Transcript Slide 1
COINVEST
:
Competitiveness, Innovation and Intangible Investment in Europe
28 th Brussels 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
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 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 Economic competencies (1) Brand Equity (2) Firm-specific human capital (3) Organisational structure Both treated as investment Only (2) and (3) treated as investment None of these treated as investment
1,4 Ratio Intangible/tangible investment France Germany Portugal 1,2 1 0,8 0,6 0,4 0,2 0 Sweden United Kingdom
14 Share of investment on GDP, 2006 Intangible Investment 12 10 8 6 4 2 0 Sweden United Kingdom France Tangible Investment Portugal Germany
10 5 0
% of GDP
25 20 15 Computerised information Economic competencies Innovative property Tangible investment France Germany Portugal Sweden United Kingdom Bulgaria
10 5 0 30 25 20 15 Tangible investment intangible Investment France Germany Portugal Sweden United Kingdom
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)