Abstract: An efficient use of management tools is necessary for a business entity to gain competitive advantage. The intangible elements of business contribute to the existence of constant scale performances in the productive processes of the sector. Therefore, an inversion of these tools is recommended to allow an interrelation among companies and company employees, and company environment. This paper uses the panel data production function in addition to the intangible assets, capital and labor, for the companies in the Spanish region to assess the need to invest in knowledge management assets.

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