Investing in physical capital in the form of new plant, machinery, vehicles and buildings can help a company to reduce costs and produce better products or services that its customers value more highly. Costs can be reduced through faster production runs and better organisation of production. New equipment and other assets may help the company to meet better the needs of current and new customers and to move into higher value added activities.


      ·       Physical capital - investment in physical assets 
              helps ensure that business has the latest available
              technology and spreads technological innovations
              throughout the economy as a whole
 
      ·       Information and communication technology 
            - ICT allows firms to transform the way they do business,
            creating new markets and changing the dynamics of the
            old. Uptake and use of IT have been considered as
            separate indicators in this edition.

Last updated on 20 November 2003