Supporting Investment in Knowledge Capital, Growth and Innovation

Knowledge-based capital (KBC) results from business investment in non-physical assets such as R&D, data, software, patents, new business models, organizational processes, firm-specific skills and designs. This publication brings together the results of a two-year programme of work at the OECD on New Sources of Growth and the role of Knowledge-based Capital (NSG-KBC).

This work shows that business investment in KBC is a key to future productivity growth and living standards. In many countries, business investment in KBC has increased faster than - and in some countries significantly exceeds - investment in physical capital (like machinery).

To promote long-term growth and the jobs of tomorrow, governments must ensure that framework conditions, institutions and policies facilitate business investment in KBC. Emerging economies are also making concerted efforts to help their businesses accumulate KBC. This book sets out policy analyses and recommendations in the fields of: innovation; taxation; entrepreneurship and business development; corporate reporting; big data; competition and measurement.

Contents:

Abbreviations

Executive summary

Introduction and overview: Supporting investment in knowledge-based capital
- The rise of knowledge-based capital
- Policy analysis and conclusions
- References

Chapter 1. Knowledge-based capital, innovation and resource allocation
- The KBC-innovation-reallocation nexus
- Investment in KBC, reallocation and productivity growth
- The role of public policy
- Policy reform options for increasing KBC and innovation
- References

Chapter 2. Taxation and knowledge-based capital
- Policy context and project objectives
- Market failure and productivity arguments for tax relief for R&D
- Evidence and elements of cross-border tax planning
- Metrics and main findings from the QETR model
- References

Chapter 3. Competition policy and knowledge-based capital
- Competition and innovation
- Competition and intellectual property
- Competition policy in the digital economy
- Conclusions
- References

Chapter 4. Measuring knowledge-based capital
- The framework developed by Corrado, Hulten and Sichel
- Recent advances and the work of the OECD
- Investments in knowledge-based assets are important and growing
- Building on recent work to advance the KBC measurement agenda
- References

Chapter 5. Knowledge-based capital and upgrading in global value chains
- Deriving more value from GVCs: The upgrading of GVC activity
- How does KBC support upgrading in GVCs?
- An empirical analysis
- Policy considerations
- References

Chapter 6. Knowledge networks and markets
- Knowledge flows and open innovation strategies
- The role of knowledge networks and markets
- Markets for intellectual property rights
- Knowledge flows through mobile knowledge workers: Potential barriers
- Concluding remarks and measurement implications
- References

Chapter 7. Corporate reporting and knowledge-based capital
- Collection and management of IA information
- Disclosure of information on intangibles
- Uses of intangibles reporting
- Political economy of reform
- Policy options
- Annex 7.A1. Methods of measuring intangibles
- References

Chapter 8. Exploring data-driven innovation as a new source of growth: Mapping the policy issues raised by ‘big data’
- Understanding data and the drivers of their generation and use
- The increasing use and value of data across the economy
- Mapping the policy opportunities and challenges
- Conclusion

Website: OECD iLibrary http://www.oecd-ilibrary.org/

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