1. Economics and IC Research JC Spender ESADE, LUSEM & Cranfield

2. my research program managing ? practice-based theory of the firm / organization (KBV ?) human agency - economics as capitalism’s art-form how this plays into the IC agenda IC research methodology implications reasonable expectations of IC research what else besides IC/IA measurement and valuation ? 25 - Jun - 20102IFKAD 2010

3. K-economy and IC ? intangibles, skills, KIFs, pizza (Davenport) capitalism’s evolution science, applied & technology luxury goods (Veblen) & roundaboutness (Böhm-Bawerk) ‘social sciences’ & HC private sector, public funding, regulation & risk-management ??? 25 - Jun - 2010IFKAD 20103

4. IC analysis is about economic valuation knowledge always grounded in effective practice value streams (Rob McLean) & rents investor = market / manager = use intangible means un-priced convergence ? accounting issues - firm value FV ac = f (TC + IC ac ) where IC ac = le (IC ach + IC acs + IC acr ) or iac (IC org + IC net + IC ip ) investor issues: transparency, cost of capital, risk management, etc. (Lev) 25 - Jun - 20104IFKAD 2010

5. managerial IC valuation - based on a ToF/BM FV RBV = r (rent-earning asset) ? FV KBV = s (IC rent-earning ) ? integration ? Adam Smith, PAT, TCE, TP, PR, etc. managerial ToF... g (TC*IC) Penrosian / Austrian approach separate TC and IC ? 25 - Jun - 20105IFKAD 2010

6. Knightian uncertainty U U - impossible to separate (TC*IC), complementary assets firm value - IC as bridge between asset cost and value stream IC type 2: sense-making - interpretive (cognition + practice )... IC sm methodological issues projective / subjective ethnographic FV 2 = w (TC*IC sm ) - where IC sm is less about K-assets and more a measure of management’s interpretative capability or ORs 25 - Jun - 20106IFKAD 2010

7. managerial agency IC type 3: constructivist - making both world (market) and firm Schumpeter versus Kirzner FV 3 = p (TC*IC ag ) - where IC ag is a measure of management’s entrepreneurial / artistic ability (DCs perhaps) methodological challenge research not agency but the constraints to and context of managerial agency ‘bounded rationality’ ≈ f (FV max - FV measured ) where FV max is unknowable 25 - Jun - 20107IFKAD 2010

8. IC research methods & findings 25 - Jun - 2010IFKAD 20108 market - made / pricedfirm-made / expectations certainty-based methods FV 1, market value, IC ac samples, hypothesis testing objective assessment, universal laws FV 2, use-discovery, IC sm idiosyncratic, projective methods, Kirznerian U - based methods evolution - Nature’s agency FV 3, use-construction, IC ag idiosyncratic, historical methods, Schumpeterian

9. 25 - Jun - 2010IFKAD 20109 IC-based value-creation ≈ entrepreneurship market - made / pricedfirm-made / expectations certainty- based methods FV 1, market value, IC ac samples, hypothesis testing objective assessment, universal laws FV 2, use-discovery, IC sm idiosyncratic, projective methods, Kirznerian U - based methods evolution - Nature’s agency FV 3, use-construction, IC ag idiosyncratic, historical methods, Schumpeterian A A B B

10. summary different - actors, valuation models, ICs & processes no convergence - absent certainty/equilibrium U -based ToF/BM makes managerial IC central historical trend of uncertainties engaged is our economy K -intensive or U -intensive ? agentic economy - firms as engines of U -economy growth IC is not only about accounting/investing under U economic focus is NOT on IC ac or IC sm - it is on IC ag 25 - Jun - 2010IFKAD 201010

11. 25 - Jun - 2010IFKAD 201011 the new economy