JM10 - Spain | Impact of the digitization boost and intangible assets on productivity

Summary

Digitization has boosted productivity but the impact has been heterogeneous by country. Those with more intangible assets exhibit more sustainable growth. Spain should take advantage of the digital impulse and the NGEU funds to increase the capital in intangibles and to improve productivity levels.

Key points

• Key points:
• In a group of developed countries analyzed by the IMF, the impact of intangible assets on productivity is significant and greater than the one of tangible assets, estimating an increase in productivity of 4.5% given an increase of 10% of intangible assets.
• Nonetheless, this relationship is less significant in Spain, estimating an increase in productivity of around 1%.
• However, in recent years, the impact of intangible assets on productivity has been positive and increasing, although still far from the ones in countries as France and Germany.
• The regional heterogeneity of intangible assets is high. Madrid and Catalonia invest the most, standing out in terms of productivity, while La Rioja and Cantabria are on the opposite side.
• By sector, heterogeneity is also high. Services gathers almost 75% of the investment in intangibles and Industry 25%, with Real Estate Activities standing out in terms of productivity within the Services.

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