Intellectual capital (IC) or Wissensbilanz process: some German experiences
| Published date | 31 July 2007 |
| Date | 31 July 2007 |
| Pages | 376-385 |
| DOI | https://doi.org/10.1108/14691930710774821 |
| Author | Leif Edvinsson,Mart Kivikas |
| Subject Matter | Accounting & finance,HR & organizational behaviour,Information & knowledge management |
Intellectual capital (IC) or
Wissensbilanz process:
some German experiences
Leif Edvinsson
Lund University, Lund, Sweden, and
Mart Kivikas
Wissenskapital E&K GmbH, Oberreichenbach, Germany
Abstract
Purpose – This article aims to summarise a successful, pioneering prototyping project in Germany
with IC statements, supported by the German Ministry of Labour and Economics (BMWA).
Design/methodology/approach – A systematic process view method has been applied. A special
impact scoring method generates a map, enabling management to determine where they should give
executive priority for intellectual capital investment.
Findings – Most of the participating companies would like to have a more standardized
Wissensbilanz with indicators for added value in order to use the tool as a complimentary report
(management report) for the purpose of external reporting as well as comparison.
Originality/value – The project has now inspired some 100 enterprises of different types and is now
spreading outside Germany.
Keywords Intellectualcapital, Financial reporting, Flowcharts,Germany
Paper type General review
Why is the German approach to IC so appreciated, interesting and valuable? Is there
something more behind the fact that the world’s two most advanced standard car
producers are BMW and Toyota?
Contextual background
Looking at the world map of IC today, some trends may be recognized related to the
evolution of the management of intangible assets and intellectual capital (IC). The USA
is struggling with its Sarbanes-Oxley Act and the administrative impact this has had
on company reporting, auditing and management. The initial book on intangibles,
called The Unseen Wealth, from the Brookings Institute in Washington (Blair and
Wallman, 2001), based on work by Professor Baruch Lev and supported by the
Securities and Exchange Commission (SEC), has not gained very much mom entum.
However in 2006 the Federal Reserve and its new leader B. Bernanke, together with
researchers from University of Maryland, launched a most interesting report on the
intangible economy in the USA. Business Week (2006) had a front cover based on the
report, calling for “Unmasking the economy”.
In Asia, the Ministry for Economics, Trade and Industry (METI) in Japan is very
active, organizing a whole weeks in December 2005 and December 2006 devoted to
intellectual assets (see www.meti.go.jp/policy/intellectual_assets/index.htm). In 2007
joint projects are being planned between Japan and Germany based on the same
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1469-1930.htm
JIC
8,3
376
Journal of Intellectual Capital
Vol. 8 No. 3, 2007
pp. 376-385
qEmerald Group Publishing Limited
1469-1930
DOI 10.1108/14691930710774821
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