Intellectual Property Research Institute of Australia

IPRIA Working Paper Series

    Intellectual Property Research Institute of Australia Working Paper No. 16/2004

    Techniques for Measuring Intangible Capital: A Review of Current Practice

    by

    Laurie Hunter, Elizabeth Webster and Anne Wyatt

    Date: December 2004

    Abstract: This paper overviews international practices that measure firm-level investments into intangible capital. The paper is motivated by the large and ever increasing effort directed to developing metrics to measure intellectual capital. This effort is a response to the demand from corporations for these services which reflects a perceived gap in internal and external financial reporting on intangible investments. The main conclusion of the paper is to suggest that the way forward to a standardised, more comparable approach to measuring intangible capital is to employ a back to basics “costs” approach which classifies investments in intangible capital as assets based on management intent at the time the investments are made.

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