Intellectual Capital And Its Value Effect

In the 21st century,the pace that the advance of science and technology improves economic society is getting faster and faster.The concept that science and technology are the primary productive forces has been widely accepted.With the development of economy and the adjustment of the economic structure,our country is now at the key stage of transforming from the industrial economy era to the era of knowledge-driven economy.Under this trend,and with the improvement of technology and the training of high quality workforce,the transition of our country from low-end manufacturing base to that of high added value industry will come very soon.As a result,the most precious capital in the society will change from money,labor,and natural resources to intellectual capital.The concept of intellectual capital is gradually developed and improved from just an extension of human capital to a comprehensive indicator,which includes human capital,organization capital and relationship capital.Intellectual capital reflects the important intangible resources an economic organization has,and determines its potential sustainable development.Since intellectual capital is strategically important for a firm,a city,as well as a country,its evaluation and development is considered as a vital strategic component.However,the research of intellectual capital in academics is not enough,and so is the related empirical research.From the perspective of deepening the research of intellectual capital,this paper review the extant research on intellectual capital,measure the magnitude of intellectual capital of economic organizations from different levels,and investigate the value effect of intellectual capital.Considering the research status on intellectual capital,this paper tries to contribute to the existing literature from three aspects:theory,model and methodology.In theory,this paper clarifies related concepts and summarizes the existing research by exploring the content and the measurement of intellectual capital.In particular,this paper fills the domestic research blanks in the value effect of intellectual capital,and makes the research on intellectual capital more complete,through constructing research frameworks from the three views of microcosmic,the middle,and the macroscopic.In model selection,this paper introduces the dynamic model and the dynamic panel data model with threshold effects to better describe the real economy and to better explore the effect of intellectual capital on economy,which contributes to the research from paradigm.In the selection of method,we use the most advanced dynamic factor models and the corresponding method of determining the number of dynamic factors.Specifically,in the estimation of dynamic panel data model,we follow the idea from the newly proposed factor GMM to avoid the problem of week instrumental variable;while similarly,in the estimation of dynamic panel data model with threshold effects,we use the corresponding methods to estimate the threshold values.This helps the future empirical research on topics related to intellectual capital.The conclusions for research on intellectual capital from the three levels—firms,cities,and countries—are as following:From the level of firms,we use the annual individual data of listed firms from 1999 to 2011,and measure the magnitude of intellectual capital by manual data of human capital and organization capital.It is shown from the results of systematic GMM and IV estimations that the increase of human capital has no significant effect on the current value of a firm,while the increase of organization capital has a significant lag effect on the firm value:negative to the current period,but positive to the next.These results imply that the function of management is more significant than that of talents for firms in our country at this stage.From the level of cities,based on the panel data of 289 prefecture-level cities from 2000 to 2014,we construct intellectual capital variables for cities and compare the intellectual capital magnitude of major cities.From the GMM based on factors,we find a significantly positive effect of city intellectual capital on the growth of city economy,and this effect is particularly significant in cities of large or medium size,and in cities where the service industry takes high proportions.From separate terms,city organization capital and city relationship capital play major roles in the function,while city human capital does not.From the level of countries,using the panel data of our country and the main OECD countries from 2000 to 2013,we construct intellectual capital variables for different countries and compare their magnitude.We find the main reason that the level of intellectual capital of our country falls behind that of OECD countries is the lack of human capital.Besides,due to the threshold effect,we find that the effect of China's intellectual capital on economic growth is less significant than that in OECD countries.