The Objective Value of Intellectual Capital: An Empirical-Quantitative Approach

  • Óscar Teixeira Ramada

Abstract

The purpose of this paper is to summarize the Ph.D Thesis in Information Science (2019) which dealt with the calculation of the intellectual capital value at Efacec Power Solutions, SGPS, SA (EPS), on December 31, 2017, a heavily capital intensive company, reflected in the weight of intangible assets over total assets. It was concluded that the value was € 1.908 million, being the sum of 4 core competencies: Development of Technologies, Simulation of Equipment Behaviors and Management of Electrical Networks (Core Competence 2) in the amount of € 766 million, Hardware and Software Design and Development (Core Competence 1), valued at € 670 million, Projection and Exploration of Water Systems and Industrial Installations (Core Competence 4) valued at € 269 million and Solutions for Transportation (Rail, Road and Metro) and Energy for Electric Vehicles and Net-work Management (Core Competence 3) worth € 202 million. Its calculation depended on choices made by the researcher, namely, regarding the evolution of Consolidated Sales and/or Services Provided and Nominal Annual Rate of Change, for a period of 10 years + 1, which has subsequent effects on other items that depend on this baseline. The main conclusion that can be drawn is that the same time horizon, but based on non-annual but monthly or even weekly or, preferably, daily subperiods, could dictate an outcome that would be closer to reality, especially if it had specified other factors such as the qualifications of the workforce and its changes over time. This would have the ability to be more reliable and re-flect the value created by the workforce in its various categories, from its absolute number to a construct that would reveal the aforementioned qualifications and the value created within the company, in this case EPS.

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Published
2021-09-01
How to Cite
RAMADA, Óscar Teixeira. The Objective Value of Intellectual Capital: An Empirical-Quantitative Approach. International Journal of Advanced Research in Technology and Innovation, [S.l.], v. 3, n. 3, p. 49-64, sep. 2021. ISSN 2682-8324. Available at: <https://myjms.mohe.gov.my/index.php/ijarti/article/view/15047>. Date accessed: 24 oct. 2021.
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Articles