Determinants of intangible capital investment in Vietnam: A firm‐level analysis

Intangible capital is an important growth driver in the modern knowledge‐based and innovation‐driven economy. While there seems to be sufficient support for the role of intangible capital from developed economies, evidence from fast‐growing developing countries is much more limited. This paper explo...

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Bibliographic Details
Published inWorld economy Vol. 47; no. 3; pp. 1055 - 1088
Main Authors Li, Qing, Vo, Long Hai
Format Journal Article
LanguageEnglish
Published Oxford Blackwell Publishing Ltd 01.03.2024
Subjects
Capital investments
Communications technology
Competition
Developing countries
Economic analysis
Human capital
Information technology
innovation
Innovations
intangible capital investment
Investments
LDCs
Markets
Vietnamese firms
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Summary:Intangible capital is an important growth driver in the modern knowledge‐based and innovation‐driven economy. While there seems to be sufficient support for the role of intangible capital from developed economies, evidence from fast‐growing developing countries is much more limited. This paper explores the heterogeneous pattern and potential determinants of firm‐level intangible capital investment in Vietnam. We found that firm size, human capital, and information and communication technology increase the likelihood to invest in intangible capital. Additionally, an inverted‐U shaped relation is identified between market competition and intangible capital investment: Moderate levels of market competition induce firms in Vietnam to invest more in innovative activities, but the effect of stronger competition diminishes.
ISSN:0378-5920
1467-9701
DOI:10.1111/twec.13471