Chapter 8 – National Intellectual Capital Index: The Benchmarking of Arab Countries

The intellectual capital of a nation (or a region of nations as is the case for this paper) requires the articulation of a system of variables that helps to uncover and manage the invisible wealth of a country. Most importantly, an emphasis on human capital allows for a better understanding of the hidden values, individuals, enterprises, institutions, and communities that are both current and potential future sources of intellectual wealth. This paper endeavours to address the following five research questions: 1) What is the current state of research for the intellectual capital development of a nation? 2) What are the sub-components of intellectual capital development in the Arab region including human capital and structural capital (i.e., market capital, process capital and renewal capital)? 3) What are the dominant metrics and measures that identify and explain national intellectual capital development? 4) What are the antecedents and outcomes that explain the patterns of intellectual capital development? and 5) What are the implications for future development of intellectual capital in the region? The main outcomes of this paper are the development of a national intellectual capital measurement methodology and index. The NICI is also used within a structural equation model to test several hypotheses related to national intellectual capital development.

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