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

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.