In the United States and other advanced economies, the share of intangible assets (such as software, data, intellectual property or a firm’s brand) in the total capital stock has risen relative to physical assets (such as plants and equipment), boosting productivity growth. In South Africa, the share of intangible capital remains at the same level it was in 2005. This raises questions around not only around the measurement of intangible assets in South Africa but also around what might explain why intangible investment is not growing as fast as in major economies.
