Measuring Intellectual Capital in Research Centre: an application of the extended VAIC model

Abstract

In the contemporary knowledge-driven economy, intellectual capital (IC) is vital for research technology centres (RTC). This study applies the extended VAIC model to evaluate the IC of an Italian RTC. Extended model, incorporating additional dimensions such as relational and innovation capital efficiency, is adapted to the unique needs of RTCs. Utilizing a single case study methodology, financial reporting data, and management insights, the study assesses the value creation of Alpha's IC and management' perception of the effectiveness of the IC measure. Results indicate that most part of the value added to Alpha by IC is based on the human capital. The perception of the management of the IC measure using the VAIC confirmed some of the limitations of a model based mainly on financial reporting figures. This paper contributes to literature and practices in measuring IC providing recommendations on how to fill the gap in existing IC measurement for research centres, providing a comprehensive tool for strategic IC management.