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Measurement of Intangible Investment by Industry and Economic Growth in Japan

Author

Listed:
  • Tsutomu Miyagawa

    (Gakushuin University and RIETI)

  • Shoichi Hisa

    (Yokohama City University)

Abstract

We measure intangible investment by industry in Japan based upon the JIP (Japan Industrial Productivity) database and other primary statistics. Expenditures on intangibles in Japan amounted to around 43 trillion yen, accounting for around 9% of GDP in the 2000s. The ratio of intangible investment to gross value added in the IT sector was higher than that in the non-IT sector. The total intangible capital stock in 2008 was worth 136 trillion yen, but the growth rate of intangible capital turned negative in some industries in the 2000s, as they underwent a drastic restructuring process. Growth accounting including intangible assets shows that intangible assets in the IT sector, which has led Japanese economic growth, are contributing to the growth of the economy. Our above results suggest that we should not unnecessarily cling to economic policy based on existing industry classifications, but draw up growth-promoting policies based upon new industry classifications.

Suggested Citation

  • Tsutomu Miyagawa & Shoichi Hisa, 2013. "Measurement of Intangible Investment by Industry and Economic Growth in Japan," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 9(2), pages 405-432, March.
    • Handle: RePEc:mof:journl:ppr021e
    as

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    References listed on IDEAS

    as
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    Cited by:

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    3. Alfredo M. Bobillo & J.A. Rodríguez‐Sanz & F. Tejerina‐Gaite, 2018. "Corporate governance drivers of firm innovation capacity," Review of International Economics, Wiley Blackwell, vol. 26(3), pages 721-741, August.
    4. Akiyuki Tonogi & Konomi Tonogi, 2017. "Measurement of R&D Investment by Firm and Multiple q: Analysis of Investment Behaviors by Capital Good at Listed Japanese Firms," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 13(2), pages 121-152, October.

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    More about this item

    Keywords

    intangible investment; TFP; IT sector; Solow residuals;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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