Productivity and Growth in UK Industries: An Intangible Investment Approach

29 Pages Posted: 22 Nov 2013

See all articles by Mariela Dal Borgo

Mariela Dal Borgo

Bank of Mexico, Financial Stability Directorate

Peter Goodridge

Imperial College Business School

Jonathan Haskel

Imperial College Business School

Annarosa Pesole

Imperial College Business School

Date Written: December 2013

Abstract

This article calculates some facts for the ‘knowledge economy’. Using new data, first we document UK intangible investment and find that (i) this is greater than tangible investment by £37bn in 2008; (ii) R&D is 11% of total intangible investment, software 15%, and training and organizational capital 22% each; (iii) the most intangible‐intensive industries are manufacturing and financial services. Next, we measure the contribution of intangible capital to growth for 2000–08. We find that intangible capital accounts for 23% of labour productivity growth and treating intangibles as investment lowers total factor productivity growth in the 2000s by 24% (R&D lowers it by 3%).

JEL Classification: O47, E22, E01

Suggested Citation

Dal Borgo, Mariela and Goodridge, Peter and Haskel, Jonathan E. and Pesole, Annarosa, Productivity and Growth in UK Industries: An Intangible Investment Approach (December 2013). Oxford Bulletin of Economics and Statistics, Vol. 75, Issue 6, pp. 806-834, 2013. Available at SSRN: https://ssrn.com/abstract=2358221 or http://dx.doi.org/10.1111/j.1468-0084.2012.00718.x

Mariela Dal Borgo (Contact Author)

Bank of Mexico, Financial Stability Directorate ( email )

Av. 5 de Mayo 2
Mexico City, 06059
Mexico

Peter Goodridge

Imperial College Business School ( email )

South Kensington Campus
Exhibition Road
London SW7 2AZ, SW7 2AZ
United Kingdom

Jonathan E. Haskel

Imperial College Business School ( email )

South Kensington Campus
Exhibition Road
London SW7 2AZ, SW7 2AZ
United Kingdom

Annarosa Pesole

Imperial College Business School ( email )

South Kensington Campus
Exhibition Road
London SW7 2AZ, SW7 2AZ
United Kingdom

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