The Intellectual Capital Statements: Evolution and How to Get Started

Abstract

In light of the latest developments in the field of intellectual capital (IC) measuring and reporting (Asia, Europe, and USA), this chapter aims to help managers measure and report the intellectual capital of their companies. Having first-hand experiences in collaborating with firms in the building of the “intellectual capital report” (ICR)—and therefore knowing weaknesses and major mistakes—the authors of the chapter propose how firms should build the ICR, an innovative corporate report with strategic implications for the achievement and maintenance of a longterm competitive advantage. The first section of the chapter presents a historical review of the development of the intellectual capital report since 1992. The second section analyzes intellectual capital reports, discussing firms’ definition and goals for these reports; the analysis is based on intellectual capital reports published by 38 firms from Europe (Austria, Germany, Iceland, Italy, Spain, Sweden, and UK) and Asia (India and Japan) during the period 1992-2006. From here, we address how firms can get started building the intellectual capital report, especially regarding the structure of the report as well as the specific indicators.