Understanding dynamics of intellectual capital of nations

Abstract

The mode of wealth creation has changed from mass-production to an economy of knowledge, where the key drivers of economic growth are intangibles. The value-creating mechanisms of intangible assets and capabilities are radically different from those in the manufacturing era, and new theoretical and methodological approaches are needed for grasping them. The intellectual capital (IC) movement aims to tackle this challenge and construct methods for describing, measuring, reporting and valuating intangibles in organizations, regions, networks and nations.In this paper, we concentrate on the dynamic perspective on IC, i.e. possibilities to tackle the influence that IC has on performance, in this case on national level. We argue that for a genuine contribution IC approach must be focused on the dynamic effects of knowledge and value creation, and that those effects must be reliably identified. By dynamics we mean the IC components which drive and boost economic growth in distinction from those being only results and antecedents of a booming economy. From a strategic point of view, it is important to identify the indicators that are strongest linked with economic (or otherwise desired) growth. On the other hand, if the analysis is made on a national scale, the possibility to identify even national specific economic IC drivers becomes eminent. The exercise we present here gives guidelines for reaching a higher growth level or to uphold an ascending growth trend of GNP. It could also act as an analytical framework for designing the context in which IC of nations can be adequately foreseen in a mid-long term perspective.

Social Capital and Dynamic Capability Driving Competitive Advantage: The Moderating Role of Corporate Governance

“…Another recently approach emphasizes building competitive advantage through "dynamic capabilities" stressing on exploiting existing internal and external firm specific competencies and new ones to address changing environments. Based on the previous literature, we define competitive advantage as a capability or resource that is difficult to imitate and valuable in helping the firm to obtain its organizational strategic objectives There are varying definitions of dynamic capability in the literature (Ambrosini et al, 2009;Stahle & Bounfour, 2008;Teece, 2007). Teece et al (1997) define dynamic capability as the key role of strategic management in appropriately adapting, integrating, and reconfiguring internal and external organizational skills, resources, and functional competences to match the requirements of a changing environment.…”

Roles‐purpose‐and‐culture misalignments: a setback to bottom‐up SME clusters

“…levels (Sö lvell, 2009;Stå hle and Bounfour, 2008;Smedlund and Poyhonen, 2005), that will then have to be strategically aligned and dynamically adjusted for the competitive (or collaborative) advantage of the partnership (Hansen andNohria, 2004, Lasker et al, 2001) both individually and collectively considered.…”

Measurement of Intellectual Capital of Lithuanian Cities by a Composite Index

“…However, quite a different approach towards assessment of intellectual capital economic effect was presented by Pulic (2005), connecting intellectual capital with financial indicators of economic development and introducing the Value added intellectual coefficient (VAIC) index as output. In further works and studies Stahle, Bounfour (2008), Lin, Edvinson (2008), WEF (2007), P. Stahle, S. Stahle (2006) proved that factors enhancing the country's economic development (intellectual capital is recognized as one of them) are very much dependant on the GDP index and macroeconomic factors related to it. Therefore, the context on economic growth, within the measurement of intellectual capital, has to be revealed through respective analysis of the national, regional or urban statistics indicators.…”