Chapter 16 - Intangible capital, innovation, and productivity àla Jorgenson evidence from Europe and the United States

Abstract

This chapter focuses on intangible capital as source of economic growth in Europe and the United States. It (1) sets out a Jorgenson-like model for thinking about the role of knowledge investments and innovation in fostering economic growth; (2) uses standard growth accounting decompositions to illustrate the empirical relevance of intangible capital deepening as a source of growth, and (3) considers how knowledge spillovers from investments in both R&D and non-R&D intangible assets might contribute to productivity.