Welcoming Remarks at the 10th IMF Statistical Forum: Measuring the Tangible Benefits of Intangible Capital

IMF News, November 16, 2022

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Canonical URL: Welcoming Remarks at the 10th IMF Statistical Forum: Measuring the Tangible Benefits of Intangible Capital

Speaker: Kristalina Georgieva, Managing Director, IMF
Event: 10th IMF Statistical Forum
Title/theme: Measuring the Tangible Benefits of Intangible Capital
Date: November 16, 2022
Core message: Intangible capital (vaccine formulae, blockchain, data, artificial intelligence, etc.) is playing an increasingly important role in the economy and requires improved measurement to inform policy for sustainable growth and equality.

Intangible capital is HARD to measure; statisticians need to be BOLD!
Some intangible assets are partially measured (examples given):
- research and development
- software
Other intangible assets lack sufficient information in economic statistics:
- data
- organizational capital
- brands
Practical issue highlighted: the difference between company market capitalization and the value of tangible capital (buildings, machines, and equipment) is large, and much of that difference reflects intangible capital not captured on balance sheets or fully captured in economic data.

Intangible capital drives innovation across industries: software, Internet, online retail, pharmaceutical companies.
The shift from investing in tangible assets to intangible assets must be reflected in statistics to understand current growth drivers and its sustainability.
Example used to illustrate importance:
- mRNA COVID-19 vaccines were critical in helping pull the world economy out of one of the largest declines in output in recent memory.
- The rapid development of these vaccines leveraged decades of research and development.[1]
- Ensuring intangible assets, such as the COVID-19 vaccines (and the way they are shared between countries), is properly recorded in macroeconomic statistics is critical in understanding the drivers behind sustainable growth and equality.

Concern: Certain types of intangible capital and the income they generate may be concentrated in a small set of large firms.
Policy questions posed for investigation:
- How does growth in intangible capital impact the distribution of income?
- How does the increased use of artificial intelligence impact the labor market?
- Does intangible capital enhance economic mobility?
- Is there a way to design policies that help ensure economic growth driven by intangible capital is inclusive?
Research and improved measurement are necessary to increase the tangible benefits of intangible capital and to inform policies that promote sustainable economic growth and equality.

The Forum aims to motivate further improvement in statistics on intangible capital.
Anticipated outcomes:
- Better appreciation of challenges and opportunities in measuring intangible capital.
- Motivation for statisticians and policymakers to advance measurement and policy design.
Closing sentiment: hope that participants leave with fruitful discussions and that the Forum’s speakers will inspire further work and conclusions on measurement and policy.

Welcoming Remarks by Kristalina Georgieva, Managing Director, IMF — November 16, 2022