Towards measures of national intellectual capital: an analysis of the CHS model

Abstract

Purpose

The paper aims to provide an assessment of a tool for the macro‐level measurement of intellectual capital developed by Corrado, Hulten and Sichel (CHS model).

Design/methodology/approach

The aim paper assesses the validity and accuracy of the CHS model in measuring intellectual capital in general and to see whether it has application at the national economy level.

Findings

The model's new accounting ideas have great potential, but some serious question marks remain. The key advantage of the model is that it accumulates capitalized intangibles over time. On the other hand, the elements of intellectual capital, i.e. spending on innovative property and economic competencies, software and other computerized information, are too vague and problematic.

Originality/value

CHS model is a rather frequently used method for measuring intellectual capital. However, its validity has not been under critical analysis or examination earlier. Therefore, the results of this paper bring important and valuable information into reliable measurement of intellectual capital and are a step forward to develop more valid methodologies within intellectual capital research.

Citation

Ståhle, S. and Ståhle, P. (2012), "Towards measures of national intellectual capital: an analysis of the CHS model", Journal of Intellectual Capital, Vol. 13 No. 2, pp. 164-177. https://doi.org/10.1108/14691931211225012