The INNODRIVE project was active from 2008 to 2011 and was funded by the European Commission's Seventh Framework Programme under the Socio-economic Sciences & Humanities theme (Grant Agreement no: 214576). This web page reflects the background and objectives of the project when it started.
Why Intangibles matter?
The importance of intellectual assets in generating innovation, and thus in promoting economic growth and competitiveness in the EU, is widely recognised. As evidence to this is the significance attached to R&D and innovation in the Lisbon Process. Yet, given its tacit nature, our knowledge of the contribution of intangible capital (a significant component of intellectual assets) to economic performance is far from comprehensive.
While firms undoubtedly are at the centre of innovation and productivity growth, their activities are hard to analyse empirically. Furthermore, at the macro-level the national accounts data on capital formation focus primarily on fixed investment and have only recently attempted to measure investment in intangibles such as software, human capital, artistic creations and the value of intellectual property rights.
The aim of this research project is to improve our understanding by providing new data on intangible capital and new evidence on the contributions of intangible capital to economic growth. This study will improve measurement of the capital embodied in intellectual assets (e.g. human capital, R&D, patents, software and organisational structures) and will uncover the growth potential associated with intangible capital accumulation in manufacturing, service industries and the rest of the economy.
At the micro-level INNODRIVE will improve insight into the contributions of intangibles to the growth of firms by exploiting recently established linked employer-employee datasets in a selection of old and new member states, and by implementing a performance-based methodology to analyse how firms use knowledge and human capital to increase their productivity and how mobile workers react to these processes.
At the macro-level INNODRIVE will provide new estimates of intangible capital at the national level and an evaluation of the contribution of intangible capital to the growth process in old and new member states (and the United States for the purposes of comparison)