The Role of Intangible Capital Investment and Intangible Assets in Improving Competitiveness

Abstract

Based on international literature and data, this essay examines the conditions for improving competitiveness in Hungary in relation to intangible assets and capital investment. The link between productivity – as the basis for competitiveness – and intangible capital investment is also discussed. The essay argues that, although there is no consensus on the interpretation of the concepts examined and further analysis and modelling are needed, the relationships presented suggest that higher levels of intangible asset and capital investment would contribute to improving the productivity and competitiveness of the Hungarian economy. First, because this would improve the overall operational efficiency of tangible investments, and second, because it would support the transition to a knowledge economy, the key condition for boosting competitiveness.