Shift to intangible capital threatens economic growth and infrastructure development.
Investment trends in the U.S. economy are changing, with a shift towards intangible capital like software and intellectual property. This shift is slowing down capital accumulation due to high depreciation rates. Public investment in infrastructure has decreased significantly since the 1950s. These changes highlight the importance of new types of private capital for growth and the decreasing role of public investment, including federal R&D.