Decoding National Genius: Efficiency of Intellectual Capital Utilisation in the European Union
Decoding National Genius: Efficiency of Intellectual Capital Utilisation in the European Union

Summary/Abstract: This study examines the efficiency and development of National Intellectual Capital (NIC) among European Union (EU) member states from 2000 to 2022. Utilising a Data Envelopment Analysis (DEA) approach, the research assesses the effectiveness with which countries convert Human Capital (HC), Structural Capital (SC), and Relational Capital (RC) into innovative and economic outcomes, such as GDP per capita and the Global Innovation Index. The findings indicate both temporal convergence and regional disparities in NIC efficiency. Over the period, most EU countries have enhanced their capacity to utilise intellectual capital, resulting in increased homogeneity and resilience within the union. Regional differences persist: Northern and Western Europe, particularly Scandinavia, the Benelux, and parts of Western Europe, exhibit high DEA scores, indicating advanced innovation and robust institutions. Southern and Eastern Europe have lower efficiency due to issues related to education, research and development, and institutional factors. The study highlights Structural Capital's role in sustaining innovation efficiency, identifies Human Capital as the most adaptable and policy-sensitive component, and confirms that EU policies have gradually aligned national intellectual capital performance across member states.

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