How Much Does the UK Invest in Intangible Assets?

29 Pages Posted: 22 May 2008

See all articles by Jonathan Haskel

Jonathan Haskel

Imperial College Business School; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Mauro Giorgio Marrano

Queen Mary, University of London

Date Written: May 2007

Abstract

We attempt to replicate for the UK the Corrado, Hulten and Sichel (2005, 2006) work on spending on intangible assets in the US. Their work suggests private sector expenditure (investment) on intangibles is about 13% (11%) of US GDP 1998-2000, with intangible investment about equal to tangible capital investment. Our work, using a similar method, suggests the UK private sector spent, in 2004, about £127bn on intangibles, which is about 11% of UK GDP. The implied investment figure is around £116bn (10% of GDP) which is about equal to UK investment in tangible assets. Of the £127bn expenditure, (in round numbers) about 15% is spent on software, about 10% on scientific R&D, almost 20% on non-scientific R&D (design, product development etc.), about 14% on branding, about 20% on training and the rest on organisational capital.

Keywords: intangible assets, investment, organisational capital, R&D, training

JEL Classification: E1, E22, O47

Suggested Citation

Haskel, Jonathan and Giorgio Marrano, Mauro, How Much Does the UK Invest in Intangible Assets? (May 2007). CEPR Discussion Paper No. DP6287, Available at SSRN: https://ssrn.com/abstract=1136026

Jonathan Haskel

Imperial College Business School ( email )

South Kensington Campus
Exhibition Road
London SW7 2AZ, SW7 2AZ
United Kingdom
020 7594 8563 (Phone)
020 7594 5915 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Mauro Giorgio Marrano (Contact Author)

Queen Mary, University of London

Mile End Road
London, London E1 4NS
United Kingdom

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