Capitalism without Capital

Abstract

This book by Jonathan Haskel, Professor of Economics at the Imperial College Business School in London, and Stian Westlake, a senior fellow at the U.K.’s National Endowment for Science, Technology and the Arts (Nesta), provides a comprehensive examination of a familiar, yet under-appreciated phenomenon: the rise of intangible investment and its consequences in the 21st century’s economy. The attention-grabbing title of the book, Capitalism without Capital, vividly captures the essence of an economy dominated by intangible investment—such as R&D, software, brands, and organizational development—that lacks physical forms and, hence, does not resemble investment in tangible assets—such as buildings and machinery—that can be seen and touched. The authors are well-known researchers in the areas of intangible assets, innovation, and productivity (one of the authors also led a project commissioned by the U.K. Treasury to measure intangible assets and growth in the U.K.’s economy). Drawing from the authors’ earlier work, the book offers insightful and thought-provoking views on how rising intangible investment is having a profound impact on many aspects of business and society. I believe this book will be highly influential, given the wide range of important economic, business, and social issues covered in the book and the thorough analysis of each issue by the authors