Frederico Belo, from INSEAD, will present his research. 

Intangible Capital Around the World

We estimate the value of intangible capital around the world through the valuation approach of a neoclassical model of investment with two heterogeneous types of capital inputs: physical capital and intangible capital. Using data on public listed ˝rms across 77 countries, we infer the importance of intangible capital for the ˝rm's market value in each country. We ˝nd that intangible capital accounts for over half of ˝rms' market value globally, with signi˝cant cross-country heterogeneity. To understand the drivers of intangible capital accumulation we explore the variation in the economic and legal environment across countries. We ˝nd that protection of intellectual property right, cost of contract enforcement signi˝cantly in˛uence the cross-country variation in the value of intangible capital.