Title: Measuring intellectual capital and sources of equity financing – value platform perspective within the Finnish biopharmaceutical industry

Authors: Raine Hermans, Martti Kulvik

Addresses: ETLA, The Research Institute of the Finnish Economy, Lonnrotinkatu 4 B, 00120 Helsinki, Finland. ' Helsinki University Central Hospital, Department of Neurology, P.O. Box 340, 00029 HUCH, Finland

Abstract: The aim of this study is to create a theoretically derived basis for measuring intellectual capital within the Finnish biopharmaceutical industry, and to relate these measures to ownership structures. Our empirical model employs survey data from small and medium-sized Finnish biopharmaceutical companies. The sources of equity financing are identified and the means of measuring Intellectual Capital (IC) in the value platform framework is created. Various sources of financing are related to the intellectual capital and other characteristic features of these companies. The biotechnology company owned by another firm is distinctive, corresponding to different strategic functions designated to the company by the owner firm. The largest investor group, venture capital companies, seem to prefer a well-balanced combination of intellectual capital. The other owner groups showed among themselves a rather similar pattern of investment preferences.

Keywords: biotechnology; capital structure; intellectual capital; knowledge management; measurement; biopharmaceutical industry; Finland; equity financing; investment preferences.

DOI: 10.1504/IJLIC.2004.005705

International Journal of Learning and Intellectual Capital, 2004 Vol.1 No.3, pp.282 - 303

Available online: 24 Nov 2004 *

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