Li, Qing & Wu, Yanrui, 2018. "Intangible capital in Chinese regional economies: Measurement and analysis," China Economic Review, Elsevier, vol. 51(C), pages 323-341.
    6. Crass, Dirk & Licht, Georg & Peters, Bettina, 2014. "Intangible assets and investments at the sector level: Empirical evidence for Germany," ZEW Discussion Papers 14-049, ZEW - Leibniz Centre for European Economic Research.
    7. Edquist, Harald, 2011. "Intangible Investment and the Swedish Manufacturing and Service Sector Paradox," Working Paper Series 863, Research Institute of Industrial Economics.
    8. Cecilia Iona Lasinio & Massimiliano Iommi & Stefano Manzocchi, 2011. "Intangible capital and Productivity Growth in European Countries," Working Papers LuissLab 1191, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    9. Carol Corrado & Jonathan Haskel & Cecilia Jona-Lasinio, 2017. "Knowledge Spillovers, ICT and Productivity Growth," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(4), pages 592-618, August.
    10. Shenglang Yang, 2016. "Intangible capital and sectoral energy intensity: Evidence from 40 economies," ANU Working Papers in Economics and Econometrics 2016-646, Australian National University, College of Business and Economics, School of Economics.
    11. Rammer, Christian & Köhler, Christian, 2012. "Innovationen, Anlageinvestitionen und immaterielle Investitionen," ZEW Discussion Papers 12-085, ZEW - Leibniz Centre for European Economic Research.
    12. Murat Ocak & Derya Fındık, 2019. "The Impact of Intangible Assets and Sub-Components of Intangible Assets on Sustainable Growth and Firm Value: Evidence from Turkish Listed Firms," Sustainability, MDPI, vol. 11(19), pages 1-23, September.
    13. Amani Elnasri & Kevin J. Fox, 2014. "The Contribution of Research and Innovation to Productivity and Economic Growth," Discussion Papers 2014-08, School of Economics, The University of New South Wales.
    14. Ni, Qingshan & Zhang, Hao & Lu, Yanjin, 2023. "Way to measure Intangible capital for innovation-driven economic growth: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 156-172.
    15. Yougen Cao & Shengce Ren & Mei Du, 2022. "Strategic trademark management: a systematic literature review and prospects for future research," Journal of Brand Management, Palgrave Macmillan, vol. 29(5), pages 435-453, September.
    16. Carmichael, Fiona & Ercolani, Marco & Kang, Lili & Maimaiti, Yasheng & O'Mahony, Mary & Peng, Fei & Robinson, Catherine, 2009. "Training, education and productivity," MPRA Paper 39899, University Library of Munich, Germany.
    17. Roth, Felix, 2019. "Intangible Capital and Labour Productivity Growth: A Review of the Literature," Hamburg Discussion Papers in International Economics 4, University of Hamburg, Department of Economics.
    18. Amani Elnasri & Kevin J. Fox, 2017. "The contribution of research and innovation to productivity," Journal of Productivity Analysis, Springer, vol. 47(3), pages 291-308, June.
    19. Martin Falk, 2013. "New Empirical Findings for International Investment in Intangible Assets. WWWforEurope Working Paper No. 30," WIFO Studies, WIFO, number 46891, August.
    20. Qing Li & Long Hai Vo, 2021. "Intangible Capital and Innovation: An Empirical Analysis of Vietnamese Enterprises," Economics Discussion / Working Papers 21-02, The University of Western Australia, Department of Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jns:jbstat:v:232:y:2012:i:1:p:12-30. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.