Keywords: intellectual capital, knowledge management, human capital, measurement, evaluation, survey research, organisational performance, training and development
Valuing investments in intellectual capital
The measurement and evaluation of the impacts and value of investments in intellectual capital is a critical obstacle to turning those investments into sources of competitive advantage. Yet, most organisations have only a dim notion of what they spend on intellectual capital let alone what they receive from those investments. As a result, many firms either under-invest or make ineffective investments in intellectual capital. Evidence from a cross-industry survey of over 500 organisations in the United States reveals preliminary, yet tantalising evidence of a link between investments in intellectual capital and organisational measures of performance, including market-to-book value. Particular attention is given to relationships between measures of human capital and organisational performance in a subset of 70 publicly traded firms.