The impact of intangible assets on the productivity of manufacturing firms in Turkey

2016-4
Üçdoğruk Gürel, Yeşim
Kılıçaslan, Yılmaz
As the experiences of industrialized economies have shown, “intangible capital” such as R&D expenses, patents, copyrights, franchises or licenses, and trademarks, represents a key component of the knowledge of firms that are crucial to their performance. The aim of this paper is to investigate the impact of capital inputs on productivity in Turkish manufacturing industry. Using firm-level data from 2003 to 2012, we compare the impact of tangibles and intangibles, as well as different types of intangibles on productivity. Our findings based on the estimation of a Cobb-Douglas production function by using Generalized Methods of Moments (GMM) and a semi-parametric estimation method proposed by Olley and Pakes (1996) show that firms with increasing level of expenditure for intangible assets experienced an increase in their productivity. In addition, the effect of intangible assets on productivity is especially significant for computer software and patent capital.

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Citation Formats
Y. Üçdoğruk Gürel and Y. Kılıçaslan, “The impact of intangible assets on the productivity of manufacturing firms in Turkey,” ODTÜ Gelişme Dergisi, vol. 43, no. 1, pp. 191–227, 2016, Accessed: 00, 2020. [Online]. Available: http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/850.