Intellectual property product investment (IPP) has been
added to the National Income & Product Accounts (NIPA) – as party of July’s
benchmark GDP revisions (hence inflating GDP to 1.7% - although this far beat expectations of 1.1% regardless). The new category introduces
spending on entertainment, artistic and literary originals (EALO) (basically
goods that the rich can afford), software and R&D. Software, however, has
already been around in the GDP measurements but has been reassigned from one
way or another – something about ‘legacy equipment investment’ category. Adding
R&D and EALO has lead to an increase in real GDP growth by 0.07% (approx..)
since 1947 with large contributions during the .com boom in the 90s.
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