Intellectual wealth of nations revisited : operationalising the value cycle of innovation

In this paper, we develop a conceptual framework for the measurement of the intellectual wealth of nations. We argue that rather than persist with the outcomes-based indicators of intellectual assets favoured by the World Bank and United Nations, there is a process-based approach that may be tied to the value of innovation. Specifically, this model comprises the key innovation life-cycle processes of value creation, value indication, and value protection aspects of intellectual capital. We posit that the above three components of our model drive the national culture of innovation and thereby contribute to development and growth. The empirical results of operationalising the wealth of nations suggests that such an approach is valid and feasible. We conclude with an agenda for research that adds to the discourse on the theory of knowledge policy.Accepted versio