Reading List: RICARDIS Report Published by the European Commission
We received a copy of this book at a recent conference on Intellectual Capital sponsored by the World Bank. RICARDIS stands for “reporting intellectual capital to augment research, development and innovation in small and medium enterprises.” This is a great resource because it presents a neutral review of the research in this field and the options available for intellectual capital reporting. Some highlights of the findings include:
- Successful R&D and innovation are the result of a combination of not just knowledge but also complementary assets such as people and relationships. So, reporting needs to focus on the full portfolio of intellectual capital.
- IC portfolio reporting supports R&D and innovation by providing information about existing resources and a management framework for leveraging IC for future growth.
- Better information about the intangible aspects of a business makes the company a better candidate for financing sources of all kinds (ranging from equity investors to lenders).
Most business books present the theories and world view espoused by their authors. Since this book was written by a committee of fifteen experts in the field, it is a rare resource that gives an overview of all the available literature. It is especially valuable because, while it recognizes the challenges faced by companies trying to explain the intangible, it provides practical advice on how to make a difference in individual companies today. This publication is available free on-line (Part 1 and Part 2).
