1. 1 In quest of IC Model: discovering six elements of intellectual capital* 26 September 2013, CBS Mariia Molodchik (NRU Higher School of Economics, Russia) mmolodchik@hse.ru Elena Shakina (NRU Higher School of Economics, Russia) Angel Barajas (University of Vigo, Spain) *This study was carried out within The National Research University Higher School of Economics’ Academic Fund Program in 2013, Grant No 13-05-0021, http://perm.hse.ru/en/economics/ecf /http://perm.hse.ru/en/economics/ecf /

2. Research objectives 2 The managers ask: “Which are the elements that constitute IC?” “How do we measure these elements?” The study explores the plausibility of six elements of IC and justifies the measurement ability of a set of indicators based on publicly available data for each one of the proposed element.

3. Research Framework: six IC elements Own elaboration from Roos et al. (2005), InCaS (2009) and Jacobsen et al. (2005). 3 Intangibles/ Intellectual Capital Human Capital Management capabilities Human resources capabilities Structural Capital Innovative Capabilities Internal Process Capabilities Relational Capital Networking capabilities Customer loyalty and reputation

4. Methodology 4 4 metrics for each of six IC elements Quantitative analysis: Stata 12, SEM, latent exogenous variable Literature analysis: SC models (Edvinson, Jacobsen, InCaS etc.) + empirical studies

5. 5 Database: 1650 public companies United Kingdom (44%), Germany (24%), France (25%), Spain (5%) and Italy (2%). The entire GDP of these countries covers more than 70% of the European GDP. Countries 2004-2011 Time period “Management of Companies and Enterprises” (25%), Manufacturing (20%), “Professional, Scientific and Technical Services” (12%), “Finance and Insurance” (10%) and “other industries” (33%) Industries

6. Sources of information and methods of measurement 6 Sources of information: Amadeus, Bloomberg, company’s web sites, other open sources. The examples of proxies: Metric - Knowledge management Methods of measurement - If company has information on its web site about knowledge management system – 1 point, otherwise – 0 points Metric - Qualification of top management Methods of measurement - Company’s Annual Report section “Common information”: If more than one third of directors have postgraduate level of qualification and more than 5 years experience – 2 points. If more than one third of directors have postgraduate level of qualification or more than 5 years experience – 1 point. In any other cases – 0

7. RESULTS. HUMAN CAPITAL 7

8. STRUCTURAL CAPITAL 8

9. RELATIONAL CAPITAL 9 фирма

10. Contribution: 10 IC theory The items and correspondent indicators of six elements of IC were validated. IC practice The statistical analysis finds out the contribution of each indicator to its correspondent element.