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Intangible Assets and their Contribution to Labour Productivity Growth in Ontario

Tatiana Muntean ()

International Productivity Monitor, 2014, vol. 27, 22-39

Abstract: Recent empirical studies confirm that the contribution of intangible capital investment to labour productivity growth is comparable to that of tangible capital investment for a wide range of countries, including the United States, the United Kingdom, Canada, Germany, and France. Following Corrado et al. (2005) and Baldwin et al. (2012), this article assesses business sector investment in intangible assets and analyses the contribution of intangible capital to business sector labour productivity growth at the provincial level in Canada, in particular in Ontario. The results of this growth accounting exercise demonstrate that intangible capital contributes significantly to labour productivity growth in Ontario. In 1998-2008 intangible capital contributed on average 26.2 per cent to labour productivity growth while tangible capital contributed 17.9 per cent and labour composition contributed 8.7 per cent. Innovative property contributed the most among all categories of intangible capital, followed by economic competencies and computerized information.

Keywords: Intangible Assets; Intangible Capital; Labour Productivity; Productivity Growth; Ontario (search for similar items in EconPapers)
JEL-codes: D24 J24 N92 O47 (search for similar items in EconPapers)
Date: 2014
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