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Intellectual Capital As a Driver of Economic Development A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Jednak, Sandra; Dmitrovic, Veljko; Damnjanovic, Vesna Article Intellectual Capital as a Driver of Economic Development Economic Review: Journal of Economics and Business Provided in Cooperation with: Faculty of Economics, University of Tuzla Suggested Citation: Jednak, Sandra; Dmitrovic, Veljko; Damnjanovic, Vesna (2017) : Intellectual Capital as a Driver of Economic Development, Economic Review: Journal of Economics and Business, ISSN 1512-8962, University of Tuzla, Faculty of Economics, Tuzla, Vol. 15, Iss. 2, pp. 77-84 This Version is available at: http://hdl.handle.net/10419/193878 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu Intellectual capital asCall a driver for papers of economic development /// INTELLECTUAL CAPITAL AS A DRIVER OF ECONOMIC DEVELOPMENT Sandra Jednak1 2 3 , Veljko Dmitrović , Vesna Damnjanović ABSTRACT: become resources for obtaining economic devel- opment and competitiveness in developed coun- There are different factors for obtaining tries (Ilic et al. 2016, Herciu and Ogrean 2015) economic development. In contemporary and less developed countries (Seleim & Bontis economics, knowledge and intellectual capital 2013). Investments in education, research and have become necessary for achieving economic development, new technology and innovation development. Management and development of bring positive economic performances like high- intellectual capital bring benefits and advance er productivity, economic growth, prosperity, job the economy. The main aim of the paper is to creation, and competitive advantages. present the concept of intellectual capital as a driver of economic development. Selected The aim of the paper is to present IC as a driver indicators for measuring intellectual capital and of economic development. It is based on IC of knowledge and their influence on the economic nation as a resource of economic development in development have been presented. The impact of different countries. The observed countries are intellectual capital on economic development is selected developed and developing countries. different based on the level of national economy Even though the main limitation is the lack development. Intellectual capital is a driver of of many studies of IC of the nation in these economic development in advanced economies, countries as well as the measurement of IC, while in developing countries it is not so the correlation is performed between IC and dominant. indicators of economic development (GDP per Key words: intellectual capital, knowledge, Global competitiveness index) in the observed economic development, knowledge based countries.capita, inflation, The analysis unemployment, shows that HDI,IC is aand driver WEF of economy economic development and there is a correlation between national IC and indicators of economic JEL Classification: O10, 030, J24 advanced economies, while in developing countriesdevelopment. it is notFurthermore, so dominant IC becauseis a driver there inis 1. INTRODUCTION According to Lisbon strategy (2000) under Afterno statistical Introduction, significance Section to 2confirm gives an it. overview which the European Union (EU) becomes “the of the concept of knowledge and IC. Section most competitive knowledge based economy in 3 focuses on economic development of the the world”, followed by Europe 2020 strategy observed countries. Section 4 provides (2010) that aims to obtain smart, sustainable correlation analysis between IC and indicators and inclusive growth, factors that lead to eco- of economic development in the selected nomic development are directed to knowledge and intellectual capital (IC). Knowledge and IC analysis are given in Conclusion. countries. Summary and final marks of the 1 University of Belgrade, Faculty of Organizational Sciences; Jove Ilica 154, 110000 Belgrade, Serbia; Email: [email protected] 2 University of Belgrade, Faculty of Organizational Sciences; Jove Ilica 154, 110000 Belgrade, Serbia; Email: [email protected] 3 University of Belgrade, Faculty of Organizational Sciences; Jove Ilica 154, 110000 Belgrade, Serbia; Email: [email protected] Economic Review – Journal of Economics and Business, Vol. XV, Issue 2, November 2017 77 /// /// Call for papers S. Jednak, V. Dmitrović, V. Damnjanović 2. THE CONCEPT OF KNOWLEDGE AND Generally, knowledge management creates and INTELLECTUAL CAPITAL maximizes IC. IC covers both explicit and tactic knowledge (Akpinar and Akdmeir 2000, p.338). Developed countries are directed and depend Knowledge, IC and knowledge management are on information, knowledge and skills at a related. Knowledge is source of IC therefore IC higher level. Their aim is the establishing of is source of innovation. Innovation increases the knowledge (based) economy. They run productivity, income, living standard and a continuous process of transforming their prosperity of a nation. economies towards activities and knowledge- based sectors. Economic activities in the IC is “the value of company`s employee knowledge (based) economy are primarily knowledge, business training and any focused on manufacturing and services, proprietary information that may provide especially in knowledge based industries. These the company with a competitive advantage” activities are based on intangible assets i.e. (Investopedia 2017). There are different knowledge and intellectual capital. According structures and sub categories of IC. According to endogenous growth theory, economic growth to Edvisson and Malone model (Bontis 2001) and development are obtained thought the rise of IC has two key sub categories: Human capital knowledge and innovation. Creation, movement and Structural capital. Structural capital and application of knowledge bring innovation, comprises Market (also denoted as Consumer growth and development (Marcin 2013). or Relation) capital and Organizational capital, Moreover, investments in knowledge create while Organizational capital has two sub new knowledge and ideas that improve other components: Process capital and Renewal production factors, productivity and income rise. (Innovation) capital. Human capital is the In this way, there is an opportunity for using the stock of knowledge, habits, skills and personal knowledge as a factor of economic growth and attributes and competencies in performing development. In the knowledge-based economy, labour activities. Structural capital refers to knowledge can be analyzed throughproduction non-human storehouses as infrastructure, (R&D), transmission (education and training) hardware, software, process and databases that and transfer/application (disseminating provide work of human capital. Organizational knowledge, providing inputs for problem- capital is organisational philosophy and solving, and innovation) (OECD 1996, p.21), and capability; it is organisational structure, patents, be resource, product or system. In conclusion, trademarks. Market (Consumer or Relation) knowledge has direct or indirect effects on the capital refers to relationships with customers, economic growth and development. vendors and others. Process capital presents procedures, programs and techniques, while Besides this, knowledge can be explicit and IC is intellectual property, patents, copyrights tactic (Nonaka and Takeuchi 1995). Explicit (Marcin 2013, p. 290). Human, relation, process knowledge rests on the tactic knowledge (Collins and innovation capitals usually act together on economic performances and have multiple knowledge embodied in documents, books, effects. journals,2010, p.5). system, Explicit process, knowledge etc. It isis obtained a codified by education, so it is available to anybody and can Intellectual capital (IC) is mostly analysed at be transferred to others (Nonaka and Takeuchi the business level, and its role is to enhance 1995). Tactic (implicit) knowledge is based on the experience and intuition. It isof personal However, some studies cover research of IC at nature based on person’s experiences and thefinancial national capital level. and National other business IC is “knowledge outcomes. it is hard to get it (Jednak and Kragulj 2015). According to Dhanaraj et al. (2004) tactic growth and development” (Bontis 2001). knowledge is accumulative and helps to explain Thebased value capital and which ranking influences of national on the IC economic provide explicit knowledge. Knowledge
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