Purpose: Intellectual capital theory and practice predominantly focus on measuring and managing intangible assets. However, if we want to balance the intellectual capital books (Harvey and Lusch, 1999), we should recognize both intellectual assets and intellectual liabilities (Caddy, 2000). Therefore, the purpose of this article is to present a theoretical framework for measuring intellectual liabilities. Design: Identifying intangible liabilities is identifying the risk of decline and fall of organizations. One of the first extensive studies related to causes of decline and fall is Gibbon‟s Decline and Fall of the Roman Empire (Gibbon, 2003 [original publication 1776]). It seems as if the main lessons that were drawn from this study are also applicable to today‟s business environment. Therefore, the framework that is developed in this article is not only based on intellectual capital literature, but also on Gibbon‟s study into the causes of decline and fall of the Roman Empire. Findings: The findings are combined in a framework for measuring intellectual liabilities. The main distinction within the proposed framework is the distinction between internal and external liabilities. Internal liabilities refer to the causes of deterioration that arise from the sources of value creation within the organization. External liabilities refer to the causes of deterioration that come from outside and are beyond control of the organization. Originality: This article explores a relatively new topic (intellectual liabilities) from a perspective (historical sciences) that is hardly used in management science.
In December of 2004 the Directorate General for Research and Technological Development (DG RTD) of the European Commission (EC) set up a High-Level Expert Group to propose a series of measures to stimulate the reporting of Intellectual Capital in research intensive Small and Medium-Sized Enterprises (SMEs). The Expert Group has focused on enterprises that either perform Research and Development (R&D), or use the results of R&D to innovate and has also considered the implications for the specialist R&D units of larger enterprises, dedicated Research & Technology Organizations and Universities. In this report the Expert Group presents its findings, leading to six recommendations to stimulate the reporting of Intellectual Capital in SMEs by raising awareness, improving reporting competencies, promoting the use of IC Reporting and facilitating standardization.
The role of (entrepreneurial) universities as change agents in regional economic development has been highlighted before, but how they can drive regional sustainable development in developing countries has been largely neglected hitherto. Using qualitative methods, we show how being confronted with adverse poverty and pollution in the local context, can drive a university to develop a sustainability vision that accordingly becomes the driver of institutional change. We demonstrate how local campus leadership, a holistic teaching and research program, and student involvement ensued significant local effects in the short run. Yet, we also show how liabilities of smallness hinders the creation of significant sustainable local impact. Instead, the campus became an incubation space for novel institutional practices for regional development. Indeed, the most promising initiatives were spun back into the original campus for their scale-up phase. This study advances insights on the entrepreneurial university by, first, presenting universities as drivers for sustainable change through education and outreach rather than via traditional commercialization activities, notably in developing countries. Second, it shows the risks and value of creating a separate space for novel concepts for sustainable development to be tested out before bringing these back to the principal location.
