In a nutshell, the article finds ative analysis of the productivity perfor- the oft-quoted magnitudes for the produc- mance of European economies, Japan, the tivity slowdown in the United Kingdom United Kingdom and the United States. [...] We find that the productivity slowdowns in In the standard neoclassical production the United Kingdom and the United States framework, changes in real output are prox- are exaggerated when measured using data imately determined by changes in factor in- starting in 1995 and that TFP growth in puts and changes in TFP, with the latter the United Kingdom, United States and attributed to structural (ex. [...] As before, how- duction boundary for intangibles in the an- ever, the trends for the rise in the invest- alytical module of EU KLEMS & INTAN- ment rates for intangibles in the United Prod versus that in national accounts, i.e., States is sharper and the trends for the the effect of adding the intangibles listed United Kingdom, United States and EU on lines 6 through 10 of Table 1 to those North ar. [...] The discussion below focuses primarily it faster or slower than existing real GDP? on the interpreting the productivity perfor- The side-by-side bars of Chart 3 compare mance of the advanced economies included labour productivity growth after capitaliz- in the EU KLEMS & INTANProd dataset ing all intangibles with labour productivity in the 12 years since the onset of the global growth based on off. [...] The “period of slower growth” contribution of intangible capital deepen- typically includes the years since the on- ing was maintained in the entire post-GFC set of the GFC in 2007, which as a cyclical period (except for the slowing in Japan be- event ended in 2009, so sometimes the pe- tween 2008-2013 and 2014-2019).
- Pages
- 35
- Published in
- United Kingdom
Table of Contents
- Filippo Bontadini LUISS University 1
- Carol Corrado 1
- Georgetown University 1
- Jonathan Haskel Imperial College Business School 1
- Massimiliano Iommi 1
- ISTAT 1
- Cecilia Jona-Lasinio LUISS Business School 1
- Tsutomu Miyagawa 1
- Gakushuin University 1
- Conceptual Framework 3
- Model of an Economy with Intangi- ble Capital 4
- GDP and Labour Productivity with Intangible Capital 6
- Growth Accounting with Intangible Capital 7
- The EU KLEMS INTANProd dataset 9
- Intangible Investment Categories Asset Types and Methods 9
- The Structure of the Database 11
- Descriptive Results Intangible and Tangible Investment 12
- Expansion of Intangibles Impacts on the Level and Growth of Labour Pro- ductivity 16
- Growth Accounting 18
- Labour Productivity Growth Decom- positions 18
- Basic Takeaways 19
- The TFP Slowdown Relative to Trend Growth at the Frontier 22
- A Long-Term Perspective on the TFP Trend Growth 22
- The TFP Slowdown and Recent Growth Redux 24
- Innovation and TFP 26
- Reduced Commercial Knowledge Spillovers 28
- Summary and Conclusions 31
- References 33
