Value Creation Through Intellectual Capital in Developed European Markets

Journal of Economic Studies, Vol. 41, No. 2, 2014

18 Pages Posted: 10 Jul 2013

See all articles by Elena Shakina

Elena Shakina

National Research University Higher School of Economics

Ángel Barajas

National Research University Higher School of Economics, SPB; National Research University Higher School of Economics - International Laboratory of Intangible-driven Economy

Date Written: August 29, 2012

Abstract

This paper investigates the production function of firms based on the use of intellectual capital. We come up with this problem since believe that the new economy conditions require an adjustment and a development of classical firm theory. The research question addressed in this study is mainly related to the empirical validation of the function based on companies’ intangibles in the Cobb-Douglas framework. This model enables us to advocate the idea of the complementarity of intellectual resources as well as simplifies the analysis of intellectual capital features. To accomplish the purpose of our research we design a log-linear model and estimate it on a sample of more than 400 European and American companies. Application of Cobb-Douglas framework allowed designing a production function based on intellectual capital. The complementarity of intellectual capital components is justified on the empirical results obtained in this research. The increasing return to scale for intellectual capital was established for the sample examined in this study.

Keywords: Production function, Complementarity of intellectual resources, Returns to scale, Intangibles, Intellectual Capital, Cobb-Douglas

JEL Classification: O12, O15, O16, O34, O57

Suggested Citation

Shakina, Elena and Barajas Alonso, Ángel, Value Creation Through Intellectual Capital in Developed European Markets (August 29, 2012). Journal of Economic Studies, Vol. 41, No. 2, 2014, Available at SSRN: https://ssrn.com/abstract=2291943

Elena Shakina

National Research University Higher School of Economics ( email )

Studencheskaya str., 38
Perm, Perm krai 614070
Russia

Ángel Barajas Alonso (Contact Author)

National Research University Higher School of Economics, SPB ( email )

3A Kantemiroskaya
Saint Petersburg, 194100
Russia

HOME PAGE: http://www.hse.ru/en/staff/barajas

National Research University Higher School of Economics - International Laboratory of Intangible-driven Economy ( email )

Lebedeva,27
Perm, Perm 614070
Russia

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