National accounting for intangible assets in the knowledge economy

Abstract

Purpose

The purpose of this paper is to review the issues, difficulties, importance for public policy and current initiatives associated with developing a more comprehensive national accounting framework in relation to public and private sector investments in intangible assets.

Design/methodology/approach

The paper analyses and evaluates the most salient statistics on intangible asset investments and the implications for public and private sector policy makers.

Findings

The UK economy has a high representation of firms and activities that invest in intangible assets that are not traditionally included in national accounts and that their exclusion has a significant impact on the UK's apparent growth and productivity performance.

Originality/value

The paper discusses a range of measurement and other difficulties in significantly developing a comprehensive national accounting framework that fully incorporates the impact of intangible asset investments upon national growth and productivity metrics.

Citation

Clacher, I. (2010), "National accounting for intangible assets in the knowledge economy", Journal of Financial Regulation and Compliance, Vol. 18 No. 2, pp. 106-119. https://doi.org/10.1108/13581981011033970