Intellectual Wealth of Nations Revisited: Operationalising the Value Cycle of Innovation

The objective of this study is to develop a conceptual framework for the measurement of the intellectual wealth of nations. Rather than persist with the outcomes‐based indicators of intellectual assets favoured by the World Bank and United Nations, we propose a process‐based approach that may be tied to the value of innovation. The resultant model comprises the key innovation life‐cycle processes of value creation, value indication and value protection aspects of intellectual capital. These three components of the model drive the national culture of innovation and thereby, contribute to development and growth. The empirical results of operationalising the wealth of nations suggest that such an approach is valid and feasible. This novel approach provides an agenda for future research that adds to the discourse on the theory of knowledge policy. Copyright © 2014 John Wiley & Sons, Ltd.