Total Factor Productivity and Intangible Capital in Different Levels of Technology: A Case Study of Iranian Manufacturing Industries

Abstract

This article tries to examine intangible investment in different levels of Iranian industrial technology by using a comprehensive measure of intangible capital costs in Iran. Previous studies in the study of intangible capital on total factor productivity (TFP), show that intangible investment has a positive and significant effect on this variable in Iran's manufacturing industry with a four-digit ISIC code. Also among the components, Information and Communication Technology (ICT) has a more prominent role on the TFP variable. This study examines all the factors (which play a role in measuring intangible investment) on the growth of TFP at different levels of technology (which are divided into four categories).Unlike previous studies, for all industries, apart from technology levels, ICT is very effective and other components are ignored,the results of this study show that other factors affect intangible investment except ICT in high-tech and medium / high industries have higher impact on TFP than ICT and vice versa. It is also suggested to achieve the highest optimal level of TFP, by separating different levels of technology, to focus on components such as research and development, brand, educational services, etc. for high levels and ICT factor for low levels.