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Brands As Productive Assets: Concepts, Measurement, and Global Trends

Author

Listed:
  • Carol A. Corrado

    (The Conference Board, New York, United States of America)

  • Janet X. Hao

    (The Conference Board, New York, United States of America)

Abstract

The paper looks at brands from an economic point of view. First, we define concepts and set out this approach. Second, we analyze the conditions under which brands are long-lived productive assets and contribute to economic growth. Third, we review and improve the measurement of investment in brands. We find that a productive role for brands is consistent with assumptions used in the economic analysis of innovation. Productivity decompositions using the intangibles framework support brand as a contributor to economic growth. We then develop (1) a new U.S. series for brand investment to cover all marketing, including 'in-house' investment, and (2) a harmonized global indicator of brand investment covering 63 countries. We find that brand investment held up relatively well in the U.S. during the Great Recession and its aftermath whereas measures based mainly on purchased advertising services send a different signal. Finally we offer an analysis of economic development that suggests branding rises with growth and provide econometric evidence showing a significant positive relationship between the rate of brand investment and level of economic development.

Suggested Citation

  • Carol A. Corrado & Janet X. Hao, 2014. "Brands As Productive Assets: Concepts, Measurement, and Global Trends," WIPO Economic Research Working Papers 13, World Intellectual Property Organization - Economics and Statistics Division.
    • Handle: RePEc:wip:wpaper:13
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    References listed on IDEAS

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    Cited by:

    1. Jona-Lasinio, Cecilia & Manzocchi, Stefano & Meliciani, Valentina, 2019. "Knowledge based capital and value creation in global supply chains," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    2. Qiuqin He & Agustín Carrilero-Castillo & Joaquin Gonzalez-Garcia, 2022. "Do CEO characteristics influence a firm’s investment in brand equity? Evidence from Chinese listed firms," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 73-87, March.
    3. Leo Sveikauskas & Rachel Soloveichik & Corby Garner & Peter B. Meyer & James Bessen & Mathew Russell, 2023. "Marketing, Other Intangibles, and Output Growth in 61 United States Industries," BEA Papers 0122, Bureau of Economic Analysis.

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    Keywords

    Brands and brand equity; intangible investment; innovation; economic growth and development; national accounts and economic measurement.;
    All these keywords.

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