The paper examines the impact of intangible capital on U.S. economic growth, highlighting that traditional GDP measurements exclude significant intangible investments, leading to an underestimation of economic growth. It argues that including intangible assets in growth accounting significantly alters the observed patterns of economic growth, with capital deepening becoming the dominant source of labor productivity growth. The exclusion of intangible capital also reduces the labor share of income and increases the capital share. The study uses a modified sources-of-growth (SOG) framework to analyze the effects of including intangible capital, finding that it increases the growth rate of output per worker and changes the allocation of growth between capital formation and multifactor productivity (MFP). The inclusion of intangible capital also affects the labor share of income, increasing the share accruing to capital and decreasing that for labor. The paper provides estimates of intangible investment and capital stocks, showing that intangible investments have grown significantly over time and are a vital component of business activity. The results suggest that intangible capital plays a crucial role in explaining economic growth, particularly in the post-1995 period. The study concludes that intangible capital should be treated as investment in national accounting systems, as it significantly affects the measurement of economic growth and the distribution of income.The paper examines the impact of intangible capital on U.S. economic growth, highlighting that traditional GDP measurements exclude significant intangible investments, leading to an underestimation of economic growth. It argues that including intangible assets in growth accounting significantly alters the observed patterns of economic growth, with capital deepening becoming the dominant source of labor productivity growth. The exclusion of intangible capital also reduces the labor share of income and increases the capital share. The study uses a modified sources-of-growth (SOG) framework to analyze the effects of including intangible capital, finding that it increases the growth rate of output per worker and changes the allocation of growth between capital formation and multifactor productivity (MFP). The inclusion of intangible capital also affects the labor share of income, increasing the share accruing to capital and decreasing that for labor. The paper provides estimates of intangible investment and capital stocks, showing that intangible investments have grown significantly over time and are a vital component of business activity. The results suggest that intangible capital plays a crucial role in explaining economic growth, particularly in the post-1995 period. The study concludes that intangible capital should be treated as investment in national accounting systems, as it significantly affects the measurement of economic growth and the distribution of income.