Working Paper: NBER ID: w24363
Authors: Nathan Chappell; Adam B. Jaffe
Abstract: We combine survey and administrative data for about 13,000 New Zealand firms from 2005 to 2013 to study intangible investment and firm performance. We find that firm size and moderate competition is associated with higher intangible investment, while firm age is associated with lower intangible investment. Examining firm performance, we find that higher investment is associated with higher labour and capital input, higher revenue, and higher firm-reported employee and customer satisfaction, but not with higher productivity or profitability. The evidence suggests that intangible investment is associated with growth and 'soft' performance objectives, but not with productivity or profitability.
Keywords: Intangible Investment; Firm Performance; Productivity; New Zealand
JEL Codes: D22; D24; L21
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| firm size (L25) | intangible investment (E22) |
| competition (L13) | intangible investment (E22) |
| firm age (L10) | intangible investment (E22) |
| intangible investment (E22) | labor inputs (J24) |
| intangible investment (E22) | capital inputs (E22) |
| intangible investment (E22) | revenues (H27) |
| intangible investment (E22) | employee satisfaction (J28) |
| intangible investment (E22) | customer satisfaction (L15) |
| intangible investment (E22) | productivity (O49) |
| intangible investment (E22) | profitability (L21) |