Intangible capital: Measurement trial and proposal for an evaluation indicator grid

Abstract

Over the past two decades, we have gradually moved towards a rapidly evolving, technology-intensive, knowledge-based economy, in which investments in human resources, information technology, research and development, innovation and advertising have become essential to maintaining business performance and competitiveness. These elements share a specific and distinctive characteristic - the absence of physical substance - and are commonly grouped together as intangible capital (IC). However, the rise in importance of investments in intangibles and their value in the marketplace has encountered measurement problems. And the problem of their non-translation in the balance sheet, and consequently their valuation, is firmly posed by the lack of flexibility in the requirements of accounting standards. In order to contribute to the debate on the measurement of intangible assets, our article suggests the following problematic: Despite its intangible nature, is it possible to measure intangible capital? The aim is therefore to present the state of the art of I.C., to identify the taxonomy of I.C. and to enumerate the fundamental methodologies of I.C. evaluation. Finally, we will propose guidelines for I.C. measurement following a grid grouping together the essential indicators of I.C. measurement.

Key words: Intangible investments, intangible capital (IC), evaluation, indicators

Classification JEL : O34

Paper type: Theoretical Research