Innovation and Internal reporting of Intellectual Capital - An emperical study

Abstract

Purpose - The aim of this paper is to investigate the relationship between internal reporting of intellectual capital and innovation. Additionally the aim is to explain the advantages and disadvantages of reporting of intellectual capital and give a short overview of the previous research in this area. Design/methodology/approach - A questionnaire was designed and addressed to the CFOs at the companies of the target population (companies within SNI-codes 20, 22 and 23 with between 250-800 employees). We primarily used forced-choice questions and complemented with some open-ended questions. The data was analyzed with SPSS 17 and the Spearman’s correlation coefficient was used to find correlating variables. Findings - The results obtained show that there exists a correlation between internal reporting of intellectual capital and innovation for a number of reporting posts, the most prominent in this study was human capital. Originality/value - This paper investigates and highlights the link between internal reporting of intellectual capital and innovation.