Measuring national intellectual capital and its effect on country’s competitiveness

Abstract

Purpose

National intellectual capital is generally considered a strategic advantage for national competitiveness. However, the measurement of intellectual capital across countries for comparison purposes appears to receive little attention. This study aims to use a new index of national intellectual capital (INIC) to examine the relationship between national intellectual capital and national competitiveness.

Design/methodology/approach

This paper uses the INIC, developed by Vo and Tran (2021), to measure, compare and contrast differences in the level of national intellectual capital across 104 countries. INIC comprises the most crucial intellectual capital components: human capital, structural capital and relational capital. Various economic and social indicators are used as the proxies for these components of intellectual capital. Principal component analysis is used to derive INIC.

Findings

The results indicate that during the study period the level of national intellectual capital gradually increased. Europe has attained the highest level of national intellectual capital, whereas Africa has achieved the lowest level. This study’s findings confirm a close relationship between the national intellectual capital level and the national income level. Among the ten biggest countries, the USA achieved the highest national intellectual capital level, and China has significantly improved its cumulative level. Finland achieved the highest level of national intellectual capital in the world. National intellectual capital enhances a country’s competitiveness.

Practical implications

Findings in this study shed light on an international comparison of intellectual capital across countries and understanding how national intellectual capital contributes to and improves national competitiveness. Policymakers can consider and use these findings to support the accumulation of national intellectual capital and boost national competitive advantage, especially low-income countries and emerging markets.

Originality/value

To the best of the authors’ knowledge, this is the first study to estimate a degree of national intellectual capital around the world and examine its impact on national competitiveness based on publicly available data.

Citation

Vo, D.H. and Tran, N.P. (2023), "Measuring national intellectual capital and its effect on country’s competitiveness", Competitiveness Review, Vol. 33 No. 4, pp. 820-839. https://doi.org/10.1108/CR-08-2021-0110