Soft Innovation Resources: Enabler for reversal in GDP Growth in the Digital Economy

Tou, Y., Moriya, K., Watanabe, C., Ilmola-Sheppard, L., & Neittaanmäki, P. (2018). Soft Innovation Resources: Enabler for reversal in GDP Growth in the Digital Economy. International Journal of Managing Information Technology 10 (3) 9-27.

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Abstract

While Finland and Singapore have been maintaining world digital leaders position, they demonstrate
interlaced contrast: high welfare with low GDP growth in Finland and higher GDP growth with lower
welfare in Singapore. This provokes an uncaptured GDP postulate that Finnish wellbeing has developed
more than one might conclude by GDP. However, a recent reversal in the GDP growth trend suggests the
possibility that uncaptured GDP contributes to remove structural impediments in GDP growth.This paper
demonstrates this hypothesis. An empirical analysis elucidating the inside the national accountings and
institutional systems revealed that soft innovation resources have substituted for service capital in Finland
and created uncaptured GDP which disseminated in tangible capital and removed structural impediments
impeding development leading to GDP growth. In addition, this growth enables next generation intellectual
property product (IPP) development. An insightful suggestion in overcoming a productivity paradox in the
digital economy was thus provided.

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