(Call for tenders ECFIN/2020/OP/001)
A project to integrate the EU-KLEMS database with data on intangibles, aimed at improving productivity analysis for policy evaluation
We are proud to announce that Luiss Lab of European Economics has been awarded a Grant contract from the Directorate for Economic and Financial Affairs (DG ECFIN) of the European Commission for the Provision of industry level growth and productivity data with special focus on intangible assets.
As European mass vaccination plans are being rolled out throughout the continent, national governments and the European Union are deploying unprecedent resources – such as NextGenerationEU – to jump start the economy and ensure a fast, equitable and sustainable recovery from the COVID-19 pandemic.
The economic shock inflicted by the virus has affected sectors, and countries, unevenly and it is paramount to understand where and what type of investments are needed for the recovery. Crucially, industries that the pandemic has struck the most, such as retail, logistics, hospitality, and the creative industries, rely on investment in intangible assets – such as training, branding, marketing, and organisational capital – that are usually not included in traditional national accounts and present additional policy challenges, especially in terms of financing.
Moreover, the COVID-19 pandemic has come after over a decade of productivity slowdown throughout most European nations, whose causes remain still unclear. To face this challenge, accurate data on productivity dynamics across countries and industries are essential to guide policy initiative. This has gained even more importance as the digital revolution is further unravelling, changing business models across the whole European economy. As such deep changes unfold, it is crucial to understand which skills are going to become more in demand and what this means for job opportunities and income inequality across the continent.
The Grant awarded to the LUISS Lab of European Economics aims to provide policy makers with a key tool to grapple with these interlocking challenges, by updating the EU-KLEMS database (www.euklems.eu) and integrating estimates of investment in intangible assets developed in INTAN-invest (www.intaninvest.net ).
The EU-KLEMS database compiles measures of economic growth, productivity, employment, capital formation, and technological change at the industry level for all EU member states, the UK, Japan, and the US, from 1995 to 2017. The current version will be updated to the most recent years and extended to include estimates of intangible assets in the EUKLEMS productivity framework. In doing so, the Grant will mark a fundamental improvement for productivity analysis that serves as a strategic tool for policy evaluation.
