presented indicators, in the form of various types of capital, which can be used to build such a
human capital, financial capital, system capital, and open capital. All are aggregated under one concept: innovation capital
innovation capital, human capital, financial capital, system capital, open capital, open innovation, innovation, entrepreneurship, business models
sic1 Self-financed initial capital ic2 Costs for the intake and absorption of new technologies
globalized economy†defining the open capital. In Allam Ahmed (ed World Sustainable Development Outlook 2009:
Innovation capital 42 A comprehensive approach to constructing an SME performance model 43 3. Methodology 54
capital of investment, and profit margin (a neutral percent figure At the external environment level, the input indicators that could be used in
human capital financial capital, system capital, and open capital. The overall argument is that if evaluation
performance models are to be used in helping SMES plan their survival and growth activities then one needs to address the above issues
between the self-financed initial capital and the initial investment capital. The technology intake costs are devised out of my understanding of the value of innovation in elevating firm
I selected financial capital and human capital from the literature review. Regarding the system capital,
I proposed that capital due to the realization that institutions and players†ability to promote innovation activities in society play an important role in supporting SME
activities. Meanwhile, open capital is a reflection of the emphasis on firms†networking capacities and the issue of firm performance and innovation
Defining firm smallness SME is a holistic term that implies an ambiguity in relation to a firm†s
of selling the firm to get the best possible return on invested capital, especially upon the slightest indication of trouble.
introduction of the concept of â€oeinnovation Capital, †covered by the third part of the thesis
Two types of capital are mentioned often in relation to innovation capacity human capital and financial capital (Abouzeedan and Busler 2004.
In addition to these two there is also a third: system capital (ibid. System capital should not be confused with
structural capital. Structural capital, in its classical context, is embedded an component in the intellectual capital concept (Allee 1999, Zangoueinezhad and Moshabaki 2009, Depablos
2004, Sveiby 1997. Intellectual capital relates to the intangible assets of an enterprise (Sveiby 1997, Sveiby and Risling 1986, Edvinsson and Malone 1997, Roos et al. 1997.
Structural capital, as well as human capital and external capital, may be discussed in respect to an enterprise†s intangible assets (Allee 1999.
Allee (1999, p. 126) defined structural capital as â€oesystems and work process that leverage competitiveness. †According to him,
it is â€oethe competencies delivered as codified knowledge in the internal environment of the firm and that
is why it is referred also to as internal capital†(ibid Based on the definition above, it is evident that structural capital is different from
the â€oesystem capital†used in papers 4, 5, and 6 of this thesis. There are two main aspects of
that difference. Firstly, system capital is more related to existing input from the external environment. Such input comes from societal and governmental organizations and
institutions. Secondly, system capital indicates both tangible as well as intangible assets supplied to the firm as external input
Technical change may increase the relative productivity input of human capital if education and other skills assist in rapidly applying new technology within the firm (Adams
1980, Nelson and Phelps 1966, Welch 1970, Schultz 1971. One way to express the quality of
human capital in a country is to look at labor productivity (Adams 1980. Mankiw et al 1992) introduced human capital explicitly in his production function.
People constitute any organization†s core resource for competitiveness (Rastogi 2000. On the other hand, if an increase in labor-productivity is related only to an increase in working hours and not to a net
production output, then the increase in productivity will add little or nothing in respect to competitiveness as measured by income per capita (Corley et al. 2002
In knowledge management literature, R&d and human capital are typically merged under the categories of â€oereceiver competence†(Eliasson 1990), â€oeknowledge base, â€
In general, human capital is transferable and facilitates the accumulation of specific human capital (Ballot and Taymaz
argued that innovation expressed as R&d can be incorporated with human capital in relation to intangible assets
Financial capital is coupled often with R&d and innovation activities Lichtenberg†s (1992) study of the manufacturing sector†s productivity in relation to R&d
emphasized tangible resources, such financial capital and location (Scott 2003. However recent efforts focused on the utilization of intangible resources, such knowledge, as a
initial capital of investment. One does not find these parameters in the classical models although they are important in measuring the efficiency of the firm†s operations.
initial capital of investment to initial investment costs provides a good indication of the degree to which the entrepreneur relied on his
includes the initial investment costs and the self-financed initial capital of investment; all the rest are clustered in the first subset
6 The discussion about open capital stems from the open innovation concept advanced by Chesbrough
These components are human capital, financial capital, and system capital. The validity is enhanced also, as the group of countries analyzed using the IBAM tool are located
components of capital is exaggerated highly. The level of differentiation between the intensity of innovation capital components enhanced the validity of the study†s analysis. The discussion
about open capital originated in paper 6, through its introduction of the open innovation concept advanced by Chesbrough (2001,2003.
about the components of human capital, financial capital, and system capital. Therefore, the same analysis can be reproduced without difficulty.
In paper 6, the discussion about open capital is originated through the introduction of the open innovation concept advanced by Chesbrough (2001,2003.
We wanted to look at the components that present the input capital into the innovation vitality of an economy from the perspective of individual firms†needs and
concept of Innovation Capital was introduced first. One year later, in 2005, the paper was reworked and the analysis performed on firms located in the Arab World.
The paper introduced innovation capital as a new concept comprising three components: human capital, financial capital, and system capital
Summary of paper 4 This work introduced a new type of capital†innovation capital. In the paper, we
argued that innovation capital can be used as an indicator for the degree of richness of the
The paper also introduced another new type of capital as a component of innovation capital:
system capital. System capital is related to the input of the society and its institutions in support of the entrepreneurial and innovation activities of firms
To analyze the different possible scenarios resulting from the imbalance among the components of innovation capital, a new analytical tool was introduced:
the Innovation Balance Matrix, or IBAM. IBAM is an analytical tool that classifies economies based on their
of innovation capital must be in balance in order for an economy to be innovative and
Arab country enjoys an abundance of one of the three components of innovation capital but
common efficient market in order to facilitate the flow of the type of capital among these countries
connection to system capital because they do not take in consideration the societal input Traditional models neglect variations in the business sector such as geography, economic
assess this input by stressing the need for balance between human capital, financial capital and system capital,
Although the discussion about the three types of innovation capital is meant not to provide a
is to use deductive analysis regarding the forms of capital that contribute to the entrepreneurial external environment of firms.
look at the question is to apply deductive analysis to the forms of capital contributing to the
innovation capital (human capital, financial capital, and system capital) and provides input indicators to build upon models of performance that consider the external environment of the
firm Paper 6: â€oemanaging Innovation in e-Globalized Economy†Defining the Open Capital†This paper was published in Allam Ahmed (ed.),World Sustainable Development
open capital. The paper was rushed into formulation and presented at the WASD conference in Manama, Bahrain during the period of November 9†11,2009
of capital (i e. innovation capital. Innovation capital was meant to serve as an indicator for the degree of richness of the entrepreneurial environment in an economy.
However, the issue of accessibility and openness in the innovation process was reflected not in the innovation
The paper also reflected on how the four components of innovation capital are interconnected To distinguish the concept of open capital from the usage of open capital in
classic financial management literature, the paper introduced a number of dimensions related to open capital as a component of innovation capital
Contribution of paper 6 to the purpose of the thesis At the external environment level, the input indicators that are candidates for
human capital, financial capital system capital, and open capital. Classical firm performance models were built in a period
when there was limited exposure concerning firm networking and the degree of interaction and exchange of resources and knowledge among companies.
reflected in the introduction of the open capital concept at the external environment level. It is
6 analyze the nature of innovation capital in relation to the external environment of the firm This group of papers introduces a new tool, the Innovation Balance Matrix (IBAM), which
can be used to analyze the four components of innovation capital (human capital, financial capital, system capital, and open capital.
Papers 3 and 7 implement the proposed model for SME performance evaluation†the Survival Index Value (SIV) model
2) innovation capital and its relevance to firm performance; and 3) how the SIV model can remedy the deficiencies of the existing models
Innovation capital and its relevance to firm performance The innovation capital availability of firms is determined by their richness and
system) as well as the open capital. A firm†s innovation capital is analyzed in relation to the external environment of the firm by use of the Innovation Balance Matrix (IBAM
The connection between the internal and external environments of the firm, as relates to firm performance,
models lack a clear connection to system capital, as these neglect variations in the firmsâ€
open capital. It is important that the desired SME performance model facilitate the bridging of the SME€ s internal environment analysis to the
Networking and openness are reflected also in the introduction of the open capital concept at the external environment level.
open capital For a single firm to engage actively in innovation it requires input from society
as well as open capital paper 6). The Innovation Balance Matrix (IBAM played a vital role in this discussion.
components and provided insight into how the different components of Innovation capital are related to each other
5, and also open capital see paper 6). The Innovation Balance Matrix (IBAM) played a vital
The tool is used to analyze the level of each of form of capital and provides an insight into how the different components are related.
open capital (paper 6). The analysis performed in papers 3 and 7 exemplified the approach needed in the model to address the issue of innovation
production, the initial investment costs, the self-financed initial capital of investment, and the profit margin (a neutral percent figure
human capital financial capital, system capital, and open capital ASPEM as a new tool for strategic utilization of SME performance models
To the best of my knowledge, the existing SME literature lacks a strategic approach for researchers to use the performance models.
capital and financial capital. In the context of this thesis, I proposed a new form of capital to
cover the ability of public institutions and private organizations to support the entrepreneurial environment in a country.
open capital. I combined the four types of capital into a new form of capital, innovation capital.
Innovation capital presents the accumulated input of technology in relation to the firm†s external environment that promotes innovativeness and the
of innovation capital are relatively abundant at the same level. To study the possible variations of innovation capital levels in an economy,
not include open capital. I only considered human capital, financial capital, and system capital. Open capital should be integrated as a fourth component of innovation capital in any
future work using the IBAM tool The Arab countries presented a unique case, where each country has an
overflow in only one component capital, while the other two components are in poor shape Although the concept â€oecapital†is built not into the SIV model,
the SIV model can be used as a performance input indicator to build models at the aggregate level of the economy
that considers innovation at the aggregate level, the ideas related to innovation capital and the IBAM tool can be used as indicators and inputs for such a model
Relative capital formulation in the United states. Journal of Political Economy 88 (31), 561†577 Adizes, I. 1987.
Measuring and reporting structural capital: lessons from European learning firms. Journal of Intellectual Capital 5 (4), 629†647
Dhanaraj, C. and Beamish, P. W. 2003. A resource-based approach to the study of export
Intellectual capital: Realizing your company†s true value by finding its hidden brainpower. New york, New york:
Sustaining enterprise competitiveness†is human capital the answer Human Systems Management 19 (3), 193†203
Intellectual capital: Navigating in the new business landscape. London, UK: Mcmillan Business Ross, D. M. 1996.
Investment in human capital: The role of education and of research New york, New york: Free Press
The role of structural capital on competitive intelligence. Industrial Management & Data systems 109 (2), 262†280
tools and instruments which make up physical capital. Veblen viewed technology as an â€oeindivisible possession of the community at large,
concentration of capital over the years has given rise to the domination of large firms and
political capital to be gained in this recognition. The politician and the innovator play the political capital card, seeking to reinforce it through strategic alliances.
Wolfe, D. 2002) Social Capital and Clusters Development in Learning Regions. In Holbrook A. and D. Wolfe (ed.).Knowledge, Clusters and Regional Innovation.
Equity (Public or Private) Seed Capital Venture capital Seed/Start-up Emerging growth Debt financing Bank loans
initiative, the Capital Investment and Risk management company of Andalusia INVERCARIA which is the first venture capital company at regional level
and †human capital and entrepreneurshipâ€. These two areas have projects with GPS related to the
evidence, analyses and scenarios on territorial dynamics and (2) revealing territorial capital and potentials for development of regions and larger territories contributing to European
guarantees schemes, seed capital and venture capital. We have seen that access to financing is one of the most important barriers impeding innovation in SMES.
the major capitals of Europe) grouped under the Edge Cities Network (ECN While the project addressed the innovation capacity of SMES in general,
on the edge of the major capitals of Europe. This common background allows partners to move
Structural change, not just the accumulation of capital, is a driver of economic growth. As such smart specialisation aims to accelerate structural change by encouraging the
The advances in ICT, the increase in human capital in public administrations and closer public-private interactions between industry and government at various stages and levels of
Preserving the margin for public investment in knowledge-based capital so that it contributes to productivity growth will be increasingly important not only in the medium term but also in the longer term
dynamic and change over time (e g. human capital)( e g. OECD, 2011; Redding, 2002. World prices of natural
Furthermore, demand factors such as the level of human capital and income per capita of a country†s trading partner create specific patterns of taste and,
-based capital, but doing so in a â€oesmart way†so that it contributes to productivity growth and
development in specific sectors, the availability of human capital for certain scientific, technological and economic areas, the presence of IT-infrastructure in specific sectors, etc.
chain), Capital D (design) en Brainport Health Innovation are important examples In 2010 Brainport developed, on request of the central government and parallel to the already existing
mass on human capital in public) R&d and; iv) Growing gap of R&d HR resources, especially
firms concentrated in the regional capital (the city of Brno), a dynamic and innovative centre and the
In this sense the joint innovation strategy with its main objective of securing the capital region†s international competitiveness also falls in line with the â€oeeurope 2020 Strategy†as the Statesâ€
social capital available in the regions. The self-organisation of clusters and other â€oeloose networksâ€, the
authorities compete to attract the small finite pool of mobile capital, management and knowledge resources.
research and development in specific sectors, the availability of human capital for certain scientific technological and economic areas, the presence of IT-infrastructure in specific sectors, etc
For the mapping of human capital, educational data, such as the number of students enrolled in
Skills development and education in general form part of human capital and according to human capital theorists these assets can improve SME productivity significantly (Honig, 2001
constantly experience shortages in capital to employee skills to improve production capacity which makes it necessary to continuously improve their production strategies with customized
may be essential that human capital in an effective team configu -ration accompany the transfer†(Teece, 1980, p. 228
Innovation and social capital in the small-medium entreprises: A case of bamboo handicraft in indonesia
Entrepreneurial capital: The emerging Venture†s most important asset and competitive advantage. Journal of Business Venturing 17: 275-90
LEVERAGE THE VALUE OF OUR INTELLECTUAL CAPITAL In a number of areas today, technology is emerging more rapidly than societal
intellectual capital are being developed the objective being to create both societal value and business value.
2003 as shown in Figure 6. Capital BERD expenditure totalled â 253 million in 2011 falling from
are primarily due to the efficiencies of ICT capital, as well as associated complementarities and spillovers Compared to the United states,
physical capital. Using hours of work or the amount of workers as the denominator yields labor productivity (the measure used in this report unless
while using the combination of workers, physical capital and other inputs as the denominator yields total factor productivity (TFP;
physical capital Productivity is the main determinant of national income per person, because over the long term a nation can consume only what it produces
more than investment in non-ICT capital. 43 Likewise, Wilson finds that of all types of
other capital. First, in economies where ICT capital equipment innovations are new, they are able to pick off the â€oelow hanging fruit†of relatively easy to improve efficiencies
ICT capital contributed 0. 53 percentage points to the average annual GDP growth rate in the United states and 0. 56 percentage points in
includes labor composition, ICT capital, and TFP, increased in the UK from 2 percentage points to 2. 3 percentage points of overall growth after 1997.54 Goodridge et al. find sectors
most heavily in ICT capital. 55 In Finland, Mairesse, Rouvinen, and Ylã¤-Anttila find that
overall in fixed capital than the United states. Figure 9) In other words, while Europe invests more overall,
investment in ICT as a share of fixed capital investment since the 1990s.86 (Figure 10
Two additional reasons European firms lag in their investment in ICT capital are related to scale.
The Contribution of Heterogeneous Capital to Productivity†working paper no. 13, Federal reserve bank of San francisco, 2004), 13
World Development Indicators (Gross Fixed Capital Formation as percentage of GDP); ) The Conference Board, Total Economy Database:
Hubert Strauss and Besik Samkharadze, â€oeict Capital and Productivity Growth, †EIB Papers 16, no. 2
World bank, World Development Indicators (Gross Fixed Capital Formation%GDP; accessed April 10, 2014 94. See Raquel Ortega-Argilã s, â€oethe Transatlantic Productivity Gap:
Strauss and Samkharadze, â€oeict Capital and Productivity Growth. †96. OECD, Science, Technology and Industry Scoreboard 2013 (Chapter 2:
Masulis, â€oeoptimal Capital Structure Under Corporate and Personal Taxation, †Journal of Financial Economics 8, no.
Gurbaxani, Vijay,"The demand for IT capital: an empirical analysis,"Decision Support systems 8, no. 5
the free movement of people, goods, services and capital The Commission regularly updates its Single Market strategy in order to eliminate
capital for SME financing. The facility covers investment into venture capital funds which have an early
In particular, GIF1 provides seed capital which means financing provided to study, assess and develop an
Moreover, start capital is made available under GIF1. This is capital provided for product development and initial marketing of start-up companies or companies that yet exist but nonetheless
still have to launch their product or service commercially For GIF2, the EIF invests in specialised risk capital funds
which in turn provide equity (the share capital of a company) to innovative SMES that are in their expansion stage
Its initial capital rises up to 50 million euros. It is financed by the EIB and potential partner banks.
and Limerick City as its capital, will realise its potential as a gateway region both nationally and
with capital from private sources in the region through the investor forum Number of entrepreneurs provided with mentoring/training
of national online services, telecommunication infrastructure and human capital in all countries. See http://unpan3. un. org/egovkb/global reports/index. htm
31 Household incomes include wages, salaries, self employment incomes, capital and property income, private transfers and
earthquake, but outside the capital 19 days later. The circles represent the numbers of people who were displaced.
the prices applying to the capital city are reported. The selected city should be mentioned in a note in the monthly subscription indicator
ï the index of human capital (generated depending on the education level noticed on adults and
In capital, the percentage of those aged between 16-74 years and who used the
the capital deposited Very High Number of new businesses launched in ï First 11 months of
share capital or assignment of shares 4. 1 The resolution of the shareholders/partners/resolution of
share capital or to assign the shares shall be submitted to the Office of Commerce Registrar to be mentioned
or the UK€ s Big Society Capital fund and India†s Inclusive Investment Fund. They combine investments in new hardware and software with experi
the social capital and wellbeing of local areas What is measured? Common standards of evidence and adoption
substantial capital from larger firms (Sakai, 2002. Moreover, the Internet can convey the ideas of
inefficiency in the use of capital and labour, e g. by reducing inventories, and that the more customers or
4. 3. 2 Access to capital for SMES...69 4. 3. 3 Domain names...69 4. 3. 4 Net neutrality...
4. 3. 2 Access to capital for SMES Small and Medium Sized Enterprises (SMES) play an important role in fostering growth and
4. 3. 2 Access to capital for SMES 4. 3. 3 Domain names 4. 3. 4 Net neutrality
reduced risk as others put their human capital to work on risky propositions; and accelerated time-to-market as innovation is freed from the shackles of the
Intellectual Capital, Vol. 13 (2), pp. 178 †195 3. Chesbrough, H. 2003) â€oeopen Innovationâ€, Harvard Business school Press, Boston, pp. 43
done on knowledge capital, structural intellectual capital and the effects on national competitiveness Policy measures from different parts of the world
are set in context of increasing intellectual capital Executive Summary 8 O P E N I N N O V A t I O N y E A r B o O k 2 0 1 4
In the article there are good references to a wider set of studies targeting the major OECD countries
-opment) regarding intellectual capital and competi -tiveness. Results are just startling Carrol interlinks existing youth unemployment
with creative commons, shared societal capital and the systematic harvesting of experimental results. Information technology will play a special
OI2 focuses on creating increased social capital enabling broader boundary spanning and the cre -ation of new activation triggers for innovation options
societal capital, creative commons, and communities #3: Innovation Ecosystem Orchestration and Management Innovation has moved out of the lab and into an ecosystem that crosses organizational boundaries.
-vate capital into regional smart specialisation niches The RIS3 approach also maintains that through application of horizontal forms of multilevel
capital from outside investors such as Microsoft, which chipped in $42m. Rovio now has 500 employees in Finland and had a turnover of $100m in 2011.
knowledge, and capital between the networks and to interlink them will exponentially enrich each and
of growth, development of human and social capital and quality jobs. There are early successes to cherish
national intellectual capital, albeit intan gible, can provide valuable insights for searching a national benchmark as well as for future risk control
intellectual capital (NIC) and tangible GDP per cap -ita (ppp) of these two countries are explored also
-gible (national intellectual capital, NIC) co-develop -ment also provide some clues for future national
NIC is represented by national human capital NHC), market capital (NMC), process capital (NPC renewal capital (NRC),
and financial capital (19). NIC is the sum of the above capitals. National human capital is the competencies of individuals in real
-ising national goals, market capital represents a country†s capabilities to meet the needs of its
international clients, process capital comprises mainly a country†s infrastructure, and renewal capital refers to a nation†s capability for innovation
that sustains a nation†s competitive advantage (19 Figure 3 to Figure 7 show the co-development path
of GDP-NIC,-NHC,-NMC,-NPC, and-NRC of Aus -tralia and Chile from 1995 to 2010.
For example, Chile has better market capital than Australia. Figure 6 is the co-development of GDP
renewal capital, despite some backward develop -ment, whereas Chile was stagnant in renewal cap -ital over the long period from 1995 to 2010
declining process capital in recent years (Figure 6) is another sign for attention For Chile, the 59-country background landscape of
reform to increase human capital and reduce pov -erty, special attention needs to be paid to its low
renewal capital. Figure 7 shows that Chile remained stagnant in terms of renewal capital development Figure 7) over 16 years.
of national renewal capital in order to achieve its goal of having per capita income of the OECD aver
-Injected US$ 500 million in fresh capital into the state bank to provide credit to small and
Capital: A comparison of 40 countries. NY: Springer Publishing Co 3) Briones, I. 2010) Chile country report, in
Capital in Israel and Financial crisis Impact, International Journal of Knowledge Based Development, 4 (3 245†273
every stakeholding individual can bring capital to the value creation process through their †value cre
the meshwork of human capital, social capital, and organisational resources that is resident within and outside of that community,
9. Building new strategic capital for enterprises; and 10. Expanding wealth-welfare-wellbeing Figure 2:
which is regarded also as the Capital of Northern Scandinavia, is located in Northern Fin -land (Figure 3). This article presents the Oulu open
entrepreneurs to raise capital to finance their idea or project, crowdfunding espouses many non -monetary benefits.
promising resources for restoring capital to busi -nesses, defined as the collective effort of individ
capital from investors, using social networks and crowdfunding platforms to finance their businesses and projects. By doing so, individual entrepreneurs
to access capital or to gain access to knowledge and skills. And they are operating within fast
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