Knowledge spillovers, ICT and productivity growth

This paper looks at the channels through which intangible assets affect productivity. The econometric analysis exploits a new dataset on intangible investment (INTAN-Invest) in conjunction with EUKLEMS productivity estimates for 10 EU member states from 1998 to 2007. We find that (a) the output elasticity of intangible capital depends upon ICT inten- sity, consistent with complementarities between ICT and intangible capital; (b) non-R&D intangible capital has higher estimated output elasticities than its factor shares, as does (c) labour quality. The last two findings are consistent with spillovers from investments in knowledge-based/intangible capital and skills