People power
Increased competition and globalisation are putting pressure on companies and the regions that depend on their success. Traits such as flexibility, the ability to immediately adapt to market developments, and being proactive are needed to overcome these challenges. Physical assets and equipment, which are more readily available than ever before, are no longer the key requirements as economic drivers. Instead, the intangible assets of human capital and knowledge are becoming the principle drivers behind the economy; these assets are of increasing interest from academic, policy and corporate perspectives, particularly their impact on economic processes. They are the non-material factors which contribute to providing goods and services that generate future economic benefits to the entities or individuals controlling them. Intangible assets contribute to production and productivity within the firm through human and organisational capital, intellectual assets, brand name, etc. They equally contribute to production outside the firm through the legal and institutional framework, education system, property rights protection, social capital, and other means. The EU-funded project 'Intangible assets and regional economic growth' (IAREG) is analysing the role of these assets in regional economic growth. It is focusing on assets that can be readily studied through statistical information, such as knowledge capital, human capital, social capital and entrepreneurship capital. IAREG is investigating their main characteristics and effects on regional economic growth, as well as the overall effects on the location of firms. To achieve its aims, the project is developing new indicators for improving the measurement of intangible assets. It is identifying how knowledge is gained and spread, focusing on the role of intangible assets in this process. IAREG is also analysing the role that knowledge, human, social and entrepreneurship capital have on regional economic growth and productivity. Examining how these assets affect the choice of a firm's locale is also an important part of the project's tasks. Another important task is to see how external factors generate intangible assets and affect economic performance. All this will help IAREG extract policy guidelines for public administrators. The project results will eventually be communicated to policymakers at European, national and regional levels. Fitting neatly within the EU's 2020 Strategy, the IAREG project's results will create value by improving education and training to increase productivity, and by firmly basing growth on knowledge. The results have the potential to empower people in inclusive societies, advancing the concept of flexibility for employees and employers. A new industrial policy in Europe can emerge from IAREG, one that emphasises innovation capacity, skills and entrepreneurship, putting people power at the centre of the equation.
