Intangible capital, innovation, and productivity à la Jorgenson evidence from Europe and the United States

This chapter focuses on intangible capital as source of economic growth in Europe and the United States. It (1) sets out a Jorgenson-like model for thinking about the role of knowledge investments and innovation in fostering economic growth; (2) uses standard growth accounting decompositions to illustrate the empirical relevance of intangible capital deepening as a source of growth, and (3) considers how knowledge spillovers from investments in both R&D and non-R&D intangible assets might contribute to productivity.