A Consistent Assessment of Intellectual Capital in SMEs InCaS: Intellectual Capital Statement — Made in Europe

Authors

  • Kai Mertins
  • Markus Will

Keywords:

Intellectual capital, intellectual capital statement, knowledge management, innovation, SME, european commissionresearch

Abstract

Globalisation and the accompanying increasing international competition put considerable pressure on European small and medium‑sized enterprises (SME). The key to competitiveness increasingly appears to be the way people combine, master and commercialise their know‑how. Hence it is crucial for European SMEs to utilise and manage knowledge efficiently in order to obtain a competitive advantage. While different national approaches on the management of Intellectual Capital (IC) have been developed and tested, there is no European wide standard regarding the measurement of IC. The collective research project "Intellectual Capital Statement — Made in Europe" aims at harmonising these scattered approaches on a scientific as well as a practical level. Based on scientific consensus a first framework has been developed providing a common ground for the measurement of IC by introducing the Intellectual Capital Statement (ICS). The ICS is an instrument to assess, develop and report an organisation's IC, to monitor critical success factors systematically, and to support strategic management decisions. As InCaS puts emphasis on a practical approach suitable for SMEs, the framework is to be understood as a starting point for phase I of the project, providing the basis for further development of the method towards practicability and harmonisation. It will be expanded to the final "European ICS guideline" and supported by the "ICS toolbox" in subsequent project phases. Main focus of this paper is the InCaS project and the accompanying European approach on measuring IC. As a first result a brief overview on the existing approaches on measuring IC is provided. Furthermore, the InCaS project as well as the ICS method is described and preliminary results are discussed.

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Published

1 Dec 2007

Issue

Section

General Paper