Measuring Intellectual Capital in European SME

To obtain competitive advantage in Europe, it is crucial for small and medium sized enterprises (SME) to utilise knowledge efficiently and to enhance their innovation potential. Several national approaches of managing Intellectual Capital exist, but there is no European wide consensus or any empirical validity regarding managing Intellectual Capital. The different approaches have to be brought together and a suitable method for SME with minimum standards on the European level has to be developed. This paper shows existing approaches on measuring Intellectual Capital as well as the necessity of a European approach and the potential impact of an Intellectual Capital Statement (ICS) on the European level.