Part of the Supplemental Materials for INNOVATION AND U.S. COMPETITIVENESS The Conference Board report #R-1441-09-RR About the Report: The Conference Board has recently undertaken a project on innovation and competitiveness, with funding from Microsoft Corporation. The goal of the project is to...

Intangible Capital and the “Market to Book Value” Puzzle

We model the production and use of knowledge investment and show how the model can be used to infer the unknown price of knowledge using two approaches. The first is often used by national accounting offices and is based on costs in the knowledge-producing sector. We show this implicitly assumes...

An earlier version of this paper was presented at a seminar on "Measurement of capital: beyond the traditional measures" at Conference of European Statisticians, 12 June 2007, Geneva; and at a conference on “Productivity and Innovation” organized by Statistics Sweden, October 24–25 2007,...