Productivity and Growth in UK Industries: An Intangible Investment Approach* |
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| Authors: | Mariela Dal Borgo Peter Goodridge Jonathan Haskel Annarosa Pesole |
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| Institution: | 1. Department of Economics, University of Warwick, Coventry CV4 7AL, UK (e‐mail: m.dal-borgo@warwick.ac.uk);2. Imperial College Business School, Imperial College London, South Kensington Campus, London SW7 2AZ, UK (e‐mails: j.haskel@imperial.ac.uk;3. p.goodridge10@imperial.ac.uk;4. a.pesole@imperial.ac.uk) |
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| 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%). |
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| Keywords: | O47 E22 E01 |
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