Intangible Capital as a Source of Economic Growth and Productivity: A Literature Review and Policy Guidelines

Petri Rouvinen

No 148, ETLA Working Papers from The Research Institute of the Finnish Economy

Abstract: Abstract This review synthesizes the latest scholarly evidence on intangible capital. Drawing on 60 recent studies across macro, meso, and micro levels (anchored by firm-level data from Finland, broader Europe, the US, and Asia) it demonstrates that intangible investments have emerged as the preeminent engine of economic growth, competitiveness, and productivity. The literature yields three critical imperatives for public policy. First, the measurement and statistical tracking of intangibles require a fundamental overhaul; at present, a swath of these investments remains invisible in official data and absent from corporate balance sheets. Second, policymakers must broaden their horizons beyond narrow research and development (R&D) subsidies. Modern innovation policy must embrace the full spectrum of intangible assets – spanning software, data, organizational capital, management capabilities, and brand equity –, while capitalizing on the vital synergies between them. Third, the scalable nature of intangible capital demands a synchronized approach to competition policy, innovation strategy, and corporate finance. Authorities must strike a delicate balance: cultivating the incentives and finance necessary to fuel intangible investments, while simultaneously preventing harmful market concentration and fostering broad diffusion of knowledge.

Keywords: Intangible investments; Productivity; Innovation policy (search for similar items in EconPapers)
JEL-codes: D24 E22 G32 O34 O47 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2026-10-06
New Economics Papers: this item is included in nep-sbm
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.etla.fi/wp-content/uploads/ETLA-Working-Papers-148.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rif:wpaper:148

Ordering information: This working paper can be ordered from
https://www.etla.fi/ ... iivoja-politiikalle/

Access Statistics for this paper

More papers in ETLA Working Papers from The Research Institute of the Finnish Economy Contact information at EDIRC.
Bibliographic data for series maintained by Kaija Hyvönen-Rajecki ().