Innovation Research

Drivers and indicators for intangible value creation

Intellectual Capital and Value Creation
Lappeenranta University of Technology: Aino Kianto

Along with the recent rise of the Knowledge Economy, intangible issues have become the key bases for value creation. According to recent studies, Finland as a nation has plenty of intellectual potential, but Finnish organizations seem to lack the capacity to leverage this potential for creating value. To help Finnish organizations to improve their capabilities in this context, our project aims to make the intangible success factors of Finnish companies visible with a concrete measurement approach. The project will particularly analyze which intellectual capital categories and management mechanisms are the most effective ones for value creation. The project will compare the Finnish situation to an extensive international dataset – collected in collaboration with international project partners – in order to outline our key national strengths and weaknesses. The project will thereby improve Finnish companies' ability to manage their intellectual capital so that they can create economic value and growth, innovation and well-being with it. It will furthermore produce a set of policy briefs to assist ascertaining that the Finnish innovation system will sustain and develop its international excellence in global competition.

Relational Capital for Innovative Growth Companies
VTT, University of Tampere: Kaisa Still

Why was Instagram – a team of twelve – sold to Facebook for a whopping 1 billion dollars – and why the valuation turned out to be partly speculative? In this study, we see the need for novel approaches and propose exploring the key concept of relational capital for understanding and measuring the intangible nature of innovation and value creation. Relying on relational view showing that competitive advantages not only derive from firm-level resources, but also from capabilities embedded in relationships, we study relational capital as a resource created through social network processes. Therefore, we see that tools and methods of social network analysis contribute towards its measurement and understanding. We will use action research for co-creating with research collaborators as well as with the business partners the possibilities of developing data-driven visual indicators for actionable and possible interactive insights on relational capital for innovative growth companies, individuals, investors, customers, policy makers and other stakeholders.

Intangible capital – supporting knowledge and value added in Europe
University of Vaasa: Hannu Piekkola

INNOFINLAND undertakes a comprehensive evaluation of intangible investment in Finland and Europe. The measures are used to explain innovative growth and value added to experience and search goods and the ways protecting innovative ideas through patenting. The knowledge spillovers are assumed essential to the companies and to the European regions. Intangible capital is measured at firm level using cost-based approaches compatible with system of national accounts and with performance-based approaches, with evaluation how firm-level training and organisational practices transform into intangible investment and customer capital.

Relational and social assets as shapers of adaptive capabilities for innovation
VTT: Juha Oksanen

This proposal regards intangibles in the form of relational capital and capabilities. It focuses on the role of a specific class of intangibles on the input side of innovation – relational capital – in shaping another key-output side intangible, namely adaptive capability. We approach these through the lens of inter-organizational macro-cultures concept, which is new to innovation policy research. The macro-culture refers to "the relatively idiosyncratic, organisation-related beliefs that are shared among top managers across organisations". Shaped by relational and social capital, which affect future strategic and technological similarity, macro-cultures can also limit inventiveness restricting the adaptive and innovative capabilities leading to failure to renew. We will investigate the role of different intangible assets as well as forms of economic inter-dependences (e.g. value-added chains or venture capitalist-innovator relationships) and forms of governance on the formation and impact of macro-cultures. Our empirical focus will be on selected industries (e.g. energy & forest and ICT) in international comparative settings (Finland, Brazil, and South Korea).