VII. Conclusions
This article tried to combine a number of threads of recent work on the rise of the knowledge economy. First, analysis of ICT suggested that computers need complementary investment in organizations, human capital and reputation. Second, a growing perception that the knowledge economy is becoming increasingly important has led to the treating of software and R&D in the national accounts as investment. To study the questions that arise we have used the CHS framework, extended its measurement method somewhat using new data sets and a new micro survey, and implemented it on UK data for all intangibles in addition to R&D and software. We have documented intangible investment in the UK and tried to see how it contributes to economic growth. We find the following.
(i) Investmentinknowledge.
(a) Investment in knowledge, which we call intangible assets, is now greater than investment in tangible assets, at around, in 2008, £141bn and £104bn respectively, 16% and 12% of MSGVA, quantifying the UK move to a knowledge-based economy.
(b) In 2008, R&D was about 11% of total intangible investment, software 15%, design 17%, and the largest categories (22%) training and organizational capital. 60% of intangible investment is own account.