(i) knowledge development and implementation is not costless, and
(ii) R&D is not the only knowledge investment.
To do this, this article implements the framework set out in the widely-cited articles by Corrado, Hulten and Sichel (2005; henceforth, CHS), and first applied in a UK setting in Giorgio Marrano, Haskel and Wallis (2009). Whilst CHS builds upon the methods of capitalising tangible assets, and intangible assets such as software which are now capitalised in national accounts, it was the first article to broaden the approach to a fuller range of intangible or knowledge assets. Thus it fits with the range of innovation investments mentioned above.