How Much Does Sweden Invest in Intangible Assets?

Abstract

In this paper I attempt to replicate for Sweden the Corrado, Hulten and Sichel (2006) and Marrano and Haskel (2006) working papers on spending on intangible assets in the US and the UK. Based on their measurement methods the total spending on intangibles in Sweden in 2004 was 277 billion SEK or 10.6 percent of total GDP. Based on total spending it can be estimated that total investment in intangibles was 227 billion or approximately two-thirds of the total investment in fixed capital in 2004. Thus, investment in intangibles was considerable in 2004. The corresponding figures for the UK and the US were 10.9 and 13.1 percent, respectively. Even though the measurement methods of intangibles must be further developed, it could be argued that intangibles in the future should be included in the Swedish national accounts.

Keywords: Intangibles, Investment, Economic growth

JEL Classification: O15, O16, O47, O52