IDEAS home Printed from https://ideas.repec.org/p/rif/briefs/134.html
   My bibliography  Save this paper

The Key to Finland’s Future Growth: Understanding Intangible Capital as a Whole

Author

Listed:
  • Koski, Heli
  • Pajarinen, Mika
  • Rouvinen, Petri

Abstract

In this brief, we discuss characteristics and consequences of intangible capital, such as brands and patents. The characteristics of intangible capital lead to a tendency for markets to concentrate, to growing disparities between good and bad companies, and to an increasing significance of management and growth entrepreneurship. On an individual level, the increasing importance of intangible capital may result in a rise in inequality. Intangible factors of production are closely related to people and to their flexible utilization in the workplace. Therefore, light regulation of labor and end markets encourages investment in intangible capital. Finland is currently aiming for ”one thousand new doctors” and has also other quantitative goals for developing the national innovation system. While quantitative targets may be necessary, it is important to note that, although intangible capital is scalable from the perspective of its utilization, scaling it itself is challenging in a leap-like manner. Additionally, the characteristics of intangible capital highlight the importance of its quality and context of use. At the very least, this means that competion and creative destruction among businesses as well as growth entrepreneurship are equally worthy topics upon thinking how to develop the national innovation system.

Suggested Citation

  • Koski, Heli & Pajarinen, Mika & Rouvinen, Petri, 2024. "The Key to Finland’s Future Growth: Understanding Intangible Capital as a Whole," ETLA Brief 134, The Research Institute of the Finnish Economy.
  • Handle: RePEc:rif:briefs:134
    as

    Download full text from publisher

    File URL: https://www.etla.fi/wp-content/uploads/ETLA-Muistio-Brief-134.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Intangible capital; Business investment; Societal policy;
    All these keywords.

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rif:briefs:134. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kaija Hyvönen-Rajecki (email available below). General contact details of provider: https://edirc.repec.org/data/etlaafi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.