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An International perspective on the productivity paradox – by Alain ...

An International perspective on the productivity paradox – by Alain ...

Outline of

Outline of presentation• Nature of the productivity paradox• The direct contribution of physical and human capital• The role of knowledge-based capital and its growingimportance as a source of productivity• The role of geographic distance and its impact through internationaltrade• Summing-up12

Investment intensity, percentage of value addedong>Anong> important factor missing from the basic Solowframework: Knowledge-based capitalInvestments in tangible and intangible capital as percentage of business sector value-added30%25%20%15%10%5%0%Tangible capital Computerised information Innovative Property Economic CompetenciesInvestment in KBC (a.k.a intangible assets) is becoming increasinglyimportant13

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