The Impact of Non-R&D Intangible Capital on TFP Growth: Evidence from Multi-country Industry Level Data

Compared R&D capital, the role of non-R&D intangible capital in TFP growth is under-researched. This study seeks to address this gap. The econometric analysis of industrial level data for 13 developed countries over the period of 1995-2010 shows that the growth of non-R&D intangible capital has a positive effect on TFP growth of a country. Further analysis finds that similar to R&D capital, non-R&D intangible capital also generates spillovers across industries and countries that drive TFP growth. It also shows that R&D and ICT intangible capital enhance the effect of non-R&D intangible capital. These findings extend the burgeoning literature on the role of non-R&D intangible capital in TFP growth and carry important policy implications.