Pilot project III (2007)

Pilot project – phase III

Project titel: “Intellectual Capital Statement – Made in Germany” phase III
Project status:  concluded
Project partner: Federal Ministry of Economics and Technology
Project duration:   Autum 2005 – End 2007

New pilot companies

“Arbeitskreis Wissensbilanz” offered 40 other small and medium-sized enterprises (SMEs) the opportunity to implement their own intellectual capital statement with professional support. The aim of this project was to transfer intellectual capital statements to previously unconsidered sectors and to relevant applications in specific sections of an organization’s lifecycle.

SMEs from the following industries are involved in Phase III as user companies:

Consulting, automotive supplier, tourism, insurance, food industry, manufacturing industry, media and telecommunications, energy suppliers, chemical and pharmaceutical industry, information and communication technology, transport/logistics, health/medicine.

In addition, the intellectual capital statement will be used in three special cases to test to what extent the instrument can help,

  • to support the foundation of a company in an innovative technology area,
  • facilitate an upcoming succession situation in a (owner-managed) company and
  • to overcome a financial crisis in an organization.

Based on the tried and tested method and supported by the experienced experts from the pilot project, the companies are guided through the process of intellectual capital reporting, which essentially consists of three workshops and an accompanying survey of key figures.

User Companies for “Intellectual Capital Report Made in Germany” Phase III

Further project results

The aim is to consolidate the experience gained in the first two phases of the pilot project “Intellectual Capital Report – Made in Germany”, to investigate the effectiveness of the pilot companies and to extend the intellectual capital statement method with new modules. To this end, the international experts were reintegrated in order to further harmonize the existing approaches to intellectual capital reporting in Europe. A recommendation was made on how a common methodology can contribute to greater comparability of intellectual capital statements between companies. Together with the new modules “Interpretation of interdependencies” and “Derivation of change measures”, these minimum requirements for quality assurance were summarized in an expanded Intellectual Capital Statement Guide 2.0 and made available free of charge by the BMWA.

In addition, the financial market, represented by banks, investment firms and analysts, was to be more closely involved in the intellectual capital reporting community in order to be able to use the instrument on a broad basis for a holistic company valuation. The acquisition of fresh equity capital and borrowing, especially for future-oriented investments, was made easier for German SMEs. To this end, expert panels discussed the specific requirements from the point of view of the financial market, and an experiment with financial analysts tested the benefits of the intellectual capital statement in the evaluation of companies.