Premium
Impact of Intangible Capital on Productivity and Growth: Lessons from the Indian Information Technology Software Industry *
Author(s) -
DE SUPRIYO,
DUTTA DILIP
Publication year - 2007
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.2007.00406.x
Subject(s) - productivity , capital (architecture) , human capital , panel data , production (economics) , industrial organization , economics , function (biology) , production function , business , factors of production , microeconomics , macroeconomics , econometrics , market economy , archaeology , evolutionary biology , biology , history
This paper examines the impact of intangible capital, including human capital and organisational capabilities on productivity, using India as an illustrative example. The research breaks new ground in creating measures of intangible capital at a micro level. Measures of tangible and intangible capital are used to estimate a ‘new economy’ production function with panel data. Generalised method of moments techniques are used to account for unobserved firm heterogeneity and endogenous explanatory variables. The results indicate that intangible assets have a major impact on software sector output. This has important implications for public policy and corporate strategy towards the information technology industry, including for Australia.