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Such intangible investment is pretty hard to measure.
Intangible investment is often hard to identify, let alone value.
Capitalising intangible investment increases capital's slice and reduces labour's, with a particularly sharp drop after 1980.
Foreigners may have been funding intangible investment in the roaring 1990s, but not since.
Furthermore, intangible investment has been increasing faster than the rest of business output (see chart).
ICT, Intangible Investment and Britain's Productivity Record Revisited", by Jonathan Haskel, Mauro Giorgio Marrano and Gavin Wallis.
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In the 1950s the inclusion of intangible investments would have raised GDP by 5%.
They are especially bad at picking up firms' "intangible" investments, such as building brands or training staff.
(The Entrepreneurial State acknowledges the importance of intangible investments beyond R&D on elsewhere, but this is not prominent in its discussion of Apple).
So just measuring physical kit and R&D gives only an incomplete picture.Starting in the last decade, macroeconomists and statisticians have made a concerted effort to understand the scale of these intangible investments.
Over the last decade, researchers have gradually reached a surprising conclusion: when you take into account intangible investments, such as software development, product design and training, British businesses aren't investment laggards after all.Let's first of all consider the case against UK plc.
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