Data The dataset used for this analysis provides information on - - PowerPoint PPT Presentation

▶
data the dataset used for this analysis provides
SMART_READER_LITE
LIVE PREVIEW

Data The dataset used for this analysis provides information on - - PowerPoint PPT Presentation

Jul 26, 2023 17 likes •109 views

Regional patterns of intangible capital, agglomeration effects and localised spillovers in Germany Kurt Geppert INNODRIVE Brussels workshop February 22-23, 2011 Data The dataset used for this analysis provides information on

slide-1
SLIDE 1

Regional patterns of intangible capital, agglomeration effects and localised spillovers in Germany

Kurt Geppert INNODRIVE Brussels workshop February 22-23, 2011

slide-2
SLIDE 2

Data The dataset used for this analysis provides information on …

… establishments, not firms … self-produced intangible assets calculated on the basis of expenditures … the period from 1999 to 2003

INNODRIVE Brussels workshop February 22-23, 2011

slide-3
SLIDE 3

Steps of the analysis Distribution of self-produced intangible capital across …

… establishments … industries … regions

Intangible capital and the wage level of establishments – micro data analysis Conclusions

INNODRIVE Brussels workshop February 22-23, 2011

slide-4
SLIDE 4

Establishments

INNODRIVE Brussels workshop February 22-23, 2011

5 10 15 20 25

1-9 10-49 50-99 >=100

Sizeclass (employees)

Share of intangible capital in total capital by establishment size

slide-5
SLIDE 5

Industries

INNODRIVE Brussels workshop February 22-23, 2011

5 10 15 20 25 Production Transport and business services Trade and consumer services

Intangible capital per hour worked

Euros

0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 % Production Transport and business services Trade and consumer services

Components of intangible capital

  • Org. capital

R&D capital ICT capital

slide-6
SLIDE 6

Regions

INNODRIVE Brussels workshop February 22-23, 2011

Shares of regions in national intangible capital 2003 Intangible capital per hour worked 2003

slide-7
SLIDE 7

Regions

INNODRIVE Brussels workshop February 22-23, 2011

R² = 0.8012 25 27 29 31 33 35 37 39 41 43 45 5 10 15 20 25 Value added per hour worked 2003 Intangible capital intensity 2003

Regional value added per hour worked 2003

Hamburg Frankfurt R² = 0.2319

  • 10
  • 5

5 10 15 20 25 30 35 5 10 15 20 25 Growth of value added 1999 - 2003 in % Intangible capital intensity 1999

Growth of regional value added 1999 - 2003

slide-8
SLIDE 8

Intangible capital and the wage level of establishments

INNODRIVE Brussels workshop February 22-23, 2011

Dependent variable: log average hourly wage of establishments. Period of observation: 1999-2003 OLS Fixed effects Random effects All employees Non- intangible employees All employees (1) (2) (3) (4) (5) Establishment variables Employment 0.0108*** 0.0116*** 0.0141***

  • 0.0046***

0.0053*** Intangible capital intensity 0.0103*** 0.0103*** 0.0097*** 0.0015** 0.0087*** Tangible capital intensity 0.0594*** 0.0566*** 0.0583*** 0.0149*** 0.0187*** Economic environment Own-industry: Number of Establishments 0.0064*** 0.0064*** 0.0003 0.0021*** Intangible capital intensity 0.0013*** 0.0012*** 0.0000 0.0004* Rest of regional economy: Industrial diversity 0.0267*** 0.0268***

  • 0.0021

0.0067*** Intangible capital intensity 0.0833*** 0.0828***

  • 0.0180***

0.0197*** Settlement type: Large Metro 0.1190*** Small Metro 0.0335*** Intermediate region 0.0234*** East dummy

  • 0.226***
  • 0.180***
  • 0.182***
  • 0.201***

Constant 2.394*** 2.127*** 2.111*** 3.023*** 2.498*** N 150471 150471 149779 150471 150471 R-squared 0.684 0.683 0.660 0.459 0.662 Number of establishments 41156 41156 *** p<0.01, ** p<0.05, * p<0.1 (robust standard errors); variables in logarithms; 3-digit industry dummies.

slide-9
SLIDE 9

Conclusions

  • Intangible capital accounts for more than 20 % of total capital in the non-farm

private economy

  • R&D capital is the largest component of intangible capital – at least in

Germany

  • Intangible capital is positively related to the economic performance of regions
  • Self-produced intangible capital of establishments has a positive effect on

productivity and wages – both for “intangible” and “non-intangible” workers

  • There are sizable externalities of agglomeration: establishments in large metro

areas pay 12 % more than those in rural regions

  • Externalities across industries (urbanisation effects) appear to be more

important than externalities within industries (localisation effects)

  • With our dataset we can not satisfyingly tackle estimation problems resulting

from spatial selection, unobserved characteristics and endogeneity …

  • … but our findings indicate that there are significant positive relationships

between intangible capital, productivity of establishments, and regional economic performance – and that intra-regional externalities play a role in these processes

INNODRIVE Brussels workshop February 22-23, 2011