Annarosa Pesole, Imperial College London COINVEST: Competitiveness, Innovation and Intangible Investment in Europe Brussels 28th January 2010 Annarosa Pesole, Imperial College London Project funded by the European Commission under the Seventh Framework Programme Grant No 217512 www.coinvest.org
Two big questions Activity Effect of that activity Can we better measure new economy/knowledge economy/innovation activity? Effect of that activity What are the effects of this activity on output, productivity, employment etc.
Type of intangible investment Includes the following intangibles Current treatment in National Accounts Computerised information (1) Computer software (2) Computer databases Both treated as investment Innovative property (1) Scientific R&D (2) Mineral exploration (3) Copyright and license costs (4) New product development costs in the financial industry (5) New architectural and engineering designs (6) R&D in social science and humanities Only (2) and (3) treated as investment Economic competencies (1) Brand Equity (2) Firm-specific human capital (3) Organisational structure None of these treated as investment
Ratio Intangible/tangible investment
Share of investment on GDP, 2006
Intangible assets contribution to labour productivity growth: UK: 0.7 pp over the period 1995-2006 MHW(2009) France: 0.5 pp over the period 1995-2006 HMV(2008) Germany: 0.4 pp over the period 1995-2006 HMV(2008)