Intangible Capital and Firm Productivity: A Study of Indian Corporate Sector Firms

摘要

An estimate of intangible capital stock is made for a sample of about 3,200 Indian corporate firms for 2012-2013, based on investments made by the firms in various intangible assets during the previous 10 years. For manufacturing and services firms of the sample, three alternate specifications of a production function are estimated in which intangible capital is taken as an input. This analysis clearly reveals that intangible capital has a significant positive impact on productivity of manufacturing and services firms in India. The rate of return to intangible capital is found to be much higher than that to tangible capital.