The impact of intangibles on firm growth

This study investigates and measures the impact of intangibles on firm growth. We distinguish between internally and externally generated intangible assets and analyse the role played by firm size, measuring if it can alter the relationship between intangibles and performance. In doing so, we combine the resource-based view of the firm – as a cornerstone for this survey – with accounting principles. In particular, we focus on intangible ‘assets’ recorded in firms' books according to international accounting standards. The empirical analysis explores a proprietary database of 294 listed companies headquartered in Europe. Findings confirm that intangibles are crucial in fostering firm performance, show that this effect varies with firm size and that an additional boost is created by externally generated intangibles.