Credit Suisse is recommending investment in companies such as Everron, an Indian education specialist, and Chinese healthcare firm Mindray Medical, as it says that these types of businesses are best positioned to benefit from the increasing importance of “intangible infrastructure.”

In a report entitled “Intangible Infrastructure: The Key To Growth”, Credit Suisse argues that the knowledge-based aspects of infrastructure will become ever more important in driving economic growth, particularly in emerging markets, and that this will lead to a shift in investment priorities.

In quantifying these factors, Credit Suisse has developed indices which allows countries’ development to be charted around five “pillars” of intangible infrastucture:  education, healthcare, the development of the financial systems, technological investment and the penetration of business services.

As a result of this analysis Credit Suisse has highlighted 20 stocks that it forecasts will deliver above average returns over the medium term.

Within business services, Credit Suisse recommends holding stock in India’s Infosys, a business consulting and IT services provider, while the internet service portal company Tencent, which has over 750 billion registered messaging users in China, is also given a hold rating. 

In US stocks, Credit Suisse recommends investment in information technology company Microsoft because of its increasing emerging markets exposure, along with Cisco, due to its strength as a provider of global communications networking services.

In the financial services sector, Credit Suisse is taking a particularly positive view of Chinese bank ICBC, giving the stock a buy recommendation based on the potential created by its strong deposit franchise, and the fact that the retail and corporate sectors are a “grossly untapped area in China.”