Multinational enterprises and intangible capital

This paper provides new evidence on the role of intangible capital in global value chains (GVCs) by focusing multinational enterprises (MNEs) and their foreign affiliates capture through assets. Industry-level data suggest that MNEs generate more income than domestic-owned firms. Intangible returns from are found both host economy foreign-owned firms other countries participating GVC. Some heterogeneity is observed across GVCs with to concentrated key manufacturing (chemicals including pharmaceuticals, food products, ICT electronics, motor vehicles) services (finance insurance, business services, wholesale retail, telecoms). Five case studies (Adidas, AstraZeneca, Rocket Internet, Starbucks Tata Consultancy Services) complement analysis looking at GVC specific MNEs.