Pitfalls and Obstacles in the Valuation of Knowledge, Expertise, Innovation

Intellectual Capital
Knowledge Center


Alkhaly Mohamed Tahey Conde
Lecturer, Guinea

Pitfalls and Obstacles in the Valuation of Knowledge, Expertise, Innovation

🔥NEW Every major organization must try to evaluate and valorize correctly its full knowledge and expertise capacity, in order to get a fair value of its total assets. That value should be measured and reflected in financial statements and accounting documents. The numbers have to be actualized continuously, with appropriate analyses and explications, verifications and validations.
What are the principal obstacles and pitfalls to engage in a useful evaluation of the value of the knowledge, information and innovation assets in an organization?
Surely, traditional conventions and standards are not sufficient to provide solid guidelines to explore and report this crucial asset category.


Cecilia Calderon Kohler
Accountant, Chile

Innovation and Obstacles to Knowledge

(Translation: 12manage)
Savignac's (2008) research represented a great advance for subsequent studies of the effect of obstacles on innovation. He identified the selection bias in the estimates that include obstacles to innovation. She separated the firms into three types:
  • Innovative firms
  • Potentially innovative firms
  • Firms with no interest in innovating
and showed that the estimates by all firms suffer from selection bias, including the firms that have no interest in innovating, so these are not affected by obstacles to innovation.
Savignac found that financial constraints decrease the likelihood for firms to innovate.
D'Este, Lammarino, Savona & von Tunzelmann (2012) differentiate between revealed barriers (obstacles that hinder the innovation process) and dissuasive barriers (obstacles that impede the innovation process), the firm ends up not innovating due to this effect. While the focus of their research was to study the nature of each barrier rather than its effect on innovation, they find that financial barriers appear to have dissuasive effects.
In recent years, we have seen studies that attempt to elucidate the importance of the other obstacles, be they knowledge, market or policy.
Knowledge obstacles are nourished by the firm's perception regarding four factors, which correspond to:
  • Lack of qualified personnel
  • Lack of information about technology
  • Lack of information about the markets
  • Difficulty in finding cooperation for innovation.
They use the Simultaneous Bivariate Probit Model, in which the existence of knowledge obstacles affects the probability of innovating and innovative behavior induces the severity of the knowledge obstacle.
Ref.: Postgraduate Economics and Business, Universidad de Chile. Student Mario Enrique Canales Piccoli: Innovation and Obstacles to Knowledge: Heterogeneous Effects.
Innovación y Obstáculos Al Conocimiento
La investigación de Savignac (2008) significó un gran avance para los estudios posteriores del efecto de los obstáculos sobre la innovación. Identificó el sesgo de selección que poseen las estimaciones que incluyen a los obstáculos a la innovación. Ella separó a las firmas en tres tipos:
  • Firmas innovadoras
  • Firmas potencialmente innovadoras
  • Firmas sin interés en innovar y mostró que las estimaciones con todas las firmas sufren de sesgo de selección al incluir a las firmas que no tienen interés en innovar, por lo que no se ven afectadas por los obstáculos a la innovación.
Savignac encuentra que las restricciones financieras disminuyen la probabilidad de que las firmas innoven.
D'Este, Iammarino, Savona & von Tunzelmann (2012) diferencian entre barreras reveladas (obstáculos que dificultan el proceso de innovación) y barreras disuasivas (obstáculos que impiden el proceso de innovación), la firma termina no innovando por este efecto. Si bien el foco de su investigación era estudiar la naturaleza de cada barrera más que su efecto sobre la innovación, encuentran que las barreras de finanzas parecen tener efectos disuasivos.
En los últimos años han tomado relevancia estudios que intentan dilucidar la importancia de los otros obstáculos, ya sean de conocimiento, de mercado o de políticas.
Los obstáculos de conocimiento se nutren de la percepción de la firma respecto a cuatro factores, los cuales corresponden a:
  • Falta de personal calificado
  • Falta de información sobre la tecnología
  • Falta de información sobre los mercados
  • Dificultad en encontrar cooperación para la innovación.
Se utiliza Modelo Probit Bivariado simultáneo: donde la existencia de obstáculos de conocimiento afectan la probabilidad de innovar y el comportamiento innovador induce la severidad del obstáculo de conocimiento.
Ref.: Post grado Economía y negocios, Universidad de Chile. Alumno Mario Enrique Canales Piccoli: Innovación y Obstáculos al Conocimiento: Efectos Heterogéneos.

Alkhaly Mohamed Tahey Conde
Lecturer, Guinea

Obstacles to Knowledge Management and Development

Thank you for your clear insights. Your contribution is useful to improve our analyses. The factors ... Sign up


More on Intellectual Capital:
Discussion Topics
Cost of Intellectual Capital
Measuring IC: Business IQ
Psychological Capital
How to Measure the Level of Innovation in an Organization?
👀Pitfalls and Obstacles in the Valuation of Knowledge, Expertise, Innovation
Special Interest Group

Do you know a lot about Intellectual Capital? Become our SIG Leader

Intellectual Capital
Knowledge Center

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2023 12manage - The Executive Fast Track. V16.1 - Last updated: 1-6-2023. All names ™ of their owners.