Measuring Business Excellence · 2004 · 666 citations · 1 references
ManagementBusiness EconomicsEconomicsInnovationIntellectual PropertyIntellectual Property ManagementIntangible AssetsIntellectual Capital MeasurementIntellectual Property RightsInvestmentProfitability IndexValue CreationEfficiencyIntellectual CapitalIntellectual Capital IndexesIntellectual Capital InvestmentIntellectual Capital Performance MeasurementIntellectual Property EconomicsValuation Of Intellectual AssetsValue Creation From Intellectual Capital
Taking into account the transformation in economic reality towards a knowledge economy it seems logical that we treat IC as a resource, equal to that land, physical assets, and financial capital. This means that it is not anymore treated as a cost but as an investment. In order for the new system to be consistent we have to define a new index, namely the value creation efficiency of intellectual capital. Its empirical applications shows that while revenue, profit and GDP may indicate successful performance, IC efficiency may indicate the opposite, that value is being destroyed and not created.
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