Intangible Capital Investment and Economic Growth

This book explores the concept of “Science for REdesigning Science, Technology and Innovation Policy (SciREX)” as those policies are conducted in a scientific manner. It is the first attempt to measure the effects of science and technology policies and as well as industrial policies on total factor productivity (TFP). The evolution of science and technology in the twentieth century, known as Big Science, led to the realization of an economic structure of mass production and consumption through the expansion of tangible fixed assets. However, since the latter half of the twentieth century, the trend has shifted toward intangible intellectual assets, such as research and development and information processing, resulting in a significant structural change in the economy and society. The book scientifically investigates the effects of this intangible fixed asset investment on the economic structure, evaluates the direction of structural change, and determines the merits and demerits ofits policies based on the state of science and society in the trans-scientific era. To understand the impact of scientific knowledge and information on the economy and society, the book measures the volume of services of intellectual and information assets as intangible fixed assets and their spillover effects among industrial sectors. By measuring the TFP growth rate of industries, the economic spillover effects of intangible fixed asset outcomes are evaluated to measure the impact of science and technology and industrial policy as a scientific approach to science and technology policy.

Dr. Masahiro Kuroda, (84 years old), born on January 17, 1941. While enrolled at Keio University, he studied abroad at Harvard University in the United States for two years from 1979 to 1981, with support from the Fulbright Foundation. At Harvard, I received numerous forms of support while serving as a Visiting Professor in the Department of Economics and as a Visiting Scholar at the Harvard University Japan Institute. My collaborative research with Professor Dale W. Jorgenson, a leading economist at Harvard, has continued since that time, and this book is the culmination of that research. During my stay, I also received generous support from Dr. Edwin O. Reischauer, then Director of the Harvard University Japan Institute. Masahiro Kuroda is a Principal Fellow, Center for Research and Development Strategy, Japan Science and Technology Agency (JST). Professor Emeritus of Keio University. Ph.D. (Business and Commerce). He was promoted to Professor in 1982. Through the Director of the Keio Economic Observatory and Vice President (provost) of Keio University during June 2001- May 2005, he moved on to President of Economic and Social Research Institute, Cabinet Office during June 2005-May 2008. In June 2008, he affiliated with current position. He experienced President of the International Input-Output Association -IIOA- during 1997-1999; and Chairman of the Advisory Committee for Natural Resources and Energy, Energy and Supply Sub-committee in Japan from 1998-2010. (Awards): the Economist Award and the Japan Statistical Society Prize. (Publication) General Equilibrium Analysis of Japanese Economy (co-author, 1974); Introduction to Positive Economics (1984), Quantitative Analysis to General Equilibrium (1989) etc.