Intangible Investment in Japan: Measurement and Contribution to Economic Growth

20 Pages Posted: 15 Oct 2009

See all articles by Kyoji Fukao

Kyoji Fukao

Hitotsubashi University - Institute of Economic Research

Tsutomu Miyagawa

Japan Center for Economic Research

Kentaro Mukai

affiliation not provided to SSRN

Yukio Shinoda

affiliation not provided to SSRN

Konomi Tonogi

affiliation not provided to SSRN

Abstract

Following the approach of Corrado, Hulten, and Sichel (2005, 2006), we measure intangible investment and examine the contribution of intangible capital to economic growth in Japan. We find that the ratio of intangible investment to GDP in Japan has risen during the past 20 years and now stands at 11.1 percent, which is lower than the ratio estimated for the U.S. in the early 2000s. The ratio of intangible to tangible investment in Japan is also lower than equivalent values estimated for the U.S. In addition, we find that, in stark contrast to the U.S., where intangible capital grew rapidly in the late 1990s, the growth rate of intangible capital in Japan declined from the late 1980s to the early 2000s. Our conclusions regarding intangible investment in Japan remain largely unchanged even if, using data with respect to firm-specific resources, we take on-the-job training into account.

Suggested Citation

Fukao, Kyoji and Miyagawa, Tsutomu and Mukai, Kentaro and Shinoda, Yukio and Tonogi, Konomi, Intangible Investment in Japan: Measurement and Contribution to Economic Growth. Review of Income and Wealth, Vol. 55, Issue 3, pp. 717-736, September 2009, Available at SSRN: https://ssrn.com/abstract=1489046 or http://dx.doi.org/10.1111/j.1475-4991.2009.00345.x

Kyoji Fukao

Hitotsubashi University - Institute of Economic Research ( email )

2-1 Naka Kunitachi-shi
Tokyo 186-8306
Japan

Tsutomu Miyagawa

Japan Center for Economic Research ( email )

2-6-1, Nihonbashi Kayabacho
Chuo-ku, Tokyo 103-0025
Japan

Kentaro Mukai

affiliation not provided to SSRN

No Address Available

Yukio Shinoda

affiliation not provided to SSRN

No Address Available

Konomi Tonogi

affiliation not provided to SSRN

No Address Available

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