How Do Intangible Capital Stocks of Finland, Sweden, and Germany Compare?

Heli Koski, Mika Pajarinen and Petri Rouvinen

No 133, ETLA Brief from The Research Institute of the Finnish Economy

Abstract: Abstract Investment is an expenditure from which future returns are expected. The portion of past investments that retains potential for future returns is referred to as capital. If capital can be touched, it is tangible; otherwise, it is intangible. Brands and patents are examples of intangible capital. For decades, Finland has been making more investments in intangible rather than tangible productive assets. However, due to the different accumulation and obsolescence of the two capital types, Finland’s productive capital stock is still predominantly tangible. Finland and Germany are similar in terms of intangible capital. In contrast, Sweden invests significantly more in intangible capital than Finland and also utilizes these investments more efficiently. Finland’s intangible capital (per hour worked) is only two-thirds of that in Sweden. The capital related to software, databases, and data in Sweden is four times greater than in Finland.

Keywords: Intangible capital; Business investment; Labor productivity; National accounts (search for similar items in EconPapers)
JEL-codes: D24 E22 O30 O47 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2024-02-27
New Economics Papers: this item is included in nep-acc, nep-eec, nep-eff and nep-mac
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