Based on the previous projects on intangibles at RIETI, this project focuses on the role of intangibles in the public sector. At the aggregate level, we measure intangible investment in the public sector and examine its effects on productivity improvement. We also examine the complementarity effects between intangibles and other assets on productivity growth. At the micro level, we focus on the effects of organizational capital in hospitals on their performances. As these issues are similar to those conducted under the Smart Intangible (SPINTAN) project in the European Union, we will collaborate with the SPINTAN project.