Intangible factors and productivity: Evidence from Europe at the regional level

Abstract

This study investigates how a region's labour productivity could be influenced by intangible factors such as social capital, government quality, cultural dimensions and religion -factors that have not received much attention in the previous literature. As another novelty, regional-level data (78 regions of 22 European countries) were analysed. In order to take into account the relationships between various factors of productivity, the structural equation modelling approach is used enabling to find out both direct and indirect effects. The results showed institutional trust and civic participation to be the most important for productivity. Individualism appeared to have a positive and masculinity and power distance a negative total effect on labour productivity.JEL Classifications: J24, K40, O40, R11

Measurement of soft factors in the EU regional development: Case of media image of Czech regions

“…Agglomeration economies still matter, although their impact (in quantitative terms) and their scope (in terms of distances) are estimated to be lower and shorter respectively when intangible assets are included in the model since these factors play a crucial role in determining regional performances. Result confirms previous evidence on the fact that spatial spillovers are somehow bounded in space and that knowledge diffusion is more effective among closer regions Kaasa (2018). extended the factors such as social capital, government quality by the cultural dimensions and religion and investigated the influence on region's labour productivity.…”

The empowerment strategy of Dangke microscale business management in Enrekang Regency, South Sulawesi, Indonesia

“…This result is in line with the study conducted by (Harini & Hambany, 2019) The development of the market network and marketing to improve competitiveness of empowerment in the field of production through the help of selective business sectors and stimulant. Productivity is one of the most important determinants of economic growth and the welfare of people (Kaasa, 2018). This study is supported by another study conducted by Kaplan and Norton (1996) model of empowering to give birth to a pioneer movement for micro-scale business management to small, medium and even large businesses.…”

Modelling intangibles at the regional level in Europe: what lessons from a multidimensional approach?

“…The literature review on the topic indicates a lack of consistent approach to measuring intangible capital at the regional level. Depending on research objective and data availability, a number of studies focused on one country (e.g., Li & Wu, 2018;Mazzola et al, 2018;Melachroinos & Spence, 2019) or on particular types of intangibles or forms of capitals (e.g., Dreger et al, 2013;Kaasa, 2018) using European data, national statistics or creating own measures. Building upon existing research conducted on firm/industry and country/ region levels, this study sets out to extend consideration of intangible capital to regional level of analysis and various types of intangibles, as well as to provide a better understanding of the role of intangibles for regional development within the European context.…”

“…In this study, institutional capital, ICT infrastructure capital, social capital and entrepreneurship capital are utilised as process variables as they facilitate operational functionality of the region and represent environments in which economic actors operate to create value. Institutional capital represents governmental quality and political stability, which help foster productivity by securing property rights, enforcing contracts and lowering transaction costs (Kaasa, 2018). ICT infrastructure capital encompasses devices, procedures and digital infrastructure development that foster interaction, information sharing and diffusion.…”

“…Renewal capital was assessed, among other indicators, as R&D spending and research indicators at national level in Ståhle et al (2015). Social capital was measured as trust, networks and civic participation, and government quality was assessed using the European Quality of Government Index in Kaasa (2018). Entrepreneurship was measured in Camagni and Capello (2013) as a share of selfemployment on total employment.…”