Intangible capital and productivity divergence

Mouel, Marie Le; Schiersch, Alexander

doi:10.2139/ssrn.4073470

Cited by 1 publication

(2 citation statements)

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“…8 Additional information regarding the measurement of each of the four intangible assets, including the procedure for merging the organizational capital with the AFiD data, can be found in the Electronic Supplementary Material and in (Le Mouel and Schiersch, 2022). 9 Descriptive statistics of the production variables are provided in the Electronic Supplementary Material.…”

Section: Datamentioning

confidence: 99%

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Intangible capital and productivity divergence

Mouel

Schiersch

2023

Review of Income and Wealth

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Understanding the causes of the slowdown in aggregate productivity growth is key to maintaining the competitiveness of advanced economies and ensuring long‐term economic prosperity. This paper provides evidence that investment in intangible capital, despite having a positive effect on productivity at the micro level, is a driver of the weak productivity performance at the aggregate level as it amplifies the divergence between a group of “frontier” firms and the rest of the economy. Using firm‐level data, we find that the effect of intangible capital on productivity is heterogeneous across firms within industries. Documenting the existence of divergence in productivity growth between top intangible users and the rest of firms at the industry level, we find that industries where this gap is larger are also those industries where the heterogeneity in the effect of intangible capital is highest and where average productivity growth was lower. Thus, the evidence supports the view that the use of intangible capital plays a role in explaining weak aggregate productivity growth, by intensifying differences between firms.

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Section: Datamentioning

confidence: 99%

“…provide detailed discussions on these biases. These issues and their handling in the context of the present analysis are discussed in more detail in LeMouel and Schiersch (2022).© 2023 The Authors. Review of Income and Wealth published by John Wiley & Sons Ltd on behalf of International Association for Research in Income and Wealth.…”

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confidence: 99%

Intangible capital and productivity divergence

Mouel

Schiersch

2023

Review of Income and Wealth

View full text Add to dashboard Cite

show abstract

Intangible capital and productivity divergence

Cited by 1 publication

References 61 publications

Intangible capital and productivity divergence

Intangible capital and productivity divergence

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