Intangible capital, TFP growth and green shoots in new productivity data
File(s)
Published version
Author(s)
Type
Journal Article
Abstract
This article undertakes a comparative analysis of recent productivity growth in European economies, Japan, the United Kingdom, and the United States using the EU KLEMS
& INTANProd database. The influence of intangible capital on productivity growth and insights from combining long historical time series for TFP with the current estimates
in EU KLEMS & INTANProd are central features of our analysis. Our comparative analysis of growth decompositions before and after the productivity slowdown suggests that productivity growth in the 2014-2019 period in advanced economies has been relatively strong, consistent with a slew of the newer digital technologies (cloud, big data, AI) gaining wider use. Recent research finds that mechanisms governing knowledge diffusion are weaker
recently than in the past—implying that advanced economies are not experiencing their full potential for productivity growth. Unless policies or voluntary industry actions create new platforms for technology extension and data sharing (e.g., open banking policies), the potential for spillovers to amplify intangible-investment induced innovations will be less strong than they have been in the past.
& INTANProd database. The influence of intangible capital on productivity growth and insights from combining long historical time series for TFP with the current estimates
in EU KLEMS & INTANProd are central features of our analysis. Our comparative analysis of growth decompositions before and after the productivity slowdown suggests that productivity growth in the 2014-2019 period in advanced economies has been relatively strong, consistent with a slew of the newer digital technologies (cloud, big data, AI) gaining wider use. Recent research finds that mechanisms governing knowledge diffusion are weaker
recently than in the past—implying that advanced economies are not experiencing their full potential for productivity growth. Unless policies or voluntary industry actions create new platforms for technology extension and data sharing (e.g., open banking policies), the potential for spillovers to amplify intangible-investment induced innovations will be less strong than they have been in the past.
Date Issued
2024-03-01
Date Acceptance
2024-03-01
Citation
International Productivity Monitor, 2024, 46 (Spring), pp.3-37
ISSN
1492-9759
Publisher
Centre for the Study of Living Standards
Start Page
3
End Page
37
Journal / Book Title
International Productivity Monitor
Volume
46
Issue
Spring
Copyright Statement
© 2024 The Author(s). This work is licensed under a Creative Commons Attribution 4.0 International License.
License URL
Subjects
Business & Economics
Economics
INVESTMENT
Social Sciences
TECHNOLOGY
Publication Status
Published