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We See Data Everywhere Except in the Productivity Statistics

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  • Peter Goodridge
  • Jonathan Haskel
  • Harald Edquist

Abstract

This paper uses Labor Force Survey data for European countries to estimate national investment in data assets, where the asset boundary is extended beyond that for software and databases as currently defined in the System of National Accounts. We find that: (a) in 2011–2018, 1.4 percent of EU‐28 employment was engaged in the formation of (software and) data assets, with a mean growth rate of 5 percent per annum; (b) on average in 2011–2016, expanding the asset boundary raises the level of own‐account GFCF in software and databases in the EU‐16 by 61 percent, and mean growth in real investment in own‐account software and data assets to 6.9 percent pa, compared to 2.7 percent pa in national accounts; (c) in 2011–2016, expansion of the asset boundary raises labor productivity growth in the EU‐13 from 0.79 percent to 0.83 percent pa, and the contribution of software and data capital deepening over three‐fold, from 0.03 percent to 0.10 percent pa.

Suggested Citation

  • Peter Goodridge & Jonathan Haskel & Harald Edquist, 2022. "We See Data Everywhere Except in the Productivity Statistics," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(4), pages 862-894, December.
    • Handle: RePEc:bla:revinw:v:68:y:2022:i:4:p:862-894
    DOI: 10.1111/roiw.12542
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    References listed on IDEAS

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    1. Goodridge, PR & Haskel, J, 2015. "How does big data affect GDP? Theory and evidence for the UK," Working Papers 25156, Imperial College, London, Imperial College Business School.
    2. Kyoji Fukao & Tsutomu Miyagawa & Kentaro Mukai & Yukio Shinoda & Konomi Tonogi, 2009. "Intangible Investment In Japan: Measurement And Contribution To Economic Growth," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(3), pages 717-736, September.
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    6. Goodridge, PR & Chebli, O & Haskel, J, 2015. "Measuring activity in big data: New estimates of big data employment in the UK market sector," Working Papers 25158, Imperial College, London, Imperial College Business School.
    7. Carol Corrado & John Haltiwanger & Daniel Sichel, 2005. "Measuring Capital in the New Economy," NBER Books, National Bureau of Economic Research, Inc, number corr05-1, June.
    8. Goodridge, PR & Haskel, J, 2015. "How much is UK business investing in big data?," Working Papers 25159, Imperial College, London, Imperial College Business School.
    9. Goodridge, PR, 2014. "UK Innovation Index 2014," Working Papers 19156, Imperial College, London, Imperial College Business School.
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    Cited by:

    1. Peter Goodridge & Jonathan Haskel, 2023. "Accounting for the slowdown in UK innovation and productivity," Economica, London School of Economics and Political Science, vol. 90(359), pages 780-812, July.
    2. Koski, Heli & Fornaro, Paolo, 2024. "Digitalization and Resilience: Data Assets and Firm Productivity Growth During the COVID-19 Pandemic," ETLA Working Papers 113, The Research Institute of the Finnish Economy.
    3. Josh Martin & Rebecca Riley, 2023. "Productivity measurement - Reassessing the production function from micro to macro," Working Papers 033, The Productivity Institute.

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