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Social innovation capital

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Current conceptions of how to measure and manage intellectual capital (IC) suffer from a failure to take "social capital" rigorously into account. This is a shortcoming of current thinking in the IC arena. Of particular concern is the absence of "social innovation capital" (SIC) from the scope of leading IC schemes. SIC, the collective capacity of a firm to innovate, is arguably the most valuable form of IC because it underlies a firm's fundamental capacity to learn, innovate, and adapt. Using one leading IC scheme as a basis for analysis (Skandia's), the absence of social capital, and SIC in particular, is highlighted, along with a description of what Skandia's taxonomy would look like if it were to take social capital fully into account. Finally, recommendations are offered on how managers can build and manage SIC, thereby enhancing their organizations' capacities to learn, innovate, and adapt in the marketplace.
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Keywords: Innovation; Intellectual Capital; Management; Organizational Learning

Document Type: Research Article

Publication date: 2002-02-01

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